Good Landlording

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. 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. First ask for their complaints procedure.

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 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. (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 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 Links to Renters Reform Bill special episodes Although we include references to the Renters Reform Bill in our weekly episodes, where relevant, here are special episodes that concentrate on the Renters Reform Bill: RRB #1: Latest changes to Renters Reform Bill RRB #2: Why Renter Reforms might start in May 2025 Links to special episodes on the general election GL #8: What the General Election means for landlords, with guest, David Smith Election special: What the manifestos say about rental reform Election special: Manifesto pledges on leasehold reform