ImpartialObserver

Registered with Property118.com
Monday 2nd July 2018


Latest Comments

Total Number of Property118 Comments: 5

ImpartialObserver

10:30 AM, 12th January 2022, About 2 weeks ago

Don't use the 'L' word

Reply to the comment left by Smiffy at 09/01/2022 - 19:26I'm glad you have the long-term investor mentality rather than the common "make a quick buck then kick 'em out onto the street" attitude that plagues the industry, but to add to my earlier reply, strictly speaking it's no longer solely "your" house once you rent it out. Unlike a licence-to-occupy, a tenancy, like a lease, is a form of temporary ownership. You'd never get a freeholder saying to a 99-year leaseholder "this is your home but it's my flat".... Read More

ImpartialObserver

10:19 AM, 12th January 2022, About 2 weeks ago

Don't use the 'L' word

Reply to the comment left by Smiffy at 09/01/2022 - 10:35"They are not entitled to that use, you permit it."
Actually no - once you rent it out you no longer have full ownership nor control, let alone "authority". You have a repair obligation and an exposure to an increase in the land value. The only legal recourse you have is via the court, subject to various hoops and hurdles.
Many old-school land"lords" would do well to realise that the person paying for their BtL mortgage should be regarded as a valued customer not some kind of inferior being to be treated like an infestation of vermin and who should defer to you as if you are superior to them. .... Read More

ImpartialObserver

9:52 AM, 12th January 2022, About 2 weeks ago

Cost of little know stamp duty niche to high value rents

'This tax must be paid separately from the rent payments via a declaration form SDLT1 to the Inland Revenue within 30 days of the date the tenancy commenced or the date the lease was executed, whichever is earlier.'
This makes no sense - a tenant wouldn't know within 30 days of the commencement of the tenancy whether they were likely to ever incur the tax.... Read More

ImpartialObserver

9:13 AM, 12th January 2022, About 2 weeks ago

Proposed £1100 licence fee for Landlords in Leicester?

You might decide to do a Freedom of Information request to reveal how many rogue and criminal landlords have been prosecuted for offences under the Protection from Eviction Act 1977 and how many Improvement Notices, etc have been issued or prosecutions made for non-compliance with similar notices and how many Prohibition Orders and Banning Orders have been made in the last twenty years.

If the result is low or even zero then that seriously calls into question the council's willingness to use any legal powers it already has to chase the bad guys and strongly hints that they are simply feathering their own nests by focussing on collecting money from the low-hanging fruit made up of honest, already mostly health-and-safety-compliant landlords that will not evade paying the proposed licence fees whilst the criminals continue to fly under the radar, hidden behind a mask of multiple layers of management, fake names and origami-prone Ltd companies.... Read More

ImpartialObserver

8:55 AM, 12th January 2022, About 2 weeks ago

Rent being held back by agent after slipping on to periodic tenancy?

You're not obliged to renew the contract even if "the laws & regs do change regularly"

The agent has a fiduciary duty to act in your best interest, not theirs.

The tenant will likely prefer a rolling periodic as they can stay twenty years or more without having to stress each year about whether you are willing to renew. The advantage for you, if you have a good trustworthy reliable tenant that you wish to keep, is that they won't be regularly thinking about moving in case of an expected annual rent increase forced on them by the agent under threat of an S21 not authorised by yourself.

You could also, of course, pay the agent their monthly fee and for other ad hoc services separately and require the tenant to pay YOU the rent by standing order instead of the money going via the agent - their contract is after all with you not the agent. Then you can perhaps reassess exactly what value the agent brings to the table other than "collecting" this standing order each month. Ask yourself how many months rent arrears you might temporarily allow from a good tenant of ten years that fell behind and was likely to pay off the arrears when they got back on their feet - three months maybe? Now ask yourself how much arrears ten years worth of agent fees represents and what actual work they've done for that money and at what hourly rate? E.g. could your tenant have been trusted to arrange their own annual gas check at their convenience for free and simply sent you the invoice? Are you losing up to one-year-in-ten's rent simply to have an agent appear to do work for you when the biggest thing they ever did was simply the initial introduction and supposed vetting?

In these expensive times of increasingly unaffordable rent increases and greater risk of default isn't it time landlords started trying to cut out unnecessary middle-man costs rather than expecting tenants to magically come up with extra money that puts them at risk of first a small degree of shortfall, then, once the line has been crossed ever-increasing arrears?... Read More