Anything that may be of interest to tenants
Housing Minister Grant Shapps recently re-stated that it is not his intention to regulate the letting industry but instead wants to encourage responsible letting through the use of voluntary accreditation schemes for landlords and letting agents.
Two new publications have been released this week that help prevent misunderstanding amongst landlords and tenants.
Happy letting
A tenant contacted me to say their managing agent had contacted them to tell them about the ‘new law’ that means they must inspect her property every 2 months? Is this correct?
There are no laws that govern the periodicity of property inspections. In the case of this tenant, it was probably the agent’s cunning way of saying ‘we don’t trust you so we will be keeping a closer eye on you in the future’
Before I try to answer the original question, it is perhaps prudent to remind ourselves why we might inspect the property in the first place.
Q. What is the purpose of the periodic inspection?
A. The purpose of the periodic inspection is to:
• Check the tenant is happy with the property and tenancy
• Ensure the tenant is complying with the terms of the tenancy agreement
• Identify any repairs or maintenance required to the property, fixtures, fittings or contents (if any)
• Ensure compliance with relevant legislation
So the answer to the title question is that is depends on the perceived level of risk of non-compliance with the terms of the tenancy agreement and the perceived risk of the property needing repair. A property full of students may need to be inspected more often that one where a retired couple live and an older property may need to be inspected more often that a new-build (albeit new-builds do have snags). So it depends but here are some tips:
• Inspect the property every 3 months initially.
• After the first 2 or 3 inspections make a judgement call on what frequency you should inspect the property. If there are persistent breaches of the tenancy agreement or lots of repairs are identified then continue with 3 monthly inspections. Or make them every 6 months if there are no issues.
• The tenant has a right to ‘quiet enjoyment’ of the property so do not be tempted to inspect the property too often as may be the case with the rogue agent above.
• Don’t leave it too long between inspections as you cannot always rely on a tenant to report any repairs or maintenance issue at the property – the sooner you find out about that leaking roof the better. As a landlord you have repairing obligations and inspections are your eyes and ears.
• Always give the tenant at least 24 hours written notice of any inspection.
• Do not be too picky when inspecting the property. Last night’s Chinese take-away trays on the worktop are harmless (as long as they are not still there when the tenant leaves!)
• Always document the inspection in a report copied to the landlord.
• The landlord has statutory obligations (e.g. Defective Premises Act 1972) to address defects if he ought in all the circumstances to have known of the relevant defect and the only way to be sure this duty is complied with is through regular inspections – relying on the tenant alone to report defects is not a good defence.
Do you have any tips for periodic inspections?
A landlord asked me the question recently so here is my answer…
The House of Lords defines fair wear and tear as “Reasonable use of the premises by the Tenant and the ordinary operation of natural forces”
When is deterioration classified as damage? If something is broken then it is almost certainly damage and needs to be repaired or replaced. If the property is damaged or worn through natural use then it is fair wear and tear. If the property is damaged or worn through negligence then the tenant is liable.
Two points to remember here:
1. The tenant is paying rent for fair wear and tear. Don’t penalise a tenant for walking on the carpets!
2. If something needs to be replaced the landlord cannot demand betterment i.e. be in a better position than he/she was before. Asking for a deluxe model as a replacement for an aged standard model is not acceptable