John P

Registered with Property118.com
Tuesday 2nd March 2021


Latest Comments

Total Number of Property118 Comments: 8

John P

12:51 PM, 28th July 2021, About 3 months ago

Small Shop - simple contract?

Be very careful. The legal framework for commercial letting is completely different from residential letting through an AST.

For example, the law gives the tenant security of tenure, so that at the end of the fixed term, a tenant in commercial property has a legal right to renew the lease whether the landlord likes it or not. To regain possession, the landlord may have to pay compensation.

This is governed by the Landlord and Tenant Act 1954 and you can't just insert a clause in the lease to opt out of the security of tenure terms. To opt out, you must either issue a specifically worded declaration to the tenant at least 14 days before the date of the lease or the tenant has to take legal advice from a solicitor or commissioner for oaths and sign a 'statutory declaration'.

An alternative to a commecial lease is a Licence to Occupy. This is much simpler and may be more appropriate for a short term, arrangement. It is not bound by the Act, but if you use this routeit is important to make sure you don't inadvertantly create a lease.

I'd suggest that this forum is not a good place to get legal advice on something like this.... Read More

John P

9:44 AM, 2nd June 2021, About 5 months ago

Accidental landlord - Can I do the annual accounting myself?

I've been doing exactly what you suggest for more 20 years for multiple rental properties. An accountant handles my personal self assessment tax return (as well as giving advice on tax matters) and I've never had a query.

The rental accounting is really simple if you keep systematic records. Definitely keep it separate from any other income as it is a separate entry on the self asesment tax return. You don't need the annual statement from the letting agent as it only duplicates the monthly ones.

All my accountant needs is income and expense totals, with expenditure categorised as per the self-assesment form:
Rates, insurance, ground rent etc/
Property repairs and maintenance/
Allowable loan interest and other financial costs/
Legal, management and professional fees/
Cost of services/
Other allowable property expenses/

This can be aggregated over all the properties, but I record it by property so I can make comparisons.... Read More

John P

14:39 PM, 28th May 2021, About 5 months ago

Has anyone else been contacted directly by the ICO?

Reply to the comment left by Smartermind at 28/05/2021 - 14:06
Its not for the benefit of landlors, it is to protect individuals and applies to any organisation that holds personal data.... Read More

John P

6:25 AM, 12th May 2021, About 5 months ago

NRLA feedback for government on rental reforms

'Lifetime deposits for tenants provide an opportunity to reduce the upfront cost of renting, but they need to work for all concerned.'

One way might be through deposits held in an insured fund that indemnifies landlords. Tenants would make deposits into the fund, and any succesful claims against them would have to be repaid, possibly with time to pay. Insurance would cover potential defaults.

This approach would create opportunities for insurance companies, allow market forces to regulate the cost and involve no cost to the taxpayer.

Problem solved and political pressure off the government. Lets get it done!... Read More

John P

6:04 AM, 12th May 2021, About 5 months ago

Queen's Speech 2021 - Landlord Reactions

This is bound to be a political issue for pressure groups because it is a (real or percieved) problem for tenants. Just at the time they have other expenses relating to removal, they need to find a new deposit before they get back (the amount due) on the previous one.
A scheme might be made to work if deposits were held in an insured fund. For an individual tenant, the cover would only be required for a few weeks, so it wouldn't need each tenant's deposit to be doubled. Tenants with a claim against them would have to repay it to the fund, possibly with time to pay.

This approach would create opportunities for insurance companies, allow market forces to regulate the cost, and take political pressure off the government.... Read More