RLA members can now obtain six different kinds of tenancy agreement to meet a variety of requirements.
These include a new version of the highly regarded RLA assured shorthold tenancy agreement (AST), a new room only AST - designed specifically for shared properties, a lodger’s agreement, a company let, an owner occupier tenancy agreement and a non-assured tenancy agreement.
We understand some landlords like to add their own provisions to tenancy agreements and therefore we have launched an addendum agreement for this purpose.
All the RLA tenancy agreements are Plain English Campaign approved (carrying the crystal clear logo), meaning there is no jargon, gobbledygook and other confusing language used in them. This recognises our commitment to providing documentation that is easy for both landlords and tenants to understand.
We are currently celebrating 10 years of Plain English Campaign approved, after breaking new ground with our first ‘plain English’ tenancy agreement back in 2000.
In additional to our Section 8 Notices and Section 21 Notice, all the RLA tenancy agreements can be completed on-screen and copies can be saved to retain any entered information. Over the coming months more RLA documents will be able to be completed on-screen and retain any entered information.
Warning: It is imperative that you do not use the incorrect agreement for your particular circumstance, so to aid you in deciding which tenancy agreement you need, we have created the RLA Guide to Tenancy Agreements.
A window of opportunity
Landlords who have refurbishment projects coming up which involve window replacement are advised that costs will rise significantly after 30th September 2010.
From then on, double-glazing suppliers will be forced, by law, to sell windows that meet new criteria.
A change in Part L of the Buildings Regulations states that windows sold from October onwards must have a minimum Window Energy Rating (WER) of C or higher.
Although these windows will provide better heat efficiency, the extra costs in production mean they will be more expensive for manufacturers, suppliers, installers and therefore ultimately for the consumer.
However, you can order existing and less expensive double-glazing before September 30 and providing it is installed before April 6, 2011, you will still be able to receive the necessary FENSA certification which is required on all new replacement windows and doors (unless otherwise approved by Building Control).
After these cut-off dates, any remaining stock will be useless to suppliers, so right now is a unique one-off opportunity to purchase more affordable double-glazing before it becomes obsolete.
After September 30, the cost of installing double-glazing for a three-bed semi would rise by 15–20%. Although you could wait until next spring to have it installed, quite legally, financially you would do better to get the work done before VAT goes up to 20% on January 4.
Landlords lag behind agents in controlling voids
Landlords are worse than letting agents at avoiding voids, says the Deposit Protection Service.
Lettings agents ensure that the void period on a property is kept to within two weeks on 63% of properties, compared with only 38% for those marketed by landlords directly.
The DPS has assessed the void periods across 597,753 deposits it holds on rentals in the UK.
The figures also point to huge regional differences throughout the country, the worst scenario being two-thirds of available rental properties lying empty for more than three months.
Two of the ten worst areas for empty properties were in Lancashire. However, the South was also badly hit, with areas in Surrey, Essex and Hampshire among the worst. In some areas, half of rental properties have been empty for more than three months.
Kevin Firth, director of the DPS, said: “Many landlords market their properties very effectively, but the evidence we have compiled in the past two years demonstrates clearly that there is more they can learn to try to decrease void periods.
“In the current market – where demand for rental property far exceeds supply – there is no excuse for allowing properties to remain dormant and not earning income.”
More tenants than properties to let, say agents -
Soaring demand for rental accommodation has led to calls for more incentives to encourage buy-to-let landlords to invest in the market.
According to Countrywide, tenant demand is at a record high, with up to nine tenants competing for properties.
The 211 branches had 50,480 new tenants register in the second quarter of this year – a 16% rise on the first quarter.
The sharpest increase was in June, with over 18,000 new tenants registering, the highest number in a single month since records began in 2003, and 22% more the previous month.
However, the rise in tenant demand is in sharp contrast to the fall in the number of new properties being offered to rent. They have fallen 6% in the last three months.
John Hards, Countrywide Residential Lettings co-managing director, said: “The number of tenants entering the market is at unprecedented levels – and we have yet to enter the peak season. Student demand for private rental accommodation will increase further, with university applications at record levels.
“The buy-to-let sector remains a good source of investment. However, the Government needs to do more to incentivise new landlords in order to ease the current shortage of properties. If tenant levels continue to rise at the same rate, this will be further exacerbated.”
A new report from specialist lender Paragon also confirmed the huge growth in tenant demand.
Nigel Terrington, Paragon Group chief executive, said: “Tenant demand has been rising consistently for two years and shows no signs of slowing down.
“Strong tenant demand is great news for landlords, but will lead to rental inflation for tenants unless the private rented sector is able to expand to meet this demand. Pressure is building on the finite number of properties in the sector, because the lack of buy-to-let mortgage availability has prevented landlords from growing their property portfolios.
“It is clear that confidence is high amongst the landlord community, which is reflected in the greater appetite for investment. There is obviously a dislocation between landlords’ intention to purchase and their actual ability to do so, given the continued scarcity of buy-to-let mortgage finance. Landlords still value residential property as an investment vehicle.”
In the second quarter of this year, 70% of ARLA agents reported more tenants than properties available. Last September, only 24% said this was the case.
The latest LSL buy-to-let index also shows tight supply, which it says is bolstering rents. The company, which includes national lettings chains Your Move and Reeds Rains, says rents are now at their highest level since the peak in November 2008.
Tenants expect rents to rise -
Nearly half of all tenants are expecting rents to rise in the next 12 months. The proportion (45%) is up 12% on this time a year ago.
Rightmove’s latest quarterly survey of the private rented sector also shows that available rental stock held by agents has dropped 20% over the year.
A majority (57%) of tenants would like to buy, but cannot afford to do so.
Miles Shipside, commercial director of Rightmove, said: “Many renters are caught in a ‘rental market crossfire’, taking financial hits from all directions. Not only can they not afford to buy, but they are about to feel the pinch as rents look set to rise too.
“As well as being negatively impacted by the new Government’s austerity measures, they are likely to have to compete harder and pay more for the dwindling choice of rented accommodation.”
But he said that landlords had also been caught by tight lending conditions, meaning that those who would like to add to their portfolio are unable to do so.
