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		<item>
		<title>Assured Tenancy</title>
		<link>http://www.beingaleaseholder.co.uk/blog/assured-tenancy</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/assured-tenancy#comments</comments>
		<pubDate>Thu, 07 Jun 2012 07:36:44 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[assured tenancy]]></category>
		<category><![CDATA[assured tenants]]></category>
		<category><![CDATA[residential tenancy]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=338</guid>
		<description><![CDATA[An assured tenancy is a specific type of contract which regulates the occupation rights in property; it is recognised under the Housing Act 1988. A tenant who has entered into an assured tenancy is granted certain protections, in particular against eviction. In order to qualify as an assured tenancy three conditions must be satisfied, they [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">An assured tenancy is a specific type of contract which regulates the occupation rights in property; it is recognised under the Housing Act 1988. A tenant who has entered into an assured tenancy is granted certain protections, in particular against eviction.</p>
<p style="text-align: justify;">In order to qualify as an assured tenancy three conditions must be satisfied, they are:</p>
<p style="text-align: justify;"><strong>That the property is a separate dwelling</strong> – this is to limit the scope of these type of leases to residential arrangements. Commercial leases are a whole different kettle of fish and cannot fall into this category. If the tenant is sharing the property with the landlord than it is not deemed to be a separate dwelling and they do not have an assured tenancy. If a tenant shares the property with other tenants they may have an assured tenancy for the part of the house which they enjoy sole occupation of such as their bedroom, but not for communal areas. <span id="more-338"></span></p>
<p style="text-align: justify;"><strong>That the tenant is an individual</strong> – this does not mean that only one person can live in the property, there may be joint tenants if each of them are individuals. In other words a company or organisation cannot be the tenant.</p>
<p style="text-align: justify;"><strong>That the property is let as the tenant’s principal home</strong> – tenants can own as many properties as they wish as long as the property in question in their principle home. This is a matter of fact which is decided on factors such as where most of their time is spent, where they keep furniture and clothing and the activities carried out in the property.</p>
<p style="text-align: justify;">Types of assured tenancy</p>
<p style="text-align: justify;"><strong>Fixed term tenancy</strong> – this does what is says on the tin, specifying a certain period of time, for which the tenant is bound to pay rent and the landlord to fulfil his duties. The usual period is 12 months but that can be made shorter or longer if the parties so wish.</p>
<p style="text-align: justify;"><strong>Periodic tenancy</strong> – fixed term tenancies automatically become periodic tenancies after the term expires. These are rolling contracts each lasting one week or one month, they carry on indefinitely until one party takes action to end them.</p>
<p style="text-align: justify;">Special rules</p>
<p style="text-align: justify;"><strong>Sub-letting</strong> – this can only be done in a periodic tenancy with the permission of the landlord, who is under no obligation to say yes or to justify a refusal. Sub-letting without permission constitutes a breach of contract and the landlord may seek a possession order and ultimately eviction.</p>
<p style="text-align: justify;"><strong>Death of a tenant</strong> – if this occurs during a fixed term tenancy the tenancy will pass, under the usual rules, to the tenant’s estate. If a tenant dies who is engaged in a periodic tenancy it will pass to their spouse if they were living in the property prior to the death.</p>
<p style="text-align: justify;"><strong>Termination and eviction</strong> – this is the area where most protection is afforded to tenants. If the tenant has a fixed term tenancy the landlord must either wait until the end of the contractual term or activate a break clause. At such a time the tenancy becomes a periodic tenancy and more hoops must be jumped through. If the tenancy has become periodic, or started off that way, then the landlord must obtain a possession order to evict the tenant. They must first serve a section 8 notice on the tenant which explains why they are seeking possession and allows a period of at least 2 weeks before starting proceedings.</p>
<p style="text-align: justify;">Assured shorthold tenancies</p>
<p style="text-align: justify;">These are a special type of assured tenancy, under which the granting of a possession order is guaranteed after the ‘shorthold period’ which is agreed between the parties.</p>
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		<item>
		<title>Lease guarantors</title>
		<link>http://www.beingaleaseholder.co.uk/blog/lease-guarantors</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/lease-guarantors#comments</comments>
		<pubDate>Thu, 07 Jun 2012 07:20:27 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[guarantee]]></category>
		<category><![CDATA[guarantor]]></category>
		<category><![CDATA[guarantor agreement]]></category>
		<category><![CDATA[lease guarantee]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=336</guid>
		<description><![CDATA[Guarantor agreement A Guarantor agreement is a type of surety given before a lease for property is agreed. The landlord or a managing agency can ask for it if there are any doubts as to the potential tenant’s ability to pay rent and any other required charges. This can occur if a future tenant is [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;"><strong>Guarantor agreement</strong></p>
<p style="text-align: justify;">A Guarantor agreement is a type of surety given before a lease for property is agreed. The landlord or a managing agency can ask for it if there are any doubts as to the potential tenant’s ability to pay rent and any other required charges. This can occur if a future tenant is a student, has not lived in the same address longer than 6 months, is under the age of 21 or does not have any credit history.</p>
<p style="text-align: justify;"><strong>Guarantor’s duties<br />
</strong></p>
<p style="text-align: justify;">A guarantor undertakes the tenant’s contractual obligations to pay rent on time, repair or reimburse any damage or additional costs to the property, as well as any other liabilities under the tenancy agreement. <span id="more-336"></span></p>
<p style="text-align: justify;"><strong>Why have one?<br />
</strong></p>
<p style="text-align: justify;">Reasons why a guarantor agreement may prove useful are different for landlords and tenants but lead to the same outcome: to sign a tenancy agreement.<strong><br />
</strong></p>
<p style="text-align: justify;"><strong>Advantages for landlords<br />
</strong></p>
<p style="text-align: justify;">Guarantor agreement is a very useful tool for landlords as it insures them against a risk of having tenants they would not otherwise have considered as eligible candidates for tenancy. A guarantor is an assurance that if the tenant is not in a position to pay his costs someone else will step in and save the landlord the trouble of demanding the money from his tenants.</p>
<p style="text-align: justify;"><strong>Advantages for tenants</strong></p>
<p style="text-align: justify;">Having a guarantor agreement is beneficial for tenant who are not fulfilling the conditions of most tenancies such as students not willing to live in university’s halls of residence but who are not in full time employment and as such present a risk to their future landlords. Having a guarantor agreement in place can help them to be able to rent their dream property without having to sacrifice their education.</p>
<p style="text-align: justify;"><strong>Who can be a guarantor?</strong></p>
<p style="text-align: justify;">The conditions to become a guarantor are similar to the ones applying to tenants since a guarantor will step into tenant’s shoes if they are unable to fulfil their obligations. The guarantor must be fully informed of the terms of the tenancy agreement and their duties, as they cannot be held liable for terms they were not aware of at the time of signing the agreement. Usually a guarantor will have to fill out a guarantor application form to provide their personal details as well as to enable a credit check to make sure they are in a financial position to pay the costs of rent etc. Landlords may also apply for references from guarantor’s employer or their landlord to confirm their reliability. Guarantors are usually related to the future tenants, parents quite often guarantee for their children however it is not a requirement. Some landlords may require guarantors to be homeowners.</p>
<p style="text-align: justify;"><strong>How to draft a guarantor agreement<br />
</strong></p>
<p style="text-align: justify;">The guarantor agreement needs to have a form of a Deed of Guarantee and be signed as such. There are certain requirements as to what information should be covered in the guarantor agreement which include:</p>
<ul style="text-align: justify;">
<li>The tenancy which the agreement relates to (if it is a fixed term tenancy, dates from and to should be included) as well as the address of the property</li>
<li>The names of proposed tenant or tenants and their details</li>
<li>The tenancy agreement itself to give the guarantor an opportunity to familiarise themselves with its terms</li>
<li>Guarantor’s signature (the signing should be witnessed)</li>
</ul>
<p style="text-align: justify;"><strong>Joint tenants<br />
</strong></p>
<p>Quite often, especially with regards to student accommodation, the tenancy agreement will be for joint tenants who are all students and hence do not fulfill the necessary conditions to sign a tenancy agreement. In this situation all of them are individually and severely liable for all payments, which means that the landlord can seek to claim all of the liabilities from any of the tenants. From the guarantor’s perspective it means that he guarantees liabilities of all of the tenants. In this situation it may be advisable to have separate guarantors for each of the individuals parties to the tenancy agreement.</p>
<p><strong>Whether you are a landlord wanting to ensure your tenant&#8217;s obligations are guaranteed by a suitable guarantor or a proposed guarantor for a lease, we can assist, both with drafting the guarantee, offering negotiating tips or generally. Please do get in touch for a free initial discussion.</strong></p>
]]></content:encoded>
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		<item>
		<title>Leasehold valuation tribunal</title>
		<link>http://www.beingaleaseholder.co.uk/blog/leasehold-valuation-tribunal-2</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/leasehold-valuation-tribunal-2#comments</comments>
		<pubDate>Thu, 07 Jun 2012 07:05:08 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[leasehold valuation tribunal]]></category>
		<category><![CDATA[lVT]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=330</guid>
		<description><![CDATA[The Leasehold Valuation Tribunal (LVT) is an independent body which role is to facilitate the settlement of disputes between landlords and leaseholders. Its role is to provide accessible advice and offer a less formal hearing than the court proceedings as well as aim to preserve the relationships between the parties. LVT’s decision is legally binding [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">The Leasehold Valuation Tribunal (LVT) is an independent body which role is to facilitate the settlement of disputes between landlords and leaseholders. Its role is to provide accessible advice and offer a less formal hearing than the court proceedings as well as aim to preserve the relationships between the parties. LVT’s decision is legally binding and, if necessary, can be enforced by the courts if the parties do not accept the tribunal’s decision. There are five regional LVT offices in London, Northern Midland, Southern, Eastern and Wales. <span id="more-330"></span></p>
<p style="text-align: justify;"><strong>LVT’s powers<br />
</strong></p>
<p style="text-align: justify;">The LVT can decide on number of issues such as:</p>
<ul style="text-align: justify;">
<li>The reasonability of the amount of service charge: the issue arises if as a tenant you think that your service charge is unreasonably high and the landlord should reduce it or if the tenant does not think they should be liable to pay service charge at all.</li>
</ul>
<ul style="text-align: justify;">
<li>The standard of the repairs carried out: whether or not it was an acceptable standard</li>
</ul>
<ul style="text-align: justify;">
<li>The standard of services: relates to any services carried out by the landlord or his contractors</li>
</ul>
<ul style="text-align: justify;">
<li>The specifications of future repairs: whether or not they are reasonable</li>
</ul>
<ul style="text-align: justify;">
<li>Details regarding the insurance, such as its cost and suitability</li>
</ul>
<ul style="text-align: justify;">
<li>The value of a freehold or extension to a lease: LVT as an independent body will be able to present an unbiased valuation</li>
</ul>
<p style="text-align: justify;">The tribunal normally comprises of three members: a surveyor acting as a valuer, a lawyer, who often acts as a chairman and a lay member of the public. The parties can represent themselves at a hearing and do not have to be represented by lawyers but it might be useful to instruct one to handle your case.</p>
<p style="text-align: justify;"><strong>Cases handled by the LVT<br />
</strong></p>
<p style="text-align: justify;">The LVTs handle a vast amount of cases such as the following:</p>
<ul style="text-align: justify;">
<li>Matters relating to a lease such as extending it or changing some of its terms (usually arises with regards to long leases)</li>
</ul>
<ul style="text-align: justify;">
<li>Issues surrounding purchasing the freehold on property which the leasehold is already owned</li>
</ul>
<ul style="text-align: justify;">
<li>Appointing a person to manage a block of flats (the right to manage)</li>
</ul>
<ul style="text-align: justify;">
<li>Fees and charges in relation to management, administration or services provided</li>
</ul>
<ul style="text-align: justify;">
<li>Issues surrounding the purchase of home insurance.</li>
</ul>
<p style="text-align: justify;"><strong>Appeal process<br />
</strong></p>
<p style="text-align: justify;"><strong>Mediation</strong></p>
<p style="text-align: justify;">In certain circumstances it may be worth attempting to mediate on the issues where conflict has arisen. Both parties to a dispute should try to resolve it amongst themselves or with a help of mediator who is impartial to the dispute. Hiring a mediator will incur a fee to cover their costs and pay for the premises where the mediation is held but the process often proves less stressful and easier than the legal route. If however it proves impossible to reach an agreement then the parties can appeal to the LVT.</p>
<p style="text-align: justify;"><strong>LVT appeal<br />
</strong></p>
<p style="text-align: justify;">You need to fill out a form which can be obtained online or from the Residential Property Tribunal Service in order to start the appeal process. The forms contain guidance notes and it is important to make sure that the appeal is made within strict time limits.</p>
<p style="text-align: justify;"><strong>Costs</strong></p>
<p style="text-align: justify;">The cost of an appeal depends on a number of factors such as the type of hearing and the reason for the appeal. The charge can be up to £500 but it can be shared if the application is made as a group comprising of other tenants or neighbours. Reductions and exemptions are provided to those who are on state benefits. In some situations the money paid to apply can be recovered, for example after winning an appeal. It may be worth seeking legal advice before appealing to the LVT. Free legal advice is provided by The Citizens Advice Bureau as well as the Leasehold Advisory Service. You may want to hire a solicitor to represent you at appeal, as their expertise can prove very useful.</p>
]]></content:encoded>
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		<item>
		<title>NO HMO licence &#8211; expect a big fine</title>
		<link>http://www.beingaleaseholder.co.uk/blog/no-hmo-licence-expect-a-big-fine</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/no-hmo-licence-expect-a-big-fine#comments</comments>
		<pubDate>Thu, 24 May 2012 22:37:35 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[applying for an HMO licence]]></category>
		<category><![CDATA[HMO licence]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=306</guid>
		<description><![CDATA[A Catford landlord who failed to licence his HMO (House in Multiple Occupation) has been fined £7,000. Following up concerns raised by Lewisham Council’s Planning Department, the Council’s Environmental Health Team paid a visit to the property, owned by landlord Charanjeet Singh, in July of last year. The Environmental Health Team discovered that the three [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">A Catford landlord who failed to licence his HMO (House in Multiple Occupation) has been fined £7,000.</p>
<p style="text-align: justify;">Following up concerns raised by Lewisham Council’s Planning Department, the Council’s Environmental Health Team paid a visit to the property, owned by landlord Charanjeet Singh, in July of last year.</p>
<p style="text-align: justify;">The Environmental Health Team discovered that the three storey house, which has five rooms, was being occupied by ten tenants. On further inspection the team discovered that not only did the property have just one bathroom but there were no smoke alarms or fire doors and the landlord had not even applied for an HMO licence for the building.</p>
<p style="text-align: justify;">All rental properties with three or more floors housing five or more tenants must, by law, have a House in Multiple Occupation (HMO) licence and should undergo regular inspections by the Local Council to ensure the property’s health and safety standards meet the adequate levels. <span id="more-306"></span></p>
<p style="text-align: justify;">Despite the council sending out regular correspondence to Mr. Singh, the dodgy landlord made no attempt to respond and so, six months after the initial inspection, the Council decided, in the interests of Mr. Singh’s tenants, to carry out a further inspection.</p>
<p style="text-align: justify;">Shockingly the Council discovered that a further tenant now occupied the building, bringing the total number of occupants to 11 and yet still no action had been taken by Mr. Singh to rectify any of the breaches in fire safety or to obtain an HMO licence.</p>
<p style="text-align: justify;">Legal proceedings against Mr. Singh took place at Greenwich Magistrates Court in March of this year and Singh was fined £7,000 and ordered to pay costs of over £700 when he pleaded guilty to contravening section 72 of the Housing Act 2004.</p>
<p style="text-align: justify;"><strong>Section 72 – Committing an offence due to failing to obtain a licence for a House in Multiple Occupation<br />
</strong></p>
<p style="text-align: justify;">A spokesperson for Lewisham Council stated that the Council are committed to working with private landlords to ensure the HMOs have the appropriate licensing and that they are fully aware of their duties and responsibilities as private landlords.</p>
<p style="text-align: justify;">The aim of HMO licensing is to safeguard the health, safety and wellbeing of the tenants living in those properties and to eliminate the risks of overcrowding and unsafe living conditions.</p>
<p style="text-align: justify;"><strong>Applying for an HMO Licence</strong></p>
<p style="text-align: justify;"><strong> </strong>HMO licence forms can be obtained from the Local Council of the town or city where the property is situated and the licence generally lasts for five years, although this time period can be shortened if the Council feel it is necessary.</p>
<p style="text-align: justify;">When a landlord applies for an HMO licence he will need to inform any other parties who have an interest in the property including the mortgage lender, if applicable, the property manager if he has one and any long leasehold tenants already occupying the property.</p>
<p style="text-align: justify;">Once the Council receive the application they will need to inspect the property in question to ascertain a number of factors before the application can be processed and these factors will include:</p>
<p style="text-align: justify;">
<ul style="text-align: justify;">
<li>The number of tenants who will be residing in the property</li>
</ul>
<p style="text-align: justify;">
<ul style="text-align: justify;">
<li>The facilities available in the HMO such as the kitchen, the bathroom and the number of toilets</li>
</ul>
<p style="text-align: justify;">
<ul style="text-align: justify;">
<li>Any property management arrangements the landlord will be putting in place</li>
</ul>
<p style="text-align: justify;">
<p style="text-align: justify;">The Council will also need to be satisfied that the landlord is a suitable individual to hold the HMO licence. If, for some reason, the Council are not satisfied they will then ask for someone else to hold the HMO licence.</p>
<p style="text-align: justify;">
<p style="text-align: justify;"><strong>Obtaining the HMO Licence<br />
</strong></p>
<p style="text-align: justify;">Once the HMO licence has been obtained the landlord must ensure that he/she complies with all the conditions set out by his/her local Housing Authority and these conditions will include:</p>
<ul style="text-align: justify;">
<li>Obtaining an annual Gas Safety Certificate to verify all gas appliances within the HMO are safe and working properly</li>
</ul>
<ul style="text-align: justify;">
<li>Installing smoke alarms and ensuring they work properly</li>
</ul>
<ul style="text-align: justify;">
<li>Making sure all electrical equipment and wiring in the property is safe</li>
</ul>
<ul style="text-align: justify;">
<li>Ensuring all furniture in the property which has been provided by the landlord is safe for use</li>
</ul>
<ul style="text-align: justify;">
<li>Making sure the standard of the facilities within the property are adequate</li>
</ul>
<p style="text-align: justify;">The landlord will also need to give his/her tenants a copy of the statement of terms for the occupation of the HMO.</p>
]]></content:encoded>
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		<item>
		<title>Advice for landlords on the best form of tenancy agreement</title>
		<link>http://www.beingaleaseholder.co.uk/blog/advice-for-landlords-on-the-best-form-of-tenancy-agreement</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/advice-for-landlords-on-the-best-form-of-tenancy-agreement#comments</comments>
		<pubDate>Sun, 20 May 2012 10:31:08 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[assured shorthold]]></category>
		<category><![CDATA[assured tenancy]]></category>
		<category><![CDATA[short residential lease]]></category>
		<category><![CDATA[short tenancy agreement]]></category>
		<category><![CDATA[tenancy agreements]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=292</guid>
		<description><![CDATA[There are many different types of tenancies. Choosing the wrong tenancy could result in you being bound by terms that do not reflect your initial intentions. In this article we will cover different types of tenancies and important points to consider for private landlords willing to rent their properties to private tenants. Which tenancy should [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">There are many different types of tenancies. Choosing the wrong tenancy could result in you being bound by terms that do not reflect your initial intentions. In this article we will cover different types of tenancies and important points to consider for private landlords willing to rent their properties to private tenants.</p>
<p style="text-align: justify;"><strong>Which tenancy should I use?</strong></p>
<p style="text-align: justify;">There are 3 main types of tenancies in England and Wales.</p>
<p style="text-align: justify;"><strong>Assured Shorthold Tenancy (AST)</strong></p>
<p style="text-align: justify;">The most common form of tenancy is an AST tenancy. ASTs are most commonly applicable in the case of the following:</p>
<ul style="text-align: justify;">
<li>private dwellings;</li>
<li>tenancies started on or after 15 January 1989;</li>
<li>properties that are tenants’ main residencies;</li>
<li>properties that are not occupied by the tenant and live-in landlord.</li>
</ul>
<p style="text-align: justify;">AST tenancies cannot be created in respect of:</p>
<ul style="text-align: justify;">
<li>tenancies that started or were agreed before 15 January 1989;</li>
<li>the rent is more than £100,000;</li>
<li>the property is rent free</li>
<li>the rent is less than £250 per annum (less than £1,000 for London);</li>
<li>it is a business tenancy or tenancy of licensed premises;</li>
<li>the property is a holiday property;</li>
<li>the landlord is a local authority. <span id="more-292"></span></li>
</ul>
<p style="text-align: justify;"><strong>Assured tenancies</strong></p>
<p style="text-align: justify;">Assured tenancies provide tenants with more rights to occupy the property. Tenant cannot be normally removed without a ground for possession being demonstrated by the landlord to the court.</p>
<p style="text-align: justify;">There are both mandatory grounds for possession under which the court must grant possession and discretionary grounds. You can find the full list of grounds for possession <a href="http://www.simplyrent.co.uk/grounds.htm">here</a>.</p>
<p style="text-align: justify;"><strong>Regulated tenancies</strong></p>
<p style="text-align: justify;">Most lettings by private landlords which started before 15 January 1989 are regulated tenancies under the Rent Acts (see page 6), unless the landlord and tenant live in the same house. Nowadays, regulated tenancies can be created in very limited circumstances. Regulated tenancies give tenants extensive rights and protection from eviction. They also entitle tenants to apply for a fair rent to registration against the property. If successful the landlord cannot charge the tenant more than the amount set as fair by a rent officer.</p>
<p style="text-align: justify;"><strong>I am a live in landlord and want to rent out a room in my house. What should I do?</strong></p>
<p style="text-align: justify;">There are no formal statutory rules governing lodgers. You should use your own lodger agreement in which you should reflect terms of your agreement with the lodger.You should in particular cover issues associated with rent, deposit, payment dates and method as well as house rules and notice for termination. The most convenient and easiest form of collecting rent is through Direct Debit. Also be careful about who you are letting the room to and try to obtain as much information about any potential lodgers.</p>
<p style="text-align: justify;"><strong>Lodger Agreement</strong></p>
<p style="text-align: justify;">Lodger agreement is effectively a ‘license agreement’. Under lodger agreement the lodger does not have exclusive occupation rights. A number of provisions that apply to ASTs do not apply to lodger agreement. For instance, the deposits need to not be deposited under the secure deposit scheme and no possession order has to be sought from the court to remove the lodger. Lodger agreements can also be used for landlord who do not share the property with lodger. For this to happen the landlord needs to provide at least one service such as cleaning. Nonetheless, if you do not physically share accommodation with the lodger you will need to obtain a court order to regain full possession of the property.</p>
<p style="text-align: justify;">Importantly, if the lodger has entirely self-contained room and effectively does not share accommodation with you the relationship between you and the lodger will likely to be governed by common law resident landlord tenancy rules.</p>
<p style="text-align: justify;"><strong>I rent out rooms in my property to different tenants but I do not live in the property myself. What is the most suitable form of tenancy?</strong></p>
<p style="text-align: justify;">It largely depends on your contractual arrangements with existing tenants. Typically, the best way is assured shorthold tenancy agreement with all tenants. The agreement should impose both individual and joint liability. If all existing tenants have their own agreements you should use the AST agreement with the new tenant individually as well.</p>
<p style="text-align: justify;"><strong>What should I remember about when signing a tenancy agreement?</strong></p>
<p style="text-align: justify;">When signing a tenancy agreement always remember about the following points:</p>
<ul>
<li style="text-align: justify;">Name of the tenant (make sure you use their real name as it is on his or hers ID);</li>
<li style="text-align: justify;">Remember to include your name and address;</li>
<li style="text-align: justify;">The agreement should start when the tenant moves in;</li>
<li style="text-align: justify;">Clearly identify the room (if the property is shared with others);</li>
<li style="text-align: justify;">Clearly set out the amount of rent, payment method and date of collection;</li>
<li style="text-align: justify;">Clearly state the amount of deposit (usually one months’ rent);</li>
<li style="text-align: justify;">Make an inventory and take pictures of the room/property with the tenant present (you should attach this to both agreements as a schedule. This will ensure that no disputes arise in relation to state and maintenance of the property.</li>
</ul>
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		<title>The Housing Act 1980</title>
		<link>http://www.beingaleaseholder.co.uk/blog/the-housing-act-1980</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/the-housing-act-1980#comments</comments>
		<pubDate>Sun, 20 May 2012 10:04:50 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[assured tenancy]]></category>
		<category><![CDATA[short residential lease]]></category>
		<category><![CDATA[housing act]]></category>
		<category><![CDATA[housing act 1980]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=289</guid>
		<description><![CDATA[The Housing Act 1980 brought significant changes into law governing private rentals. The change was prompted by a dramatic drop in the private rented sector towards the end of 1970‘s. Some  data reported that since the end of the First World War until 1979 the rented properties had gone down around 65%. The new conservative [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">The Housing Act 1980 brought significant changes into law governing private rentals. The change was prompted by a dramatic drop in the private rented sector towards the end of 1970‘s. Some  data reported that since the end of the First World War until 1979 the rented properties had gone down around 65%. The new conservative government headed by Margaret Thatcher decided to introduce a reform through the Housing Act 1980.</p>
<p style="text-align: justify;">The main purpose of the Act was to:</p>
<ul style="text-align: justify;">
<li>offer council tenants the right to buy;</li>
<li>provide landlords with better rights and protection.</li>
</ul>
<p style="text-align: justify;">Towards the end of 1980’s the reform took off and there was a great wave of private individuals becoming landlords by buying 2-3 residential properties as an investment.</p>
<p style="text-align: justify;"><strong>Rent Charges</strong></p>
<p style="text-align: justify;">Under the Housing Act 1980 the concept of fair rent has been largely scrapped and generally landlords are allowed to freely negotiate rents. The tenant still however has the right to refer any proposed rent increases during the assured periodic tenancy to the Rent Assessment Committee.</p>
<p style="text-align: justify;"><strong>Security of Tenure</strong></p>
<p style="text-align: justify;">The Housing Act created ‘assured’. Unlike the old regime the assured tenancy provides not only security to the tenant but primarily is beneficial to the landlord as it offers him additional ground for repossession based on serious rent arrears. The Act has also introduced another type of assured tenancy &#8211; the assured shorthold tenancy (AST). The AST has become very popular and is the most common type of private tenancy in England and Wales.<span id="more-289"></span></p>
<p style="text-align: justify;">The AST has two distinct features:</p>
<ul style="text-align: justify;">
<li>It offers the tenant the right to challenge the rent in the first six months; and</li>
<li>provides the landlord with an additional repossession ground through section 21 of the Act.</li>
</ul>
<p style="text-align: justify;"><strong>What is section 21 notice?</strong></p>
<p style="text-align: justify;">Section 21 notice to quit is a notice that can be served by the landlord at the end of the assured shorthold tenancy to regain possession of the property. Section 21 notice can be served without any reason for ending the tenancy agreement. In order to be valid section 21 notice needs to be served in accordance with legal procedures set out in the Act.</p>
<p style="text-align: justify;"><strong>Serving section 21 notice during fixed term tenancy</strong></p>
<p style="text-align: justify;">Section 21 must be served with at least two months’ notice. The notice must be in writing and clearly state that the landlord is seeking to regain possession for the property. The two months’ notice beings when the tenant receives the notice and not when the notice is originally posted.</p>
<p style="text-align: justify;"><strong>Serving section 21 notice during periodic tenancy</strong></p>
<p style="text-align: justify;">Upon expiry of the fixed term tenancy, unless a new fixed term is successfully entered into, the tenancy will automatically convert into a statutory periodic tenancy which rolls from week to week or month to month depending on how often the rent used to be paid under the original agreement.</p>
<p style="text-align: justify;">Similarly as in the case of fixed term tenancy, also here section 21 notice must be offered with at least 2 months’ notice. The 2 months’ notice must however expire on the last day of a period of the tenancy. For example, if the rent is paid on a monthly basis the period of the tenancy is one month. Consequently, if the fixed term tenancy expired on 28th, the periodic tenancy automatically starts on 29th and section 21 notice would have to expire on 28th two months after the notice was served.</p>
<p style="text-align: justify;">If the tenant does not comply with the notice the landlord is entitled to apply to the court for a possession order. The court will only be able to give the possession order if section 21 notice was correctly served. If the tenant further resists and does not vacate the property the landlord can seek bailiffs to evict the tenant.</p>
<p style="text-align: justify;"><strong>Succession:</strong></p>
<p style="text-align: justify;">Under the AST, if the tenant dies, the tenancy will vest in accordance with the statutory rules. The statutory rules provide that the tenancy will vest in the tenant&#8217;s spouse (or person living as spouse) if:</p>
<ul style="text-align: justify;">
<li>Immediately before the death the spouse was occupying the dwelling-house as his/her only or principal home; and</li>
<li>The tenant was not such a successor him or herself (only one statutory succession is permitted)</li>
</ul>
<p style="text-align: justify;">If no such qualified person exists, the normal rules of administration of estates will apply. Also in the case of fixed term tenancies there are no statutory succession provisions and the tenancy will vest in the normal course of administration of the tenant&#8217;s estate.</p>
<p style="text-align: justify;">For more information you can also refer to <a href="http://www.housinglaw.org.uk/Ass%20Ten.htm">this article</a>.</p>
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		<title>Assured shorthold tenancy tips</title>
		<link>http://www.beingaleaseholder.co.uk/blog/assured-shorthold-tenancy-tips</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/assured-shorthold-tenancy-tips#comments</comments>
		<pubDate>Sun, 20 May 2012 09:57:59 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[assured shorthold]]></category>
		<category><![CDATA[assured shorthold tenancy]]></category>
		<category><![CDATA[residential letting]]></category>
		<category><![CDATA[short tenancy agreement]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=286</guid>
		<description><![CDATA[The majority of residential tenancies in England and Wales are assured shorthold tenancies.  They usually commence with an agreed fixed-term (6 and 12 months are the most common choices) during which both the tenant and the landlord are contractually committed. The tenant has to pay the agreed rent on time and the landlord provide the [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">The majority of residential tenancies in England and Wales are assured shorthold tenancies.  They usually commence with an agreed fixed-term (6 and 12 months are the most common choices) during which both the tenant and the landlord are contractually committed. The tenant has to pay the agreed rent on time and the landlord provide the tenant with exclusive possession and undisturbed enjoyment. At the end of the fixed-term contract the tenancy can either be renewed for a new fixed-term or it will automatically convert into periodic tenancy. Periodic tenancy depends on the original rent payment period (i.e. if the rent was payable monthly the periodic tenancy will run from month to month until terminated by either party).</p>
<p style="text-align: justify;"><strong>What is an assured shorthold tenancy?</strong></p>
<p style="text-align: justify;">Assured shorthold tenancy provides the tenant with more certainty as to the tenure. During the ‘assured‘ period the landlord’s termination rights are limited and normally the landlord will not be allowed to seek repossession.</p>
<p style="text-align: justify;"><strong>What are the termination rights?</strong></p>
<p style="text-align: justify;">Assured tenancy can normally be terminated by the landlord serving section 21 notice. The notice itself however needs a minimum of 2 months. The notice under section 21 can be served at any time. In practice however the court will not support the claim and order the tenant to remove his possessions if the notice is served earlier than 6 months from the beginning of the first tenancy under which the premises have been occupied. <span id="more-286"></span></p>
<p style="text-align: justify;"><strong>How long should I offer the tenancy for?</strong></p>
<p style="text-align: justify;">Prior to February 1997 all assured shorthold tenancies had to had been entered into for at least 6 months. Perhaps for this reason it has become customary and most of tenancies in England and Wales are for 6 months. This is normally feasible for tenants and useful for landlords as it allows them to rely on section 21 notice. From February 1997, there are however no specific legal requirements as to the minimum period of tenancy or assured shorthold tenancy. In practice letting property out for less than 6 months will make it impossible to rely on section 21 notice to obtain quick repossession. For this reason some landlords decide to take larger rental deposit to cover any possible defaults.</p>
<p style="text-align: justify;"><strong>Advantages of long term tenancies</strong></p>
<p style="text-align: justify;">According to statistical data the average length of tenancy is 9 months. Opting for a longer tenancy can also have other beneficial aspects to it. If you use an agent you will be likely to save on their ‘tenancy renewal‘ commission. If you sort your rental affairs all by yourself it saves you work both in terms of maintenance and sorting out the documentation.</p>
<p style="text-align: justify;">Furthermore, in times of weak property rental market securing a longer tenancy can also be beneficial as it means your income will be less affected by the unfavourable conditions. On the other hand, in favourable conditions with rising rental property prices being tied into an agreement will result in you being unable to get better deal for the property.</p>
<p style="text-align: justify;">Importantly, before deciding to offer a long term tenancy it is prudent to consider how well you know the tenant and what is the likely of his or her rental default or other problems. It may perhaps be best to offer initial 6 months tenancy (with section 21 notice served at the same time) and if everything goes well you can renew the agreement for longer.</p>
<p style="text-align: justify;"><strong>Multiple Tenants</strong></p>
<p style="text-align: justify;">Lastly, when renting your property out to more than one private tenant you should ensure that all of the individuals sign the rental agreement and ensure that the agreement contains provisions for both joint and several liability. That way if one tenant absconds or makes damage to the property all the others will be jointly responsible.</p>
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		<title>Unlawful evictions and the olympics</title>
		<link>http://www.beingaleaseholder.co.uk/blog/olympics</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/olympics#comments</comments>
		<pubDate>Sun, 20 May 2012 08:05:50 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[short residential lease]]></category>
		<category><![CDATA[eviction]]></category>
		<category><![CDATA[olympics]]></category>
		<category><![CDATA[unlawful eviction]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=283</guid>
		<description><![CDATA[An alarming trend has swept across London, particularly in areas which are close to where the Olympic Games will be held. It seems landlords in these areas (particularly in East London) are evicting the tenants they already have in their properties in order to bring new tenants in for the Olympic Games, which will allow [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">An alarming trend has swept across London, particularly in areas which are close to where the Olympic Games will be held. It seems landlords in these areas (particularly in East London) are evicting the tenants they already have in their properties in order to bring new tenants in for the Olympic Games, which will allow landlords to rake in greater profits.</p>
<p style="text-align: justify;">A charity called <a href="http://www.shelter.org.uk/" target="_blank">Shelter</a>, which specialises in housing, has commented on the rise in the number of illegal evictions by landlords. It has also seen a rise in the number of landlords who are acting badly.</p>
<p style="text-align: justify;">This type of behaviour is not limited to wrongful evictions; rental prices have also soared in an attempt by landlords to fully maximise the use of their properties. Property companies have stated that some properties that were originally being charged at £350 per week are currently being advertised as being charged at £6000 per week.</p>
<p style="text-align: justify;">The problem is that if this is the response we are witnessing at the moment, the situation is only going to get worse once the Games get closer.</p>
<p style="text-align: justify;">Greedy landlords who want to take advantage of the profits the Olympic Games could bring are evicting their current tenants with little or no notice. Some people are given as little as 2 weeks notice.</p>
<p style="text-align: justify;">The <a href="http://www.legislation.gov.uk/ukpga/1977/43" target="_blank">Protection from Eviction Act 1977</a> protects tenants who are unfairly treated. Under this statute, it is a criminal offence to evict a tenant without proper notice. It is also an offence to interfere with their residential peace and comfort of the property, in an attempt to force them into giving up occupation of that property. Housing Minister Grant Shapps warned landlords that these actions were criminal offences, which could mean landlords receive up to 2 years custodial sentencing.</p>
<p style="text-align: justify;">Organisations like the <a href="http://www.landlords.org.uk/" target="_blank">National Landlords Association</a> have outwardly condemned the practice, stating that not only is the behaviour of these landlords abhorrent, they are also disadvantaging themselves in the long run. This is because although evicting their current tenants in favour of new tenants who are looking to rent because of the Olympic Games may be beneficial economically; this is definitely only a short-term profit turner. Therefore, although they might turnover a decent profit during this period, they will have potentially lost a long-term tenant. Once the games are over, and the new, short-term tenants have moved on, these landlords will have to turn to the market again in an attempt to find new, longer-term tenants.</p>
<p style="text-align: justify;">Despite the fact that the current economic climate is not great, and so people everywhere, in every industry, are looking for opportunities to turn over any profit they can, this type of behaviour is pushing above and beyond what is acceptable. Not only is it not acceptable to the tenants landlords are evicting unfavourable, it is also unfair on the new tenants who are being charged £6000 per week!</p>
<p style="text-align: justify;">A regulatory body needs to step in to stamp down on this sort of behaviour, otherwise it seems like it could spiral further out of control as the Games are fast approaching. Landlords who are currently treating their tenants like this should be made an example out of, in the hope that this may act as a deterrent for landlords who are thinking about doing this in the future.</p>
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		<title>Tenants abandoning residential premises</title>
		<link>http://www.beingaleaseholder.co.uk/blog/tenants-abandoning-residential-premises</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/tenants-abandoning-residential-premises#comments</comments>
		<pubDate>Sun, 20 May 2012 08:00:07 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[residential lease]]></category>
		<category><![CDATA[short residential lease]]></category>
		<category><![CDATA[abandoning property]]></category>
		<category><![CDATA[abandonment]]></category>
		<category><![CDATA[tenants]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=281</guid>
		<description><![CDATA[Abandonment is when an individual voluntarily gives up their legal rights such as interest in their land or property, a tenancy. According to Section 5(2) of the Housing Act 1988, tenancies may only be terminated by a court order which may be sought by the landlord to obtain possession of their property. Alternatively, a tenant [...]]]></description>
				<content:encoded><![CDATA[<p style="text-align: justify;">Abandonment is when an individual voluntarily gives up their legal rights such as interest in their land or property, a tenancy.</p>
<p style="text-align: justify;">According to Section 5(2) of the Housing Act 1988, tenancies may only be terminated by a court order which may be sought by the landlord to obtain possession of their property. Alternatively, a tenant is able to surrender their legal rights through a similar process. However, if a tenant abandons the landlord’s residential investment property, the landlord may be placed in a difficult position as the correct procedure has not been used to terminate the contract. In this situation, the tenant may accuse the landlord of unlawful eviction.</p>
<p style="text-align: justify;">This is confused further as a common problem is the tenants leaving their dwelling house for a long time without occupation. This could breach the insurance taken out by the landlord and increase the price of the insurance due to the risk of an empty residence.</p>
<p>The landlord may have several options in the situation where a tenant disappears and rent is no longer paid. Firstly, it is difficult to spot the problem as from the outside of the property; it is hard to tell if the property is vacant. The tenant may have left their possessions behind in the property which the courts may consider is an intention by the tenant to return and thus treat the tenancy as continuing. However, if a landlord decides that the tenant is not returning and attempts to let out the property again, and the tenant subsequently returns, the landlord is able to be sued.</p>
<p style="text-align: justify;">Sometimes, landlords fake abandonment by the tenant deliberately to pressurise the court to grant an unlawful eviction. According to Section 1(2) of the Protection from Eviction Act 1977, this is an offence where it is unlawfully attempted to deprive an occupier of any part of a premises. The best option for the landlord in this case is to ask the court for a possession order.</p>
<p style="text-align: justify;">However, if the landlord does not want to ask the court for a possession order, then an alternative option is to ask the tenant directly to surrender their tenancy. This is done by sending the tenant a letter in writing to expressing their interest to surrender the tenancy and the tenant gives up the keys to the property.</p>
<p style="text-align: justify;">A final option is for the landlord to take possession of the property, though this option is the least favoured. A number of factors should be taken into account which may indicate abandonment by the tenant of the property. These factors include for example that the property has been abandoned and left in a bad state by the tenant, or they could cause a danger to neighbours. If these circumstances are present, the landlord could enter the property and fit a new lock.</p>
<p style="text-align: justify;">For a landlord to do this, they should give a notice to the tenant informing them that the lock has been changed but not deprive the tenant of any of their rights to access the property. This is advantageous as a landlord can enter the property and reclaim possession quickly. However, landlords should be aware this is risky and seek legal advice first.</p>
<p style="text-align: justify;">Although abandonment by tenants is common, landlords should approach the situation with caution and exercise their option with protection from the courts and legal advice to avoid situations which could be detrimental to them.</p>
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		<title>Harassment by landlords</title>
		<link>http://www.beingaleaseholder.co.uk/blog/harassment-by-landlords</link>
		<comments>http://www.beingaleaseholder.co.uk/blog/harassment-by-landlords#comments</comments>
		<pubDate>Sun, 20 May 2012 07:42:22 +0000</pubDate>
		<dc:creator>James Swede</dc:creator>
				<category><![CDATA[short residential lease]]></category>
		<category><![CDATA[harassment]]></category>
		<category><![CDATA[protection from eviction]]></category>
		<category><![CDATA[protection from harassment]]></category>

		<guid isPermaLink="false">http://www.beingaleaseholder.co.uk/?p=279</guid>
		<description><![CDATA[Harassment of a landlord to their tenant is a very serious offence. This could mean the landlord is liable for not only civil proceedings but also criminal proceedings in the forms of penalties. The law which governs harassment of tenants and evictions by landlords which are not lawful or fair is not very well balanced, [...]]]></description>
				<content:encoded><![CDATA[<p>Harassment of a landlord to their tenant is a very serious offence. This could mean the landlord is liable for not only civil proceedings but also criminal proceedings in the forms of penalties.</p>
<p>The law which governs harassment of tenants and evictions by landlords which are not lawful or fair is not very well balanced, and tends to favour tenants rather than landlords. Landlords are able to act in any way which they deem to be reasonable. However, these acts can still be deemed to be harassment by the law.</p>
<p>Harassment includes landlords depriving their tenants of water, gas and electricity. In addition, if landlords threaten tenants to evict them; interfere with their mail or fail to repair tenant’s building then they could be liable. Other forms of harassments include deliberately causing noise to the tenant and looking for the tenant outside the property which is being let to them, such as at their place of work.</p>
<p>Some good and common advice to landlords to battle the law which is not favoured towards them is to never try to remove a tenant from the property, irrelevant of the damage which may have been caused. Landlords should not try being malicious and attempting to evict the tenant, as this kind of behaviour is bound to be unlawful.</p>
<p>If a landlord abides by the tenancy agreement with the tenant but must visit the tenant in the premises but does so according to the contract, it should be done with an independent witness to support the landlord if anything occurs during the visit. The landlord will be able to defend themselves if the tenant makes any claim towards them which may have occurred during this visit.</p>
<p>A situation where a landlord needs to be especially cautious is where it is suspected to them that a tenant could have left the property. This situation is called abandonment. If this happens, it is difficult to tell if the tenant has really abandoned the property without entering. However, the landlord should never try to change the locks or dispose of any possessions which belong to the tenants and are still in the property. This has been ruled under Section 5 (2) of the Housing Act 1988. Under this Section, a landlord can terminate the tenancy in this situation by a court order to obtain possession of the property. If the courts think that the landlord intends to return the tenant to the property after threatening them for not paying their rent as stated in their tenancy agreement, the landlord will be liable under harassment. If the courts think that the intention of the order was to simply evict the tenant permanently then the landlord could also be liable for unlawful eviction.</p>
<p>Prior to any of this action, it is necessary for landlords to serve a tenant with a notice as far in advance as possible in order to avoid any potential claims of harassment which could be served by the tenant. The ideal amount of time is 48 hours prior to the eviction, and the notice is recommended to be written in the negative. This means it is recommended to tell the tenant that the landlord is going to enter the property at a specific time and if this is not convenient to notify the landlord as soon as possible.</p>
<p>It is never recommended to the landlord to ask the tenant for rent or for situations which do not relate to the tenancy of the premises which is the subject of the tenancy agreement, this could also cause the landlord to be liable for harassment.</p>
<p>Harassment of landlords can occur in the most subtle situations. Thus, it is important that landlords protect themselves with notices, court orders and independent witnesses. If any problems do occur, the notices should be kept and be realistic about any losses to them which may occurred. Penalties for harassment could be more abundant than the loss of rent by the tenant.</p>
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