private landlord may be required to check tenants' immigration status

No visa, no tenancy?

As widely publicised, the government is proposing to force private landlords to check the immigration status of prospective tenants before agreeing to let to them.  

The new measures were announced in the Queen’s Speech last week as part of a package of legislation aimed at making Britain a less attractive destination for illegal immigrants.

It is not clear how the checks are intended to work, or indeed how they will be enforced.  In a debate on the Queen’s Speech, Labour branded the measures “unworkable”. The Labour party is pressing for a compulsory register of private landlords (as is the case in Scotland) and argues that, without such a register, it will be impossible to know whether landlords are complying with the new immigration requirements (RentFair have argued that a landlord register would itself be unenforceable as appears to be borne out in Scotland).

The truth is that enforcement is not much of an issue. There are already plenty of regulations that landlords have to comply with with regard to health and safety, gas checks, HMO’s and the like, and for the most part these rules are adhered to. Adding yet another regulation does not make enforcement any more or less of an issue than it is now.

But getting back to the proposed immigration checks, and leaving aside the problem of enforcement, an obvious question immediately springs to mind.  How would a landlord know whether a prospective tenant was here illegally?   

RentFair’s Christian Duggan considers this question from a landlord’s point of view.

“As a landlord myself, my thinking goes something like this. It is possible to envisage a situation where landlords would be required to check an applicant’s passport and perhaps be required to make a copy of the passport for their records. That would not be too onerous and would be easy enough to do as part of the normal reference checks. Within the European Union I know there is freedom of migration so if the applicant was a citizen of an EU country it would be safe to assume that they were here legally. It is fair to say that most people could probably not name all 27 EU member countries but it would be easy enough to look this up. So far so good.

But, hold on, isn’t there some issue with Romanian and Bulgarians until January next year? Does that mean I can rent to them? Or is it just that they can’t work here until 2014?  And then there are countries like Switzerland and Norway. They are not part of the EU but I think I am right in saying they don’t require visas. Does that mean I can let my property to a Norwegian without any further checks? Such a beautiful country. Not sure though.

And what about people from outside the EU.  What if the nice young couple wanting to rent my flat were, say, from Japan? Personally, I would have no idea what the visa requirements are for Japanese citizens, whether they even require a visa, or how to check whether those requirements had been met. Isn’t there some rule for certain countries that they can stay here for up to 3 months without a visa? If so, how would I know whether they had exceeded that period. Or maybe there isn’t such a rule at all.

I have let to Australians before. Very good tenants they were too, even sticking back some of the loose tiles in the bathroom themselves to save me calling out a tiler.  I am vaguely aware (I think) that citizens of Australia can come here for a year or so on a work permit. Or am I getting muddled up with UK citizens travelling to Australia on a work permit. Perhaps it’s not reciprocal. On second thoughts, aren’t Australians and Kiwis allowed to come here indefinitely? And what about the US? Can I let my flat to an American without being fined?

Then there is the whole issue with student visas. If someone proves to me that they have a student visa to study on a course, which ends in 5 months’ time, am I allowed to rent them a property for a year? If they show me their passport and a letter from the University of Bristol to say that they are on a degree course is that sufficient? Do I have to find out when the degree ends and make sure that they are safely evicted by that date, or will my obligations not extend to that? Do I have to call the University to confirm the letter is genuine? My flat is in London, so isn’t there something suspicious about them studying in Bristol? Am I legally obliged to follow that up?

At the moment, I am inclined to agree with the Labour party’s view that the proposals are unworkable. Without taking a lengthy course in immigration law, it would be almost impossible for the average landlord to know whether prospective tenants are entitled to stay in this country or not.

What is required perhaps is a simple way of checking someone’s immigration status:  a clear stamp in the passport of all non-EU citizens, stating clearly when they are expected to leave our shores. No stamp, no tenancy. Seems a bit harsh, but that might work. But even then I can see some of those stamps becoming smudged and illegible. Hmm. Further thought required, Mrs May.”

 

 

 

 
Your Move in breach of Advertising rules

Your Move: in breach

Letting agents have been ordered to disclose their fees upfront when they market rental properties.

In a landmark ruling earlier this month, the Advertising Standards Authority ruled that agents would be in breach of advertising rules if they did not clearly display on any property advert what compulsory fees they charge in letting a property. Guy Parker, chief executive of the ASA, said: “Hidden fees are not only unfair, they hit those who are struggling hardest. Our ruling today makes it clear that letting agents need to get their houses in order and treat potential tenants fairly.  Renting a property is a significant commitment.  And for those who are new to the rental market, like students, navigating it can be particularly difficult.  That’s why the ASA is clamping down on letting agents who hide fees.”

The ruling was against Your Move, but applies by implication to all letting agents. The complaint related to the agent’s ads for rental properties on RightMove. The ASA told Your Move to ensure that their ads made clear when non-optional fees and charges, that could not be calculated in advance, were excluded from quoted prices, and to provide enough information to allow the consumer to establish easily how further charges would be calculated.

Most agents are still ignoring the ruling

A quick check on Rightmove and Zoopla today suggests that most agents are still not complying with the ruling. Rightmove has added a disclaimer stating “Administration fees may apply when renting a property in England, Wales or Northern Ireland.  For more details, please contact the agent”  and Zoopla has added a note “Tenant fees may apply. Details available on request from agent”.  In our small (unscientific) sample, however, we did not find any agent ads making reference to fees with the exception, unsurprisingly, of Your Move.

Blowing our own Trumpet.

RentFair has always insisted that letting agents advertising with us clearly display any fees charged to tenants and we welcome the ASA ruling.  You will find fee information in the box at the bottom of every RentFair ad where the advertising is a letting agent.  For example, The Property Tree, an agent based in North London, states “£35 admin fee per applicant”.  You can’t get clearer than that.

 

rent guarantorsIn this guest post, Elli Rivers examines the responsibilities placed on a guarantor and concludes it is not a contract to be entered into lightly.

Many renters will at some point be asked to provide a Guarantor, or maybe they wish to be one themselves for a family member or friend. Although the principle is simple, it is well worth understanding the full implications of this contract before you enter into it from either angle – as the position is legally binding, it holds a significant level of responsibility.

So what is a Rent Guarantor?

As the name suggests, the Rent Guarantor guarantees the rent. But this is not necessarily the whole story and many agents or landlords write other clauses into the contract which mean that the Guarantor in effect becomes responsible for all the tenant’s liabilities. In practice this means that if your trusted relative pegs it without paying the leccy, you, as Guarantor, will be expected to pick up the bill for the landlord. Not only this, it may mean that if they break a window and throw their glass of Chianti on the cream carpet, you’ll be expected to sort that out too, and the landlord could legally take you to court if you fail to do so.

Essentially, the Guarantor acts as an insurance policy for the tenant. The typical situation is that the tenant is, say, a student and therefore doesn’t have reliable employment at the time, and they possibly don’t have a rental track record either. The Guarantor is expected to pass a credit scoring with flying colours, and this will likely mean they are a homeowner and in secure employment of some form.

Sign on the dotted line

Once the Guarantor has signed the contract to say they are happy to take on this responsibility, there is no going back. Even if you fall out with your beloved tenant, you will still be their Guarantor, so it’s worth being sure that you feel happy with the situation. You are legally bound to pay the whole rent for the term of the tenancy, so if they fail to even move in for example, you may still have to pay the full sum.

Can you reduce the responsibility?

If you examine the contract and feel that the landlord is placing a little more on your shoulders than you really feel comfortable with, you can, in theory, ask the landlord if you can adjust the contract to reflect this. For example, you might be prepared to guarantee the rent, but not the household fixtures if your tenant is a bit of a party animal. But this is unlikely to be satisfactory to the landlord, as they are looking to the Guarantor to provide a level of security and confidence that they don’t feel is provided by the tenant alone. So this may cause the landlord to get cold feet about the whole arrangement in the end.

Be clear from the start

In the first instance, you should make sure that you have thoroughly read the tenancy agreement, and that there’s nothing lurking in there that you don’t like the sound of. Make sure you are clear on the rental amount, how long the tenancy is for, whether any other tenants will be in effect ‘covered’ by your guarantee, and whether your home will be used to secure the guarantee.

Look before you leap, and always take reliable legal advice if you are in any doubt at all!

 
liverpool_city_hall

Liverpool Town Hall – Following Newham and Scotland

Liverpool council has made clear it intends to introduce citywide mandatory licensing later this year.   It has launched a “consultation” on plans to license every rental property in its territory, expected to be over 50,000 properties. The consultation starts this month and will last for 12 weeks. The proposals will be presented to the cabinet in May with the aim of introducing the scheme later this year.

Newham Council, in London, has already imposed borough-wide compulsory licensing of landlords.  The scheme came into force last week, affecting over 35,000 landlords, who are compelled to apply for licences costing £500 per property if they wish to continue to let in the borough. If implemented (or should that be when implemented) Liverpool’s scheme would similarly require all private landlords to apply for a licence and agree to comply with a minimum set of standards. Those who failed to comply could face hefty fines.

Liverpool’s cabinet minister for housing, Cllr Ann O’Byrne said “The proposed licensing scheme would recognise the majority of good landlords who manage their properties properly, while enabling us to deal with the minority who choose not to engage with us, and whose letting and management practices are poor.”

RentFair says

A similar licensing regime already exists across Scotland.  It is estimated that over 6,000 landlords in Glasgow alone have defied the requirement to apply for a licence, despite the Scottish Government introducing fines of up to £50,000 for those landlords who let property unlicensed.  We do not understand why a minority of landlords who currently ignore existing laws on fire safety, HMO’s and the like, should suddenly queue up to apply for a licence.  If they have no respect for current legal requirements, then they will presumably have no qualms about letting property without a licence.  The council will then be forced to employ an army of compliance people to enforce their scheme.  What will all this achieve?

 

 

epc-graphFrom 9 January 2013, it is a legal requirement that all sales or lettings advertisements show the EPC rating of the property being advertised. The rules apply to both private landlords and letting agents.

There is no requirement to display the full certificate but where there is adequate space the advertisement should show the A-G graph.

If you have property advertised on RentFair, you can add the EPC rating by logging in to your account and editing the relevant property details.  You will find a drop-down list where you can select your property’s A-G rating.   If you have an electronic copy of the EPC graph, you can upload this as one of your property pictures.

If your property has a valid EPC but you do not possess an electronic copy, you can download one here by entering the property postcode.

Those failing to comply risk a fixed penalty of £200.  You can find further information on Energy Performance Certificates and legal requirements for landlords here.

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