Time to review your lettings strategyWith the revision to the section 21 notice, commonly known as the no fault eviction, the withdrawal of mortgage tax relief and the rolling out of selective licensing is it any wonder that there is widespread concern in the property sector.
It is not all that long ago I would expect the do it yourself landlord to master all the disciplines of being a landlord and stand a fighting chance of complying with the legislation surrounding the letting of a residential property. Within a very short space of time the self managing landlord has been dealt a very unfair hand and runs the risk of, albeit unintentionally, having to find £30,000 (for each offence) and potentially, if the mistake is administrative, be unable to regain possession of their property and be stuck with a tenant that has stopped paying the rent.
I read a case recently where a landlord had unwittingly breached the rules of selective licensing and was faced with a fine of £150,000. He was also told by the judge to return all of the rent his tenants had paid during the 2 years that they had lived at his property. As I understand it the property was in good order and the tenants had never had any issues with the landlord. This example just goes to show that not all rentals go horrendously wrong and not every tenancy ends up a poorly managed tenancy escalating into ill feeling and a landlord/tenant dispute. The fines were issued for administrative errors. I understand that the local council of the area where the prosecution took place took on 19 extra enforcement officers to ensure landlords were compliant, and prosecute those that were not.
So is this the end of the PRS (Private Rental Sector) as we know it? As we know it - or have known it - yes. But not of the PRS. With the introduction of stricter tax laws and stricter legislation there will undoubtedly be casualties. The question is can you afford to be one of them? If the fines were representative of the offence I would say that there is little to worry about but as we have seen the government take the sledge-hammer-to-crack-a-nut approach one mistake can be the downfall of a landlord with fines far outweighing the risk. I would suggest that there has never been a better time to assess the way landlords operate their rental homes.
The Coastal Property Group are here to help. We are currently offering a free property management review for our existing landlords and have extended this to landlords in general. With the penalties far outweighing the risk of even one mistake we feel it our duty to ensure that good landlords operating good properties are compliant and do not put at risk losing what they have worked hard to achieve.
If you would like to take advantage of this free no obligation service please email email@example.com or call on 01253 795888 to arrange your free property consultation. It could save you Thirty Thousand Pounds.