L1 Landlord and Tenant & LEASING & LETTING Flashcards
As the rest of this section relates to ASTs, may be worth preparing to provide an overview of your understanding of the 1985 Act and how it is relevant to your role.
Sets out rights and responsibilities of both landlord AND tenant
LTA 1985 is relevant to ASTs where:
S11: LL has obligation to keep structure and exterior in repair, for supply of water, electricity, gas, heating etc.
LL has right to conduct checks for ‘CONDITION OF STATE AND REPAIR’
MEES - what does it stand for and what is its relevance with Landlord and Tenants?
Minimum Energy Efficiency Standards
April 2020 - obligations on LL not to let units which have an EPC below rating E = substandard property
Legal obligation for LL to have an EPC
If UK are to hit net zero carbon targets
What are the MEES exemptions?
High cost exemptions 7-year payback exemptions All improvements made exemptions Wall insulation exemptions Consent exemptions Devaluation exemptions New landlord exemptions
What are the THREE main differences between a lease and a licence?
- Lease provides occupier with an estate in the relevant land - licence = permission to make it lawful for them to use land
- Lease can be assigned - licence is normally a personal right that cannot be assigned
- Lease cannot be terminated until expiry (unless break clause). Licence can be revoked @ any time (DON’T HAVE SAME PROTECTION AS LEASE)
What case law covers the difference between a lease and license?
Street v Mountford (1985) - sets out difference between lease and licence
a tenancy or lease exists only if exclusive possession is granted of ‘a dwelling’.
What is meant by ‘Prescribed Information’?
Tenancy Deposit Protection legislation under the Housing Act 2004 - tenants must check info
Prescribed Information = specific set of info relating to a tenancy, which LLs = legally obliged to provide
Must serve PI within 30 days of agent/landlord receiving deposit
LTA 1985 - does this relate to long lease tenancies (over 10 years)?
Applies to all short leases (<7 years) AND
periodic tenancies
i.e. ASTs
What are the legal requirements to letting out a property?
keep rented property safe and free from health hazards
ensure all gas and electrical equipment is safely installed and maintained
provide an EPC
protect deposit in a government-approved scheme
right to rent checks
provide How to rent guide and checklist
What are the validity periods for gas safety certificates and electrical safety certificates?
GSC - gas safety check EVERY 12 MONTHS
ESC - VALID FOR 5 YEARS
What is the difference between a lease and an agreement?
lease is anything between 12 months and 7 years
‘rent’ agreement = shorter term - around 1 month and can be agreed on a month to month basis
TENANCY = AST = technically same as a lease
What is the form and structure of an AST?
Terms on first page Definitions T&Cs: - Tenant's obligations - Landlord's obligations - Rent Increases - Interest (on arrears and other monies) - Termination - Inventory - Deposit - Notices - Consents - Data Protection - Signatures
What other Acts are relevant with ASTs (OTHER THAN LTA 1985)?
LTA 1987
Housing Act 1988
Arbitration Act 1996
Equality Act 2010
Occupier’s Liability Act 1984
Protection from Eviction Act 1977
Tenant Fees Act 2019
Land Registration Act 2002
What is the relevance of this with ASTs? -LTA 1987
SECTION 48
Notices / proceedings must be served upon LL at their address
What is the relevance of this with ASTs? - Housing Act 1988
PART 1 (As amended by HA 1996)
S21 Notices = 2 month’s minimum
Tenancy to continue as periodic tenancy
SCHEDULE 2: Grounds for possession (amended 2022)
What is the relevance of this with ASTs? - Arbitration Act 1996
In case disputes arise (particularly wrt fires)
What is the relevance of this with ASTs? - Equality Act 2010
Any requests for adaptations auxiliary aids or services
What is the relevance of this with ASTs? - Occupier’s Liability Act 1984
Tenant = responsible for safety of guests and visitors who attend property and protect them from hazards
What is the relevance of this with ASTs? - Protection from Eviction Act 1977
SCHEDULE 2: AST does not effect tenant’s rights under this Act
What is the relevance of this with ASTs? -
Tenant Fees Act 2019
Deposit amounts
£50 fee
What is the relevance of the Energy Act 2011?
Energy efficiency improvements to PRS
MEES
What is the relevance of the Fire Safety Act 2021?
Multi-occupied residential buildings
Responsible person to oversee safety of external facade, communal areas and structure
What is included in the ‘Prescribed Information’?
(THINK TDI FORM)
Amount of the deposit
Address of the property
Name, address and contact details of administrator of tenancy deposit scheme (MYDEPOSITS) with which the deposit is held
Forwarding address of tenant (to be placed on DPC)
Name, address and contact details of LL, and tenants and any 3rd parties who have contributed to deposit
What are the safety standards LL must meet when renting out properties?
a smoke alarm must be installed on each floor of the property.
carbon monoxide detectors must be placed in rooms with a coal fire or wood burning stove.
a gas safety certificate for each gas appliance must be available inside the property.
to reduce risk of fire, all furniture must meet safety standards and display the appropriate labels.
any electrical devices must be safe for use, and we recommend an Installation Survey or Portable Appliance Testing (PAT) so you can be sure you are compliant.
the water supply must be working properly to protect tenants form Legionella.
What is the Land Registration Act 2002? (CHECK GUIDE)
Framework for electronic property conveyancing
Allows formal documents to be executed electronically
Freeholds / leases granted >7years must be registered with LR
Must be registered with compliant lease plan
What guidance might you refer to?
How to Rent Guide
NLA
THE PROPERTY OMBUDSMAN’S Code of Practice for Residential Letting Agents (England)
HSE
LTA 1985 - what is the purpose of the Act?
Before act introduced there were no AST agreement, only regulated tenancies. Regulated tenancies had “fair” rents = often “50%” of MV and left landlords without a profit or enough funds to carry out any repairs required to the property.
Act was introduced to improve living standards for both parties.
It introduced tenancy agreements which ran for seven years or less.
LTA 1985 - what does the Act cover?
Right to know your Landlord (S1-3A)
Tenants must deal with minor repairs
Service charges (S18-30) deals with residential service charges and limit unreasonable charges, and S19 any such charges must be strictly related to cost. S20 =Leaseholders to be consulted before maintenance and improvement costs can be recovered from leaseholders and assured tenants.
Insurance (30A) tenants rights to summaries of any insurance policy contained in a SC
Right to quiet enjoyment for tenants
Maintaining a safe living standard (S8-10) and S10 state of ‘repair, stability, natural lighting, ventilation’
Landlords must deal with major repairs (S11-17) and S11 specified repair obligations to ‘the structure and exterior…’ ‘installations for water, gas and electricity…’
Reporting a repair
What is a Lease?
A binding contract in law that sets out terms and conditions of tenancy between parties and defines their rights and obligations
What is a Licence?
Unlike a lease, a licence does not grant the tenant ‘exclusive possession’ of the property. A licence is merely a right to occupy.
What is a residential license?
Not easy to grant. A true lodger / paying guest has no space of their own, cannot prevent property owner from entering and = licensee
However, if occupier has their own space and a key to the room, courts will almost always imply the occupier has exclusive possession and = tenant.
What is a letting?
Usually a short-term lease (but is sometimes used for a lease of any length)
What is a long lease?
Usually for a term of 99 years or more with ground rent and a capital value.
usually > 21 years
What is a Tenancy?
A lease, usually a short-term (up to a year, say) or a periodic lease (e.g. a weekly tenancy)
What is a Tenancy at will?
A tenancy the landlord or the tenant can terminate at any time
A tenancy at will is rarely in writing
What is Subject to Contract?
Before Law of Property (Miscellaneous Provisions) Act 1989, it was possible for binding contract relating to land to be evidenced in writing
Was essential that written offers were made ‘subject to contract’
By section 2 of the 1989 Act, a contract for sale / other disposal (including a lease) can only be made in writing, incorporating all the terms that parties have expressly agreed in one document
Documents have to be signed by / on behalf of the parties
What are covenants?
Covenants = promises / obligations made by landlords, tenants and guarantors
LTA 1995 defines ‘covenant’ to include ‘term, condition and obligation’
May be ‘express’ (set out in the lease) – or ‘implied’
What is quiet enjoyment?
Nothing to do with noise but not to interrupt the tenant’s use of property during lease
What should be considered with service charges in leases?
Typical service charge clause contains:
- a list of services to be provided;
- a list of the costs that are recoverable from tenants; and
- a mechanism for recovering payment from tenants, usually a quarterly payment on account followed by an annual reconciliation.
Methods of calculating SC
What should be considered in multi-let buildings?
areas let to tenants;
common parts if everyone has access, including customers (e.g. entrances, halls and stairs);
common parts to which only tenants have access (e.g. service yards);
structure of the building;
areas where only landlord has access (e.g. plant rooms);
plant and equipment; what is and is not part of the let property should be defined
conduits, which some define as just pipes and wires, etc. but may include ancillary equipment such as switchgear, pumps and valves
What legislation relates to requirements for smoke detectors in let property?
Housing Act 2004
Smoke and Carbon Monoxide Alarm (England) Regulations 2015
What duties does the Gas Safety (Installation and Use) Regulations 1998 as amended place on landlords?
Duty to maintain all owned pipe work, appliances and flues which are available for the tenant’s use (this cannot be passed onto a letting agent)
How often must a gas safety check be carried out?
Annually
Who should carry out a gas safety certificate?
Gas Safe-registered engineer
What legislation places an obligation on landlords to ensure that electrical equipment and installations are safe at the start of a tenancy and maintained in safe condition?
Housing Act 2004
Landlord & Tenant Act 1985
Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020
What type of installer should inspect fixed wiring?
National Installer Council for Electrical Inspection Contracting (NICEIC)
How often should HMO electrical installations be inspected?
At least every 5 years
When was asbestos banned?
1999
What is the Housing Health and Safety Rating System?
a risk-based evaluation tool to help local authorities identify and protect against potential risks and hazards (THERE ARE 29 POTENTIAL HAZARDS) to health and safety from any deficiencies identified in dwellings
How long is a gas safety certificate valid for?
1 year
How long is a electrical safety certificate valid for?
The record will be either be valid for five years or until an earlier date shown on the EICR
This also applies to the start of any renewed or statutory periodic tenancy.
From 1st April 2021 this requirement will apply to all on-going tenancies.
What are the rights and responsibilities of landlords?
Tenancy Deposit Protection Scheme
Right to conduct checks for condition of state and repair (LTA 1985 - Section 11)
Safety and general maintenance
Building insurance
Cannot discriminate against tenants or treat them differently because of their race, gender, sexual orientation, gender reassignment, or religion
Pregnant and disabled tenants should also receive fair and equal treatment.
You must keep to the terms outlined in the tenancy agreement
You must supply your contact details to your tenants
You must supply an up to date EPC which complies with Minimum Energy Efficiency Standards (MEES)
Locks cannot be changed without informing the tenant
Give the tenants space to freely enjoy the rental avoiding unnecessary frequent visits
Obtain all necessary contents to the letting, lender freeholder insurer
Maintain the property in line with statutory requirements
obtain licence (if applicable)
Safely protect any tenant data
Carry out Right to Rent checks on all occupants of the property over the age of 18 before the start of the tenancy and as required during the tenancy
What are the rights and responsibilities of tenants?
Right to quiet enjoyment
AST: right to remain in the property for six months unless break agreement
looking after the property by using it in a ‘tenant-like manner’
keeping the landlord informed about any repairs that are needed
providing access to have any repair work done
ensuring the property is safe for their visitors (OCCUPIERS LIABILITY ACT 1984)
What should the LL consider if the property is furnished?
If the property is furnished, the furniture must meet the guidelines set under the Furniture and Furnishings Fire and Safety Regulations 1988 (as amended 1993).
What should the LL ensure with smoke alarms and CM detectors?
ensure a smoke alarm is installed on each floor of the property
ensure carbon monoxide detectors are present in any room with a coal fire or wood-burning stove.
What is an EICR and when should it be supplied?
EICR (electrical installation condition report)
at the start of any new, renewal or extended tenancy
From 1st April 2021 this requirement will apply to all on-going tenancies.
Which regulations must electrical safety comply with?
2018 edition of the IET Wiring Regulations (BS 7671:2018).
What are the responsibilities of the letting agent?
KYC checks and customer due diligence
Since 1 October 2014 it has been a legal requirement for lettings agents and property managers in England to join a government approved redress
The letting agent should obtain membership of a government approved client money protection scheme if they hold client money scheme.
Which Act introduced definition of anti social behaviour?
Section 153 of the Housing Act 1996
conduct which:
is capable of causing nuisance or annoyance to another person, and
directly or indirectly affects the housing functions of a relevant landlord or
consists of, or involves, using or threatening to use housing accommodation owned or managed by a relevant landlord for an unlawful purpose
What are some other forms of tenancy agreement (OTHER THAN ASTs)?
Assured tenancy
Regulated tenancy
Excluded tenancy or licence
Company Let
What is a regulated tenancy?
Tenancies starting before 15 January 1989 may be regulated.
Regulated tenancies had “fair” rents = often “50%” of MV and left landlords without a profit or enough funds to carry out any repairs required to the property.
You’ll have increased protection from eviction and can apply for a ‘fair rent’.
What is an excluded tenancy or licence?
may have an excluded tenancy or licence if you lodge with your LL and share rooms with them, like a kitchen or bathroom.
You’ll usually have less protection from eviction with this type of agreement.
What are some PROS of periodic tenancies for LL?
Increased flexibility - If you suddenly need to regain possession of your property, a periodic tenancy speeds up this process as you don’t have to wait until the end of a fixed period.
Reduced letting agency fees.
If you are having issues with a particular tenant, a periodic tenancy may be in your favour as you are better able to evict problem tenants as a last resort.
What are some CONS of periodic tenancies for LL?
Can cost more in terms of marketing and vetting potential new tenants to replace them.
With 1 month or less notice periods, you don’t have a long turnaround time if a tenant decides to move out unexpectedly.
If your tenant moves out during a ‘notice to quit’ period, you may be liable for paying council tax for the property.
What is a company let?
When renting to companies, different rules apply in terms of deposit protection and eviction notices.
Which regulation requires EPCs to be supplied?
Energy Performance of Building Regulations 2007 to 2012, requiring every property to have an EPC before being marketed
What is an AST?
An assured tenancy which is entered into after the Housing Act 1996 comes into force (when 6 month rule was removed)
And after 1988 Act BUT BEFORE 1996 Act: it is a fixed term tenancy granted for a term certain of not less than six months,
there is no power for the landlord to determine the tenancy at any time earlier than six months from the beginning of the tenancy; and
What did the Housing Act 2004 introduce?
Home Information Packs, which have since been abandoned
regulation of houses in multiple occupation by requiring some HMOs to be licensed by local authorities
provides the legal framework for tenancy deposit schemes, which are intended to ensure good practice regarding deposits in assured shorthold tenancies and make dispute resolution relating to them easier.
Who is Qualifying Tenant?
A person is a Qualifying Tenant under the LTA 1987 Act if they are a tenant of the flat under a tenancy other than:
(a) a protected shorthold tenancy;
(b) a business tenancy;
(c) a tenancy terminable on the cessation of his employment; or
(d) an assured tenancy or assured agricultural occupancy.
What is a Section 5 Notice under the LTA 1987?
requires freeholders who with to dispose in their interest in a property to provide leaseholders with option to purchase on terms prescribed by the landlord
What are the requirements to serve a S5 notice under the LTA 1987?
To qualify:
building must contain 2+ residential flats (if mixed-use, 50% or more of the total floor area, must be resi)
> 50% of Qualifying leaseholders must participate in order to proceed with the transaction
The landlord must serve the Section 5 Notice on at least 90% of the Qualifying leaseholders (or all but one if there are less than 10)
no right for this to be determined by the FTT
leaseholders must respond within 2 months – if they don’t the landlord can sell their interest within 12 months to another party
What are the two most common section 5 notices under the LTA 1987?
- Section 5A – simple sale by contract
* Section 5B – sale by public auction
Are you aware of any new rental bills coming into force?
Social Housing Regulation Bill
Renters Reform Bill
What will the new Social Housing Regulation Bill introduce?
will increase rights of social housing tenants’ rights to better homes
enhance their ability to hold their landlords to account by allowing the Regulator of Social Housing to intervene with landlords who are underperforming on consumer issues
will implement tenant satisfaction measures which will allow tenants to measure their landlord’s performance.
What will the new Renters Reform Bill introduce?
seeks to overturn S21 ‘no fault’ evictions of the 1988 Housing Act, which allows landlords to evict tenants without reason and with just eight weeks’ notice.
The Bill also applies the legally binding ‘Decent Homes Standard’
introduces a new Ombudsman for private landlords with the aim to resolve disputes without court proceedings
What are some other TYPES of tenancy?
Secure /flexible tenancy
Protected tenancy
Assured tenancy
AST
introductory tenancy
What is a secure / flexible tenancy?
Most local authority tenants are secure tenants.
if your landlord is a housing association
your tenancy started before 15 January 1989.
Most secure tenancies don’t have an end date. If your tenancy has an end date and you rent from the local authority, your tenancy is a ‘flexible tenancy’. Flexible tenancies are a type of secure tenancy.
What is an introductory tenancy?
a type of local authority tenancy that lasts for one year
form of trial tenancy and if there are no problems in that year, you are likely to become a secure tenant, or in England, a flexible tenant.
What is a protected tenancy?
Protected tenants have private landlords and will have had a tenancy for a long time, that is, from before 15 January 1989.
AKA REGULATED TENANTS
two stages to a protected tenancy:
first stage is contractual period based on the initial agreement between the landlord and the tenant. This part of the tenancy may be referred to as the contractual or protected tenancy.
second stage is when the contractual period comes to an end and the tenancy becomes a statutory tenancy.
It is called this because it is protected by statute - the Rent Act 1977.
