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In this episode of Good Landlording, Suzanne and Richard reflect on what they've learned as landlords in 2024, and what we'll be doing differently in 2025. Their "landlord reflections" on the year. They discussed the challenges and changes they faced, particularly in light of the upcoming implementation of the Renters' Rights Bill, sharing valuable lessons learned, including the importance of tenant screening, the impact of service charges, and why it's valuable to have a strong network. Looking ahead to 2025, they outline their resolutions and plans for adapting to the ever-changing rental landscape, emphasising the ongoing demand for rental properties and the need for proactive management by landlords. Key takeaways These are the key takeaways from Richard and Suzanne's reflections on 2024, looking towards 2025: Adapting to changes is crucial for landlords as we go through the upheaval that the Renters' Rights Act will bring. Rent guarantee insurance is going to be even more important for new tenancies, even those with glowing references. Service charges can unexpectedly increase, requiring vigilance, and awareness of the risk of forfeiture. See Episode 24: Labour's plans for leasehold and commonhold reform. Why spending money on inventories is worthwhile. The importance of having a contingency fund for unexpected expenses, and constantly checking for maintenance. Networking with other landlords can provide valuable support. EPC ratings will become even more important in the coming years, with the expected requirement for rental properties to have a C rating by 2030. Suzanne managed to get an EPC C without putting in wall insulation, but her walls weren't single skinned, which helps. She put 300mm insulation in the loft and 150mm in the cellar ceiling. See Episode 31: What landlords need to know about EPC ratings. Try not to waste emotional energy by reading speculation in the press and in landlord forums. We should always keep our portfolio under review. Suzanne predicts Q4 2025 as the earliest for the "commencement date" of the Renters' Rights Act. The demand for rental properties remains strong. Planning for the worst while hoping for the best is a sound strategy. Richard and Suzanne have a lot of projects planned for the New Year, and will be taking a break from the podcast. They thank everyone who has supported the podcast in 2024. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

In this episode of Good Landlording, Suzanne Smith and Richard Jackson discuss how landlords can find tenants themselves by using online letting agents, instead of traditional high street agents. They share insights on creating effective property listings, the importance of quality photography, compliance with legal requirements, and the process of screening and selecting tenants. They emphasise the need for landlords to adapt to changing market conditions and to be thorough in their approach to tenant selection. >> Ask a question: Click here for question form Suzanne and Richard cover the following in sharing tips on the steps that landlords need to go through to successfully list properties on the portals and find good tenants: How technology has transformed the way landlords find tenants The increasing market share of online letting agents The steps landlords need to go through to list properties on the portals What material information is needed for the listing? Gathering the various safety and regulatory certificates to serve on the tenants Creating a compelling property description The importance of high quality photos, a floor plan and a video Screening applicants The rules about holding deposits Referencing Tenancy deposits Signing the tenancy agreement Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

Tenancy deposits are important. They give landlords comfort that they won’t be out of pocket if there is damage to the property at the end of the tenants or if there are arrears. However, tenancy deposits are subject to a lot of regulation to ensure that tenants' interests are protected. In this episode of Good Landlording, Suzanne Smith and Richard Jackson cover the following: The difference between custodial and insured deposits. The rules about tenancy deposits. What happens if landlords don't comply with the tenancy deposit rules? How does a tenancy deposit differ from a holding deposit? What deductions can landlords make? Can landlords charge for their own time? Can a landlord replace something with an upgrade? What happens if the tenants won’t agree to the deductions? >> Blog post: What deductions can landlords take from tenancy deposits? >> Blog post: What landlords need to know about Deposit Protection Schemes Key insights about deposits Here are the key insights from the podcast episode. The rules about tenancy deposits are intended to ensure that deposits are properly protected, ad that the landlord makes appropriate deductions. Custodial deposits are held by third-party schemes, while insured deposits allow landlords to keep the money. Landlords need to register the deposits and provide the prescribed information about the deposit protection to the tenant within 30 days. If the deposit is not protected properly, tenants can claim compensation and a landlord won't be able to issue a valid Section 21 notice. It's essential to document the condition of the property with a detailed inventory, preferably done by an independent third party as that constitutes better evidence. Landlords can charge for their time spent on cleaning and repairs under certain conditions. (See the MyDeposits article explaining the circumstances where landlords can charge for their time). Disputes over deposits can be escalated to the deposit schemes. >> Related episode: How to manage tenants and keep them happy Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

In this week's episode of Good Landlording, Suzanne Smith and Richard Jackson discuss the key insights from the NRLA Landlord Conference in Birimingham on 5 November 2024, sharing useful information for landlords. This includes: Data from Richard Donnell of Zoopla, relating to the economics of investing, particularly the impact of higher interest rates on investors, and his prediction that rental growth will slow to around 3-4%.. James Caan's advice to entrepreneurs to be flexible, be creative and be prepared for failure, as failure can lead to success. He also underlined the importance of people, building relationships and keeping learning. The importance of having swift resolution of cases by the redress schemes, and Suzanne's wish for the decisions to be publish so that the case law develops. Technology promises to grow in importance for landlords, and there is certainly demand there. However, there is currently no "end to end solution" that does it all. Is Andy Burnham's Good Landlord Charter in Greater Manchester an unnecessary accreditation? (More details here: Good Landlord Charter) The merits of investing locally. Why it's so wonderful meeting other landlords in person. 😊 >> Ask a question: Click here for question form >> Join: Link to get £15 off NRLA membership A meet up of some of the listeners of Good Landlording at the NRLA conference Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

In their rental market update for Q4 2024, Suzanne Smith and Richard Jackson discuss the impact of Labour's first budget on landlords and property investors, the latest on the Renters' Rights Bill and what's happening with rental trends. >> Ask a question: Click here for question form What we cover in this episodeLabour's Autumn BudgetWhat's happening with the Renters' Rights BillSoftening of rental demand Labour's Autumn Budget Richard and Suzanne discuss the key changes for landlords and property investors in the budget: SDLT. The Chancellor increased stamp duty by 3% for "additional properties" on 31 October 2024 and there will be a further increase on 1 April 2025, when the first threshold will be lowered from £250,000 to £125,000. This will add £2,500 to the amount of stamp duty payable on the average property. Capital gains tax - no change for property investors. Income tax - the impact of fiscal drag is that the amount of tax people pay will increase in real terms as the bands are not being increased byt inflation. National insurance contributions - the budget increased employer national insurance contributions and lowered the threshold, meaning that employers will need to start paying NICs at a lower amount. Pensions - no changes to potentially exempt transfers or the various caps, but most unused pension funds and death benefits will be included within the value of a person's estate from 6 April 2027, which means they could be subject to inheritance tax of 40%. >> Blog post: What the 2024 Autumn Budget means for landlords and property investors What's happening with the Renters' Rights Bill The Renters' Rights Bill is making good progress through the House of Commons, and entered the Committee Stage on 22 October 2024. The Committee are going through the Bill on a clause by clause basis. The Housing Minister has made it clear that they won't be backing down on fixed terms or making exceptions for students. The ambiguity around up front rent payments has been discussed a lot, and the Minister said he will make the position clear in the Bill. >> Blog post: The latest on the Renters’ Rights Bill >> Related episode: What the Renters’ Rights Bill changes about rent Softening of rental demand There are signs that the renal market is slowing down, with demand softening. Anecdotally, Richard and Suzanne have recently seen it in London and Kent respectively. This is backed up by Rightmove's Rental Trends Tracker for Q3 2024 which says the average number of enquiries per rental property is now 15, down from 23 last year. However, this is nearly double the 8 before the pandemioc in 2019. The advertised rental price is dropping before finiding a tenant for more than a fifth of rental properties. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

Hot on the tails of Keir Starmer's controversial assertion that landlords aren't "working people", as it's passive income, like income from shares, Suzanne Smith and Richard Jackson discuss objectively the extent to whether income from residential rental properties can be considered "passive". Stepping back from the political debate, they examine "passive income" means, and contrast it to what landlords need to do to earn money from their rental properties. Although property "gurus" claim that rental income is passive, there is a trade off between outsourcing and profit. It's also the wrong mindset. >> Blog post: Can landlords make passive income from rental property? >> Ask a question: Click here for question form What we cover in this episodeDifferent types of landlordsWhat does "passive income" actually mean?How do landlords make money from rental properties?What do landlords actually do to earn money?Landlords' legal obligationsOther strategiesFinal thoughts Different types of landlords There are two key types of residential landlords: part-time landlords who manage properties alongside a full-time job, and professional landlords who manage their property portfolios as their main occupation. Richard emphasises that even part-time landlords work very hard, juggling their careers with property management. Suzanne adds to this by discussing the responsibilities and engagement required, even for those landlords who might have fewer properties. Landlords who manage properties themselves do not earn passive income - it is a job. On the other hand, income from landlords with full repairing commercial leases is more passive. What does "passive income" actually mean? HMRC considers passive income to be investing in assets, and not from running a trade or a business, or being an employee. They give examples such as interest payments from bank accounts, annuities, and dividends from money invested in the stock market, and don’t refer to rental income. Forbes frames it as income that doesn’t need a significant commitment of time or effort to earn, with only minimal monitoring on an ongoing basis. They say that rental income doesn’t fall within the definition of passive income as it requires a large up-front investment, as well as ongoing maintenance and management of the property.  Despite what the "property gurus", earning rental income as a landlord isn’t the same as getting interest from money in a bank account, or dividends from stock market investments. However, is it right to say that landlords really earn money with minimal effort? How do landlords make money from rental properties? Landlords earn money from rental income and capital growth. Landlords need cashflow from rent in order to pay the bills while they are waiting for capital growth, unless they are going to dip into their savings. Capital growth is never guaranteed. Although property prices boomed in London in the past, anyone who bought a flat in London over the last 5 years will know that capital growth is not a given. Suzanne barely broke even on her flat in Cambridge in 7 years, despite it being a fantastic flat a great location. What do landlords actually do to earn money? But before landlords earn anything, they need to find, finance and buy a new rental property, which is time-consuming and expensive. Then they need to refurbish the property (unless it's a new build), make sure it's compliant, and then find suitable tenants to rent the property. Once tenants move in, they will need managing, and the property will need ongoing repairs and maintenance to keep the property in great condition, and compliance with landlords' various legal obligations like the annual gas safety certificate. There is always a lot of work when tenants change over. It is running a business. If landlords outsource these activities, the income can be more passive, but that will reduce margins.

This week, Suzanne Smith and Richard Jackson talk about a subject that causes a mixture of angst and even anger among landlords, and that's EPCs, or Energy Performance Certificates. EPCs are very important for landlords, as the government announced in September that they'll be consulting on proposals for private and social rented houses in England to achieve EPC rating C by 2030. They start with a recap on what EPCs are and the current minimum EPC for private landlords, before discussing problems with unreliability, and government plans to increase the minimum rating to a C and improve the reliability of EPCs. Suzanne goes through what we know about the new Warm Homes Local Grants that will available for some private landlords from 2025, and they both end with some practical tips and ideas for improving the rating. >> Ask a question: Click here for question form What we cover in this episodeThe new consultation for private rented properties to have EPC CWhat is the average energy efficiency rating in the PRS?What is an EPC?How to find out what EPC a property hasWhat rules do landlords need to comply with relating to EPCsHow accurate are EPC ratings?Do EPCs help lower emissions?Warm Homes: Local GrantsTips for improving your energy efficiency ratings The new consultation for private rented properties to have EPC C The government announced in September that they'll be consulting on proposals for private and social rented houses in England to achieve EPC rating C or the equivalent by 2030. What is the average energy efficiency rating in the PRS? According to the latest government figures, the average EPC rating for the private rented sector in England and Wales is D (65) for existing properties. (Rating C starts at 69). However, the figure of 65 includes flats, which tend to have a higher EPC rating, as well as post-war properties. What is an EPC? "EPC" stands for energy performance certificate. It was originally introduced by the European Union, and was designed to make the energy efficiency of buildings more transparent and comparable between different properties. It's a certificate, which shows the rating of the property's energy efficiency, ranging from the most efficient at an A to the least efficient at a G. A qualified energy assessor creates an EPC by inputting information into government approved software about the building, its heating, lighting, ventilation, air conditioning Consequently it's important that the energy assessor inputs accurate information into the software. How to find out what EPC a property has It's easy to look up the EPC rating of any property by using the Find an energy certificate checker. This is very useful for landlords as they can look up the EPC ratings of other properties in the same street and see which assessors have done the ratings. What rules do landlords need to comply with relating to EPCs Currently, rental properties must have an EPC rating of either at least an E or for the landlord to have spent up to the cost cap on improvements, ie £3,500 (inc VAT) on energy efficiency improvements. The landlord must have commissioned the EPC before listing a property, and must use "all reasonable efforts to obtain one within seven days". Landlords need to provide tenants with a copy of the full EPC with the assessor's report before they sign the tenancy agreement. If they don't do this, they may be unable to serve a Section 21 notice. An EPC is valid for 10 years, and doesn't need to be renewed until the property is listed for sale or rent after it expires. . And, of course, that's soon gonna be phased out anyway. Yeah. And so an EPC is valid for ten years. And a question How accurate are EPC ratings? EPC ratings are notoriously variable and unreliable, and there's much academic research which concludes the same. For instance, research by Leeds Beckett University (2019) found that “27% of EPCs in the ope...

How can landlords intervene to break the cycle of damp and mould in their rental properties? No-one likes living in a property with black mould, and the death of toddler Awaab Ishak in 2020 after developing breathing problems because of the black mould in the flat his parents rented from a housing association show just how important it is for landlords to take damp and mould seriously.  There's often more than one cause of black mould, and it's important for landlords to get to the bottom of it. This is another very practical episode for landlords. Suzanne Smith and Richard Jackson discuss the different types of damp, what causes black mould, the practicalities of landlords' responsibilities, what landlords should do if a tenant reports damp and mould, and some practical tips to help landlords and tenants to stop condensation mould coming back. >> Ask a question: Click here for question form What we cover in this episodeWhat are landlords' legal obligations about mould?The Decent Homes Standard and Awaab's LawThe different types of damp2. Condensation damp2. Water penetration3. Rising dampWhat is black mould?What causes black mould?What must a landlord do if a tenant reports black mould?Tips to reduce the risk of black mouldThe importance of keeping recordsThe importance of a collaborative problem-solving approach with tenants What are landlords' legal obligations about mould? The law requires all privately rented properties to be fit for tenants to live and free from serious hazards that are harmful for health. If damp and or mould are present in a rental property, it's the landlord's responsibility to identify the underlying causes of the problem so that they can be addressed. In fact, Government Guidance published in 2023 states that landlords must take damp and mould seriously, assess the underlying causes with urgency, take appropriate action and keep tenants informed. Landlords have a legal obligation to maintain the fabric of the building, and remove the source of the moisture to reduce the risk of damp and mould. From a practical perspective, this means that landlords should fix such as misaligned downpipes, blocked guttering, leaking waste pipes, missing roof tiles etc. Tenants on the other hand are responsible for keeping the property in a “tenant like manner”. >> Related blog post: What does “tenant-like manner” mean? >> Related blog post: How should landlords best tackle damp and mould? The Decent Homes Standard and Awaab's Law The Renters' Rights Bill is introducing some new obligations on private landlords, not only to comply with a new decent home standard for the PRS, which will the hazards of damp and mould, but also Awaab's Law. "Awaab Law's" is the name given to Section 42 of the Social Housing (Regulation) Act 2023 which requires social landlords to fix reported health hazards within specified timeframe, still to be confirmed. The Renters' Rights Bill will extend Awaab's Law to the private rented sector. They haven't yet clarified how they will do this, although in the Guidance to the Renters’ Rights Bill says that details will be set out in regulations, after consultation on how best to apply Awaab’s Law to the PRS “in a way that is fair, proportionate and effective for both tenants and landlords”.Second Reading . T >> Related episode: Election special: What the manifestos say about rental reform >> Related blog post: Renters’ Rights Bill and the Decent Homes Standard for the PRS The different types of damp 2. Condensation damp Condensation damp happens when warm moisture vapour that's created inside a property from breathing, cooking, showering, and drying washing, cools and condenses into water when it touches, cold parts of buildings, such as outside walls and windows. You often see condensation on a windows and it's worse on outside walls. Condensation sometimes isn't visible as it starts to grow in hidden places where th...

Following the publication of the Renters' Rights Bill a little under a month ago, and in honour of the Second Reading of the Bill in the House of Commons today, Suzanne Smith and Richard Jackson answer some of the many questions they've received from listeners of Good Landlording about different aspects of the Bill. The episode is full of practical advice, and explains the areas where things aren't yet clear. On that note, it's of course course subject to the usual disclaimer that the Bill still isn’t finalised, and some of the wording is ambiguous. The questions about the Renters' Rights Bill cover topics as diverse as rent, what happens when Section 21 is abolished, the transition arrangements, the treatment of antisocial behaviour, pets, students, and the possible impact on leaseholders. There is a worked example of the transition arrangements in the show notes below. >> Ask a question: Click here for question form Questions we answer in this episodeDetail on the new rules on rentWhat happens when Section 21 goes?What happens to Section 21 notices pending on Commencement Date?What are the current time limits for Section 21 notices?General rule for Section 21 notices served before the Commencement DateExample timeline assuming Commencement Date is 1 July 2025Transition arrangements - worked examplePetsStudentsImpact on landlords who are leaseholders Detail on the new rules on rent Here are the questions from listeners about how the Renters' Rights Bill changes rent: It seems that it is possible to increase a rent to market rent and not to a fixed percentage increase? Isn't this a good thing for Landlords? I'm struggling to find the clauses dealing with "no advance rent payments".  Is that a thing?  It’s been mentioned quite a bit by various people, but in your recent podcast, Suzanne said it’s not clear. Can she explain more about that? >> Related episode: #27: What the Renters’ Rights Bill changes about rent >> Blog post: The new rules about rent in the Renters’ Rights Bill What happens when Section 21 goes? Here are the questions from listeners that relate to the abolition of Section 21 in the Renters' Rights Bill: Can a tenant under the new legislation avoid eviction by staying 2 months in rent arrears, so they avoid reaching the three month threshold for eviction? Can you expand on how Anti-Social Behaviour is treated in the RRB, please? If you want to sell your HMO, (not to family), it mentions tenancies of not less than 12 months which is not possible in an HMO? Okay if you are selling it on as an HMO but if not? I entered into a 12 month AST with tenants on 1 August 2024, and I don’t want to renew with them next year. Can I serve a s21 notice now? What happens if I serve a s12 notice just before the s21 is abolished? >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: How and when will Labour abolish Section 21 no fault evictions? What happens to Section 21 notices pending on Commencement Date? When the Renters' Rights Act comes into force, the general rule is that all Section 21 notices that have been served before the Commencement Date (when the new tenancy system comes into force) will still be valid. However, there are some rules regarding how long a landlord will have to apply for an order for possession after the the notice expires before it becomes time-barred. What are the current time limits for Section 21 notices? The current rules are that the Section 21 notice can't be served in the first 4 months of a tenancy. However, if the tenants ignore the notice and don't move out when it expires, the landlord must apply for an order for possession within 6 months of the date the notice was served. This rule will be modified for Section 21 notices that expire after the Commencement Date. General rule for Section 21 notices served before the Commencement Date

Good tenants are precious, and landlords should do all they can (within reason!) to keep them happy and encourage them to stay. In this episode of Good Landlording, Suzanne Smith and Richard Jackson talk about how to keep tenants happy. Starting off on the right foot even at the viewing stage, so it creates a positive impression for new tenants, and keeping them happy once they've moved in. They borrow some ideas from the management of employees, and apply them to the management of tenants. This starts with an "onboarding" process to create a positive relationship - or the "psychological contract" in management speak. It's not all management theory. The episode is full of lots of practical tips to help landlords look after their tenants and keep the tenants happy. >> Related episode: #1: What makes a good tenant? >> Ask a question for the show: Click here for question form What we cover in this episodeWhat is "onboarding"?Why the "psychological contract" is important?What is a tenant onboarding or induction?Tenant reviews of landlords - Marks Out of TenancyProvide a welcome pack or house manual to tenantsWhat quiet enjoyment meansManaging repairsBe professional and business-like What is "onboarding"? Richard and Suzanne have both worked for American companies, and are used to the concept of "onboarding programs" for new employees. Onboarding is similar to what we call an an induction in the UK, but is more than that. It involves, welcoming a new employee into a company, showing them the ropes, and explaining what support there is, and also what the expectations are for the working relationship. Why the "psychological contract" is important? This onboarding idea is an important part of what's called the "psychological contract" between a company and an employee. It's how both parties understand their relationship outside of their formal contract of employment. It's all about how the employee feels about their boss and the company. It can be positive, or negative, and it starts at the interview stage. A similar psychological contract arises between tenants and landlords. Instead of a contract of employment, there's a tenancy agreement. This psychological contract is how the tenant feels about their rental property and their landlord, and is key to having happy tenants. We need to think about the psychological contract as starting from the very first moment that we meet the tenant when we're choosing them through agents or whether we're doing it ourselves. It continues when they move in and throughout the rest of the tenancy, until they eventually leave. What is a tenant onboarding or induction? Suzanne sees the relationship starting once she receives a message from an applicant through the online letting platform. Before they even view the property, she will have sent them suitability questions and may have called them (to avoid time-wasters). She also sends them a a link to the website for her property business, which has FAQs and a pet policy. At the viewing itself, she explains she's an Accredited Member of the NRLA, and that she's a good landlord who takes her obligations seriously and keeps the property in good repair. She sets expectations by saying she is looking for good long term tenants who look after the property, pay the rent on time, and are good neighbours. If they have a pet, she'll talk about her pet policy, and she tells them she increases the rent each year. This all ensures they know what they're getting before they make an offer to rent the property and send the holding deposit. Both Richard and Suzanne show the tenants around the property when they move in, and leave a house manual / welcome pack. Here are a few tips of things to cover when tenants checkin: Communication: explain the means of communicating with tenants, such as a WhatsApp group with the tenants to make it easy to contact each other.

The Renters' Rights Bill makes significant changes to the rules about rent for landlords and tenants in England. In this podcast episode, Richard Jackson and Suzanne Smith discuss the proposed restrictions on landlords when accepting offers from tenants, the new process that landlords will need to follow to increase rents, the new powerful rights for tenants to challenge and delay even reasonable rent increases, and what's happening with advance lump sum rent payments. They also discuss the challenges that landlords and letting agents face with a very short implementation timetable, with the expected "big bang" change over to the new tenancy system by the summer of 2025. Finally, they share tips on how to successfully navigate the change. >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: The new rules about rent in the Renters’ Rights Bill >> Ask a question: Click here for question form What we cover in this episodeThe changes to how landlords increase rentThe greater powers of renters to challenge rent increasesCan landlords accept advance lump sum payments of rent?The likely impact on tenants without a good credit historyThe rules to stop “rental bidding” The changes to how landlords increase rent Landlords will only be permitted to increase in-tenancy rent by giving at least 2 months' notice to expire at the end of a rental period, using the statutory process in Section 13 of the Housing Act 1988, and what will be an updated Form 4. Landlords won't be able to increase rent by agreement (unless the agreement is to reduce rent after a landlord serves a s13 notice) and all rent review clauses in tenancy agreements will be null and void. The greater powers of renters to challenge rent increases As now, tenants will be able to appeal Section 13 rent increase notices in the First-tier Tribunal, who will determine the market rent. If they do challenge a rent increase at the FTT, any increase in the rent will only come into effect on the date of the FTT determination. In other words, it won't be backdated to the date specified in the notice. This will have the effect of delaying an increase in rent that is fair and reasonable. Given the current delays on a small number of cases in the FTT now and the expected increase in appeals, this may have the effect of what David Smith of JMW terms "rent suppression". Can landlords accept advance lump sum payments of rent? The Bill does not say in words of one syllable whether advance lump sum payments may be made, and there is some disagreement between lawyers. This needs to be clarified urgently. The likely impact on tenants without a good credit history If upfront payments are outlawed, and given the expected increase in rent guarantee insurance as a result of the abolition of section 21, unless tenants have a good credit history, they may find it difficult to find somewhere to rent. The rules to stop “rental bidding” When landlords list or offer a property for rent, they will need to set a proposed rent. Landlords will not be permitted to accept offers above the proposed rent from prospective tenants. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

In this week's episode, Suzanne Smith and Richard Jackson discuss the practicalities of what will happen when the Renters' Rights Bill will abolish Section 21 "no fault" evictions for landlords in England. They cover: what is Section 21, how Section 8 will replace Section 21, the key new and changed grounds for possession, when it's going to come into effect, and what landlords will need to do to adapt to the new regime. They also share their reflections on this new Bill. As always, it's a very practical episode. PS As a general caveat, it's still very early days with the Renters' Rights Bill. The Bill is really difficult to understand, and we may well change our views on how to interpret it. It may also change as it goes through parliament. Before taking significant action, do get advice from a specialist solicitor. You can contact us by sending us a message on our contact page if you would like a referral. >> Ask a question: Click here for question form What we cover in this episodeWhat is Section 21?What will replace Section 21?What is Section 8?When is Section 21 going to be abolished?Tips for adapting to the new regime Special offer from Symple for Good Landlording listeners #ad Before we get into the ins and outs of the abolition of Section 21, we wanted to share a promotion for listeners of Good Landlording that helps you, and helps support the podcast. We all know it can be a hassle for landlords to keep on top of gas safety certificates, EICRs and EPCs, especially for those of us who have a portfolio in different parts of the country. Although software like Alphaletz can help remind landlords when they are all due, landlords can also use Symple to make sure they are actually done on time. If you haven’t heard of Symple, it’s a free platform that’s designed to help landlords streamline their compliance management. You can set it up to order  gas safety inspections, Electrical Installation Condition Reports (EICRs), and Energy Performance Certificates (EPC) with just one click. Symple provides landlords with automated renewal reminders to ensure they never miss a deadline and provides real-time updates on certificate statuses once they are ordered. Symple cover the whole of the UK with pre-approved local service providers. There’s no searching or chasing - Symple handles everything for you. Symple even guarantees to do it by the due date if you book it at least 4 weeks in advance. The charges for the certificates are reasonable, and all of the suppliers are vetted. And best of all, Symple are offering listeners of Good Landlording a 5% discount on all of their products with the code GL05. This is a paid promotion, but one that benefits our listeners as we have negotiated a 5% discount for our listeners on all certificates ordered from Symple using the code GL05. Click here for Symple What is Section 21? Section 21 of the Housing Act 1988 gives landlords the right to evict tenants without needing to give a reason.  So long as that landlord serves a valid notice using Form 6A, which is on the government website, they give  two months notice  plus a few days for service (and assuming the landlord has, of course, served all the relevant documents when they needed to), then the landlord will get the property back. The landlord doesn't need to give a reason. It doesn't mean there is no reason, just that they don' need to explain their reason. >> Blog post: How and when will Labour abolish Section 21 no fault evictions? What will replace Section 21? The only way landlords will be able to bring a tenancy to an end after Section 21 is abolished is by using the Section 8 process. What is Section 8? Section 8 is from the Housing Act 1988 and allows landlords to evict tenants when they have a specific  grounds or a reason. The landlord needs to provide evidence of the ground. There are two types of grounds:

Suzanne Smith and Richard Jackson discuss their first impressions of Labour's new Renters' Rights Bill in this special episode of Good Landlording, shortly after Bill was published. They go through the big ticket items in the new Bill, how it compares to the old Renters (Reform) Bill, and what landlords should do to prepare for the new Bill. They'll be discussing the Renters' Rights Bill in more detail in the coming weeks and months, but this episode provides a useful overview of what's in the Bill, and what's not. >> Ask a question: Click here for question form What we cover in this episodeOverview of the Renters' Rights BillThe key parts of the Renters' Rights Bill1. The abolition of Section 212. The abolition of ASTs and fixed term tenancies3. Changes to Section 8 Grounds for Possession4. No rent controls in the Renters' Rights Bill5. Change to rent increase procedure6. No encouragement of rental bidding7. Other provisions in the Renters' Rights BillWhat should landlords do about the Renters' Rights Bill? Overview of the Renters' Rights Bill The Renters' Rights Bill is very similar to the old Renters Reform Bill, but with a fair few Labour "tweaks", notably removing the concessions given to Conservative backbench MPs at the Report Stage of that Bill, banning rental bidding, and giving tenants more rights when it comes to challenging rent increases. There are no dramatic surprises as the main provisions have been well signalled by the Labour government. The amendments that Labour proposed at the Report Stage of the Renters (Reform) bill have been reflected in the new Bill. >> Useful resource: Renters' Rights Bill Hub >> Blog post: How the Renters' Rights Bill compares with the Renters (Reform) Bill The key parts of the Renters' Rights Bill 1. The abolition of Section 21 The Renters' Rights Bill takes the same approach to the abolition of Section 21 no fault evictions as the Renters (Reform) Bill. However, there will be no delay to the implementation for existing tenancies for the Lord Chancellor's review of the operation of the County Court eviction process as there was with the Conservative's Bill. Instead, there will be a "big bang day" when all tenancies will switch to the new regime, without Section 21, whether they are new or existing tenancies. The abolition won't affect notices that are served before the Bill comes into force. >> Blog post: How and when will Labour abolish Section 21 no fault evictions? 2. The abolition of ASTs and fixed term tenancies As per the old Bill, assured shorthold tenancies will be replaced by periodic assured tenancies and landlords won't be able to sign up renters for a minimum period. Renters will be able to serve 2 months' notice to quit at any time. Labour have done this to make tenants flexibility so that they're not tied in and can leave places that are in disrepair. It's part of their aim of giving more power to renters. There is no exception for student landlords, and they won't be able to stop tenants moving out at Easter or after the exams in May. 3. Changes to Section 8 Grounds for Possession Contrary to media reports over the summer, the Renters' Rights Bill does not introduce a hardship test for Mandatory Grounds, which would have effectively turned all Mandatory Grounds into Discretionary Grounds. Landlords will be pleased that the new Bill contains the new Ground 1A from the Renters Reform Bill which entitles them to possession if they can demonstrate they wish to sell the property. 4. No rent controls in the Renters' Rights Bill Despite recent speculation, there are no rent controls in the Bill and no provisions to devolve the power to impose rent controls to local government and the Metro Mayors. 5. Change to rent increase procedure Landlords will only be able to increase the rent by using the Section 13 procedure, and the notice will be doubled from one month to two months.

Almost 40% of the properties in the PRS in England are leasehold, so the chances are that if you're a private landlord listening to this podcast, you'll have at least one leasehold property in your portfolio.  If you do own a flat in England or Wales, or are thinking of buying one, you need to listen to this episode of the Good Landlording podcast. This is because the government plans to "take steps to bring the feudal leasehold system to an end", by "reinvigorating commonhold through a comprehensive new legal framework", and replacing leasehold with commonhold. As part of this, the Government say they will ban the sale of new leasehold flats so that commonhold becomes the default tenure. This promises have significant implications for leaseholders, should it see the light of day, and it's something that property investors need to understand. However, abolishing "feudal" leasehold is also a lot easier said than done, and in this episode of Good Landlording, Richard and Suzanne discuss what it all means, and what's likely to happen in practice. They also talk about the implementation of the Leasehold and Freehold Reform Act 2024, and plans to abolish forfeiture and tackle ground rent for existing leases. >> Ask a question: Click here for question form What we cover in this episodeRecap of what's in the Leasehold and Freehold Reform Act 2024What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill1. Labour promises to "tackle" ground rent2. The abolition of forfeiture for leasehold properties3. Labour's promise to replace leasehold with commonholdHow does commonhold differ from leasehold?Why does the Government wish to abolish freeholdThe transition from leasehold to commonhold Recap of what's in the Leasehold and Freehold Reform Act 2024 The Leasehold and Freehold Reform Bill managed to get onto the statute just before the election, becoming the Leasehold and Freehold Reform Act 2024.  The Leasehold and Freehold Reform Act 2024 has the following key provisions: Considerably longer lease extensions, ie 990 years instead of 50 for houses or or 90 for flats. A new valuation process that is more favourable to the leaseholder. The banning the sale of new houses as leasehold, making sure that they are sold as freehold. Changes to the valuation methods for collective enfranchisement by leaseholders. Greater transparency over service charges and estate management charges. At the moment the Act has only received Royal Assent, but hasn't yet come into effect. However the Government's July 2024 King's Speech says "The Government will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024". They also say in the King's Speech that they will "will consult on the best way to bring [...] the injustice of ‘fleecehold’ private estates and unfair costs to an end [...] and implement new protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024. It's expected that leaseholders will need to wait until 2025 or 2026 before they can exercise their rights to extend leases for up to 990 years, but the Government will be under pressure to do it as soon as possible. What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill The King's Speech refers to publishing a draft Leasehold and Commonhold Reform Bill that will "reinvigorat[e] commonhold by modernising the legal framework". They will also "restrict the sale of new leasehold flats. The Government will consult on the best way to achieve this, so that generations to come will benefit from absolute homeownership". The use of the word "draft" means the Bill itself is unlikely to be presented to parliament in the next year. Instead, they will publish it to enable people to comment on it as commonhold is very complex.

In this summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of Wendy Whittaker-Large about what makes a successful, systemised HMO business. The episode a fantastic source of information for anyone who has HMOs, is thinking of converting a property into an HMO or is just "HMO-curious". Wendy gives an insider's view of how to make HMOs a success, and build an efficient systemised HMO business. >> Ask a question: Click here for question form What we cover in this episodeAbout Wendy Whittaker-LargeWhy invest in HMOs?Why do renters like HMOs?Which locations are good for HMOs?How tenancy agreements differ for HMOsWhy 6 Bedroom HMOs are the sweet spotWhat Article 4 means for HMO landlordsTips for developing an successful HMOTips for managing HMO tenantsThe importance of having a systemised business for HMOs About Wendy Whittaker-Large Wendy Whittaker-Large is the multi award winning founder of BestNest, a property development and lettings business, and HMO Success, a specialist  HMO training and mentoring company.  She's also the chair of the HMO Council Tax Reform Group which successfully overturned the single banding of HMO rooms for council tax in 2023. Wendy is a landlord who's grown a large property portfolio since 2012, mostly focused on HMOs.  She has also published two books about HMOs: 101 Essential Tips for Running a Professional HMO and Extraordinary Profits from Ordinary Properties (Amazon links). Wendy is a regular on the speaking circuit, and has a successful podcast called the HMO Success Podcast which is available on Apple, Spotify and Podbean). Why invest in HMOs? An HMO is a house in multiple occupation, in other words, a building in which three or more households live together It's a cross between a hotel and a house, with people living there, or a family home where you might have you know four or five adults living. Whatever happens in the market, there is always a need for good quality, dense housing. Wendy believes HMOs offer tremendous benefits both for the people who live there and also, of course, for landlords investing in this type of housing.  Buying an HMO allows one property to generate more revenue than renting it out as one single family let.  Wendy says that an average yardstick would be £1,200 - £1,400 pcm net profit across the country. On the other hand, there is more work, more investment and more management time. HMOs cost more to refurbish, as they need to have better fire doors and fire protection, and amenities. The HMO is likely to need a licence, and they are subject to more legislation, such as the HMO Management Regulations. >> Blog post: Property investor guide to the successful management of HMOs Why do renters like HMOs? Renters like HMOs as usually they only pay one amount which includes the rent and the bills. In an age of uncertainty over fuel bills and the cost of living, tenants like only paying one amount per month which covers everything.  Living in an HMO is very flexible as there is usually no long term commitment. Tenancies are usually for 6 months and are suitable for those on contracts, who are maybe working across the country, who don't know where they're going to be in the future. Which locations are good for HMOs? Wendy recommends cities and large towns with more than 80,000 people, as they are likely to have the demand from HMO renters. How tenancy agreements differ for HMOs HMO landlords should use a specialist tenancy agreements for HMOs, as opposed to ones for where the property is let to one household or two sharers. This is because professional HMOs tend to be let by the room, and not as a joint tenancy. The renters have exclusive possession with quiet possession of their room (and perhaps an en suite), and share the common parts. The landlord is able to enter the common parts for inspections, and often include a cleaner in the rent.

In the third of four summer special episodes, Richard Jackson and Suzanne Smith speak to Lisa Brown, nurse turned property developer, who explains how landlords can make a success of leasing their properties to providers of supported living housing. In this episode, Lisa explains what supported living is, how it works, what type of properties are suitable, adaptations, choosing a provider and the advantages and risks for the landlord. You can also connect with Lisa on LinkedIn and find out more information on the Supported Living Property website, the Supported Living Property Podcast and the Supported Living Property YouTube Channel. >> Ask a question: Click here for question form What we cover in this episodeAbout Lisa BrownWhat is supported living?How does supported living work?What types of properties are suitable for supported living?Grants for adaptations for supported living propertiesWhat are the advantages of supported living for the landlord?What to look out for when choosing a supported living partnerCredits About Lisa Brown Lisa had nursing career of over twenty years working her way up to senior sister and emergency nurse practitioner in a busy East London A & E, and she also worked as a health visitor.  She saw firsthand a direct impact that poor quality housing or lack of housing has on people's health and well-being.  Lisa discovered supported living herself by chance and found it a natural fit with her experience as a nurse.  However, she also discovered that property investors  often struggled to let properties to supported living providers,  and providers struggled to find properties to let. So she came up with the idea to set up her Supported Living Property Network to provides training and a place for providers and property investors to connect.  Lisa also has a successful podcast (on Apple and on Spotify), plus a YouTube channel. What is supported living? Lisa Brown defines supported living as arrangement for accommodation for a tenant who has a support need. The support need may be long term. For instance, someone who has learning disabilities, autism, complex mental health, or maybe with physical disabilities, somebody for their for their whole lifetime is gonna require that level of support and input. It can also include people with support needs for a shorter term, for a few months or a few years. This may e people who are homeless, veterans with PTSD, people fleeing domestic abuse, or teenagers transitioning from the care service. There's a whole range of different people who need support in the short term. It's for people who need time to be able to support someone till they can move on and take their own tenancy.   There are people with support needs in every community, from small rural communities to big cities, across the country.  As there's a higher concentration of people in cities, demand is greater, but there are often requests for properties in a smaller towns and communities. y. How does supported living work? With supported living, the owner of a property enters into a lease with a supported living provider, which may be a housing association, community interest organisation, local authority, charity or care provider. That organisation either grants a tenancy or a licence to the people who will live in the property. The supported living provider provides accommodation to people with support needs ranging from a few hours support a week to members of staff on-site twenty four hours a day helping them access every part of their their life that they need the support for. Where the provider specialises in people with short term needs, they usually proved the support as well as the accommodation. For people with long term needs, the support can be provided separately. What types of properties are suitable for supported living? There is no specific type of property that is suitable for supported living, as such,

In the second of four summer special episodes, Richard Jackson and Suzanne Smith speak to Bushra Mohammed, who guides us through how to buy and sell properties successfully at auction. Not only is Bushra a property solicitor with particular expertise advising clients who buy and sell at auction, but she is also a property developer and landlord. This enables her to understand the perspective of property investors, and what the key issues are to look out for. Suzanne first met Bushra after following her Instagram account @bushra_propertyinterest. You can also connect with Bushra on LinkedIn and find out more information on her website. >> Ask a question: Click here for question form What we cover in this episodeWhy do people sell property at auction?Why do property investors buy at auction?Difference between buying property at auction and by private treatyWhy the auction legal pack is important for biddersPractical tips for buying property successfully at auctionPractical tips for selling property successfully at auctionBushra's Golden NuggetsCredits Why do people sell property at auction? People usually decide to sell a property at auction, instead of the usual "private treaty" are usually looking for speed and/or certainty, With speed, the seller knows they will have a legally binding exchange, which is highly likely to complete within two weeks or 28 days. The certainty comes from knowing that the winning bidder will exchange on the day of the auction and will pay a 10% deposit, which they will lose if they don't complete on the purchase. Typically the sellers are those who wish to sell quickly and efficiently, eg to raise money to pay debts, a probate sale when the owner has died or the property may have structural issues. Bushra advises that it is important for potential bidders to find out the reason for the sale, and then decide whether the circumstances pose a risk for them as bidders, and what they can do to mitigate the risk. Why do property investors buy at auction? Programmes such as Homes under the Hammer have taken some of the mystery out of buying property at auction, and increased its popularity. Property investors usually decide to buy at auction in the hope they will be able to buy a property below market value. If they the highest bid, they have the certainty that purchase will complete. There will be no gazumping and no stressful chains. Difference between buying property at auction and by private treaty Whereas with a normal sale by private treaty (buyer makes offer, does searches, exchanges and then completes), when a bid wins at auction, the bidder is legally obliged to pay the deposit, with contracts "exchanging" straight away. There is no cooling off period and the bidder will lose the deposit if they con't complete the purchase within the specified time period, ie 2 weeks or 28 days. This means that someone buying a property at auction needs to do all of their searches and due diligence before the auction. Unlike a purchase by private treaty, they cannot pull out once the bid is accepted. Why the auction legal pack is important for bidders As bidders need to do their due diligence up front, it's really important to study the auction legal pack carefully to make sure there is nothing noted that might affect your decision to buy the property. Bushra advises instructing a solicitor to review it so that they can flag any risks and ask for further information. If the seller provides more information in response to a question, that will potentially put a bidder in a better position as the seller won't automatically send information to all bidders, as is the case with public procurement. >> Blog post: 7 ways to screen your property investments Practical tips for buying property successfully at auction Bushra gives the following tips to help investors buy property successfully at auction:

For our first summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of landlord and interior designer, Charlotte Richardson, about how good interior design can benefit both landlords and renters alike. As always, it's a practical episode, with lots of actionable tips to help landlords use interior design to help them attract and keep good tenants. >> Ask a question: Click here for question form What we cover in this episodeIntroduction to our guest: Charlotte Richardson of roostInterior design tips for landlords1. See the vision at the start2. Meet the needs of your target market3. Choose quality items4. Maximise the layout5. Flooring recommendations7. Invest in good lighting8. Inexpensive upgrades9. Good choices for paint coloursHow to choose an interior designerGolden nuggetCredits Introduction to our guest: Charlotte Richardson of roost Our guest for this "summer special" episode on interior design for landlords is Charlotte Richardson, Co-founder and Creative Director of roost, the interior design company that specialises in helping landlords and property developers maximise returns and make tenants feel great in their homes. As well as being an interior designer, Charlotte is a landlord and a property investor, and a graphic designer by profession. She has a fantastic blog called the roost interior design blog on her website with lots of great tips. You can follower her account _roost_ on Instagram. Interior design tips for landlords 1. See the vision at the start Charlotte recommends that landlords ask at the start of the project for the interior designer to provide realistic CGI rendering of what the space will look like after the project is complete. CGI rendering is a computer generated 3D visualisation which can help the property investor and the contractor visualise what the space will look like, and avoid costly mistakes before any work is done. It sets the scene for how this project is going to develop. They can see it in a 3D model and 'walk' around the house of flat before anything is done. It's a lot easier to make changes to the layout and even the colour palette at this stage than later on. Realistic 3D visualisations can also help contractors avoid costly mistakes, as they can see what the vision is for the property, plan, and know what's expected. It can also help investors pre-sell the rooms and market the property before the work is finished. 2. Meet the needs of your target market It's important for landlords to understand their target market.  This can help landlords make interior design decisions and take care about what the tenants need and value. It will reduce voids and help landlords obtain a good rent. For HMO landlords, the needs of NHS workers are different from administrative staff who like to work from home, manual workers or students. It affects how much communal space that they need, how much space people have in their rooms, what facilities they value. It's also really important to make sure the layout works. Families benefit from flexible living space as their children grow up, and lots of storage. >> Related episode: #1: What makes a good tenant? 3. Choose quality items Having the property in good condition is key. This means choosing quality items that will wear well and last longer. For instance, use large tiles in the shower, which don't need as much grouting as smaller tiles, and will wear better. 4. Maximise the layout An interior designer can help landlords use the space effectively with an excellent layout. 5. Flooring recommendations The choice of flooring is important as it's expensive to replace a bad decision. Charlotte recommends tiles in the bathroom and LVT (Luxury vinyl tiles) in the communal areas as it's hard wearing and is good in areas where there is water, like a kitchen, as it's waterproof. They can be scratch resistant too. 7.

This episode of Good Landlording is the rental market update for mid-2024, and has the latest Q2 data for rent in England in the 12 months to June 2024. Richard and Suzanne also discuss inflation, the likely impact of population growth on demand, and prospects for future growth. As well as referring to data from ONS and Rightmove, they also talk about the findings in recent reports by Paragon Bank's Next Generation Landlord Report 2024 and Savills' UK Build to Rent Market Update – Q2 2024. For August, the Good Landlording podcast will have "summer specials" which will feature special guests on topics ranging from interior design to HMOs, supported living and buying at auction. It'll give us all a welcome break from politics, as well as introducing us to new ideas. >> Ask a question: Click here for question form What we cover in this episodeLatest inflation figures for Q2 2024Consumer price inflationWage inflationWhat's been happening to rent in 2024?What effect will the government building programme on the PRS?What do Savills say in their Q2 2024 report?Paragon Bank's research into motivations of new investors Latest inflation figures for Q2 2024 Consumer price inflation According to the ONS, the Consumer Prices Index increased by 2.0% in the 12 months to June 2024, the same as the 12 months to May 2024. However, when it comes to landlords, the Consumer Prices Index including owner occupiers' housing costs (CPIH) is more relevant. That rose by 2.8% in the 12 months to June 2024, unchanged from 12 months to May 2024. CPIH is more likely to reflect our costs as landlords, whereas CPI is what the tenant is feeling. Wage inflation ONS figures say that the annual growth in employees’ average regular earnings (excluding bonuses) was 5.7% in the 12 months to May 2024. This is an increase in real terms of 2.5%. However, this is just an average as wage inflation has been stronger in the public sector (6.4%) than the private sector (5.6%). Within the private sector, the finance and business services sector saw the largest annual regular growth rate at 6.7%; while the construction sector saw the smallest annual regular growth rate at 3.0%. Suzanne usually increase rents by the lower of CPIH and wage inflation, which she believes is a good compromise. >> Related episode: #6: What landlords need to know about rent What's been happening to rent in 2024? It can be difficult to figure out exactly what is happening to rent as the data is conflicting. However, rent is now no longer in double digit territory, and the rate of increase has been slowing down. Both Rightmove and the ONS agree that the average rent across is now around £1,300. Rightmove says it is £1,314 for new tenancies (an increase of 6.8%) across the UK, and the ONS has the figure as £1,310 in England, an increase of 8.6%. The ONS figure includes rents for exiting tenancies as well as new tenancies. Rightmove say the average rent in London was £2,661 at the end of Q2 2024, an increase in 4% from a year ago. ONS says that rents increased an average of 9.7% in London. In the North East, by contrast, the government data says that rent inflation in the 12 months to June 2024 was 5.9%, whereas Rightmove says it is 8.3%. According to SpareRoom, rents in London are flat (an increase of 1% in the 12 months to June 2024), with room rents in multiple postcodes decreasing. SW14 (Mortlake) saw the biggest drop of 9%, followed by W8 (Holland Park) and NW5 (Kentish Town) where rents decreased by 7%. What effect will the government building programme on the PRS? Government figures are predicting that the UK's population will grow from under 68 million now, to 70 million by mid-2026, and almost 74 million by 2036 (12 years away). The population is therefore projected to grow even more quickly than the government’s rather optimistic pledge to build 1.5 million homes by 2029,

This episode is on the hot and controversial topic of tenants' rights to have pets in rental properties, which is on the horizon again with Labour's new Renters' Rights Bill. Richard Jackson and Suzanne Smith discuss what this right to request a pet is likely to look like, specific examples of when it might be reasonable to refuse for both single lets and HMOs, flats and houses. They also coverthe steps that landlords can take to reduce the risk of damage and being left out of pocket when the tenants move out. >> Ask a question: Click here for question form What we cover in this episodeWhat does the new Renters Rights Bill say about pets?What are landlords' attitudes towards pets in rental properties?What was in the old Renters Reform Bill about pets?The benefits of allowing tenants to have petsWhen would it be reasonable to turn down a request for pets?1. Pets in flats / leasehold2. Allergies3. Pet not appropriate for the property4. Concerns about the welfare of the pet5. HMOsWhat can landlords do to reduce the risks of allowing pets?1. Have a good pet policy2. Make sure you're comfortable that the tenant will look after the pet properly3. Carry out regular inspections4. If it's a dog, ask to meet it!Can a landlord insist on a professional clean at end of tenancy?Golden nugget What does the new Renters Rights Bill say about pets? The briefing notes to the King's Speech say that the Renters' Rights Bill will give "tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed". This is the same or very similar to the wording in the Renters Reform Bill.  What are landlords' attitudes towards pets in rental properties? A poll of a few hundred landlords in The Independent Landlord Community Facebook private group shows there is no consensus in attitudes towards having pets in rental properties. Here are the results: 31% already pet friendly 12% would reluctantly accept pets 15% would rather not accept them 31% would not accept pets if at all possible to refuse 11% said it would depend on the circumstances Of those in the "it depends" camp, some would allow it for tenants who've been there for a while and have proven themselves, like a form of probation,  showing they can look after the property. Others would charge more rent to reflect the increased risk as they can't ask for a bigger deposit. Bear in mind that the rent should not be above the market rent as that would mean the tenant could potentially successfully challenge a Section 13 rent increase notice in the First-tier Tribunal. What was in the old Renters Reform Bill about pets? Section 10 of the Renters Reform Bill, (which was abandoned before the election) included the right a tenant for to request permission to keep a pet. The landlord would not be able to refuse to give consent unless they had a good reason. The tenant had to make the request in writing and include a description of the pet for. The landlord needed to respond within a certain time period, and could ask the tenant to take out insurance that would cover the risk of pet damage, or require the tenant to pay the landlord's reasonable cost of maintaining insurance against pet damage. And if the renter is unhappy with the decision and thought that the landlord didn't have a good reason for turning down their request, they'd be able to complain to the private rented sector Landlord Ombudsman. The benefits of allowing tenants to have pets Tenants with pets will usually stay longer in the property, reducing voids. Pets also usually have a positive impact on the well-being and mental health of the tenants and their children. There is more demand for properties with pets, which makes the property easier to let. The landlord will usually be able to charge slightly more for the property.

In this episode of Good Landlording, Suzanne Smith and Richard Jackson discuss what the King's Speech said today about the contents of the new Renters' Rights Bill, which will apply to the private rented sector in England. The discussion includes the key provisions, the extent to which it differs from the Renters Reform Bill, what doesn't appear to be in the Renters' Rights Bill and the situation with EPCs. >> Ask a question: Click here for question form What are the key provisions of the new Renters' Rights Bill The King's Speech itself didn't say much about the new Renters' Rights Bill, other than: "Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions, and reforming grounds for possession". More detail was given in the briefing notes (see page 69-71) that accompanied the King's Speech and Richard discuss what the briefing notes to the King's Speech say about the new Renters' Rights Bill: Abolition of Section 21 ‘no fault evictions’ New Section 8 grounds for possession Ability for tenants to challenge rent increases Ending of rental bidding wars Right for tenants to request a pet Applying a Decent Homes Standard to the PRS Applying “Awaab’s Law” to the PRS Creation of digital private rented sector database Private Rented Sector Ombudsman Anti-discrimination New enforcement and investigatory powers >> Blog post: What the King’s Speech says about the new Renters’ Rights Bill >> Blog post: How to be a pet friendly landlord What did the King's Speech say about EPCs? It was a manifesto commitment of the Labour Party to "ensure homes in the private rented sector meet minimum energy efficiency standards by 2030, saving renters hundreds of pounds per year. Nobody will be forced to rip out their boiler as a result of our plans." Although energy was mentioned in the speech, there was no specific reference to requiring landlords to meet new minimum energy efficiency standards. This is something that would need primary legislation. >> Related episode: #16: What the Labour government has in store for landlords >> Related episode: #14: Manifesto pledges on leasehold reform Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.

Now that the new Prime Minister has appointed his front bench team and made clear his priorities, Richard Jackson and Suzanne Smith discuss what the Labour government has in store for landlords in England in the 16th episode of Good Landlording. They include answers to lots of questions from listeners, and go through what we know about leasehold reform, energy efficiency and leasehold reform. They also discuss Labour's plans to build 1.5 million homes in the next five years. >> Ask a question: Click here for question form What we cover in this episodeWhere are we now?What happens next?What is likely to be included in a new Renters Reform Bill?What's likely to be included in a Leasehold Reform Bill?Rachel Reeves' speech on 8 July 2024 about housebuildingPractical tips to help landlords to navigate the coming change Where are we now? The Labour government won the general election on 4 July, and the new Prime Minister, Sir Keir Starmer, said in his speech in front of Number 10 on Friday that "change will start now".  Angela Rayner has been confirmed as the Secretary of State of the Department for Levelling Up, Housing and Communities, with Matthew Pennycook as Minister of State for Levelling Up. Matthew Pennycook was Shadow Housing Minister from December 2020 to until the General Election. He knows the brief really well and shepherded  the Renters Reform Bill and the Leasehold and Freehold Reform act as it now is through the House Commons. The Guardian quotes a government source saying that the "Levelling Up" bit will be dropped from the of the Department for Levelling Up, Housing and Communities. The source is quoted as saying: "We agree with the principle of levelling up, but it was a gimmicky branding exercise [...] We’ll be taking the Ronseal approach. It will do what it says on the tin.” The has been confirmed by Angela Rayner since the podcast was recorded. The name of the department will be the Ministry of Housing, Communities and Local Government. What happens next? The King's Speech has been confirmed for Wednesday 17 July. The speech sets out which Bills will be in the next session of parliament, and we expect Bills on rental and leasehold reform to be included. We'll do an episode shortly after it is published to go through what legislation Labour intends to introduce for landlords. Lobbying for the Renters Reform Bill (or whatever it ends up being called) has started already with the NRLA, Propertymark, Generation Rent, and Shelter already issuing press releases about rental reform. What is likely to be included in a new Renters Reform Bill? The following are likely to be in a new Renters Reform Bill: The abolition of Section 21. Strengthening the ability of tenants to challenge rent increases End rent bidding wars. See David Smith's blog post on Rental Bidding: New Zealand law in the UK. Extending Awaab's Law and the Decent Home Standard to the private rented sector. The 2022-23 English Housing Survey estimates that 11.9% of properties in the PRS in England are “unsafe”, which means they contain a Category 1 HHSRS Hazard.  See Election special: Manifesto pledges on rental reform for more detail. >> Blog post: What landlords can expect from the new Labour government What's likely to be included in a Leasehold Reform Bill? Based on Labour's manifesto commitments, the Labour government will make the following leasehold reforms, which affect those landlords whose rental properties are leasehold: bring the "feudal leasehold system to an end” make commonhold the "default tenure" tackle "unregulated and unaffordable ground rent charges” For more detail, see Election special: Manifesto pledges on leasehold reform for more detail. Rachel Reeves' speech on 8 July 2024 about housebuilding The Chancellor of the Exchequer, Rachel Reeves, gave a speech on 8 July in which she stressed the importance of housebuilding to the ...

In this episode of Good Landlording recorded in the week of the General Election on 4 July 2024, Richard Jackson and Suzanne Smith discuss whether buy to let properties in England are still good investments in 2024. They analyse what make buy to lets so popular, what has changed, and what makes a successful buy to let in 2024. After going through the pros and cons of other investment strategies, they close with reasons to be positive about the future of the private rented sector. This episode isn't investment advice, but is their thoughts on how the proposition of investing in buy to lets has changed over the last few years, and where it leaves landlords now. What we cover in this episodeWhat did buy to lets become so popular?Why have buy to lets become less attractive?What about other investment strategies?Reasons to be positive about the private rented sector >> Ask a question: Click here for question form What did buy to lets become so popular? Newer landlords might not realise that buy to lets didn’t really become an established strategy until the early 2000s. In fact the first buy to let mortgages weren’t even launched until 1996. The PRS has seen phenomenal growth in the past three decades. In 1988, the PRS in England was only around 9% of all households. It peaked at 20% or 4.7 million households in 2017, falling back slightly to just under 19% in 2023.  The trigger for this phenomenal growth was the deregulation of the PRS initiated by Margaret Thatcher's government with the Housing Act 1988, which abolished rent controls, and the Housing Act 1996 which made assured shorthold tenancies the default tenancy. The decrease in interest rates in the 2000s, and ready access to buy to let mortgages, helped accelerate the growth of the PRS. Base rates remained below 1% from 2009 to May 2022, and "property gurus" promoting "free buy to lets" using cheap money and the BRRR (buy, refurbish, rent, refinance) strategy, encouraged this growth further. Why have buy to lets become less attractive? Higher interest rates over the last two years have caused particular problems for unincorporated landlords, who have been unable to set off their full financing costs against their profits after George Osborne introduced Section 24 in the Finance Act 2015. Many landlords are highly leveraged, which makes them more vulnerable when interest rates increase. Those searching for "passive income" have discovered that outsourcing property management means they have high fixed costs, which impacts profitability. The increase in interest rates mean that investors can get a good tax-free return in a cash ISA, without risk. >> Blog post: Can landlords make passive income from rental property? What about other investment strategies? Short term lets have their own challenges, and are due to have increased regulation. HMOs require a lot of management time. Investing in the stock market can be unpredictable, and seems less tangible than investing in bricks and mortar with a positive net cash flow. It's important not to put all one's eggs in one basket when it comes to investments, and not invest everything in buy to lets. Sometimes landlords will also use their pension to invest in property, by using a SSAS, a small self-administered scheme which can invest in commercial property. Suzanne says she has not done this as she doesn't want all her investments in property. >> Useful resource: Financial Times - What are the tax benefits of investing in property via SSAS? Reasons to be positive about the private rented sector It isn't all doom and gloom for the private rented sector, and there are the following reasons to be positive about the future of the private rented sector: Gross yields have increased over the past few years, improving returns for investors. Rents are keeping pace with inflation. Alternative investments such as the stock market come with their own set of risk...

For this special election episode of Good Landlording, Richard Jackson and Suzanne Smith pick apart the pledges that the political parties make in their general election manifestos for leasehold reform in England and Wales. (This episode does not apply to Scotland or Northern Ireland, where the law is different). This episode is useful for all leaseholders, not just landlords who own leasehold flats and houses. Suzanne and Richard explain what ground rent is, why it's become controversial, the reforms to date, and where the various parties stand on capping existing ground rent. Both Labour and the Conservatives specifically promise to move to commonhold, and Suzanne goes through the differences between commonhold and the existing freehold and leasehold structure. They also discuss plans to end the misuse of forfeiture and so-called "fleecehold" estate charges. As always, it's a practical episode, which helps landlords who own leasehold properties, like Richard, understand how the reforms may affect them, whoever wins the general election. It expands many of the issues they discussed in #10: Tips to help landlords self-manage their buy to lets. >> Submit a question: Click here for question form What we cover in this episodeOverview of leasehold reforms to dateCapping ground rentWhat is ground rent?What's the meaning of a peppercorn ground rent?Ground rent reform to dateWhy is ground rent controversial?What do the parties promise about reforming ground rent?Making commonhold the default tenureWhat is commonhold?What the parties say about commonhold in their manifestosEnding the "misuse of forfeiture"Abolishing "fleecehold" estate charges and maintenance costsConclusionCredits Overview of leasehold reforms to date According to Official Statistics from 2022-23, there are 4.77 million leasehold properties in England, which is almost 20% of the English housing stock. Of these, 38% (or 1.8 million individual properties) are privately owned and let by landlords in the private rented sector. As there are 4.6 million properties in the PRS (English Housing Survey 2022-23), 39% of properties in the PRS are leasehold. Leasehold reforms have been a long time coming. Theresa May's government consulted on "tackling unfair leasehold practices" in 2017, and the Conservatives' 2019 manifesto promised to "continue" leasehold reforms including restricting ground rent to a peppercorn and banning the sale of leasehold houses. “We will continue with our reforms to leasehold including implementing our ban on the sale of new leasehold homes, restricting ground rents to a peppercorn, and providing necessary mechanisms of redress for tenants."The Conservative and Unionist Party Manifesto 2019 The Leasehold Reform (Ground Rent) Act 2022 and the Leasehold and Freehold Reform Act 2024 started the reforms in that ground rent for new leases was abolished and the sale of new leasehold homes was banned, but ground rent for existing leases was not restricted. The Leasehold and Freehold Reform Act, when implemented, will bring in a lot of reforms. It promises to make it easier and cheaper for leaseholds to extend leases up to 990 years, and buy out the freehold in the case of houses and a share of the freehold for flats. >> Blog post: Practical Guide to the Leasehold and Freehold Reform Act 2024 Capping ground rent What is ground rent? Ground rent is a sum of money which the owner of a leasehold property, a flat or a house, pays each year to the owner of the freehold,  and the freeholder, who does nothing in return for it.  Freeholders don't provide any services for ground rent. The leaseholder pays for any services and maintenance through service charges, which is a separate mechanism. What's the meaning of a peppercorn ground rent? A peppercorn ground rent does literally mean the payment of a peppercorn, which is a form of valid consideration (payment in legalese).

What might a new government have in store for landlords in England? In this week's episode of Good Landlording, Richard Jackson and Suzanne Smith discuss what the 2024 election manifestos actually say about landlords, rental reform and energy efficiency. As with everything on this podcast, our analysis is practical, measured and objective, to help landlords understand what a new government may bring. In this episode, we look at each of the key policies that matter to landlords, which includes the proposed reforms of each of the main parties for the private rented sector and the rules on energy efficiency for rental properties. Next week we discuss what the election manifestos say about leasehold reform, an issue for landlords who own the 38% of properties in the private rented sector that are leasehold: Election special: Manifesto pledges on leasehold reform. What we cover in this episodeContext of the general election for landlordsWould anyone reverse Section 24 (mortgage tax relief restriction)?Is there a consensus on abolishing Section 21?Labour's 2024 manifesto commitments for renter reformsConservatives' policies about landlords in 2024 election manifestoThe policies of the Liberal Democrats for rental reform in the 2024 electionReform UK's housing policies >> Submit a question: Click here for question form Context of the general election for landlords With the controversy generated by the Renters Reform Bill, dropped shortly before the election, it had seemed likely that rental reform would be front and centre in the election campaign. Particularly because the so-called “Rent Wall” (as opposed to a “Red Wall”) of 38 constituencies in “the Conservative heartlands” where there's a high density of private renters was expected to be key. However, rental reform has been in the outer reaches of all of the election manifestos and, surprisingly, has barely been discussed to date in the big election set pieces. Rental reform is in the manifestos, but it's not something that any of the political parties have been focusing on. In this podcast episode, we focus on what the parties have said in their manifestos, and try to interpret what it might mean. It is the second of two episodes on the election to date, the first being GL #8: What the General Election means for landlords. >> Blog post: Analysis of the political parties’ policies for landlords Would anyone reverse Section 24 (mortgage tax relief restriction)? Unfortunately for unincorporated landlords, none of the major, established political parties mention restoring full mortgage tax relief for sole trader landlords, which George Osborne restricted in his post-2015 election budget. Reform UK, on the other hand, states in its manifesto that it would bring back full mortgage tax relief. Is there a consensus on abolishing Section 21? Yes. All of the parties, apart from Reform UK, would abolish Section 21 "no fault" evictions. Many were expecting the Conservatives to quietly drop this provision in the Renter's Reform Bill, as they got such a mauling from their backbench MPs when it was going through parliament over the last year. But the Conservative's 20204 election manifesto states very clearly that they would "deliver the court's reforms  necessary to fully abolish  section 21".  Labour and the LibDems agree, but without this caveat. >> Blog post: What happens to the abolition of Section 21 now? Labour's 2024 manifesto commitments for renter reforms Rental reform very much takes back seat in Labour's 2024 election manifesto. It's not one of the key policies, and is buried on page 79 under the section "Break down the barriers to opportunity" and the subheading “Family security". The manifesto states: “Security also means having a secure roof over your head. That is not the case for too many renting their homes privately. Labour will legislate where the Conservatives have failed,

In this episode of Good Landlording, Richard Jackson and Suzanne Smith share lots of practical tips to help landlords manage their buy to lets successfully themselves, without using letting agents. Richard and Suzanne are both very well qualified to talk about this subject. Suzanne has always self-managed her properties, even with her first as an accidental landlord, and Richard self manages many of his properties. They discuss what self-managing involves, whether landlords need training or accreditation, what the benefits of self-managing are and lots of practical tips for landlords. What we cover in this episodeOverview of self-managing rental propertiesWhat does self-management involve for landlords?Do landlords need accreditation to manage their own rental properties?What are the benefits for landlords who self-manage rental properties?Tips for self-managingGolden nuggetCredits Overview of self-managing rental properties There's a lot of scaremongering on the part of letting agents, to try and put landlords off managing their properties themselves. They make out that it's really complicated, and something best left to agents. For some landlords, using a letting agent might be the right approach. They might not have the time or inclination to do it themselves. For guidance on how to choose good letting agents, you can listen to the Good Landlording episode GL #3: Guide to selecting good letting agents . However, if you're considering self managing your properties, it's really not as difficult as you might think. There are lots of useful tools that landlords can use to automate much of the day-to-day tasks, or you can do it manually, using spreadsheets and calendar reminders. Also, self managing doesn't always mean you have to do it yourself. Many landlords with larger portfolios use property VAs (virtual assistants). VAs aren't AI, but are specialist admin assistants who provide remote support to landlords. Some landlords employ family members to help, which can be a good way to bring the next generation into the business. It's possible for landlords to start by using letting agents to find tenants on a "let only" basis and set up the tenancy, and hand over management as soon as the tenants move in. This is what Suzanne did when she first started as an accidental landlord. She didn't start finding tenants herself for three years. Self-management is the opposite of the "passive income" mindset, that some landlords strive for. It's also something that landlords need to go into with their eyes open, and make sure they understand all their legal and practical obligations. >> Blog post: The Independent Landlord - How to Self-Manage your Buy to Let What does self-management involve for landlords? Self-management means different things to different landlords. However, these are the three key aspects of managing your own property portfolio yourself: Property management. Looking after the property, which means doing or arranging repairs, maintenance, general upkeep and inspections. This includes arranging the annual gas safety certificate, boiler service, the 5-yearly EICR, PAT testing and managing suppliers, esp the trades. Financial. Keeping tabs on the various costs that the landlord incurs, and the income due, ie rent. (See Good Landlording episode GL#7: How to manage rent arrears for tips on what to do to minimise the risk of rent arrears. Tenant management. Looking after tenants after they move in, good communications, annual rent increases (See Good Landlording episode GL#6: What landlords need to know about rent Some landlords outsource repairs and maintenance to third party suppliers, others do a lot themselves and landlords with large portfolios often employ a team to do repairs, maintenance and even cleaning, in the case of HMOs. This may lead to them setting up a property maintenance company. Suzanne has recently done courses at Able Skills in Kent...

This week's episode of Good Landlording discusses one of the first questions that landlords ask themselves when they're looking for a buy to let: should they buy a flat or a house? Richard and Suzanne go through the pros and cons of both flats and houses, drawing on their own experiences as landlords, with Suzanne only now investing in houses, and Richard having only ever bought flats as rental investments.  Suzanne explains the difference between "leasehold" and "freehold", service charge, ground rent, and practicalities, before going through what the new Leasehold and Freehold Reform Act 2024 promises to bring now it is on the statute book. What we cover in this episodeWhat's the difference between leasehold and freehold?Ground rent and when it becomes a problemWhat does it mean when a flat owner has a share of the freehold?Service charge - top tips for leaseholdersThe advantages of flats as investments for landlordsThe downsides of flats as investments for landlords?The advantages of freehold houses as investments for landlordsWhat makes a good house for landlords?What makes a good flat for landlords to let?Golden nuggetCredits What's the difference between leasehold and freehold? For leasehold properties such as flats and some houses, the building itself  and/or the land it sits on are owned by someone else called the "freeholder". The freeholder may be the original developer,  or, they might have sold it onto another company. Each leaseholder enters into a lease with the freeholder to own the flat or leasehold house for a fixed period of time.  And so this is currently typically 99 years or 125 years for residential properties.  The length of the lease decreases each year until it eventually runs out, unless the parties agree to extend the lease.  A lease is therfore an asset that will that goes down in value the closer it gets to the end of the term.  When someone buys a flat, the leaseholder transfers the lease agreement to the new owner. This is called "assignment", and the freeholder is likely to need to give consent to the assignment.  And during the the lease agreement, the term of the lease, the leaseholder pays ground rent  and a service charge to pay for repairs and maintenance.  A leaseholder is a long-term tenant, and a freeholder is a type of landlord. However, to avoid confusion, it is good practice to use the word "leaseholder" to refer to somebody who holds a long term lease, and keep the word "tenant" for someone who has a a tenancy agreement with a landlord. When someone buys a lease, they pay a "premium" for the lease, which is an upfront payment for the right to occupy the property for the term of the lease. Ground rent and when it becomes a problem Leaseholders also pay ground rent, which may be a "peppercorn" (a nominal amount which the freeholder does not collect), or a more substantial sum. Over the last few decades, some developers and freeholders have seen ground rent as a profit centre, and have included onerous ground rent clauses into their leases, which increase over time. Sometimes ground rent doubles every 10, 15, 20 or 25 years. Onerous ground rent provisions are a big problem as many mortgage companies refuse to lend money on properties which have them. Ground rent above a peppercorn was abolished for new leases a few years ago, and it was supposed to be restricted in the Leasehold and Freehold Reform Act, but it got dropped at the last moment, when the election was called.  >> Blog post: The Independent Landlord - The latest news on the reform of ground rent What does it mean when a flat owner has a share of the freehold? Sometimes the owners of flats in a building (who are leaseholders) club together and set up a company to buy the freehold, which the flat owners have shares in. These leaseholders are said to have a "share of the freehold" in addition to their lease. However, do be careful,

With the fall of the Renters Reform Bill, and the upcoming general election, Richard Jackson and Suzanne Smith pick the brain of leading solicitor David Smith from JMW to explore what the election is likely to mean for landlords in England. In this episode we discuss what happens to the Renters Reform Bill now, and analyse what a new Labour or Conservative government might bring for landlords. We step away from the hyperbole and catastrophising, and take an objective look at what we currently know about the policies of both Labour and the Conservatives. As always, we bring the practical perspective of landlords, and share tips on what we're doing to filter out all the noise that an election brings. We recorded this episode on 24 May 2024, shortly before parliament was prorogued ahead of the General Election on 4 July, before any of the parties have published their election manifesto. With this episode, we reached a big milestone: episode number 10! We've released 8 regular episodes and 2 on the Renters Reform Bill since we launched Good Landlording on 10 April, less than 7 weeks ago. We've also had well over 10,000 downloads, before this episode goes live! That's a fantastic achievement for a new show, run by podcast newbies. What we cover in this episodeWhat happened to the Renters Reform Bill?What we know about Labour's policies for the Private Rented SectorWhat if the Conservatives win the election?Advice for landlords in this period of uncertainty before the General ElectionCredits >> Submit a question: Click here for question form What happened to the Renters Reform Bill? The government abandoned the Renters Reform Bill in the brief wash-up period on 24 May when a few bills managed to be rushed through the House of Lords, like the Leasehold and Freehold Reform Bill. As the Renters Reform Bill fell, any new government would need to draft a new bill from scratch, with a new long title, if they want to pursue rental reform after the election. Of course, some of it would no doubt look the same, but a new Bill would have to start all over again to go through all of its stages  in the Commons and Lords, which would take several months.  >> Blog post: The Independent Landlord - Renters Reform Bill: What happens now? What we know about Labour's policies for the Private Rented Sector Labour has not yet published their manifesto. However, David Smith predicts the following might feature in Labour's policies for landlords should they win the general election and form a government: Abolition of Section 21 and fixed term tenancies, but with a few additional grounds for landlords to terminate a tenancy, for instance if they want to sell, or it's a tenancy for agricultural workers. Regulation of letting agents and other property agents. Some sort of rent stabilisation measures, as opposed to rent control. He does not see this as a bad thing for landlords as they would move to yearly increases in line with inflation, instead of just increasing rents when tenants change. Increased devolution of housing powers to local authorities. More regulation around management standards and quality, along the lines of Rent Smart Wales, which would bring more consistency than the piecemeal the current selective licensing approach. Landlord register. Better enforcement by local authorities. >> Blog post: The Independent Landlord - What are Labour’s policies for the Private Rented Sector? What if the Conservatives win the election? David Smith predicts that the Conservatives would not bring forward another Renters Reform Bill should they win the election. The driving force behind the Bill, Michael Gove, has stood down, along with many of the more moderate Conservative MPs. We will need to wait for their election manifesto to be certain. Advice for landlords in this period of uncertainty before the General Election

In this week's episode of Good Landlording, we discuss one of the most difficult aspects of our jobs as landlords, and that's handling rent arrears. Rent arrears are challenging, even if landlords use an agent. The essence of the agreement between a landlord and a tenant is that the landlord provides a well maintained and legally compliant property to live in. In return, the tenant pays rent. If tenants don't pay the rent when it's due, they are in what's called rent arrears. Private landlords run a business and need to be paid the same as any other business that doesn't receive government funding. Being a good landlord doesn't mean you're a charity and you need to provide the property free of charge. If we don't get paid, we can't pay our bills, and may end up going out of business. However, there's a lot landlords can do to help tenants who start to fall into rent arrears. Managing rent arrears is something that all landlords need to understand, so we can minimise the risk of rent arrears, and know what to do if our tenants fall behind with their rent. Richard Jackson and Suzanne Smith share practical tips to help landlords avoid rent arrears, what landlords should do if tenants do fall behind with their rent, and how to help tenants. We also go through options are for evicting tenants in rent arrears both now and if the Renters Reform Bill had come into force. Eviction should be the last resort for landlords, if everything else has failed. What we cover in this episode at a glancePractical tips for landlords to minimise the risk of rent arrearsWhat should landlords do if tenants are in rent arrears?Practical tips to help tenantsWhat is Breathing Space?Late payment processThe last resort: Evicting tenants because of rent arrearsUsing Section 21 Housing Act 1988Using Section 8 Housing Act 1988The new Mandatory Ground 8A in the Renters Reform BillGolden nuggetCredits >> Submit a question: Click here for question form Practical tips for landlords to minimise the risk of rent arrears Prevention is better than cure, and landlords should try to avoid tenants falling into arrears in the first place. Here are 7 practical tips to minimise the risk of rent arrears: Tenant selection. Choose tenants that can comfortably afford the rent. For more information, see Episode 1: What makes a good tenant? Choose the rent payment date carefully. When entering into a new tenancy agreement, ask the tenants when they would like to pay the rent. The best date is shortly after they are paid. You can pro-rate the first payment so that if they move in on the 15th of the month, but want to pay on the 25th of the month, they pay the extra amount in their first rent payment. After that, they'll go onto the new rent payment date. OpenRent have a facility to calculate and set this up automatically for you as part of their RentNow package. Standing order. Ask tenants to set up a standing order so they don't forget to pay the rent. You can tell if they have done this as the rent payment will come in overnight, rather than in the daytime. Track rent payments. It's important to keep track of whether tenants have paid the rent. You can check your own bank account on the payment days, or automate it with (say) Alphaletz. The Alphaletz platform can send the tenant a reminder that the rent is due, and send a chaser if the tenant doesn't pay the rent on the due date. Rent guarantee insurance. Richard recommends taking out rent guarantee insurance for the first year with new tenants. If they are good payers and are never late paying, you can cancel it in the second year. Clarity with letting agents. Make sure it is clear what your letting agents are required to do for late or missed payments, ie who's responsible for chasing it up and then actioning it. Also, ask the agents to tell you if payments are (say) more 5 days late. Don't hope it will get better by itself.

This week's episode is about a key issue for landlords: setting and increasing rent. Suzanne Smith and Richard Jackson kick off the podcast episode by discussing what the key rent indices say about what’s happening to rents now. Then they share tips about landlords should go about both setting rent at the beginning of the tenancy, as well increasing rent once the tenants have moved in. They also talk about how the Renters Reform Bill will change the way landlords will be able to increase rent. The episode is full of practical tips to help good landlords go about setting and increasing rent in a way that complies with the law and is fair to your tenants, but also recognises we’re running a business. What we cover in this episode at a glanceWhat’s happening to rents at the moment?The Good Landlording approach to setting and increasing rentHow can landlords increase rent?1. New AST for another fixed term2. By agreement2. Using a rent review clause3. Section 13 notice (Form 4)How will the Renters Reform Bill change the way landlords increase rent?Golden nuggetsCredits >> Submit a question: Click here for question form >> Join: The Independent Landlord Community private Facebook Group (landlords only) What’s happening to rents at the moment? The 3 major rent indices (ONS, Rightmove and Spareroom) all agree that the rental growth for the 12 months until the end of March was around 9% in England. According to Rightmove, the average number of enquiries has reduced from 13 to 19 a year ago, which compares favourable to the mere 5 enquiries in 2019. Rightmove point to affordability as the problem - there's only so many rent increases that tenants can accommodate. Rightmove also report that more landlords are having to reduce rents when advertising. 22% of advertisements are ending in a price reduction at the moment, which is a five-year high for this time of year, and is up from 16% a year ago. Price reductions, on the other hand, are now around the more normal percentage of the 23% in 2019. Spareroom data shows a number of postcodes in London where room rents are dropping: SW3 (Chelsea) saw the biggest drop of -11%, followed by 7% in E20 (around the Olympic Park). The Good Landlording approach to setting and increasing rent Private landlords run a business, and not a charity or subsidised social housing. That said, we want to charge a rent that’s fair to the tenants, and fair to the landlords.  Costs have increased significantly for landlords over the past few years, and keeping rent at the same level is the same as reducing it in real terms, after taking inflation into account. Suzanne charges new tenants the market rent for the property. For in-tenancy increases with existing tenants, she keeps wage inflation as a guide, and tracks the market rent, but at a discount. She has kept rent increases to under 5%, but has always increased rent every year, apart from during Covid. It's important to avoid rent shock for tenants, when the rent suddenly increases in one go. It's better to increase it little and often. >> Blog post: The Independent Landlord: How to increase rent in 2024 How can landlords increase rent? 1. New AST for another fixed term Agents usually change the rent by issuing another tenancy agreement for another fixed term period, with new rent stated in the agreement. It's simple to do and means you can keep the AST up to date. 2. By agreement Rent can also be increased by agreement, ie via an addendum which both parties sign or a letter which the tenant counter-signs. It's possible to increase rent via email if the tenancy agreement allows amendments by email. 2. Using a rent review clause Often tenancy agreements include a clause that entitles the landlord to increase the rent each year by a set percentage or by reference to an index such as the Consumer Price Index. 3. Section 13 notice (Form 4)

In this week's episode, Richard Jackson and Suzanne Smith discuss what landlords can do when things go wrong with letting agents, and how to make a complaint. It's the third in a series of three episodes on what landlords need to know about letting agents. While the vast majority of interactions with letting agents are positive, it’s important for landlords to know what options they have when things go wrong and they receive poor service from their agents. Richard and Suzanne discuss how to make complaints to the letting agents and the redress schemes, and the additional protection that choosing Propertymark members provides landlords. The podcast episode also touches on complaints to Trading Standards and taking legal action in the small claims court. This episode follows GL#3: Guide to selecting good letting agents and GL#4: Tips for signing up with letting agents. What we talk about in Episode 5 on problems with letting agentsWhat are the most common complaints about letting agents?Keeping good recordsDifferent ways to make complaints about letting agentsInformal complaint to letting agentsFormal complaint to letting agentsRefer complaint to redress schemePropertymark members - extra recourseComplaint to Trading StandardsLegal actionGolden nuggetsCredits >> Submit a question: Click here for question form What are the most common complaints about letting agents? According to the Property Redress Scheme 2023 Annual Report, the top three categories of complaints about letting agents are holding deposits (presumably by tenants), poor service and management, and tenancy payments and rent collection. Here are other common causes for complaint by landlords: Poor communication and failure to provide information Inspections: failing to carry them out or not preparing a report after they do an inspection Signing up poor quality tenants Not arranging gas safety certificates in time when it’s not due to the tenant failing to give access. Repairs: not carrying out repairs promptly or properly, or overcharging Rent arrears: not chasing late payments properly and not keeping the landlord informed about rent arrears Failing to forward rent onto the landlord Keeping good records It’s important for landlords to keep good records of conversations with letting agents so it’s clear what has been agreed and what feedback has been given. Richard keeps his notes in the Alphaletz property management software so there is a record in the event of a dispute. Contemporaneous notes that are made at the time can provide excellent evidence if a complaint escalates into legal action, where “recollections may differ”. Different ways to make complaints about letting agents Landlords have three different routes to making complaints. The first is to make a complaint to the agent, which is then escalated to the redress scheme if the landlord isn’t happy with the outcome of the complaint. The second is to complaint to Trading Standards. The third is legal action. It is possible to combine one or more of these routes. >> Blog post: The Independent Landlord guide to resolving problems with letting agents Informal complaint to letting agents The first step is to make an informal complaint to the branch by speaking to the branch manager, and making clear where their service falls short and what action you expect. They might not know you’re unhappy and it might be a simple thing that can put right. You can speak to them on the phone or sit down with them in person. Even though this is informal, do follow it up by email so that there is a clear record. This will be useful if they don’t rectify the problem. If you don’t have written evidence, it's as if it didn't happen. Formal complaint to letting agents If the informal route doesn’t achieve the result you were asking for, the next stage is to make a formal written complaint to the letting agent.

In this week's episode of Good Landlording, Suzanne Smith and Richard Jackson discuss tips to help landlords understand what to look out for in the contract with letting agents, so they know how to strike a fair deal when signing up with them  This is a practical episode that not only gives the perspective of letting agents, but also explores the experience that landlords have when dealing with agents, the ins and outs of the different services letting agents provide, what to look out for in the agency agreement, and what protection landlords have under the law. It's is the second episode in the series on letting agents, carrying on from Episode #3: Guide to selecting good letting agents. There are golden nuggets all the way through, but there's a particularly good one at the end. What we cover in Episode #41. The competitive environment for letting agents2. What packages do letting agents offer landlords?3. What should landlords look out for in agents' terms and conditions4. What protection do landlords from unfair terms in agency contracts?5. Why it's important to keep copies of all recordsGolden nuggetCredits >> Submit a question: Click here for question form 1. The competitive environment for letting agents The competitive environment has become very challenging for letting agents over the past few years. The Tenant Fees Act 2019 reduced income streams for letting agents as they could no longer charge tenants fees. Landlords have baulked at the extra costs, especially as interest rates and general costs like insurance and service changes have gone up. There are very low barriers to entry for letting agents as no minimum qualifications or licensing are required. There are unfortunately lots of agents who compete on price, at the expense of a quality service, and others who try to lock in landlords through unfair terms in contracts. Disruption from technology is beginning to gather steam, first with OpenRent who have already become the biggest agent in the UK, albeit an online platform. There are also new entrants like Hello Neighbour with their fixed price, no lock-in property management, and recently their new self-service letting package to compete with OpenRent. (Hello Neighbour advertise on Good Landlording, but Good Landlording is not an affiliate of Hello Neighbour). The NRLA are also doing more online. This all increases the pressure on traditional "high street" agents. The industry has been consolidating, with big players like Countrywide buying up small local firms. Some are doubling down on customer service. A prime example is Kristjan Byfield's Base Property Specialists in London, who genuinely care about providing a quality service both for tenants and for landlords. Unfortunately, others try to stop landlords from leaving by tying them in or charging them a high exit fee if they want to terminate property management or in rent collection. This can make it very difficult for landlords to terminate rent collection and property management contracts. 2. What packages do letting agents offer landlords? These are the four key packages of services that letting agents typically offer landlords: a. Let-only / Tenant Find / Introduction Service This is the most basic level of service, and not all agents offer it. It's popular with self-managing landlords. The agents find tenants for the landlord, and hand the baton over to the landlord once they have checked in the tenant. The agents typically advertise and market the property, carry out viewings, and recommend a short list. Once the landlord makes a decision, the agent will carry out referencing and the right to rent checks. The landlord will usually pay extra for an inventory and the tenancy agreement. The agent handles the deposit and the first month's rent, and checks in the tenants. The landlord pays an upfront fee for this which can range from 3-8 weeks' rent, including all the costs.

This is the second special episode of Good Landlording on the Renters Reform Bill. Richard and Suzanne talk about how and why the renter reforms may well start to come into effect in May 2025, and what this means for landlords. This includes the likely timetable for implementation of what will be the Renters Reform Act, and when the key provisions will start to apply to new tenancies. The new rules could come in for new tenancies as early as May 2025, assuming Royal Assent is in October 2024. They also discuss the implications of the wide definition of new tenancies, which means that tenancies that are already in place now may be subject to the new rules next year. These show notes summarise the main points about the discussion about when the new renter reform rules will start to come into force, and include links to useful resources. What we cover in Renters Reform Bill Special #2When will tenancies be subject to the Renters Reform Bill?Stage One: For new tenancies from the Commencement Date (probably from May 2025 )Stage Two: For existing tenancies on the Extended Application Date (after Lord Chancellor assessment - 2026?)What is a new tenancy under the Renters Reform Bill?What is an existing tenancy under the Renters Reform Bill?Examples of when the new rules will applyFixed term tenancy signed November 2024 ending July 2026Until when will landlords be able to serve a Section 21 notice?ConclusionCredits When will tenancies be subject to the Renters Reform Bill? For landlords, the big question is when Chapter 1 of Part 1 will come into force. Chapter 1 of Part 1 is the section of the Bill that sets out the new rules for tenancies. In other words, the new periodic assured tenancies which will have no fixed term periods, no s21 "no fault" eviction rights for landlords, no rent review clauses, and a new implied right for tenants to have pets. The first big step will be for the Renters Reform Bill to receive Royal Assent, which will transform it into the Renters Reform Act. Once a Bill becomes an Act, not much happens at that point. Before it comes into force, it needs to be implemented, and this is usually done in stages. Although it initially appeared as if the new Lord Chancellor's assessment of the operation of the eviction process had kicked the abolition of Section 21 into touch, that is not strictly the case. In fact, tenancies will start to switch over to the new regime on a commencement date that will be at least six months after Royal Assent. Assuming Royal Assent in October, that brings us to May 2025, if a new government keeps to the same timetable. A Department for Levelling Up spokesperson said on 24 April: "We have always said we will give six months' notice before ending section 21 for all new tenancies. In addition, we have committed to ensuring improvements in the courts service are rapidly implemented before extending this abolition to all existing tenancies." These are the stages that the DLUHC spokesperson refers to: Stage One: For new tenancies from the Commencement Date (probably from May 2025 ) The changes for new tenancies will come into effect at least 6 months after Royal Assent. The government will publish a start date for the implementation of the rules after Royal Assent and give 6 months’ notice. May 2025 date is prob about the earliest date. It might be later than that. This is called the Commencement Date in the Bill. Stage Two: For existing tenancies on the Extended Application Date (after Lord Chancellor assessment - 2026?) The Renters Reform Bill has been recently amended so that the Extended Application Date for existing tenancies will be after the Lord Chancellor publishes an assessment on the operation of the eviction process and enforcement in the county courts. We spoke about the Lord Chancellor's assessment at length in RRB #1: Latest changes to Renters Reform Bill. We don’t know when the Extended Application Date will b...

In Good Landlording Episode #3, Richard and Suzanne broach the big subject of letting agents by giving an overview of what landlords need to know about agents to help them make the right choice, in the first of a series of three episodes on agents. For many landlords, agents are a vital part of letting and managing their properties, while for other landlords, they prefer to manage every aspect of the properties themselves. As experienced landlords themselves, Suzanne and Richard discuss the pros and cons of using letting agents, and share some little-known tips on how to select good agents, based on their own experiences and Suzanne's legal insights. This is an introductory episode on letting agents. Richard and Suzanne cover practical tips for signing up with letting agents in Episode #4. Here are the detailed show notes for Episode #3. What we cover in Episode #3 on letting agents1. How many landlords use letting agents?2. Why it's important to choose the right letting agent3. Why landlords should have copies of all documentation4. What does the law say about letting agents?5. Basic due diligence to avoid rogue or bad agents6. How can landlords find a good letting agent?Golden nuggetCredits >> Submit a question: Click here for question form 1. How many landlords use letting agents? It's difficult to know definitively how many of the 2.5 million or so landlords use letting agents as even the official statistics are estimates based on small samples. However, here are two surveys which both estimate that the overwhelming majority of landlords (over 80%) do not use them for property management. The 2021 English Private Landlord Survey (EPLS) estimated that almost half (49%) of the landlords surveyed said they didn't use a letting agent. 46% used an agent for letting services and less than one in five (18%) used one for property and tenant management services. Looking at it the other way, over four-fifths (82%) of the landlords surveyed self-managed their properties. However, this was not only a small sample size of 9,300 landlords, the sample was not representative of landlords as a whole and  landlords who registered deposits themselves- figures for landlords whose agents registered deposits are not included in this analysis. In the Property Redress Scheme's 2023 Annual Sentiment Survey of 2,700 landlords and agents, 65% of landlords self-managed their own properties, with about a fifth (19%) relying on a hybrid of self and agent management. According to this PRS survey, only 14% of private rented properties are managed by letting agents. This number is less than estimated in the EPLS. In the "old days", before the internet, there were few letting agents and landlords would find tenants by advertising in the classifieds of newspapers. Suzanne remembers finding her first bed-sit in Clapham in the early 1990s in the classifieds of the Evening Standard. Technology has been slowly making it easier for landlords to self-manage their properties, with the advent of OpenRent (affiliate link) and now the new self-service letting platform launched by Hello Neighbour in April 2024. (Hello Neighbour sponsor Good Landlording and offer listeners a £10 discount by using this Good Landlording link). These online platforms facilitate the process of finding tenants themselves, advertising on the property portals such as Rightmove and Zoopla, and "onboarding" them. 2. Why it's important to choose the right letting agent Letting agents can make or break the success of a tenancy. The experience of using letting agents varies considerably, and even from branch to branch of the same company. The best agents typically find the best tenants. They do regular inspections, give landlords early warnings of an issue, and this results in properties being kept in good condition, with rent paid on time. They find long-term quality tenants which means ultimately fewer voids.

In this special episode of Good Landlording, Suzanne Smith and Richard Jackson discuss how recent government amendments to the Renters Reform Bill kick the implementation of some unpopular provisions for existing tenancies into the long grass, and some welcome amendments. They include changing the way the abolition of Section 21 will come into force for existing tenancies. The government introduced these amendments to address "concerns" of some Conservative MPs about the Renters Reform Bill, and the amendments will be debated in the House of Commons during the Report Stage of the Renters Reform Bill on 24 April 2024. As well as delaying the implementation of some of the parts of the Bill that have been unpopular with many Conservative MPs, there are some less controversial but nevertheless important amendments. Richard and Suzanne explain which parts of the Renters Reform Bill the government is planning to delay, and the practical impact on landlords of the key government amendments. Suzanne and Richard have since recorded another special episode, RRB #2: Why Renter Reforms might start in May 2025, which has detailed information on the expected implementation of the key parts of the Bill, with examples. What we cover in this Renters Reform Bill special episode1. Lord Chancellor’s assessment to determine implementation of Renters Reform Bill for existing tenanciesWhat is the Lord Chancellor's assessment?Who is the Lord Chancellor?Which parts of the Renters Reform Bill will be subject to the Lord Chancellor's assessment?Which parts of the Renters Reform Bill be subject to the Lord Chancellor's assessment?How long might the Lord Chancellor's assessment of the county court process take?2. Minimum tenancy to be six months3. Widened scope for Mandatory Ground 4A for student tenancies4. Changes to Rent Repayment Orders5. Change to Grounds 1 and 1A for landlords selling up or moving in6. Local authorities' "prevention of homeless duty" to start earlierFinal thoughtsCredits Parts the Renters Reform Bill have been kicked into the long grass >> Submit a question: Click here for question form 1. Lord Chancellor’s assessment to determine implementation of Renters Reform Bill for existing tenancies It has been known for some time that some Conservative MPs were not happy with aspects of the Renters Reform Bill. This led to the progress of the Renters Reform Bill through the House of Commons being delayed for 5 months after the Committee Stage at the end of November 2023. It had been widely signalled by the government that the abolition of Section 21 would be made subject to improvements in the court system for possession orders. What had not been expected is that the implementation of other provisions in the Bill would also be made subject to improvements in the court system insofar as they relate to existing tenancies. (Note that new tenancies will not be delayed beyond the usual six month implementation period.) This creates a two-track Renters Reform Bill with key parts of the Bill being delayed for existing tenancies until the Lord Chancellor publishes the assessment, with the rules for new tenancies and other parts coming into force earlier. >> Related episode: RRB #2 - Why Renter Reforms might start in May 2025 What is the Lord Chancellor's assessment? The government proposes delaying the implementation of Chapter 1 of Part 1 of the Bill for existing tenancies until the Lord Chancellor has published an assessment to the effect that landlords are both able to get orders for possession from the county court when they apply, and they can get those orders enforced by bailiffs. In other words, the backlogs in the county courts and with bailiffs need to be cleared, and the county courts need to be functioning efficiently. It will be for the Lord Chancellor, a political appointee, to publish the assessment at such time, and in such manner, as they think appropriate.

These are the show notes for Episode 2 of Good Landlording. This week, Richard and Suzanne discuss the important topic for landlords of how to select good tenants. In this episode, they go through the processes that they both use to select good tenants, sharing practical tips about how they go about selecting good tenants the right way, without falling foul of the law. This includes the tenant application forms they use, the rules on holding deposits, what selection criteria you can and can't use for tenants from a legal perspective, and how to vet tenants.  Next week, Richard and Suzanne broach the big subject of letting agents in the first of three episodes on letting agents: GL #3: Guide to selecting good letting agents. What we cover in Episode #2 on tenant selectionTips to select the right tenants1. Are the tenants right for your property?2. Choose long-term tenants3. When is it reasonable to accept or refuse pets?4. Are the applicants reasonable with good communication skills?5. Why landlords should be involved in tenant selectionWhy it's important to have a tenant application formHolding deposit rules How to vet tenants What the law says about selection criteria for choosing tenantsGolden nuggetCredits >> Submit a question: Click here for question form Tips to select the right tenants Suzanne and Richard discussed affordability and red and green flags in Episode 1 - What makes a good tenant? The next step is to select the right tenants from your shortlist of applicants who have all qualified as good tenants on paper. If you are looking for tenants yourself using an online platform, you should pre-screen tenants for suitability before arranging viewings, so you can weed out time-wasters. Here are 5 practical tips to help you choose the right tenants. 1. Are the tenants right for your property? Tenants might be good on paper, but they need to be right for the property. For instance, a family for a family sized house and a single person or a couple for a bedsit. 2. Choose long-term tenants Long-term tenants are great for landlords as they help reduce void periods, the cost and hassle of preparing the property for letting and the process of finding new tenants. Offering 2-3 year fixed terms with rent review clauses is a good option. However, be aware that landlords can't use section 21 during a fixed term, unless there is a break clause, which means that if there is a problem with the tenants during the fixed term, the landlord would need to use section 8 to evict the tenants. 3. When is it reasonable to accept or refuse pets? The question of whether to allow pets is tricky in flats. It comes down to reasonableness. Whereas it might be reasonable to allow a dog in family house (not an HMO) with a garden, it's riskier in a small flat. 4. Are the applicants reasonable with good communication skills? Good tenants aren't just tenants who can afford the rent. The relationship will be more harmonious if they are reasonable and have good communication skills. For instance, they won't call up asking for the landlord to change a lightbulb (that's their responsibility anyway), and are more likely to report maintenance issues such as slow water leaks before they escalate into a major repair because of the damage from the leak. 5. Why landlords should be involved in tenant selection Even if landlords use letting agents, we both recommend being involved in tenant selection, by meeting the shortlisted candidates either in person, or via Zoom. This helps landlords get the measure of the applicants, to see whether they'll be good tenants in practice. Why it's important to have a tenant application form Suzanne asks tenants pre-screening questions before agreeing to book viewings, which enables her to weed out unsuitable applicants and time wasters. It's easy to do this on the OpenRent platform. (Click here for the screening questions Suzanne uses for an example). ...

Suzanne Smith and Richard Jackson kick off this new podcast by discussing with what's important to any business: our customers. And for landlords, that’s our tenants. For their inaugural episode, they talk about what makes a good tenant and what our red and green flags when we look for tenants.  This is an introductory episode on good tenants, focusing on affordability and what to look out for. Richard and Suzanne cover tenant selection and the application process in detail in GL #2: How to select good tenants. What we cover in Episode #11. What is a good tenant?2. What does affordability mean?3. Why landlords should ask to see applicants' credit report even if they use agents4. What are green flags when choosing tenants?5. What are red flags when choosing tenants?6. Golden nuggetNext week's episodeResourcesCredits >> Submit a question for Suzanne and Richard: Click here for question form 1. What is a good tenant? With the Renters Reform Bill turning tenancies into longer term relationships, it's important for landlords to be very careful when choosing tenants, even if they use letting agents. But what is a good tenant? For us, a good tenant has the following basic attributes: Affordability: they can afford to pay the rent - it's never going to end well if they live beyond their means and can't afford the rent. Responsible: they will look after the property, let you know when something needs fixing, and comply with the tenancy agreement. Long-term: they want to live in the property for a long time, keeping your voids and re-letting costs to a minimum. Choosing someone local or with a good reason to live in the area might point towards them being long term tenants. That's all well and good in theory, but what does it actually mean in practice? 2. What does affordability mean? Affordability means that the tenants can afford to pay the rent out of their net income and any benefits. The received wisdom is that tenants need to have an income of at least 2.5x the rent. However, this is quite tight, and depends on their spending habits. We'd ideally like more than this, say 3 or even 4 times the rent as an ideal. It's easier to meet the affordability criteria if there are two tenants with an income. We also look for renters with stable jobs, outside of a probationary period. LinkedIn is useful to seeing how often the people move jobs, and Facebook is useful for showing what they spend. The implication of the Renters Reform Bill is that landlords are likely to be more conservative when it comes to choosing tenants who have an adverse credit history, with previous CCJs or IVAs. Many landlords take out rent guarantee insurance on their tenants, and to do this, the applicants need a good credit history. 3. Why landlords should ask to see applicants' credit report even if they use agents In view of this long-term relationship between the landlord and tenant, the landlord should look at the credit report before making the decision to go ahead with one of the candidates, so they know if there are any adverse entries on the report, which the agent might not disclose. Sometimes letting agents are reluctant to share the credit report with landlords. However, from a legal perspective, the landlord is the "principal" and the letting agent acts on behalf of the principal. So long as the landlord is registered with the Information Commissioner's Office (it costs £35 - see below for more details), the letting agent cannot refuse to hand over the credit report. Of course the landlord needs to store the report securely and have a privacy policy, but it is wrong to say that landlords should not see credit reports. This is part of a wider theme that landlords can't "let and forget". They still need to be actively included in the decision-making, even if they use agents. And landlords need to be know their rights when it comes to dealing with agents.

This is the trailer for the Good Landlording podcast, co-hosted and co-founded by Suzanne Smith of The Independent Landlord and Richard Jackson from Alphaletz. Good Landlording is a new weekly podcast that comes out every Wednesday, specifically for landlords and people who want to be landlords in England. It is also helpful for property investors, housing providers and property businesses who want to understand the issues that matter to landlords. The trailer for Good Landlording launched on 3rd April. The first podcast episode was released on Wednesday 10 April and was about the most important topic for any business: our customers. For landlords, that's our renters. You can listen to the trailer on the player above or on your favourite podcast app, or read the show notes and links below. Let us know what you think by leaving a comment below or by messaging us on social media: Good Landlording on X or Good Landlording on Instagram. You can also submit a question for Suzanne and Richard to potentially answer on a future podcast episode by completing this Google form. At a glanceWhat does the new Good Landlording podcast cover?How do we follow the podcast?Links to weekly episodesSummer special episodesLinks to Renters Reform Bill special episodesLinks to special episodes on the general electionCan I submit a question for Suzanne and Richard to answer?CreditsTranscript What does the new Good Landlording podcast cover? Each week we take a different challenge that landlords face, and discuss how to tackle it. Practical topics that really matter to landlords, and not just moaning about the state of the private rented sector. We're starting with the topics that members of The Independent Landlord Community private Facebook group suggested, including the following: How to pick good letting agents? How to self-manage? What to do about rent increases? How to tackle damp and mould? What newbie landlords need to know? How to scale your business as a landlord efficiently? How to handle rent arrears? What makes a good tenant? How to choose good tenants? How to be a good landlord? We'll also do regular updates on new legislation, including the Renters Reform Bill, and whatever a new government brings us. This is Suzanne Smith's speciality as she worked as a solicitor for 25 years before becoming a landlord. How do we follow the podcast? Follow us on your favourite podcast app, which you can find in the side bar on this page. You can also sign up to our newsletter using the form below so you'll have easy links to the useful show notes of each episode that will only be available on this website. Links to weekly episodes Here are direct links to the weekly episodes: GL #1: What makes a good tenant? GL #2: How to select good tenants GL #3: Guide to selecting good letting agents GL #4: Tips for signing up with letting agents GL #5: When things go wrong with letting agents GL #6: What landlords need to know about rent GL#7: How to manage rent arrears GL#8: What the General Election means for landlords GL #9: Flats versus houses for landlord investments GL #10: Tips to help landlords self-manage their buy to lets Election special: What the manifestos say about rental reform Election special: Manifesto pledges on leasehold reform #15: Is buy to let still worth it for landlords? #16: What the Labour government has in store for landlords #17: What the King’s Speech says about the Renters’ Rights Bill #18: Renters’ Rights – Let’s talk about pets #19: Mid-year 2024 rental market update Summer special episodes Here is a list of the special episodes we ran over the summer of 2024: #20: Why interior design is important for landlords, with guest Charlotte Richardson #21: How to buy and sell property at auction, with guest Bushra Mohammed #22: Making a Success of Supported Living,