Category: Landlords

Anything that may be of interest to landlords

  • If a tenant abandons a property does the landlord become liable for the utility bills?

    Paragraph 3(1) of Schedule 6 to the Electricity Act 1989 makes a deemed contract between the electricity company and the owner of the premises the moment the premises become unoccupied:


    3.— (1) Where an electricity supplier supplies electricity to any premises otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the occupier (or the owner if the premises are unoccupied) for the supply of electricity as from the time (“the relevant time”) when he began so to supply electricity.


    Therefore, from the moment the property is unoccupied, there is a deemed contract between the owner and the supplier. The same principle applies between the occupier and supplier the moment the property is occupied.


    There are similar provisions for gas.

    If the landlord and owner are one and the same, then yes the landlord is liable.

  • What permission do you need before letting a property?

    Before letting a property, you may need to obtain permission as follows:


    Council
    if you are changing the use of a residential property from family use to a House of Multiple Occupation (HMO) as defined in the Housing Act 2004, then you may need planning permission from the local council.


    If a landlord lets a property without the required planning consent, then the council may seek enforcement action against the landlord.


    Freeholder/Head Landlord
    If the property is owned leasehold, the lease will contain a clause that you must get the freeholder’s permission before you assign, transfer or part with or share possession of the property. This will typically be by way of a Deed of Covenant with the freeholder. The lease may have restrictions such as no students, no housing benefit claimants or no children. There is usually a small fee due for granting such permission.


    If a landlord lets a property and then later seeks permission, they will have already breached their lease. This breach is what is known as a ‘once and for all’ breach and the freeholder can take legal proceedings against the landlord.


    Housing Association
    If any housing association or other body which has an interest in the property you will need to obtain their permission before you let the property e.g. a shared ownership property


    Insurer
    You must confirm that insurance cover will be maintained if the property is let. In particular it is important that the public liability element covers any loss or injury occurring at the property, which might be sustained by the tenant or visitors during the tenancy, for which the landlord could be liable. Ensure that the tenancy application process is thorough as some insurers may not cover certain risks e.g. tenant previously convicted of arson.


    The implications of a landlord not informing the insurer they are letting the property can have serious consequences if the landlord needed to make a claim against the policy e.g. Fire or flood


    Joint Owners
    If the property is owned by more than one person, all joint owners must give consent to let the property. Each joint owner is “seised of the whole”. That means that each joint owner is entitled to possession of the whole. “Possession” must be interpreted in its widest sense and accordingly each joint owner is entitled to occupy or let the whole. Since each joint owner has the same entitlement it follows that all joint owners must give consent to let the property and are entitled to a share of the rent.


    If the term is to exceed three years, no legal estate will be granted by a lease executed by less than all the joint owners.


    Mortgage Company
    If a loan or mortgage is secured against the property it will be a term of the loan or mortgage agreement that you get the lender’s permission before you let the property. For some buy-to-let mortgages permission to rent the property may be automatic, but there may be conditions attached such as the type of tenancy, length of tenancy or a requirement to serve notice at the start of tenancy.


    You may also need permission from any lender if you want to let rooms in the property.


    If a landlord has not obtained consent from the lender, the tenancy is deemed an unlawful tenancy which gives the lender an automatic right to take possession of the property.


    Occupiers
    If anyone has a legal right to occupy the property such as tenants or licensees, you will need to get their permission.


    Owner
    If you are not the legal owner of the property, as registered with the Land Registry, you will need to obtain authority from the owner. Some common examples:


    * Owner of a property asks a relative to let and manage a property on their behalf (letter of authority required)
    * Owner of a property has an illness and lacks mental capacity so a relative has power of attorney


    Under Section 1 of the Accommodation Agencies Act 1953 it is an offence to issue any advertisement, list or other document describing any house as being to let without the authority of the owner of the property or his agent.


    If you are in the process of purchasing a buy-to-let property, care must be taken not to contravene the Accommodation Agencies Act.

  • Why some landlords might not favour sharers

    When we say ‘sharers’ we are not referring to married couples, civil partners or common-in-law partners we are referring to friends, co-workers or in some cases relatives who choose to live together as tenants.


    Temporary Arrangement


    Sharers are rarely a long-term arrangement so may not suit landlords who favour long-term tenants. Shortly after the start of the tenancy one of two things often happens: 1. the sharers realise they do not like living with each other and one or more of them move out/terminate the agreement. 2. one of the sharers meets someone, moves that other person in to the property or moves out to live with the other person. The landlord is the last person to find out about the new arrangements.


    It’s Not My Job To…


    …cut the grass, clean the kitchen, pay the rent! Each sharer assumes it is the other sharers job to fulfil what are obligations of the lease or one sharer decides not to…clean the kitchen or cut the grass because they did it last time, always do it…..


    Poor Communications


    The sharers may not function as an integrated unit so communications are potentially more complicated. Sharer A reports a defect in the property to the landlord but doesn’t tell sharer B. The landlord arrives to undertake the repair to be greeted by a blank look from sharer B (sharer A is at work/on holiday). If only the landlord had thought to contact all tenants before they visited.


    Party House


    For some younger people, sharing is a cost-effective way of escaping from parents and all those annoying house rules and to ‘dip their toes’ in the water of independent living. For some it’s an opportunity to let their hair down and party hard. The first the landlord knows of this is when the neighbours call them at 11pm on a Saturday night.