Private Sector Tenancies, Notices

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Private Sector Tenancies, Notices Legal
Obligations for Landlords
Inside Housing Solutions Ltd South Barn, Cowix
Farm, Capel Road, Rusper, West Sussex RH12
4PY Tel [phone] info_at_insidehousingsolutions.
com
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Assured Shorthold Tenancies
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Assured Shorthold

• Governed by the Housing Act 1988, amended
  slightly by the Housing Act 1996
• ASTs default type of tenancy
• Can be for any term
• Landlord can easily recover possession, as of
  right, provided any fixed term has expired

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Common-Law Tenancies

• A tenancy where the rent is more than 25,000 per
  year
• A tenancy which is rent free or for which the
  rent is 250 or less a year (1,000 or less in
  Greater London)
• A letting to a company
• A tenancy granted to a student by an educational
  body such as a university or college
• A holiday let
• A letting by a Residential Landlord

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Fixed Terms

• An AST may be a fixed term tenancy, which lasts
  for a fixed number of weeks, months or years
  (specified in the Tenancy Agreement)
• Once expired contractual periodic tenancy or
  renew the fixed term
• Contractual periodic tenancy runs indefinitely
  from one rent period to the next

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Joint Tenancies

• Can be agreed with 2 or more people
• Each is responsible jointly severally
  (individually) for meeting the terms of the
  tenancy in full, including paying the rent
• Joint several liability
• Eg if a property is let jointly to 4 Tenants A,
  B, C D for a mthly rent of 400 (each agreeing
  to pay 100 each) C decides to leave, they will
  all still remain liable under the contract for
  all the rent. C is still liable for rent even
  though s/he may not be living there

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Unfair Terms

• Unfair Terms in Consumer Contracts Regulations
  1999 apply to Tenancy Agreements
• Enforced by OFT
• Applies to
• Any clauses which limit or exclude rights which
  Tenants would otherwise have had
• Clauses that impose penalties/charges should
  state that they be reasonable in amount
  reasonably incurred
• Where a clause states a Tenant may only do
  something with the Landlords consent (should be
  followed with consent not to be unreasonably
  withheld)
• Any clauses difficult to understand

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Unfair Terms

• Why is this relevant?
• The Tenant is prohibited from keeping any pets
  whatsoever would be void
• The clause would be valid if it said the
  following The Tenant is prohibited from keeping
  pets, save with the Landlords written permission
  which shall not be refused unreasonably

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Ending a Tenancy
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Termination of the Tenancy by the Tenant

• Termination of a fixed term Tenancy before end of
  fixed term
• Only with LLs agreement
• If this is allowed for by a break clause in the
  Tenancy Agreement the Tenant has followed any
  requirements for giving notice specified in the
  Tenancy Agreement
• If agreement does not allow Tenant to terminate
  early LL does not agree, the Tenant will be
  contractually required to pay the rent for the
  entire length of the fixed term

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Termination of the Tenancy by the Tenant

• Termination of a periodic Tenancy
• Notice in writing
• Give at least one months notice
• Notice must expire at the end of a period of the
  tenancy i.e. Tenancy started on 20th of a month
  end of a period of the tenancy 19th of a month

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Termination of the Tenancy by the Tenant

• The only date in a Tenancy that a Tenant may
  leave without giving any notice is on the expiry
  date of the a fixed term tenancy
• I.e. Tenancy granted on 1st January 2007 for a
  fixed term on 6 months. Fixed term expires 30th
  June 2007

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Possession by the Landlord

• 1st stage notice
• Section 21 or
• Section 8 or
• Notice to Quit
• 2nd stage possession proceedings
• Accelerated
• Fixed date
• 3rd stage - bailiffs

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Section 21 Notice

• Must be in writing
• Must state that possession is required under S.21
  of the Housing Act 1988
• Must have a notice period of at least 2 months
• If the fixed term has not expired, the notice
  must not expire before the end of the fixed term
• If the tenancy is periodic, the notice period
  must be at least two months and end on the last
  day of a period of the tenancy
• Remains valid until a new Tenancy Agreement is
  issued
• Example of a S.21 Notice http//www.oyezformslink
  .co.uk/forms/templates/01055.pdf

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Section 21 Notice

• For example
• The fixed term ended on 11th June 2007 rent is
  paid monthly. The new rental period (periodic
  tenancy) will run from 12th of the month to the
  11th of the following month. Any S.21 notice
  must expire on the 11th of the month.
• The LL decides on 20th July 2007 that s/he wishes
  to issue a S.21 notice. This notice should
  expire on 11th October 2007 to satisfy the two
  month notice requirement.

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Section 21 Route

• Requirements for an order of possession under
  Section 21 are
• That the tenancy is an AST
• That any fixed term of the Tenancy has expired
• That a notice properly drafted has been served on
  the Tenant
• That the proper notice period was given to the
  Tenant and has expired at the time proceedings
  are issued
• Written Tenancy Agreement
• Accelerated possession procedure
• Judge cannot refuse to make order

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Section 8 Notice

• Used for all other grounds for possession
• Mostly used for rent arrears claims
• Notice must be in prescribed form or it will be
  invalid
• Notice has a life of one year
• Discretionary mandatory grounds
• Will require a court hearing if Tenant remains
  after notice period expires

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Section 8 Grounds for Possession

• Mandatory
• Ground 1 LL requires property to live in as
  his/her main home
• Ground 2 Mortgage company requires possession
  of the property
• Ground 3 Holiday lets
• Ground 4 Educational establishment lets
• Ground 5 Property required for a minister of
  religion
• Ground 6 Property is to be redeveloped
• Ground 7 Tenant has died and no rights of
  succession

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Section 8 Grounds for Possession

• Ground 8 - Mandatory
• The Tenant owed at least 2 months rent if the
  Tenancy is on a monthly basis or 8 weeks rent if
  it is on a weekly basis, both when the Landlord
  gave notice seeking possession and at the date of
  the court hearing

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Section 8 Grounds for Possession

• Discretionary (9 in total)
• Ground 10 the Tenant was behind with his rent
  both when the Landlord served notice seeking
  possession when he began court proceedings
• Ground 11 even if the Tenant was not behind
  with his rent when the Landlord started
  possession proceedings, the Tenant has been
  persistently late in paying his rent
• Ground 12 Tenant has broken a term of the
  Tenancy Agreement (not rent)
• Ground 13 Condition of property has got worse
• Ground 14 Anti-social behaviour
• Ground 15 Condition of furniture

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Section 8 Notice Periods

• For grounds 3,4,8,10,11,12,13,15 or 17 at least
  2 weeks
• For grounds 1,2,5,6,7,9 or 16 at least 2 months
• For ground 14 possession proceedings can
  commence as soon as the Landlord has served the
  notice
• Periodic tenancies notice period must end on
  the last day of a rent period
• Example of a S.8 Notice http//www.oyezformslink.
  co.uk/forms/templates/01095.pdf

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Possession Orders

• A possession order will specify a date when the
  Tenant must give up possession
• Suspended possession orders may be made based
  on terms
• Fixed date claims may also include a money
  judgement for arrears
• Rent arrears claims will also include an
  occupation rent
• Orders for costs
• Date for payment of any money award

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How Long Will It Take?

• Accelerated about 8 12 weeks from sending the
  forms off, if all goes well
• Standard procedure case will be listed for
  hearing between 4 8 weeks after issue
• Tenant will be given between 14 days 6 weeks to
  vacate (assuming a mandatory ground used)
• If bailiffs are required, allow another 3 8
  weeks
• Remember locksmith!

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Rent Increases
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Raising the Rent

• There are 3 basic ways to increase the rent in an
  AST
• By way of a rent review clause in the Tenancy
  Agreement
• By agreement with the Tenant
• By notice under Section 13 of the Housing Act 1988

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Rent Review Clause

• Can be used in Fixed Term after Fixed Term has
  ended
• Must comply with the provisions of the Unfair
  Terms
• Increase must be referable to someone or
  something independent, such as the retail price
  index
• Clauses allowing the Landlord to increase the
  rent as s/he sees fit will be void

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Rent Increase by Agreement

• Issue of a new fixed term Tenancy Agreement
  giving the new rent
• L/L can also increase the rent by getting the
  Tenant to sign a document suggesting the new rent
  if they fail to return the letter or to pay the
  increase the rent will not have been validly
  increased

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Notice under Section 13

• Formal procedure to propose a rent increase
• Special form
• At least one months notice must be given
• If the Tenant does nothing in this period, the
  increase will be valid
• If the Tenant feels the increase is too high s/he
  can refer it to the Rent Assessment Committee for
  review (by last day of rent period)
• Rent Assessment Committee can substitute what
  they consider is a market rent for the rent
  proposed (not always in Tenants favour)

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Notice under Section 13

• S.13 can only be used after fixed term expiry
  can only be used once every 12 months
• Example S.13 Notice
• http//www.oyezformslink.co.uk/forms/templates/010
  36.pdf

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Responsibilities Liabilities of the Landlord
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Responsibilities for Repair/Maintenance

• Landlord Tenant Act 1985 Landlord shall keep
  in repair
• the structure exterior of the dwelling
• the installations for the supply of water, gas,
  electricity sanitation
• the installations for the supply of space heating
  water heating
• the communal areas installations associated
  with the dwelling
• Standard of repair necessary will vary depending
  on the age, character, and prospective life of
  the property and location

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Access to Property

• Landlords (or people authorised by them) have the
  right to access the property for the purpose of
  viewing its condition and state of repair
• Access can only be at reasonable times of the day
  and after giving not less than 24 hours written
  notice

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Breach of Repair Obligations

• Landlord is not liable for works or repairs
  caused by the Tenants breach of his/her
  obligations under the Tenancy
• Action can be taken by the Tenant in the County
  Court for breaches of the Landlords repairing
  obligations
• Civil action and Tenants can claim compensation
  for damage inconvenience resulting from the
  breach

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Housing Health Safety Rating System (HHSRS)

• Housing Act 2004 Part I
• Any residential premises should provide a safe
  and healthy environment for any potential
  occupier or visitor
• Local Authorities have a duty to take appropriate
  enforcement action in relation to Category 1
  hazards, discretion to act in relation to
  Category 2 hazards

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Health Safety Matters

• Legal Requirements of Private Sector Landlords

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Gas Safety

• Gas Safety (Installation Use) Regulations 1998
  makes it mandatory that gas appliances must be
  maintained in a safe condition at all times
• Requirement all gas appliances are maintained
  in good order an annual safety check is carried
  out by a tradesperson registered with Gas Safe
  Register
• An annual safety check of each gas appliance /
  flue / pipework must be carried out
• Also applies to portable appliances such as LPG
  (Calor gas) heaters (but not those owned by the
  Tenant)
• Once check completed, certificate issued to
  Landlord

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Gas Safety

• Record of each safety check must be kept for 2
  years
• Tenant must receive a copy of the certificate
  when first let the property
• Tenant must be shown how to isolate gas supply
• Tenant must receive copy of new safety check
  within 28 days of the check being completed
• Failure CRIMINAL OFFENCE

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Gas Safety

• Landlords should arrange (and pay for) any
  necessary repair work to be carried out and
  should not seek to place responsibility for this
  onto the Tenants, although if the repairs are
  caused by the Tenants improper use of the
  property, then the Tenants can be charged for the
  (reasonable) cost of the repair work
• www.GasSafeRegister.co.uk or phone [phone]

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Electrical Safety

• Electrical Equipment (Safety) Regulations (1994)
• Any portable electrical appliances (i.e. TVs,
  fridges, freezers, lamps etc) which are provided
  as part of the Tenancy are to be safe to use in
  proper working order
• As a minimum, appliances should be visually
  inspected for any faults, damages
• Periodical testing PAT testing (not a legal
  requirement)
• Does not apply to appliances owned by the Tenant

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Fire Safety Furnishings

• Furniture Furnishings (Fire Safety) Regulations
  1988 (As amended in 1989 1993)
• The regulations require
• Furniture to pass a cigarette resistance test
• Cover fabric, whether for use in permanent or
  loose covers, to pass a match resistance test
• Filling materials for all furniture to pass
  ignitability tests as specified in the regulations

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Fire Safety Furnishings

• These regulations apply to any of the following
  that contain upholstery
• Beds, headboards, mattresses, sofa beds, futons
• Garden furniture that is suitable for use in a
  dwelling
• Scatter cushions, scat pads pillows
• Loose stretch covers for furniture
• All new furniture (except for mattresses, bed
  bases, loose stretch covers) manufactured since
  1988 has been required to carry a permanent label
  providing information about its fire retarding
  properties

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Fire Safety Furnishings

• These regulations do not apply to
• Sleeping bags
• Loose covers for mattresses
• Pillowcases
• Curtains
• Carpets
• Furniture manufactured before 1950

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Energy Performance Certificates

• 1st October 2008

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What is an EPC?

• Shows Energy Efficiency Environmental Impact
  Ratings on a scale of A G (like domestic white
  goods)
• A most energy efficient with lowest CO2
  emissions, G least
• Includes recommendations which lists cost
  effective measures to improve energy ratings (no
  obligation for the Landlord to carry out any
  measures)
• Theory Potential Tenant can see just how much
  it is likely to cost to heat and run a house for
  a year

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What is an EPC?

• By 1st October, residential property MUST have a
  valid EPC when it is let
• Must be carried out by an Accredited Domestic
  Energy Assessor list of accredited assessors at
  http//www.hcrregister.com
• Registered EPCs are held on a central register
  access to register via the above site so long as
  you have the registration number of the EPC
• Access to register also available to the
  accreditation scheme responsible for the
  particular EPC, the enforcement authorities and,
  on an anonymised basis, the DCLG
• Valid for 10 years
• Subsequent changes to property that affect energy
  efficiency, new EPC required prior to a new
  letting

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What does an EPC look like?
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EPC Graph
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Legal Requirement

• If a Tenant is in place on 1st October 2008, the
  Landlord does NOT need an EPC
• If the Landlord lets to a new Tenant after 1st
  October 2008, the Landlord must have an EPC at
  the time s/he market the property to potential
  Tenants
• When any Tenant moves in they must be given a
  copy (photocopy is ok). In an HMO, each Tenant
  will need a copy

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Legal Requirement

• An EPC must be provided (free of charge) to a
  potential Tenant or Buyer no later than
• When any written information about the building
  is provided in response to a request for
  information, or
• When a viewing is conducted
• If neither of these occur, before entering into a
  contract to let
• If a property contains self-contained units,
  then each unit requires a separate EPC one for
  the property overall

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Self Contained Unit

• Self Contained Unit does not share essential
  facilities such as a bathroom/shower room, wc or
  kitchen with any other unit, and that it has its
  own entrance, either from outside or through
  common parts, that is not through another dwelling

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Houses in Multiple Occupation (HMOs)

• If Tenants are on individual tenancy agreements
  (i.e. their agreement is just for their bedroom),
  an EPC is not required
• If a group of Tenants are on one Tenancy
  Agreement (i.e. joint severally liable) then an
  EPC is required for the property

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Legal Requirement

• An EPC does not have to be made available if
• The Landlord believes that the prospective Tenant
  is unlikely to have sufficient funds to rent the
  property, or
• Is not genuinely interested in the renting that
  type of property, or
• The Landlord is unlikely to be prepared to rent
  out the property to the prospective Tenant
  although this does not authorise unlawful
  discrimination

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Enforcement

• Action by Trading Standards the Office of Fair
  Trading
• Penalty for not having an EPC when selling or
  letting a home 200 ( cost of getting an EPC)
• Repeat offenders may be charged more than once

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Contact Details

• Inside Housing Solutions Ltd
• South Barn, Cowix Farm
• Capel Road
• Rusper
• West Sussex RH12 4PY
• [phone]
• george_at_insidehousingsolutions.com
• mike_at_insidehousingsolutions.com