Property Management - L3

Question 1

What are the legal requirements of a let residential property?

Answer 1

EICR - Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.
EPC - Minimum Energy Efficiency Standards 2015.
Gas - Gas Safety (Installation and Use) 1998.
Smoke and Carbon Monoximde Alarms - Smoke and Carbon Monoxide Alarm (amendment) Regulations 2022.

Question 2

When did the Housing Act 1988 come into affect?

Answer 2

15 January 1989

Question 3

Explain the section 21 procedure.

Answer 3

Serve form 6A giving 2 months notice, and fill out a N215 form.
If tenant does not vacate the property, use N215 form to apply to the courts for a possession order.
Tenant has 14 days to challenge.
Judge may then award possession order.
If tenant still does not vacate, the landlord can apply for a warrant for possession.

Question 4

When would a s21 notice be invalid?

Answer 4

Notice incorrectly served
Tenancy deposit rules not followed
No EPC or Gas Safety certificate
No How to Rent guide provided
Served a notice after a complaint about the condition of the property or the landlord.
Within fixed term of the tenancy.

Question 5

What are the mandatory grounds for possession for a Housing Act Tenancy?

Answer 5

Under section 8 of the Housing At 1988, the mandatory grounds are -
1 - Owner occupier
2 - Repossession by the landlord mortgage lender
3 - Holiday let
4 - Student let
5 - Property required for minister of religion
6 - Property required for redevelopment
7 -Death of tenant
7A - Antisocial behaviour
7B - Tenant does not have a right to rent
8 - Serious rent arrears

Question 6

What are the discretionary grounds for possession for a Housing Act Tenancy?

Answer 6

Under section 8 of the Housing Act 1988 -
9 - Suitable alternative accomodation
10 - Rent arrears
11 - Persistent delay in paying rent
12 - Breach of tenancy conditions
13 - Deterioration in the condition of the property
14 - Nuisance, annoyance, illegal or immoral use of the property
14A - Domestic violence
14ZA - Offences during a riot
15 - Deterioration of furniture
16 - Employee of the landlord
17 - Tenancy obtained by false statement

Question 7

What are the repairing obligations of a residential property and do they override the tenancy agreement?

Answer 7

s11 of the Landlord and Tenant Act 1985 obliges the landlord to maintain -
Structure and exterior
Installations for supply of water, heating, sanitation and power
Must conduct repairs in reasonable time

Question 8

Between what dates where Assured Tenancies the statutory fallback?

Answer 8

Under the Housing Act 1988, between 15th January 1989 and 28th February 1997, unless s20 (2) notice served to make it an AST.

Question 9

What cannot be an Assured Tenancy, or an AST?

Answer 9

Tenancies created before 15th January 1989
Where the rent exceeds £100,000 per annum
Rents of less than £250 per annum
Business lets
Property with more than 2 acres of agricultural land
Student and holiday lets
Where the property is occupied as part of a AHA or FBT

Question 10

What is the difference between an Assured Tenancy and an Assured Shorthold Tenancy?

Answer 10

s21 provisions are not available under AT’s, and on succession in certain circumstances can be permitted.

Question 11

How do you succeed an Assured Tenancy?

Answer 11

If still within fixed term, tenant can pass the tenancy on within their will.
If periodic, a spouse or heir can succeed if they were living with the tenant at the time of death.

Question 12

If a residential tenancy agreement is silent on the Tenant’s repairing obligations, are the responsible for anything?

Answer 12

No obligations other than those implied by common law -
To use the premises in a tenant like manner
Not to commit waste (not to cause damage, or allow any damage to be caused)

Question 13

To what standard should landlords of the private rented sector keep their properties in line with?

Answer 13

Section 9A of the Landlord and Tenant Act 1985, inserted by the Homes (Fitness for Human Habitation) Act 2018 states that homes have -
No damp
Up to date with repairs
Good stability
Ventilation
Water supply
Natural Lighting
Drainage and sanitation
Facilities for food
No hazards under the Housing Health and Safety Rating System (Housing Act 2004)

Question 14

What happens if a landlord is served a Housing Act 2004 improvement notice?

Answer 14

Usually the date of remedial actions shouldn’t be sooner than 28 days. Failure to comply / remedy can result in fine of up to £30,000, a banning order or rent repayment.

Question 15

When is an EPC required?

Answer 15

Since October 2008, EPC’s are a requirement for properties that are:
Newly built
Sold
Let
Newly refurbished and heating, air con or ventilations are installed / altered

Question 16

What are the rules around marketing property and having / displaying EPC’s?

Answer 16

An EOC must be commissioned within 7 days and shown on all online marketing.

Question 17

In what circumstances would an EPC need redoing sooner than the 10-year expiration?

Answer 17

If the property has been subject to alterations.

Question 18

Who enforces EPC regulation and what are the penalties for not complying?

Answer 18

Local Authorities Trading Standards
For non-display of EPC on marketing information = £200 fixed fee for resi, but for commercial it is 12.5% of the rateable value (min £500)

Question 19

What are the MEES exemptions?

Answer 19

High Cost (£3,500)
7-year payback (where the payback on savings is more than 7 years)
All improvements made (all recommendations done)
Wall insulation (not possible)
Third party consent (not allowed in by tenant)
Devaluation (devalues the property by more than 5%)
New Landlord (first 6-months grace)

Question 20

How long do exemptions last?

Answer 20

5 years

Question 21

What are the penalties for non-compliance with MEES (commercial)?

Answer 21

Breach for less than 3 months (up to £5,000 or if greater, 10% of the rateable value with a max of £50,000)

Breach of more than 3 months (up to £10,000 or if greater 20% of the rateable value with a max of £150,000

Question 22

What are the penalties for non-compliance with MEES (residential)?

Answer 22

Breach for less than 3 months (£2,000)

Breach for more than 3 months (£4,000)

Question 23

You mention that your client was responsible for replacing the roof tiles on the farmhouse roof included within the AHA tenancy, if the cost of this was minor and the tenants responsibility, how would you have notified the tenant of the works that were required?

Answer 23

Initially I would communicate with the tenant about the works that were required, referring to their responsibility under the tenancy agreement and Model Clauses (assuming they apply). If the tenant failed to comply and carry out the work, the landlord can serve written notice on the tenant to do the works. If those works have not been started within 2 months, or finished within 3 months of receiving notice, then the landlord can execute the work and recover the reasonable costs.
Tenant can serve counter notice within 1-month referring to arbitration or third party determination.

Landlord could also serve notice to remedy.

Question 24

Can you outline some of the other repairing clauses in the Model Clauses 2015?

Answer 24

Insurance is Landlords responsibility, as is walls and LPG gas tanks.

Question 25

What could the tenant do if the Landlord defaulted on repairing obligations under an AHA agreement?

Answer 25

Written notice can be served on the landlord to carry out repairs within 3 months, if not completed, tenant can carry out repairs. Landlord can counter-notice within 1-month referring to arbitration.

Question 26

What are permitted payments?

Answer 26

Under the Tenant Fees Act 2019, a permitted payment is something that can legally be charged to a residential tenant. Examples are:
Rent
Deposit (5-weeks rent, or 6-weeks of over £50k)
Holding deposit (1-weeks rent)
Additional payment due to default (interest)
Payment for variation, assignment or novation (max £50 fee)
Council tax
TV Licence
Utilities (heating, fuel, electricity, sewerage)
Communication services (wifi)

Question 27

Can chimney sweeping be recharged to the tenant?

Answer 27

It can be included in the rent and provided as a service every year, but not directly recharged.

Question 28

Who enforces the Tenant Fees Act 2019?

Answer 28

Local Authorities Trading Standards

Question 29

When can you retain a holding deposit?

Answer 29

Under the Tenant Fees Act 2019, you can retain a holding deposit if:
- the tenant provided false information
- the tenant fails a right to rent check
- if the tenant pulls out of the application process before the 15 day deadline
- tenant fails to take all reasonable steps to enter the tenancy agreement

Question 30

What repairing obligations do residential landlords have?

Answer 30

Under s11 of the Landlord and Tenant Act 1985, any residential landlord of a tenancy of less than 7-years granted on or after 24th October 1961, has the following obligations:
- repair the structure and exterior
- keep in repair and proper working order the installations for the supply of water, electricity and gas
- ensure good sanitation (baths, sinks, WC’s)
- keep in god repair installations for space and water heating

Question 31

What residential tenancies cannot be covered by the Housing Act 1988 or the Rent Act 1997 (or Rent Ag Act 1976)?

Answer 31

Tenancies that are -
- worth over £100k per annum
- worth less than £250 per annum
- over 2 acres of agricultural land
- holiday lets
- student lettings
- licensed premises
- Local authority tenancies

Question 32

What does a registered rent take account of and disregard?

Answer 32

Under s 70 of the Rent Act 1977, fair rents take account of:
- age, character and locality of the property
- state of repair
- quantity and quality of fixtures
- any premium received from the grant, continuation or renewal of the tenancy

DISREGARDS:
- any defect or state of repair due to tenant
- any tenants improvement
- personal circumstances of the tenant
- scarcity

Question 33

Is there a cap to fair rent increases?

Answer 33

Yes, the Rent Acts (Maximum Fair Rent) Order 1999 was introduced to state that the first review after 1st February 1999 could be no more than RPI plus 7.5%.
Any subsequent reviews are capped at 5%, unless material change has happened to the property.

Question 34

How would you review the rent for a Rent Act 1977 property?

Answer 34

s67 of the Rent Act 1977 covers the statutory provisions for rent reviews, which cannot be conducted more frequently than every 2 years.
Complete and RR1 form to apply for a new registered rent. The VOA will consider, and may visit the property to inspect. A new rent will be registered and the landlord can consider whether to charge that whole increased rent.
Supply the tenant with a Form 1 notice of increase when the new rent comes into affect.

Question 35

What is the form used to de-register a fair rent?

Answer 35

RR104 form is the cancellation of a fair rent by the landlord, but cannot be done within 2 years of the last registration.
RR103 is the joint cancellation between landlord and tenant.

Question 36

What is a landlords responsibilities in terms of internal decoration?

Answer 36

The law doesn’t necessarily state a landlords responsibility, however under the fitness for human habitation act 2018, a landlord has a duty to ensure housing is up to a healthy standard, therefore were decoration is affected by things such as damp / water, then there is an obligation for the landlord to remedy this.

Question 37

If the tenant wanted to pursue the dispute over the decoration further, what could he have done?

Answer 37

He could have contacted the Environmental Health officer within the Local Authority. They are able to serve notice on landlords under the Housing Act 2004 to remedy any repairs they are responsible for.

Question 38

Can a tenant claim compensation if the property is unfit to live in?

Answer 38

Depending on the circumstances, the tenant can claim for inconvenience or damage / loss

Question 39

What legislation covers the Right to Rent check?

Answer 39

Immigration Act 2014

Question 40

What is the Prescribed information and why is it important?

Answer 40

Document relating to the protection of the deposit and the parties to that. Important as required to be able to serve s.21 under the Deregulation Act 2015