Flat Tenants – Are Your Service Charges Fair?

Service charges are frequently a burning issue for flat dwellers and one case will stand as a warning to landlords that accounting provisions in leases must be complied with to the letter before bills are put in the post.

A tenant owned long leases of seven flats in two luxury developments. Although he had two landlords, the terms of the leases were identical. He complained that his service charges were unreasonable and that, despite numerous requests, his landlords had failed to explain how they had been calculated.

Residential Landlord Pays for Ignorance of the Law

Rules relating to the protection of deposits paid by residential tenants are complex and ignorance of the law can have serious consequences. In one case, a landlord who failed to meet his obligations was refused a possession order and hit with a £1,600 penalty.

The landlord took an £800 deposit from a flat tenant before the latter moved in. He failed to protect the deposit within an approved scheme within 30 days of receipt, as required by the Housing Act 2004. He also failed to provide the tenant with prescribed information before the 30-day deadline.

Right to Manage Applies to Individual Buildings

When residents of two adjacent blocks of flats applied for the right to manage their properties after forming a Right to Manage (RTM) company and lodging notices (under the Commonhold and Leasehold Reform Act 2002) with the owner, they probably expected no challenge.

However, the freeholder contested the application, arguing that the buildings were separate premises and so, in order to be valid, an application by a separate RTM company would have to be made in respect of each building.

Tenant Pays for Barring Her Door to Landlord’s Workmen

A tribunal has ruled that a tenant who refused her landlord access to her home to carry out renovations should have her fair rent assessed on the basis that the property is in a reasonable state of repair.

The assured shorthold tenant was on poor terms with her landlord, a social housing provider who had previously taken action against her in respect of rent arrears. The landlord’s representatives were not welcome on the premises and the tenant had persistently refused them access to carry out repair works.

Changes to the Section 21 Notice

If a landlord wishes to bring an Assured Shorthold Tenancy (AST) to an end, he must serve a notice on the tenant under Section 21 of the Housing Act 1988.

From 1st October 2015 new regulations require the landlord to fulfil a number of additional requirements to ensure that the notice is valid.

The requirements are:

Residential Landlords - Legal Formalities Matter

Managing residential property is a legally complex task and is not for amateurs. In one case which proved the point, benevolent landlords found themselves having to take court action after dispensing with formalities in order to save their tenants money.

The case concerned a block of flats, held under standard leases which contained the common requirement that service charge demands must be certified by an accountant. That requirement was not complied with by the landlords before the end of the relevant financial year and the tenants therefore denied any liability to pay.

Right to Rent Check Needed by Landlords

The government has announced that as from 1 February 2016, all private landlords in England will have to check that any new tenants have the right to be in the UK before renting out their property (right to rent).

Essentially landlords will have to check the immigration status of any prospective tenants or other authorised occupiers to ascertain whether those people have the right to occupy the property before granting a tenancy.

Selective Licensing Schemes – Residential Landlords Must Pay

Selective licensing schemes in respect of private rented homes are an increasingly popular means of tackling crime and anti-social behaviour and one High Court case has underlined their legal and financial significance for residential landlords.

Croydon Council had introduced such a scheme under the Housing Act 2004 with the objective of ensuring that licences were only granted to private landlords who were fit and proper persons. Licensing fees were chargeable and conditions could be imposed relating to management of particular properties.

New Lease, New Compliance Burden

With effect from 1 February 2016, landlords entering into residential leases, having new lodgers or allowing anyone to occupy a property they own for residential purposes are required to undertake checks to ensure the tenant and any other adults who will be living there have the right to reside in the UK.

The rules have applied in Birmingham, Walsall, Sandwell, Dudley and Wolverhampton since 1 December 2014.

HMO Licence Condition for Under-Sized Attic Room

In a ruling of importance for landlords of student accommodation, a tribunal upheld as lawful a licensing condition which required that an under-sized attic bedroom in a house in multiple occupation (HMO) must only be slept in by someone in full-time education.

In licensing the HMO, the relevant local authority stated that the room’s sloping ceilings made it too small to be slept in by anyone at all.