Robert Mellors

Registered with Property118.com
Saturday 26th October 2013


Latest Comments

Total Number of Property118 Comments: 998

Robert Mellors

11:48 AM, 14th June 2019
About 4 days ago

Should landlords have the right to refuse DSS tenants?

I will defend Amelia here, because to me it is quite feasible for her to only make a net profit of £30 per month, indeed many landlords will make a net loss on their property lettings (especially when HMRC send them the tax bill, as thes24 taxes start to come into effect). I don't think she has stated anywhere that it is a gross profit, so it presumably already takes into account the cost of maintenance, and new kitchens/bathrooms, and all other regular or anticipated costs. She may struggle if a tenant causes significant damage, or if there are other unanticipated costs, but of course this could be offset by the increases in capital values of the properties, in which case she could have a £nil net income from the properties, and still operate her lettings business.... Read More

Robert Mellors

10:17 AM, 14th June 2019
About 4 days ago

Should landlords have the right to refuse DSS tenants?

Reply to the comment left by MoodyMolls at 14/06/2019 - 09:26
I get £3.70 per week direct deductions from my tenants benefits for rent arrears, but once the tenant moves out the DWP usually stop these payments. I have never come across any court that has applied to the DWP for benefit deductions for payment of rent arrears owed by a former tenant, so would be very interested in how to do this?... Read More

Robert Mellors

12:00 PM, 12th June 2019
About 6 days ago

Should landlords have the right to refuse DSS tenants?

Reply to the comment left by Mick Roberts at 12/06/2019 - 11:40If only they would listen to us Mick!!!
I've also scheduled this post to go on my Choice Housing Ltd Facebook page, and my Linked In page, at 8.45am tomorrow morning, so if you and other landlords are on Linked In or Facebook, then you can simply "share" the post to any social media you are on. (The post itself is too long for Twitter, but you can "share" (tweet) the link to the post).... Read More

Robert Mellors

10:42 AM, 12th June 2019
About 6 days ago

Should landlords have the right to refuse DSS tenants?

Fact: It costs the landlord more to house benefit tenants (wear and tear, damage, lack of ability to recover debt, etc).

Fact: Landlords generally receive less rent from benefit tenants, as the LHA rates are lower than the "market rent".

Fact: Benefit rules/regulations mean that rental payments can stop suddenly, and landlord is unable to get the benefit back into payment (as it is the claimant who has to take whatever action is required).

Fact: If benefit is paid direct to landlord, then council/DWP can recover it from the landlord if the tenant was not entitled to it, even if the "overpayment" is not caused by the landlord.

Fact: If a benefit tenant leaves owing money (rent arrears, damage, etc), there is very little chance of the landlord recovering the debt as there may be no effective means of enforcement (no assets, no employment, no savings, etc).

Fact: Delays and errors by Universal Credit and Housing Benefit are common.

Fact: Housing Benefit and Universal Credit pay "in arrears" instead of in advance when the rent is actually legally due).

While it may be desirable for all private landlords to consider applications from all potential tenants, the private landlord (as a matter of general business sense) has to also consider the factors above, and weigh up whether they wish to take on the extra risk of letting to tenants on benefits. There may be ways to mitigate some of the risks, but these could then increase the costs to the landlord.

Increased risks = increased rent needed.
Increased costs = increased rent needed.

It does not matter whether the process is simply called "No DSS", or whether it is called "we will consider all applications on their own merits, taking account of affordability and risk factors", it is the same thing!!!! The facts remain the same! The considerations remain the same!

When will Government, and Shelter et al, realise this? The higher the risks and costs to a business (including the landlord), the higher the cost of the product/service/rent will be to the end consumer (tenant).... Read More

Robert Mellors

0:41 AM, 3rd June 2019
About 2 weeks ago

Tenant Fees Act 2019 – Draconian legislation

Reply to the comment left by David Price at 02/06/2019 - 14:37
Many thanks for your reply David, including the formula for calculating the compound interest, P*(1+ R/N)^(T*N), however, could you please translate the formula into language I may understand, as I don't know what each of the letters represent, i.e. what is P, what is R, what is N, what is T?

In my business I have both monthly AST agreements (general tenancies), and daily Licence agreements (supported hostel accommodation for the homeless), but in both instances the rent is usually paid by Housing Benefit, at least 4 weeks in arrears, so the tenant/licensee will almost be in a constant state of rent arrears exceeding 14 days. (I guess this will be the same for most landlords where the rent is paid via Housing Benefit or Universal Credit).

I do not actually want to charge the compound interest, but I want the ability to charge it, so as to provide a "margin of error" to protect myself from the many potential traps created by the Tenant Fees Act, e.g. possibility of overcharging by 1p by rounding up instead of down, etc, etc. - But to create this safety cushion I need to be able to actually calculate the amount of compound interest that I am legally allowed to charge.... Read More