Good Landlording

Hosted by Suzanne Smith and Richard Jackson

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Dec 2024

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Podcast co-hosted by Suzanne Smith and Richard Jackson, who discuss practical tips to help you start, grow and succeed as a landlord in England

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December 18, 202418 min

What we learned in 2024 #37

In this episode of Good Landlording, Suzanne and Richard reflect on what they’ve learned as landlords in 2024, and what we’ll be doing differently in 2025. Their “landlord reflections” on the year. They discussed the challenges and changes they faced, particularly in light of the upcoming implementation of the Renters’ Rights Bill, sharing valuable lessons learned, including the importance of tenant screening, the impact of service charges, and why it’s valuable to have a strong network. Looking ahead to 2025, they outline their resolutions and plans for adapting to the ever-changing rental landscape, emphasising the ongoing demand for rental properties and the need for proactive management by landlords. Key takeaways These are the key takeaways from Richard and Suzanne’s reflections on 2024, looking towards 2025: Adapting to changes is crucial for landlords as we go through the upheaval that the Renters’ Rights Act will bring. Rent guarantee insurance is going to be even more important for new tenancies, even those with glowing references. Service charges can unexpectedly increase, requiring vigilance, and awareness of the risk of forfeiture. See Episode 24: Labour’s plans for leasehold and commonhold reform. Why spending money on inventories is worthwhile. The importance of having a contingency fund for unexpected expenses, and constantly checking for maintenance. Networking with other landlords can provide valuable support. EPC ratings will become even more important in the coming years, with the expected requirement for rental properties to have a C rating by 2030. Suzanne managed to get an EPC C without putting in wall insulation, but her walls weren’t single skinned, which helps. She put 300mm insulation in the loft and 150mm in the cellar ceiling. See Episode 31: What landlords need to know about EPC ratings. Try not to waste emotional energy by reading speculation in the press and in landlord forums. We should always keep our portfolio under review. Suzanne predicts Q4 2025 as the earliest for the “commencement date” of the Renters’ Rights Act. The demand for rental properties remains strong. Planning for the worst while hoping for the best is a sound strategy. Richard and Suzanne have a lot of projects planned for the New Year, and will be taking a break from the podcast. They thank everyone who has supported the podcast in 2024. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

December 4, 202424 min

How to find tenants using online letting agents #36

In this episode of Good Landlording, Suzanne Smith and Richard Jackson discuss how landlords can find tenants themselves by using online letting agents, instead of traditional high street agents. They share insights on creating effective property listings, the importance of quality photography, compliance with legal requirements, and the process of screening and selecting tenants. They emphasise the need for landlords to adapt to changing market conditions and to be thorough in their approach to tenant selection. >> Ask a question: Click here for question form Suzanne and Richard cover the following in sharing tips on the steps that landlords need to go through to successfully list properties on the portals and find good tenants: How technology has transformed the way landlords find tenants The increasing market share of online letting agents The steps landlords need to go through to list properties on the portals What material information is needed for the listing? Gathering the various safety and regulatory certificates to serve on the tenants Creating a compelling property description The importance of high quality photos, a floor plan and a video Screening applicants The rules about holding deposits Referencing Tenancy deposits Signing the tenancy agreement Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

November 19, 202421 min

Landlord guide to tenancy deposits #35

Tenancy deposits are important. They give landlords comfort that they won’t be out of pocket if there is damage to the property at the end of the tenants or if there are arrears. However, tenancy deposits are subject to a lot of regulation to ensure that tenants’ interests are protected. In this episode of Good Landlording, Suzanne Smith and Richard Jackson cover the following: The difference between custodial and insured deposits. The rules about tenancy deposits. What happens if landlords don’t comply with the tenancy deposit rules? How does a tenancy deposit differ from a holding deposit? What deductions can landlords make? Can landlords charge for their own time? Can a landlord replace something with an upgrade? What happens if the tenants won’t agree to the deductions? >> Blog post: What deductions can landlords take from tenancy deposits? >> Blog post: What landlords need to know about Deposit Protection Schemes Key insights about deposits Here are the key insights from the podcast episode. The rules about tenancy deposits are intended to ensure that deposits are properly protected, ad that the landlord makes appropriate deductions. Custodial deposits are held by third-party schemes, while insured deposits allow landlords to keep the money. Landlords need to register the deposits and provide the prescribed information about the deposit protection to the tenant within 30 days. If the deposit is not protected properly, tenants can claim compensation and a landlord won’t be able to issue a valid Section 21 notice. It’s essential to document the condition of the property with a detailed inventory, preferably done by an independent third party as that constitutes better evidence. Landlords can charge for their time spent on cleaning and repairs under certain conditions. (See the MyDeposits article explaining the circumstances where landlords can charge for their time). Disputes over deposits can be escalated to the deposit schemes. >> Related episode: How to manage tenants and keep them happy Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

November 12, 202418 min

Key insights from 2024 NRLA Landlord Conference #34

In this week’s episode of Good Landlording, Suzanne Smith and Richard Jackson discuss the key insights from the NRLA Landlord Conference in Birimingham on 5 November 2024, sharing useful information for landlords. This includes: Data from Richard Donnell of Zoopla, relating to the economics of investing, particularly the impact of higher interest rates on investors, and his prediction that rental growth will slow to around 3-4%.. James Caan’s advice to entrepreneurs to be flexible, be creative and be prepared for failure, as failure can lead to success. He also underlined the importance of people, building relationships and keeping learning. The importance of having swift resolution of cases by the redress schemes, and Suzanne’s wish for the decisions to be publish so that the case law develops. Technology promises to grow in importance for landlords, and there is certainly demand there. However, there is currently no “end to end solution” that does it all. Is Andy Burnham’s Good Landlord Charter in Greater Manchester an unnecessary accreditation? (More details here: Good Landlord Charter) The merits of investing locally. Why it’s so wonderful meeting other landlords in person.

November 5, 202428 min

Q4 2024 update: Budget, Renters' Rights and rental trends #33

In their rental market update for Q4 2024, Suzanne Smith and Richard Jackson discuss the impact of Labour’s first budget on landlords and property investors, the latest on the Renters’ Rights Bill and what’s happening with rental trends. >> Ask a question: Click here for question form What we cover in this episode Labour’s Autumn Budget What’s happening with the Renters’ Rights Bill Softening of rental demand Labour’s Autumn Budget Richard and Suzanne discuss the key changes for landlords and property investors in the budget: SDLT. The Chancellor increased stamp duty by 3% for “additional properties” on 31 October 2024 and there will be a further increase on 1 April 2025, when the first threshold will be lowered from £250,000 to £125,000. This will add £2,500 to the amount of stamp duty payable on the average property. Capital gains tax – no change for property investors. Income tax – the impact of fiscal drag is that the amount of tax people pay will increase in real terms as the bands are not being increased byt inflation. National insurance contributions – the budget increased employer national insurance contributions and lowered the threshold, meaning that employers will need to start paying NICs at a lower amount. Pensions – no changes to potentially exempt transfers or the various caps, but most unused pension funds and death benefits will be included within the value of a person’s estate from 6 April 2027, which means they could be subject to inheritance tax of 40%. >> Blog post: What the 2024 Autumn Budget means for landlords and property investors What’s happening with the Renters’ Rights Bill The Renters’ Rights Bill is making good progress through the House of Commons, and entered the Committee Stage on 22 October 2024. The Committee are going through the Bill on a clause by clause basis. The Housing Minister has made it clear that they won’t be backing down on fixed terms or making exceptions for students. The ambiguity around up front rent payments has been discussed a lot, and the Minister said he will make the position clear in the Bill. >> Blog post: The latest on the Renters’ Rights Bill >> Related episode: What the Renters’ Rights Bill changes about rent Softening of rental demand There are signs that the renal market is slowing down, with demand softening. Anecdotally, Richard and Suzanne have recently seen it in London and Kent respectively. This is backed up by Rightmove’s Rental Trends Tracker for Q3 2024 which says the average number of enquiries per rental property is now 15, down from 23 last year. However, this is nearly double the 8 before the pandemioc in 2019. The advertised rental price is dropping before finiding a tenant for more than a fifth of rental properties. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

October 29, 202432 min

Are landlords working people or is it passive income? #32

Hot on the tails of Keir Starmer’s controversial assertion that landlords aren’t “working people”, as it’s passive income, like income from shares, Suzanne Smith and Richard Jackson discuss objectively the extent to whether income from residential rental properties can be considered “passive”. Stepping back from the political debate, they examine “passive income” means, and contrast it to what landlords need to do to earn money from their rental properties. Although property “gurus” claim that rental income is passive, there is a trade off between outsourcing and profit. It’s also the wrong mindset. >> Blog post: Can landlords make passive income from rental property? >> Ask a question: Click here for question form What we cover in this episode Different types of landlords What does “passive income” actually mean? How do landlords make money from rental properties? What do landlords actually do to earn money? Landlords’ legal obligations Other strategies Final thoughts Different types of landlords There are two key types of residential landlords: part-time landlords who manage properties alongside a full-time job, and professional landlords who manage their property portfolios as their main occupation. Richard emphasises that even part-time landlords work very hard, juggling their careers with property management. Suzanne adds to this by discussing the responsibilities and engagement required, even for those landlords who might have fewer properties. Landlords who manage properties themselves do not earn passive income – it is a job. On the other hand, income from landlords with full repairing commercial leases is more passive. What does “passive income” actually mean? HMRC considers passive income to be investing in assets, and not from running a trade or a business, or being an employee. They give examples such as interest payments from bank accounts, annuities, and dividends from money invested in the stock market, and don’t refer to rental income. Forbes frames it as income that doesn’t need a significant commitment of time or effort to earn, with only minimal monitoring on an ongoing basis. They say that rental income doesn’t fall within the definition of passive income as it requires a large up-front investment, as well as ongoing maintenance and management of the property. Despite what the “property gurus”, earning rental income as a landlord isn’t the same as getting interest from money in a bank account, or dividends from stock market investments. However, is it right to say that landlords really earn money with minimal effort? How do landlords make money from rental properties? Landlords earn money from rental income and capital growth. Landlords need cashflow from rent in order to pay the bills while they are waiting for capital growth, unless they are going to dip into their savings. Capital growth is never guaranteed. Although property prices boomed in London in the past, anyone who bought a flat in London over the last 5 years will know that capital growth is not a given. Suzanne barely broke even on her flat in Cambridge in 7 years, despite it being a fantastic flat a great location. What do landlords actually do to earn money? But before landlords earn anything, they need to find, finance and buy a new rental property, which is time-consuming and expensive. Then they need to refurbish the property (unless it’s a new build), make sure it’s compliant, and then find suitable tenants to rent the property. Once tenants move in, they will need managing, and the property will need ongoing repairs and maintenance to keep the property in great condition, and compliance with landlords’ various legal obligations like the annual gas safety certificate. There is always a lot of work when tenants change over. It is running a business. If landlords outsource these activities, the income can be more passive, but that will reduce margins. There is a trade-off between a landlord’s involvement and the level of profits. Outsourcing comes at a cost, and will depend what the landlord wants to do and what’s right for them at their stage of life and their aspirations. If a landlord has another full-time job, they may want to outsource, and if they go into property full-time, they may want to take more control, maybe even hiring a part-time property manager, to get economies of scale. >> Related episode: #28: How to manage tenants and keep them happy >> Related episode: #10: Tips to help landlords self-manage their buy to lets Landlords’ legal obligations Being a landlord comes with a lot of legal responsibilities. The buck always stops with the landlord, even if they use agents. It’s also going to get more complicated with the Renters’ Rights Bill, with the fines increasing, rent repayment orders, and things. And, you know, being a landlord comes with a lot of legal responsibility. Suzanne believes it’s irresponsible and misleading to use the term passive income as that it plays down the fact that being a landlord involves risk and responsibility for the safety of their renters. This means that landlords need to have the knowledge to be able to supervise their agents as well. Landlords need to “skill up”, and be on top of their legal responsiblities. It should never be a question of “let and forget” from the landlord’s perspective if they use agents to manage the property. Instead it should be “let and check”. Landlords need to supervise letting agents to make sure they’re doing a good job. It doesn’t go without saying. Other strategies The new Renters’ Rights Bill will be increasing the liability on landlords who enter into rent-to-rent arrangements due rent repayment orders and the abolition of Section 21, to the extent that this will be even less of a viable strategy for landlords who are looking for passive income. Supported living and leasing a property to a social housing provider, on the other hand, will be less risky from a Renters’ Rights Bill perspective as there will be new Section 8 grounds for possession for both. >> Blog post: #22: Making a success of supported living with Lisa Brown Final thoughts To be a landlord, you need to have an entrepreneurial spirit, and be comfortable with hard work and risk. Otherwise people would be better off putting their money in a bank, the ultimate passive income. Suzanne says that landlords must get rid of the mindset of it being passive income as it’s not. Instead, we’ve got to think about how much involvement do we want, and how much control do we want. The days of being amateur landlords has gone. To succeed, landlords need to have a more professional approach. Being a landlord, while potentially profitable, involves significant active management by someone (whether or not it’s a letting agent) and should not be considered passive income. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

October 23, 202426 min

What landlords need to know about EPCs #31

This week, Suzanne Smith and Richard Jackson talk about a subject that causes a mixture of angst and even anger among landlords, and that’s EPCs, or Energy Performance Certificates. EPCs are very important for landlords, as the government announced in September that they’ll be consulting on proposals for private and social rented houses in England to achieve EPC rating C by 2030. They start with a recap on what EPCs are and the current minimum EPC for private landlords, before discussing problems with unreliability, and government plans to increase the minimum rating to a C and improve the reliability of EPCs. Suzanne goes through what we know about the new Warm Homes Local Grants that will available for some private landlords from 2025, and they both end with some practical tips and ideas for improving the rating. >> Ask a question: Click here for question form What we cover in this episode The new consultation for private rented properties to have EPC C What is the average energy efficiency rating in the PRS? What is an EPC? How to find out what EPC a property has What rules do landlords need to comply with relating to EPCs How accurate are EPC ratings? Do EPCs help lower emissions? Warm Homes: Local Grants Tips for improving your energy efficiency ratings The new consultation for private rented properties to have EPC C The government announced in September that they’ll be consulting on proposals for private and social rented houses in England to achieve EPC rating C or the equivalent by 2030. What is the average energy efficiency rating in the PRS? According to the latest government figures, the average EPC rating for the private rented sector in England and Wales is D (65) for existing properties. (Rating C starts at 69). However, the figure of 65 includes flats, which tend to have a higher EPC rating, as well as post-war properties. What is an EPC? “EPC” stands for energy performance certificate. It was originally introduced by the European Union, and was designed to make the energy efficiency of buildings more transparent and comparable between different properties. It’s a certificate, which shows the rating of the property’s energy efficiency, ranging from the most efficient at an A to the least efficient at a G. A qualified energy assessor creates an EPC by inputting information into government approved software about the building, its heating, lighting, ventilation, air conditioning Consequently it’s important that the energy assessor inputs accurate information into the software. How to find out what EPC a property has It’s easy to look up the EPC rating of any property by using the Find an energy certificate checker. This is very useful for landlords as they can look up the EPC ratings of other properties in the same street and see which assessors have done the ratings. What rules do landlords need to comply with relating to EPCs Currently, rental properties must have an EPC rating of either at least an E or for the landlord to have spent up to the cost cap on improvements, ie £3,500 (inc VAT) on energy efficiency improvements. The landlord must have commissioned the EPC before listing a property, and must use “all reasonable efforts to obtain one within seven days”. Landlords need to provide tenants with a copy of the full EPC with the assessor’s report before they sign the tenancy agreement. If they don’t do this, they may be unable to serve a Section 21 notice. An EPC is valid for 10 years, and doesn’t need to be renewed until the property is listed for sale or rent after it expires. . And, of course, that’s soon gonna be phased out anyway. Yeah. And so an EPC is valid for ten years. And a question How accurate are EPC ratings? EPC ratings are notoriously variable and unreliable, and there’s much academic research which concludes the same. For instance, research by Leeds Beckett University (2019) found that “27% of EPCs in the open EPC record display at least one flag to suggest it is incorrect and estimate the true error rate of the EPC record to be between 365 and 62%”. Energy assessors often make assumptions (for instance, about the amount of insulation in the loft) that prove to be incorrect. It’s important to supervise energy assessors to make sure they make the correct assumptions, and do actually check the loft. If you’ve done any work on the property, for instance put in insulation in the cellar ceiling, go armed with records and photos to show the assessor. Do EPCs help lower emissions? Research for the Passivhaus Trust says that EPCs do not reduce “if you want to drive energy efficiency, and EPC ratings are not the answer […] Using the EPC rating to try and drive lower emissions is unlikely to work in practice.” Warm Homes: Local Grants The government announced the new Warm Homes: Local Grants in September 2024 for England. This will enable some private landlords to benefit from local authority grants for energy performance upgrades and cleaner heating from 2025. To qualify for the grants, private landlords will need to meet the following requirements: The current EPC rating must be D to G. The household must meet one or more of the eligibility criteria: the property is in an IMD:ID postcode (Indices of Multiple Deprivation and Income Deciles), the household receives specific means-tested benefits or the household’s gross annual income is below £36,000 (every adult member of the household counts, other than those in full-time education.) Landlords with eligible properties will be able to receive 100% funding for the first property, and a 50% cost contribution for upgrading any additional homes. The cost cap structure has a cap of £15k per home for energy performance upgrades, and a cap of £15k per home for low carbon heating. The landlord must declare they don’t intend to raise rents as a direct result of the installation of the energy efficiency upgrades and give consent to participate in a data gathering survey for the Department for Energy Security & Net Zero. >> Useful resource: The new Warm Homes: Local Grant explained Tips for improving your energy efficiency ratings Increasing loft insulation is a very cost effective way of improving an EPC rating. Other methods are energy efficient lightbulbs, thermostatic radiator values, a new efficient boiler, insulating the floor and walls, and installing double-glazing. >> Related episode: What should landlords do about damp and mould? Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

October 16, 202424 min

What should landlords do about damp and mould? #30

How can landlords intervene to break the cycle of damp and mould in their rental properties? No-one likes living in a property with black mould, and the death of toddler Awaab Ishak in 2020 after developing breathing problems because of the black mould in the flat his parents rented from a housing association show just how important it is for landlords to take damp and mould seriously. There’s often more than one cause of black mould, and it’s important for landlords to get to the bottom of it. This is another very practical episode for landlords. Suzanne Smith and Richard Jackson discuss the different types of damp, what causes black mould, the practicalities of landlords’ responsibilities, what landlords should do if a tenant reports damp and mould, and some practical tips to help landlords and tenants to stop condensation mould coming back. >> Ask a question: Click here for question form What we cover in this episode What are landlords’ legal obligations about mould? The Decent Homes Standard and Awaab’s Law The different types of damp 2. Condensation damp 2. Water penetration 3. Rising damp What is black mould? What causes black mould? What must a landlord do if a tenant reports black mould? Tips to reduce the risk of black mould The importance of keeping records The importance of a collaborative problem-solving approach with tenants What are landlords’ legal obligations about mould? The law requires all privately rented properties to be fit for tenants to live and free from serious hazards that are harmful for health. If damp and or mould are present in a rental property, it’s the landlord’s responsibility to identify the underlying causes of the problem so that they can be addressed. In fact, Government Guidance published in 2023 states that landlords must take damp and mould seriously, assess the underlying causes with urgency, take appropriate action and keep tenants informed. Landlords have a legal obligation to maintain the fabric of the building, and remove the source of the moisture to reduce the risk of damp and mould. From a practical perspective, this means that landlords should fix such as misaligned downpipes, blocked guttering, leaking waste pipes, missing roof tiles etc. Tenants on the other hand are responsible for keeping the property in a “tenant like manner”. >> Related blog post: What does “tenant-like manner” mean? >> Related blog post: How should landlords best tackle damp and mould? The Decent Homes Standard and Awaab’s Law The Renters’ Rights Bill is introducing some new obligations on private landlords, not only to comply with a new decent home standard for the PRS, which will the hazards of damp and mould, but also Awaab’s Law. “Awaab Law’s” is the name given to Section 42 of the Social Housing (Regulation) Act 2023 which requires social landlords to fix reported health hazards within specified timeframe, still to be confirmed. The Renters’ Rights Bill will extend Awaab’s Law to the private rented sector. They haven’t yet clarified how they will do this, although in the Guidance to the Renters’ Rights Bill says that details will be set out in regulations, after consultation on how best to apply Awaab’s Law to the PRS “in a way that is fair, proportionate and effective for both tenants and landlords”.Second Reading . T >> Related episode: Election special: What the manifestos say about rental reform >> Related blog post: Renters’ Rights Bill and the Decent Homes Standard for the PRS The different types of damp 2. Condensation damp Condensation damp happens when warm moisture vapour that’s created inside a property from breathing, cooking, showering, and drying washing, cools and condenses into water when it touches, cold parts of buildings, such as outside walls and windows. You often see condensation on a windows and it’s worse on outside walls. Condensation sometimes isn’t visible as it starts to grow in hidden places where there isn’t a lot of air flow or where water pools. For instance the top of skirting boards, the corners, low points on the walls, behind sofas and other furniture on outside walls, and in the corners of the ceiling. It then suddenly becomes visible when the temperature drops, spreading from behind the furniture. The key causes of condensation are poor ventilation and or inadequate heating. Condensation is a very common source of black mould. 2. Water penetration Water penetration involves water gets into the building from outside due to defects in the walls, or from the inside. Outside sources are missing tiles on roofs, blocked gutters, misaligned downpipes, bridging from a raised ground level where there isn’t a French drain. When it comes to water on the inside, that includes leaking waste, heating pipes, broken seals around showers, overflowing baths, leaking radiators, you know, a whole host of things. Water penetration can lead to black mould. 3. Rising damp Rising damp, on the other hand, involves water rising from the ground by capillary action. The water carries salts from the ground, which travel up through the wall. As mould can’t grow where salt is present, if there’s black mould, it’s not rising damp. What is black mould? Black mould is a fungus which thrives in damp and dark places, and especially the wet conditions caused by condensation. It’s often found in kitchens and bathrooms, where there is a lot of moisture. It can be a problem in small rooms as they cope with moisture less efficiently. What causes black mould? Landlords are responsible for maintaining the fabric of the building and removing the source of the moisture to reduce, damp and mould. Therefore, it’s important to get to the bottom of what’s causing the black mould, and there might be more than one cause. Culprits may be leaking internal pipes, leaks from showers and bathrooms due to worn sealant, damaged walls. Sometimes a room may be inadequately heated, and replacing a single panel radiator with a double panel radiator or putting more insulation in the loft may help. Sometimes tenants don’t ventilate the bathroom properly by opening the window or turning on the extractor. Drying clothes on radiators can create a lot of moisture. This is where education comes in. Wallpaper can make it worse, as it acts as a damp sponge. Suzanne uses and recommends Ronseal Anti-Condensation Paint (Amazon affiliate link) as it raises the temperature of the wall and helps prevent condensation. What must a landlord do if a tenant reports black mould? If a tenant reports mould to direct a landlord or to a letting agent, Government Guidance says it’s crucial for the landlord to take it seriously and assess the issue with urgency to identify its severity. They must always identify and tackle the underlying causes promptly. Landlords also need to keep tenants up to date with what is being done to resolve the issue and the likely time scales. As mould often appears in November, it’s a good time to inspect a property to see if there are the tell-tale signs behind furniture, or a musty smell. Finding the cause of the mould is key, as that will determine what action the landlord takes. Suzanne recommends getting a damp expert to try to diagnose the source of the problem. Tenant education is really important, and it’s a good idea to give tenants a condensation fact sheet, for instance this Condensation Fact Sheet from the NRLA (document only available to members – the code SSAFF15 gives £15 off the first year’s NRLA membership). >> Useful resource: Checkatrade advice on how to find a good independent damp surveyor Tips to reduce the risk of black mould Here are some tips to reduce the risk of black mould: Clean bathrooms and kitchens regularly with an anti-mould product. Tenant education, so they understand what causes moisture inside, and what they need to do to stop it building up. Provide tenants with a copy of the NRLA Condensation Fact Sheet. Adequate heating. Install quiet extractor fans that are vented to the outside in kitchens and bathrooms, with the bathroom fan on a timer. Opening windows briefly each day, especially in bathrooms and bedrooms. Replace dingle panel radiators with panel radiators. Instal double glazing with trickle vents, and explain to the tenants to leave the vents open. Leave a gap of at least ten cm between the furniture and the external walls to help air circulation. Dry clothes outside or in a tumble dryer that is vented to the outside or which has a condenser. Use an anti-condensation paint such as Ronseal Anti-Condensation Paint (Amazon affiliate link) Install a PIV unit (positive input ventilation) to bring in dry air and remove moist air. Inspect the property regularly after any remedial work to check the mould has not come back. The importance of keeping records It is really important for landlords to keep records to show how they have responded to reports of damp and mould. Follow up any verbal conversations in writing so there is a written record. The importance of a collaborative problem-solving approach with tenants Take a collaborative approach to tackling mould with tenants – joint problem solving and education. It shouldn’t be an “us and them” situation. Encourage tenants to report it as soon as they see it, as it’s easier to treat in the early stages. >> Blog post: How should landlords best tackle damp and mould? Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

October 9, 202430 min

Renters' Rights Question Time #29

Following the publication of the Renters’ Rights Bill a little under a month ago, and in honour of the Second Reading of the Bill in the House of Commons today, Suzanne Smith and Richard Jackson answer some of the many questions they’ve received from listeners of Good Landlording about different aspects of the Bill. The episode is full of practical advice, and explains the areas where things aren’t yet clear. On that note, it’s of course course subject to the usual disclaimer that the Bill still isn’t finalised, and some of the wording is ambiguous. The questions about the Renters’ Rights Bill cover topics as diverse as rent, what happens when Section 21 is abolished, the transition arrangements, the treatment of antisocial behaviour, pets, students, and the possible impact on leaseholders. There is a worked example of the transition arrangements in the show notes below. >> Ask a question: Click here for question form Questions we answer in this episode Detail on the new rules on rent What happens when Section 21 goes? What happens to Section 21 notices pending on Commencement Date? What are the current time limits for Section 21 notices? General rule for Section 21 notices served before the Commencement Date Example timeline assuming Commencement Date is 1 July 2025 Transition arrangements – worked example Pets Students Impact on landlords who are leaseholders Detail on the new rules on rent Here are the questions from listeners about how the Renters’ Rights Bill changes rent: It seems that it is possible to increase a rent to market rent and not to a fixed percentage increase? Isn’t this a good thing for Landlords? I’m struggling to find the clauses dealing with “no advance rent payments”. Is that a thing? It’s been mentioned quite a bit by various people, but in your recent podcast, Suzanne said it’s not clear. Can she explain more about that? >> Related episode: #27: What the Renters’ Rights Bill changes about rent >> Blog post: The new rules about rent in the Renters’ Rights Bill What happens when Section 21 goes? Here are the questions from listeners that relate to the abolition of Section 21 in the Renters’ Rights Bill: Can a tenant under the new legislation avoid eviction by staying 2 months in rent arrears, so they avoid reaching the three month threshold for eviction? Can you expand on how Anti-Social Behaviour is treated in the RRB, please? If you want to sell your HMO, (not to family), it mentions tenancies of not less than 12 months which is not possible in an HMO? Okay if you are selling it on as an HMO but if not? I entered into a 12 month AST with tenants on 1 August 2024, and I don’t want to renew with them next year. Can I serve a s21 notice now? What happens if I serve a s12 notice just before the s21 is abolished? >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: How and when will Labour abolish Section 21 no fault evictions? What happens to Section 21 notices pending on Commencement Date? When the Renters’ Rights Act comes into force, the general rule is that all Section 21 notices that have been served before the Commencement Date (when the new tenancy system comes into force) will still be valid. However, there are some rules regarding how long a landlord will have to apply for an order for possession after the the notice expires before it becomes time-barred. What are the current time limits for Section 21 notices? The current rules are that the Section 21 notice can’t be served in the first 4 months of a tenancy. However, if the tenants ignore the notice and don’t move out when it expires, the landlord must apply for an order for possession within 6 months of the date the notice was served. This rule will be modified for Section 21 notices that expire after the Commencement Date. General rule for Section 21 notices served before the Commencement Date All notices that are served before the Commencement Date will still be valid, and the tenancy will remain an assured shorthold tenancy, and the landlord will be able to enforce the notice by bringing an order for possession until they are time-barred. This means they will need to commence proceedings for an order for possession within 3 months of the Commencement Date, and even earlier if the notice was served more than 2 months before the Commencement Date, otherwise they will be time-barred. There is often a backlog at the courts, so landlords should err on the safe side. If the Section 21 notice expires more than 3 months after the Commencement Date, the landlord will not be able to obtain an order for possession from the court. Example timeline assuming Commencement Date is 1 July 2025 This timeline shows the last date to serve a Section 21 notice and apply for an order for possession, based on a Commencement Date for the new tenancy system (including the abolition of Section 21) on 1 July 2025. It almost certainly won’t be 1 July, and it’s a random date chosen to help illustrate the point. 30 June 2025 Last date s21 notice can be served Section 21 notice must be served before 4:30pm on the last working day before the Commencement Date 30 June 2025 01 July 2025 Commencement Date of Act* This is the date the new tenancy system comes into effect (random date for illustration purposes). 01 July 2025 30 September 2025 Backstop date to commence proceedings for order for possession This is three months from the Commencement Date, and will be be earlier if the landlord served the notice more than 2 months before the Commencement Date. 30 September 2025 Transition arrangements – worked example For our worked example, let’s assume the fixed term runs from 1 August 2024 to 31 July 2025. The landlord has the earlier of 4 months from the expiry of the notice on 31 July 2025 (30 November), and 3 months of the Commencement Date (30 September) to bring an order for possession. As 30 September is the earlier date, a landlord won’t be able to bring an order for possession after that date. This is all subject to the landlord needing to bring an order for possession within 6 months of the date they serve the notice. To recap, the landlord must commence proceedings for an order for possession before the earliest of these three dates, to avoid being time-barred: 6 months from the date of the notice 4 months from the expiry of the two months’ notice 3 months from the Commencement Date. Practically, it means that the landlord mustn’t serve a Section 21 notice too early, otherwise they may be time-barred from enforcing it. However, they need to allow enough time to for the court to issue the paperwork. It is strongly advised that landlords take legal advice on this from specialists solicitors. (Send a message via our contact form if you would like a referral). Landlords also won’t be able to enforce a Section 21 notice for fixed term tenancies that expire on or after that 3 month window following the Commencement Date. Practically the deadline is even earlier as the landlord would need to allow for enough time to apply for an order for possession before the 3 month window ends. Pets Here is the question about pets: What happens if the landlord doesn’t respond within the allotted timescale. Surely, if they don’t respond, the tenant should be allowed the pet. The legislation doesn’t deem consent to be given or not given. It just leaves it open, so we are left in limbo land. Students Here are two questions that cover letting to students: Is the government considering making an exemption and allowing fixed term contracts for private sector student landlords so as to enable them to let in alignment with the academic year? What transition arrangements will there be for the 2025 student changeover if the RRB comes into effect just before the summer? Impact on landlords who are leaseholders Finally, here is a question about the potential impact the Bill will have on landlords who are leaseholders: The new Renter’s Rights Bill will currently make superior landlords (freeholders in the case of leasehold flats) fully responsible for the tenants and any rent repayment orders along with increasing the fines substantially. Why would any of them grant their leaseholders permission to rent out their apartment once this has been introduced? It would seem that there will be a mass exodus or renting by the freeholders. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

October 2, 202424 min

How to manage tenants and keep them happy #28

Good tenants are precious, and landlords should do all they can (within reason!) to keep them happy and encourage them to stay. In this episode of Good Landlording, Suzanne Smith and Richard Jackson talk about how to keep tenants happy. Starting off on the right foot even at the viewing stage, so it creates a positive impression for new tenants, and keeping them happy once they’ve moved in. They borrow some ideas from the management of employees, and apply them to the management of tenants. This starts with an “onboarding” process to create a positive relationship – or the “psychological contract” in management speak. It’s not all management theory. The episode is full of lots of practical tips to help landlords look after their tenants and keep the tenants happy. >> Related episode: #1: What makes a good tenant? >> Ask a question for the show: Click here for question form What we cover in this episode What is “onboarding”? Why the “psychological contract” is important? What is a tenant onboarding or induction? Tenant reviews of landlords – Marks Out of Tenancy Provide a welcome pack or house manual to tenants What quiet enjoyment means Managing repairs Be professional and business-like What is “onboarding”? Richard and Suzanne have both worked for American companies, and are used to the concept of “onboarding programs” for new employees. Onboarding is similar to what we call an an induction in the UK, but is more than that. It involves, welcoming a new employee into a company, showing them the ropes, and explaining what support there is, and also what the expectations are for the working relationship. Why the “psychological contract” is important? This onboarding idea is an important part of what’s called the “psychological contract” between a company and an employee. It’s how both parties understand their relationship outside of their formal contract of employment. It’s all about how the employee feels about their boss and the company. It can be positive, or negative, and it starts at the interview stage. A similar psychological contract arises between tenants and landlords. Instead of a contract of employment, there’s a tenancy agreement. This psychological contract is how the tenant feels about their rental property and their landlord, and is key to having happy tenants. We need to think about the psychological contract as starting from the very first moment that we meet the tenant when we’re choosing them through agents or whether we’re doing it ourselves. It continues when they move in and throughout the rest of the tenancy, until they eventually leave. What is a tenant onboarding or induction? Suzanne sees the relationship starting once she receives a message from an applicant through the online letting platform. Before they even view the property, she will have sent them suitability questions and may have called them (to avoid time-wasters). She also sends them a a link to the website for her property business, which has FAQs and a pet policy. At the viewing itself, she explains she’s an Accredited Member of the NRLA, and that she’s a good landlord who takes her obligations seriously and keeps the property in good repair. She sets expectations by saying she is looking for good long term tenants who look after the property, pay the rent on time, and are good neighbours. If they have a pet, she’ll talk about her pet policy, and she tells them she increases the rent each year. This all ensures they know what they’re getting before they make an offer to rent the property and send the holding deposit. Both Richard and Suzanne show the tenants around the property when they move in, and leave a house manual / welcome pack. Here are a few tips of things to cover when tenants checkin: Communication: explain the means of communicating with tenants, such as a WhatsApp group with the tenants to make it easy to contact each other. Inspections: Suzanne calls these “maintenance visits” as that’s more collaborative. Set expectations for the frequency. She does the first visit a fortnight after the tenants move in to check if any repairs are needed, and answer questions. After that, she does inspections every 6 months or so. Waste management: when are the bin days, and explain they shouldn’t leave the wheelie bins on the pavement. Stop cock: show them how to turn off the water. Meters: show them where the meters are, including the water meter which is often on the pavement, and point out that the inventory will have photos of the meter readings from just before they moved in. Pets: if they have pets, go through the pet policy, and stress that dogs should not be left alone for more than 4 or 5 hours. Additional occupiers: make clear that they cannot sublet without permission and that they need to obtain formal consent if they would like someone else to move in. Tenant reviews of landlords – Marks Out of Tenancy If the landlord has had reviews from tenants, it’s a good idea to send a link to the reviews to applicants, or put a link on the landlord’s website. Some large landlords may have Google reviews (for instance Chester Homeshare). An alternative is Marks Out of Tenancy. It’s an independent review site that is specifically set up for tenants to rate their landlords and letting agents. It has both good and bad reviews, and the idea is that it will help tenants see who the good landlords are. A bit like a Tripadvisor for the PRS. Landlords should encourage their tenants to leave reviews on Marks Out of Tenancy. Provide a welcome pack or house manual to tenants Landlords should give tenants a welcome pack or house manual with useful information about the property and the area. Suzanne leaves a QR code for her electronic house manual, a specific password protected page where she uploads the latest version all the relevant documents such as gas safety certificates, How to Rent guide, and information about the house. Here is a link to a template page of her house manual. What quiet enjoyment means A tenancy agreement is a form of lease, which means the tenants have the right to live in that property, and it “belongs” to them for that period of time. Consequently, the landlord can only enter a single let property with the permission of the tenants, unless there’ is a, an emergency or something like that’s an emergency. Even if a clause in the tenancy agreement says the landlord or letting agent can enter the property with notice, they still still need to have the tenant’s permission. The right to quiet enjoyment trumps this contractual right. Managing repairs Sometimes when a tenant reports a repair, they don’t hear anything. It doesn’t mean nothing is happening, as the landlord or agent may be getting quotes or finding someone to come out. But if they don’t tell the tenant what’s happening, they don’t know. Both Richard and Suzanne will ask the trades person to contact the tenant direct to arrange a visit, provided the tenant is happy with this. Sometimes tenants aren’t around in the day, and they give permission for the landlord or agent to let themselves in. Be professional and business-like It’s important to be professional and business-like, and not get emotionally involved. Have excellent customer service, be fair and reasonable, but still set boundaries. This includes making clear that it’s a two way process: the landlord carries out repairs and they pay the rent and look after the property. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: “Paradise Found” by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.