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HMO Licensing - 29th February 2008

On 6 April 2006 provisions under the Housing Act 2004 came into force requiring some (but not all) HMO landlords to obtain a license from their Local Authority. There are stringent penalties for non compliance. Also new management regulations came into force at the same time

Housing Act 2004 Part I - 29th February 2008

Part I of the Act deals with the Housing Health and Safety Ratings System (HHSRS) which consists of a risk-based assessment and an inspection of a property by an environmental health officer. The officer rates 29 areas of risk and scores them. If the score is above a certain numerical point then a Category 1 hazard exists and this needs rectifying and the Local Authority can take enforcement action if this action is not taken.

The HHSRS applies to all houses, except Local Authority stock, and this includes owner occupied houses and all private rented housing (whether an HMO or licensed or not).

The link between the HHSRS and licensing (Part II of the Act) is that if an HMO requires licensing then it it is likely to be inspected under the HHSRS within the five years of the licence being granted.

Although the formal HHSRS inspection will be undertaken by the Local Authority for licensed properties, it is the owner's responsibility to ensure any property meets these standards. The LCC site has guidence to how to assess properties. In the main these will be related to issues associated with fire safety, risk of falls, risk of collision and ensuring that the cellar is fire separated from the floors above by an appropriate fire barrier (normally the ceiling).

Housing Act 2004 Part II - 29th February 2008

Part II of the Act defines an HMO and also defines what properties need licensing. Without going into too much detail, in the student area, any house that is shared by 3 or more unrelated students will be an HMO. This, in itself, has very few implications for owners.

If a house is an HMO and is on three of more floors (each floor being habitable) and is shared by five or more unrelated students then it is licensable. The licence will last for 5 years, after which a new license will need to be applied for. The cost of the licence (information provided later) covers the 5 years. Licensing costs for Leeds and Bradford differ slightly.

If a property is licensable there are a number of consequences, but the main ones relate to a set of amenity standards that are to be found in a number of Statutory Instruments under Part II of the Act. These are in addition to any risks identified under the HHSRS.

For properties with seven students, these standards are very similar to the old HMO standards (now repealed) and all larger houses are likely to already meet with the Part II standards if they have already been converted to previous HMO standards which are likely.

Tenancy Deposit Law - 29th February 2008

Tenancy deposit law was introduced on 6th April 2007 and provides protection for tenants by preventing landlords and letting agents from unfairly withholding a deposit. The scheme protects all Assured Shorthold Tenancies in England and Wales (covering most tenancies since 1997).

Tenancy Deposit Scheme - 29th February 2008

Tenants stand to benefit from enhanced security and peace of mind following the introduction of the Tenancy Deposit Protection scheme (TDP), which will offer a faster, cheaper and fairer way of settling any disputes over the return of deposits in the private rental sector.

From 6 April 2007, landlords entering into new tenancy agreements will be required to place any deposit with a Government authorized scheme, which will safeguard the money and offer independent adjudication in the event of any dispute. Tenants who have kept their rented property in good condition can be confident that they will not have all or part of their deposit withheld on spurious grounds, a common complaint currently made by tenants.

The existence of the alternative dispute resolution service (ADR) will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through use of inventories, and agreement on the condition of the property - thus ensuring that landlords are also protected.

TDP will apply to all assured shorthold tenancies (ASTs) in England and Wales, where a deposit is taken. Virtually all new contracts to let a property are ASTs. A contract that is an AST will be clearly marked as one. The TDP will add to the measures set out in the Housing Act 2004 to drive up standards in the private rented sector, including licensing multiple occupancy homes and new safety rules.

For further information visit; www.direct.gov.uk/tenancydeposit.

Tenancy Deposit Protection is designed to ensure:

• tenants get all or part of their deposit back, when they are entitled to it
• any disputes between tenants and landlords or agents will be easier to resolve
• landlords and letting agents who do not protect tenancy deposits will have to pay their tenant back three times the deposit

There are two types of tenancy deposit protection scheme available for landlords and letting agents (insurance-based schemes and custodial schemes). All schemes provide a free dispute resolution service.

What are Tenancy Deposit Schemes?

The schemes allow tenants to get all or part of their deposit back when they are entitled to it and encourage tenants and landlords to make a clear agreement from the start on the condition of the property.

The schemes:

• allow tenants to get all or part of their deposit back when they are entitled to it
• make any disputes easier to resolve
• encourage tenants and landlords to make a clear agreement from the start on the condition of the property

There are two types of tenancy deposit protection scheme available for landlords and letting agents. All schemes provide a free dispute resolution service.

Insurance-based schemes

• the tenant pays the deposit to the landlord
• the landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme

Within 14 days of receiving a deposit

The landlord or agent must give the tenant the details about how their deposit is protected including:

• the contact details of the tenancy deposit scheme selected
• the landlord or agent's contact details
• how to apply for the release of the deposit
• information explaining the purpose of the deposit
• what to do if there is a dispute about the deposit

At the end of the tenancy:

• if an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit
• if there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved
• if for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it

Custodial schemes

• the tenant pays the deposit to the landlord or agent
• the landlord or agent then pays the deposit into the scheme

Within 14 days of receiving a deposit

The landlord or agent must give the tenant the details about how their deposit is protected including:

• the contact details of the tenancy deposit scheme selected
• the landlord or agent's contact details
• how to apply for the release of the deposit
• information explaining the purpose of the deposit
• what to do if there is a dispute about the deposit

At the end of the tenancy:

• if an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties
• if there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair

The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn't entitled to it.

THINK YOU KNOW ALL THERE IS TO KNOW ABOUT PROVIDENCE PROPERTIES? - 29th February 2008

First and Foremost!!!

1. Providence Properties register all deposits payable to them with the Government Tenancy Deposit Scheme on the same day you sign the contract so your money is safe from the day you hand it over to the very end of your tenancy.
2. Providence Properties offer a 'DEPOSIT FREE' scheme on most properties (subject to landlord's approval).
3. Providence Properties have one of the largest selections of properties to let in Leeds.
4. Providence Properties have the largest number of fully re-furbished properties to let in Leeds.
5. Providence Properties endeavour to keep the tenants and landlords happy at an equal level to ensure the property prices are the most competitive you will find.
6. Providence Properties offer a fully comprehensive maintenance service, a team of qualified professionals ready to face any eventuality.
7. Providence Properties will contact your landlord should you have a problem at your property immediately (9 out of 10 times whilst you are still on the phone or in the office).
8. Providence Properties have changed with new qualified staff available to help with any problems or advice you may need.
9. Providence Properties have experienced letting negotiators who know each area and property individually and what will suit your personal needs.

   Above all....

10. Providence Properties are here when you have tried the rest but you want the best.

Did you know it is a well known fact you cannot keep all the people happy all the time as well all learn as we go through life .......... but those who 'Trust in Providence' come back year after year.

Tips for House hunting 2008 / 2009 - 29th February 2008

In Leeds there is an administrative start date to house hunting and for next year's houses (those available from 1st July 2008) this is 4^th January 2008. This is the first date that Providence shows its properties to you. However due to the small surplus of good quality accommodation it is necessary that you rush out on this day to secure your house. First come first serve.

Using Providence means that you get access to over 10,000 bed spaces advertised from 4^th January 2008, displayed in a way that ensures transparency and no hidden bias and costs.

Providence is more than a letting agent; it is the focal point for advice and support for students looking for private rented accommodation. With our support, rest assured that at Providence you will be encouraged in to making the right decisions at the right time not pushed in to making hasty ones that you will regret later.

Every year some students fall foul of various housing rumors and myths such as:

There is a surplus of houses - This is simply not true. In Leeds there is a shortage of good quality accommodation. Students who leave there house hunting until the summer before they return to University will not secure good houses.

All the best places go first - Often students that sign up for houses early are actually signing for the best properties!

Everyone pays sign up fees - Many agents do ask students to pay admin or sign up fees, don't worry this is a standard practise

Energy Performance Certificates - 1st April 2008

From 1 October 2008, by law, all rented properties will require Energy Performance Certificates (EPCs) to be available on letting.

The purpose of the EPC is to show prospective tenants the energy performance of the building they are planning to occupy. The EPC must be provided free of charge. The EPC shows the energy efficiency rating (relating to running costs) and the Environmental Impact rating (relating to C02 emissions rating) of the property. They are shown on an A - G rating scale similar to those used for fridges and other electrical appliances;     The certificate will be accompanied by a recommendation report that contains recommendations on how to improve the building's energy efficiency. However, there is no statutory requirement to carry out any of the recommended measures.

Landlords will need to give basic details of the EPC score on marketing and when a property is let make the certificate available to tenants (in electronic format from a central website or a paper copy).

We will provide more information to tenants and to landlords as October comes closer and we will aim to provide landlords the ability to show the basic graphical information on their adverts from that time (dependent on the Government department for Communities and Local Government making this facility available).

Until that time both students and landlords might find the Home Energy Check facility on the Energy Saving Trust website useful. This produces a cut down version of the EPC including the graphical representation. Whilst this will not replace an EPC and is not legally valid the site provides help and assistance to improve energy efficiency straight away.