Good Landlording

These are the show notes for a special episode of Good Landlording in which Suzanne Smith and Richard Jackson discuss how recent government amendments to the Renters Reform Bill kick the implementation of many unpopular provisions into the long grass, and make other amendments. This includes delaying the abolition of Section 21. 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. In this special episode, 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. What we cover in this Renters Reform Bill special episode1. Lord Chancellor's assessment to delay implementing parts of Renters Reform BillWhat is the Lord Chancellor's assessment?Who is the Lord Chancellor?Which parts of the Renters Reform Bill will be delayed until the Lord Chancellor's assessment?Which parts of the Renters Reform Bill will not be delayed by 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 Large 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 delay implementing parts of Renters Reform Bill 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. This effectively creates a two-track Renters Reform Bill with key parts of the Bill being delayed until the Lord Chancellor publishes the assessment, and other parts coming into force in the usual way. What is the Lord Chancellor's assessment? The government proposes delaying the implementation of Chapter 1 of Part 1 of the Bill 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. Who is the Lord Chancellor? The lord chancellor is effectively the secretary of state for justice, responsible for the administration of the courts and legal aid in England and Wales. It's a senior cabinet position. Currently the Lord Chancellor is 47 year old barrister Alex Chalk, MP for Cheltenham. However, if the government changes, the Lord Chancellor changes. Which parts of the Renters Reform Bill will be delayed until the Lord Chancellor's assessment? These are the key aspects of Chapter 1 of Part 1 of the Renters Reform Bill that will not com...

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.  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. >> The Independent Landlord: How to obtain possession under Section 8 >> The Independent Landlord: How to serve valid Section 21 Notice 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. >> The Independent Landlord: The current rules for tenants who want to keep a pet 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 uzanne 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.

These are the show notes for the first podcast episode of Good Landlording. Suzanne and Richard kick off this new podcast by discussing with what's important to any business: our customers. And for landlords, that's our tenants. For this 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 Episode #2. 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 ...

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. It is also helpful for property investors, housing providers and property businesses who want to understand the issues that matter to landlords. Good Landlording officially launched on 3rd April. The first podcast episode will be released on Wednesday 10 April and is 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. You will find the full transcript at the end of this post. 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. 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. Can I submit a question for Suzanne and Richard to answer? Yes, we love getting questions from our listeners. You can ask a question or suggest a topic for future podcast episodes by completing this question form, or by sending us your question via our contact form. >> Related post: About Good Landlording >> Submit a question: Click here to complete question form Links to episodes Here are direct links to the episodes: Episode #1: What makes a good tenant? 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: Kevin MacLeod of Incompetech. Licensed under Creative Commons. Transcript Hello, and welcome to Good Landlording. I'm Richard from Alphaletz. And I'm Suzanne from the Independent Landlord blog. Together, we're really excited to bring you a weekly podcast called Good Landlording that we co-host. Each week, we'll pick a particular challenge that landlords face and discuss how to tackle it. Yes, and it's not some dreaded moan-fest about the state of the private rented sector either. The topics that really matter to you, like the practical things. And this podcast is different. So who's it for? Well, landlords, as it says on the tin, people who want to be landlords, those who prefer to be identified as property investors or even housing providers, and anyone in the property business who wants to understand the...