Tag Archives: Landlord law

Rent2Rent contracts – if you’re going to do it do it right …. Buy to Let News, Cautionary Tales, Landlord Action, Landlord Law, Landlord News, Latest Articles, Legal, Lettings & Management, Property Investment News, Property Investment Strategies, Property News, Property Sourcing

Order the "Rent to Rent" lease contract template

Rent2Rent companies are using the wrong letting contracts

Whilst I have never been a fan of the Rent2Rent strategy I have to accept that a lot of investors are using Rent2Rent including Housing Associations, Councils and FTSE 250 companies as well as privateers. As it is the mission of Property118 to share best practice, helping these private investors to get their paperwork right fits within our remit, regardless of any other misgivings I might have personally have about the scheme.

What is Rent2Rent?

The way the scheme generally works is that a contract is entered into whereby a property owner rents or signs up to a management contract for his/her property with an investor/manager which includes permission to sublet in return for promises of guaranteed rent, maintenance, management etc. A profit element is built into the deal by investor/manager in the form of a below market rent.

Rent2Rent problems

An example of how things can go horribly wrong is explained in this thread. A property owner was asked to sign an assured shorthold tenancy agreement. To cut a long story short there was a dispute over deposit protection which went to court and the property owner won, even though she had not protected the deposit. She could have claimed substantial damages against the Rent2Rent company but in this instance chose not to. Big lesson learned for the property owner and also the Rent2Renter too!

What are the correct agreements to use for Rent2Rent?

I have consulted with Tessa Shepperson at Landlord Law regarding which type of tenancy agreement should be used. The conclusion was that neither AST’s nor corporate letting agreement are appropriate agreements for the owner and the Rent2Rent company to be using. What is required is a commercial lease drawn up by a corporate property lawyer. Tessa doesn’t get involved with corporate property law so I called in the help of Justin Selig, a qualified and practising corporate property solicitor with The Law department and Landlord Action.

Justin has agreed that subject to demand he will create a legal document template which Rent2Rent companies can  download from Property118 for £97 including VAT. The document will be copyright protected so it can only be used by the person who pays for it and any company in which that person owns more than 26% of the shares. It can, however, be used as many times as that person needs to do so. Therefore there is not a requirement to pay £97 each time the document template is used.

If enough people order the agreements they will be available for download by 31st July 2013. If by 22nd July 2013 there are not enough orders it will be deemed that there is insufficient demand, the project will be scrapped and everybody who has paid will receive a FULL refund.

UPDATE – 23rd July 2013

Sufficient orders have been confirmed and paid for and Justin Selig will have the contracts prepared and ready for us to deliver by the end of this month (July 2013)

UPDATE – 29th July 2013

“Rent to Rent” Lease contract templates are now available for immediate download using the embedded order form below.

Tenancy Agreements between Rent2Rent company and tenantsRent2Rent scheme letting contracts

These will typically be standard AST’s, but there are many kinds. Licences may also be applicable if the tenant has another home. A great article to read about tenancy agreements is this one written by Tessa Shepperson.

VAT on Rent2Rent

Some Rent2Rent investors have set their arrangements up under management contracts and fallen foul of VAT. I have spoken to my accountants and had it confirmed that a commercial lease will get around this problem as the owner of a residential property can not elect to tax for VAT purposes. Therefore, the head lessee (the Rent2Rent investor) doesn’t need to charge VAT to tenants either on this basis.

Tenancy agreements – Adapting tenancy agreement clauses Landlord Law, Latest Articles, UK Property Forum for Buy to Let Landlords

Adapting tenancy agreement clausesSo you have got your tenancy agreement and read it through. You are happy with most of it but there are just one or two things you don’t like.

Is it all right for you to change them?

The answer to this will really depend on what it is you want to change, but generally you need to be really careful. Here’ why: Continue reading Tenancy agreements – Adapting tenancy agreement clauses

Tenancy agreements – Using the correct agreement Landlord Law, Latest Articles

Tenancy agreements - Using the correct agreementPeople often talk about getting a tenancy agreement as if it were the same as getting a table or new kettle for the property.  Anything will do.

However a tenancy agreement is a very important document.  It contains the rules which govern how your tenant is going to use your property – your valuable investment.

It also needs to reflect the sort of tenancy you have.  And not all tenancies are the same. Continue reading Tenancy agreements – Using the correct agreement

Court of Appeal decision made on when is a payment rent and when is it a deposit Landlord News, Latest Articles, Property News

Landlord Law 2Newsflash from Tessa Shepperson of Landlord Law.

There has been an important Court of Appeal decision on tenancy deposits.

In the case of Johnson v. Old the tenant claimed that the six months rent she had paid in advance was actually a deposit which the landlord had failed to protect. Therefore (she argued) he was in breach of the tenancy deposit regulations and the section 21 notice he had served was invalid.

This argument was successful at the first hearing but not at the second hearing, which was an appeal to the Judge. The case then went to the Court of Appeal – and we have just learned that the landlord has won the case.

So you should now be safe in accepting rent in advance, if your tenant fails to pass referencing.

To see the full Blog please Click Here

Comments from Mark Alexander

When I first heard the outcome of this case I got all excited as I thought it could spell the end of the Deposit Protection minefield which all landlords and letting agents can so easily fall foul of. Great I thought, I will just take rent in advance instead of deposits and continue to charge my tenants monthly. It’s not that simple though. If you read the judges decisions, one of they key points in this case was that Mr Old accepted 6 months rent up front. If the landlord had continued to collect rent monthly the six months rent would have been a deposit and not rent in advance. One of the key points in the case was that if the tenant (Oldfield) had been asked to continue to pay monthly rent during the six month period the reply would undoubtedly have been, I have already paid in advance for this month. In laymans terms, I take this to mean, “you can’t have your cake and eat it”. Therefore, if you think this case will allow you to call deposits rent in advance, forget it, that will not work.

The more I think about the case, the more questions pop into my mind. What if it had been a 12 month AST and only 6 months advance rent had been paid? At the end of month one, could the landlord reasonably insist upon another months rent being paid to top the rent in advance back up to six months? If this was allowed, presumably it would not be allowed after month 6 of a 12 month tenancy?

I am still looking for a better alternative to taking deposits. I’m getting there but the price isn’t right yet. Ideally I’m looking for monthly rent on the due date whether the tenant pays or not and insurance to indemnify me of and damage caused by the tenants to my property and cleaning of properties post tenancy. All of this is available but it comes at a cost which I can’t justify.

The search continues, in the meantime we either take a deposit or we take our chances. Either way there is a risk, especially if we fall foul of deposit protection legislation and I suspect a lot of landlords and letting agents will come a cropper on this.


Bill Cooper of WDC Rentals Ewloe GOOD Landlords Campaign Sponsors

The GOOD Landlords CampaignBill Cooper of WDC Rentals Ewloe

WDC Rentals is an independent Specialist in Property Management covering North Wales and Cheshire.

It is fully focused on the priorities and needs of the individual, with over 20 years experience of the local market and a competitive fee structure, it’s comprehensive service is being appreciated by landlords and tenants throughout the region.

WDC Rentals is run and managed by its founder Bill Cooper, with vast experience in the letting industry, and as a property landlord himself, Bill is well qualified to offer a competent and professional service in every respect. Bill believes that a personal and individual tailored approach works best in all situations.

With DPA registration, accreditation to Experion and Equifax as well as membership to Landlord Law, WDC can guarantee that all prospective tenants are thoroughly credit checked and assessed before any agreement can be offered.

If you currently own or intend to purchase residential property for rental in the region, you should consider engaging our property management services. You’ll find it both professional and cost-effective. As specialists, WDC know how to manage property for optimum performance, whilst ensuring smooth running tenancies, and compliance with the various landlord/tenant laws. Maximise the return on your investment – contact us now!
Continue reading Bill Cooper of WDC Rentals Ewloe

Tessa Shepperson of Landlord Law offers this free Advice to Landlords Landlord Law, Landlord News, Latest Articles, Legal, Lettings & Management, Property News


Tessa Shepperson Landlord Law


Tessa Shepperson of Landlord Law is a solicitor specialising in residential landlord and tenant law. Tessa very kindly wrote a series of articles exclusively for readers of Property118.com some time ago. These still serve to be an excellent resource for landlords who find them when searching the internet so we have decided to create one article giving an overview of the various insights shared by Tessa and links back to the full articles. Tessa’s subscription based website is an extremely well regarded legal resource tool amongst the legal profession, property managers and portfolio landlords.

Continue reading Tessa Shepperson of Landlord Law offers this free Advice to Landlords

Yvonne Hall NLA Property Woman of the Year 2012 Landlord News, Latest Articles, NLA - National Landlords Association, Property News

Yvonne Hall NLA Property Woman of the Year 2012From a shortlist of 36 from six Regional Award categories and five Principal Award categories, Yvonne Hall has been named the overall winner and NLA Property Woman of the Year 2012.

Supported by headline sponsor Hamilton Fraser Insurance and my|deposits, the NLA Property Women Awards awards recognise and celebrate the dedicated women of the private-rented sector who have weathered a difficult market to achieve outstanding results despite the odds. Continue reading Yvonne Hall NLA Property Woman of the Year 2012

How GOOD landlords can be even better! Property Market News

GOOD Landlords CampaignI have often wondered how GOOD landlords can be even better and gain positive PR as a result and I think I’ve come up with the answer.

You may recall that I canvassed opinion from readers of Property118 last year on starting “The GOOD Landlords Campaign“. There was a lot of interest but we never managed to get it off the ground because we couldn’t find a corporate sponsor. Therefore, it’s down to me, and you, in fact all landlords to make this happen and get some positive PR for landlords going for a change. Continue reading How GOOD landlords can be even better!

Property118 Landlords Newsletter – Issue 116 Latest Articles

This week’s edition features an introduction to Tessa Shepperson’s course “Landlord law made easy”, a recession busting article on how to save stamp duty, criteria to consider when purchasing a flat, buy to let market updates and the start of a series of articles on the availability of commercial finance.

Continue reading Property118 Landlords Newsletter – Issue 116

Tessa Shepperson’s New “Landlord Law Made Easy” Course Buy to Let News, Landlord Law, Latest Articles, Property Investment News, UK Property Forum for Buy to Let Landlords

Don’t you get fed up sometimes by the amount of law we are expected to know?

  • We have to comply with complicated tenancy deposit regulations otherwise our tenants can sue us for a penalty payment and we won’t be able to serve a notice to evict them unless we pay their deposit back.

Continue reading Tessa Shepperson’s New “Landlord Law Made Easy” Course

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