10 Weeks After the Renters’ Rights Act: What’s Really Changed?

[00:00:00]I think it's disgusting to be honest.

[00:00:01][music] >> They're playing the system.

[00:00:02]>> Must I accept every pet?

[00:00:04]>> If someone turns around and says, "I want a micro [music] pig." You can't refuse.

[00:00:08]>> £7,000 fine.

[00:00:09]>> Basically, you'd be screwed.

[00:00:10]>> Can a landlord still evict me?

[00:00:12]>> She's [music] had to go to the council.

[00:00:13]Council have said that they will rehouse her.

[00:00:16]>> Can I leave whenever I like now?

[00:00:18]>> Bits of business.

[00:00:19]>> Can I still increase the rent? [music] >> 3 months.

[00:00:22]>> Can I still regain possession to sell?

[00:00:25]Did my old fixedterm teny [music] survive unchanged? All right. So, welcome back to the channel, Mariano.

[00:00:32]>> Thank you.

[00:00:33]>> It's been a good few months since you've been here, isn't it?

[00:00:35]>> Yeah. Um, year and a half.

[00:00:38]>> Really? [snorts and gasps] So, as you know from the channel, we want to give landlords, property buyers, property sellers, tenants the best advice possible. We want this channel to be the place they come to get the advice they need. When Mariam was last here, we were talking about the talk around renters's rights act. M >> well back then it was renters's rights bill.

[00:00:59]>> Y >> it's now the renters's rights act which came into force on the 1st of May.

[00:01:03]>> Yep.

[00:01:04]>> We're 10 weeks down the line from that of it being law and implemented. So today I wanted to talk really about what the property letting and management is looking like 10 weeks later.

[00:01:20]So I'll start off if I was to say to you like what's the germ moral consensus 10 weeks later? What are you finding the most of? What would that be? [snorts] >> Tenants are more clued up. Definitely.

[00:01:34]Um they've done their research. They were already doing their research while the bill was going through.

[00:01:40]>> Yeah.

[00:01:40]>> Um and now they definitely know um where their rights are, >> which is I guess the whole point of it was the Renters Rights Act.

[00:01:50]Um, we can talk all day about I've got lots of I think this is going to be a big mistake that they've made >> for many reasons we'll talk about later on. But, um, if it's law, I think it's important that the tenants know the law.

[00:02:05]Exactly. So, is that because I think there'll be some landlords and ten agents that will try and play on tenants ignorance.

[00:02:12]>> Absolutely.

[00:02:13]>> I think the public knowledge is quite low. So, I had a seller ring me the other day to say, "My house is on the market. this is not a seller with us. Um, and we were recommended because they're thinking of renting a property out and they said, "I just want to rent it for six months."

[00:02:28]And I was like, "You can't [laughter] do that anymore." And they're like, "Okay, I won't rent it then." So, it's it's what about landlords um motivation at the minute from staying, landlords thinking of selling.

[00:02:43]>> It's a mixture. We spoke about it on the last podcast about landlords sort of getting itchy feet and maybe wanting to sell.

[00:02:53]>> Yeah.

[00:02:54]>> This is now given what I call non-professional landlords. And I don't mean that nastily or um disrespectful to landlords, but I would say landlords that had inherited a property possibly from, you know, a family bereavement or they bought it a few years ago as an investment for their uh pension pot.

[00:03:15]>> M >> where they were going to get x amount of return.

[00:03:18]>> Yeah. that return now has been squeezed and squeezed and squee squeezed because of all the extra things that the landlord is now liable for paying.

[00:03:28]>> Um their profit margin isn't as big as it should have been.

[00:03:32]>> It's not viable, is it?

[00:03:33]>> It's not viable. So, they're the landlords that are looking at selling.

[00:03:39]Um, we've still got the property on the market with the tenants in it renting, >> but wanting to put their feelers out to see could they get tends to be more with flats.

[00:03:49]>> Um, but the flats obviously at the moment aren't selling as quickly as as houses are. Um, so therefore, a lot of them will still be staying with us, but they're the ones that getting the itchy feet. Um, and also when it's coming up for a tenant, obviously everything's periodic now, but when it would be the anniversary, when we're still going out to tenants to say, you know, you know, you're on a periodic teny, but it's your year anniversary of when you started, are you still happy, etc. Just to check in with the tenants, also to do rent increases. And that's when tenants are coming back to us now and saying, "No, I'm leaving." Um, and some are leaving because they themselves are because the market's changed, they're actually going on to buy property.

[00:04:35]>> Yeah. Cuz I think with rent increases, like rents are still rising.

[00:04:40]>> Mhm.

[00:04:41]>> And there's a lot of tenants that feel like their rent shouldn't be increased.

[00:04:45]>> Mhm.

[00:04:46]>> And [snorts] you got a lot of landlords that are being squeezed. You got a lot of tenants that are we get comments on these videos all over social media kind of shooting the messenger but also really frustrated with landlords because they want to increase rents. And what I trying to explain to tenants is the market value is market determined. It's not your landlord saying my flat's now worth 1500 pound.

[00:05:10]>> They want for their property what it's worth in today's market. Yeah.

[00:05:14]>> And yes, there were times when rents were rising 10 12% a year. here was going crazy. The rate of growth has slowed down. I think we were looking the other day is maybe two 2 and a half%.

[00:05:24]>> Yeah.

[00:05:24]>> But if rents are rising still, landlords should be able to increase their rent.

[00:05:30]>> Yeah. On the flip side of that, the way I explain it to a tenant and also with if a landlord comes to me and says that they don't want a rent increase, we will say even if you give a tenant the small increase in line with what the current market determines, If you don't do that, a, you're going to lose out, and b, you're not being fair to a tenant because come a year, 18 months, however long that tenant is in there, and then they decide to move on. If you haven't kept in line with the way the market goes, when that tenant or a landlord may want to sell, you know, give them the four months notice that they they're going to be the house is going to, you know, or the flat is going to be sold.

[00:06:16]Then when that tenant is going to go out and look for something else, >> it's going to be harder for them because their rent is lower than what the current market rate should be.

[00:06:26]>> Yeah. Like if they've been stuck on £900 a month for the last 5 years, but the rents are now £1,200 a month. 12250.

[00:06:33]>> Yeah.

[00:06:34]>> And we've had this recently. There's a there's a situation happening right now where >> landlords serve notice because they want to sell. Landlord's been lovely for the last five years and never really increased the rent against our advice.

[00:06:46]Tenants gone out looking and been like, look, I just literally cannot afford >> anything like I've got now and I need to stay local because of my job. I can't move further a field, blah blah blah.

[00:06:56]I've spoken to the council to see if they can help and they've told me to keep paying my rent but not to move out until I'm legally evicted >> and then they'll be able to help me. So it's a vicious circle that and what's put that landlord in that situation >> is trying to be nice to the tenant for the last 5 years >> but because councils are advising tenants to dig hills in don't leave >> if it's going to come to a legal eviction process at the end you need to put the rents up because you need to pay for this because it's expensive. Yeah.

[00:07:29]>> Unless you got rent warranty which is another conversation.

[00:07:32]>> What would you say? So that that leads on nicely where to hear in our office in our team does loads of research for me to s to bring up what's mostly searched so that we can help answer the most commonly searched questions. And one [snorts] of the things that landlords search a lot of which I'll answer because it goes quite deep because it's to do with selling and I do more selling you do more property management and letings. One of the big questions people asking is can I still regain possession to sell?

[00:08:02]And we're getting a lot of this right and what's really interesting is you absolutely can but the section 21 notice if you weren't aware has now been abolished. That's probably the biggest headline when it the whole renters's rights act. You can no longer just decide one day that you want your property gone and give your tenant what's called a no fault eviction notice. There has to be a good reason to ask [snorts] them to leave. And there's about 14 grounds in the section 8 notice. There's ground one, ground 1a, ground four, ground five up to ground 14. But we'll speak mainly about the most important ground which is intention to sell. Mhm. And that's the bit that's the word intention to sell.

[00:08:46]>> Yeah. [snorts] I mean, there's a real gray area because I've not come across this yet as in like and no doubt we will and we'll navigate it, but what if a landlord serve notice cuz they want to sell, put the place on the market, 4 months later can't sell it, can't afford to drop the price cuz their mortgage, they're in equity, you know, let's say they owe. And it's very common at the moment cuz my research in our agency tells me that anyone that's kind of bought a flat in the last 10 years, you'll be lucky to get what you paid for it 10 years ago.

[00:09:18]>> It's coming up time and time again. So there's landlords that, you know, the prices of flats in the southeast have dropped.

[00:09:27]Can't say exactly how much at this point because it takes time for what we see on the front line takes time to be published in land registry updates and house price indexes and stuff like that.

[00:09:40]But absolutely they've dropped certainly off the back of the crazy COVID postcoavid um times of what 2022 2023 price went mad. Um, if a landlord's mortgaged themselves up to the eyeballs over the last five five years and they owe 180 on it and it's only worth 180 and then they got agents fees, solicitors fees and they can't sell it.

[00:10:03]They're going to have to look at reenting it out. But that ground states that you can't relet it >> for 12 months.

[00:10:10]>> So I don't know in practice how that's going to actually pan out. But to answer the question, you absolutely can regain possession using a section 8 and using one of the grounds. One of the grounds which is important to talk about because although there's no fault eviction has gone, you can obviously serve notice if a tenant is in renter ear.

[00:10:31]>> Mhm.

[00:10:33]The problem with that is that that's been increased as part of this act from two months rent to three months and they have to be actually 3 months exactly in a rears. Right.

[00:10:45]>> Yeah. And they're crafty.

[00:10:48]>> So we had it before and it was the two months in a rears. Yeah. Yeah, >> if a tenant was 2 months in a re and then all of a sudden 2 days or a day before >> that notice they'll pay 300 quid 500 quid £50 which means >> that they're not completely 2 months or 3 months now in a so you've then got to wait and serve it again and it's just thing and this is where >> tenants were clued up before they're even more clued up Now, it's I see it from both sides cuz we have to be impartial. You know, we we're in the in the letins business and we deal with both landlords and tenants. So, we can see both sides of it. Um, you know, the market isn't that everybody can go out and buy a house, buy a flat. Um, you know, people have to rent and a lot of the things they're encouraged by the council if they go for help is they're playing in the system. It's a horrible word to say, but it is. It's the right word to use though.

[00:11:50]>> Yeah. And it is advice as well.

[00:11:52]>> The the the rules are there and all rules can be bent and you take it to the limit and you play what those rules are.

[00:11:58]>> And I think it's disgusting to be honest. I really do. I'm going to get loads of hate in the comments, but I think it's disgusting that little Mrs. Megan's the private landlord that's probably her retirement now wants to cash in, ask the tenant to leave or the tenants in a re needs a reliable tenant or more importantly someone that's you know rented their property out for their future. They're of, you know, my kind of age, got a couple of kids, the property just pays its washes face as they say.

[00:12:29]>> And when the tenant don't pay the rent, you then can't pay the mortgage. So that's got to come out your pocket. And all [snorts] I get in the comments and it really frustrates me is um landlords shouldn't make money out of people, you know, people's housing needs. Like >> it's a business.

[00:12:46]>> It's the government. It's the It's the whatever. It's not Mrs. Migan's problem to give you a house >> if you can't afford one. Period.

[00:12:57]>> So, just back to the question before I get too rattled. Um, yes, you can have people regain possession of your property. You got section 8 is all you can use. Now, there's 14 grounds >> within that section 8. Ground one and 1 A are the most important ones, which is that you need that you or your family want to move back in. I don't know why they make that the same ground, but ultimately it's the same notice period, four months if you want to move back into it or you got a family member wants to move into it.

[00:13:28]>> You got ground 1A which is your intention to sell again four months notice. You got serious renter ear that's ground eight. Interestingly though, one that I've just been reminded of actually is ground six, >> which is 4 months notice again, but it's used when substantial works are required that cannot be done with the tenant in place.

[00:13:51]>> Those grounds there's those are the key mandatory grounds these are called.

[00:13:56]There's one, two, three, four, five of those. A judge can't refuse.

[00:14:01]>> It's a mandatory ground. as long as they're 3 months in a rears, he has to serve an eviction notice.

[00:14:07]>> That could possibly be an interesting one when they I'm going a bit off tangent here is with when the new legislation comes in in 2030 for >> EPCs. Yeah.

[00:14:17]>> So, you know, if someone has got to get theirs up to a C depending on what they really need to do and if it is going to be substantial, you know, if you got to do roof works and things like that, windows, etc., That may be one that we'll see a change of. I mean, luckily we haven't got many too many properties with those anyway, but you know, in general, as an industry, that's going to really kick up. Uh, >> and on top of that, you've got discretionary grounds as well, which a judge would look at it all. The discretionary grounds are ground 10 minor renters. This is when the the tenant owes rent, but it's less than 3 months required. So I guess what happens is it goes you put in your renter's eviction notice it goes to court tenant pays a bit comes under the three months notice and then the judge makes a decision as to whether they're going to give the eviction or not.

[00:15:06]>> It could be with something like that is if if the tenant is served that and it we can see that it they're habitual non-payers as in but just paying under each month to bring it within. that may be one of the ones that will go under like discretionary because they're doing it consistently to keep it like that. So it may be one of those that the judge may look and think this tenant is playing the system and they may award in the landlord's favor. But [snorts] >> again because there's not the properties out there for them where to go elsewhere and the council can't help them. I fear that these these discretionary grounds are going to be >> it's going to be I feel it's going to be more tenant favored than landlord favored >> because you got ground 11 persistent late rent >> ground 12 and 13 breach of teny ground 14 antisocial behavior.

[00:15:58]>> So previously if a tenant was being a nuisance to the neighbors you could serve them a section 21 >> y >> and they can be gone. Y now it's a whole battle and a court case probably to prove that they're being antisocial and at the end of that 9 month 10 12 month process the judge might say actually no I'm [snorts] not going to kick them out.

[00:16:19]>> Yeah. And again it's the time that you've got to get how you get your evidence what evidence you get how it's documented etc etc. They may look at and think that's not enough. M >> um is it a way of the landlord gaining possession of their property because they've got ulterior motives? You just don't know how these magistrates are going to look at this information. Um because like anything else, you can look at something and think no, they're taking the mick or I may look at and think Perry, absolutely not. You know, it's how people perceive evidence that's in front of them >> and it's down to one person. It's like you said earlier as well that there's the reluctant landlord, the single property landlord. They're going to I think be flushed out the market in maximum the next three years and then I think you're going to be left with just the institutional professional landlords. Um even some of our professional landlords that have got three or four properties are considering exiting. Like you're literally going to be left with >> landlords that have 10 plus properties and it's probably their full-time business. And if tenants are now concerned about rent increases, wait until that all happens. Because when you're a pure business, you want to get every last penny out of the market.

[00:17:34]>> Whereas Mrs. Miggins can say, "Actually, you know, although the rent might have gone up £100 a month because the market's changed, just asking for £25 a month."

[00:17:43]>> That's what And we advise them to do that, right? We don't advise landlords to squeeze every last penny because it's not right. But they we do advise them they have to keep up with market market rents and not not lag too far behind.

[00:17:57]>> Yeah. And the thing is what we do as well is that all good agents should do is if a landlord says X and we don't think the landlord is right, we will have that conversation with them.

[00:18:08]Ultimate ultimately it's their property >> and they're paying us to give them the right advice. If they choose not to take that advice, we will still put that information that they're wanting us to to the tenant say, you know, your landlord and we'll always clearly say your landlord has asked for this increase. If the tenant says, I can't afford it.

[00:18:30]>> Then we will go back, we'll have the conversations again with the landlord and we'll do the negotiations and you know that's what we're here for.

[00:18:38]will will say to a landlord, you know, on the advice we gave you, you shouldn't have done it, but we've done it.

[00:18:46]>> Um t tenant has come back with a counter offer. And sometimes it's it's literally we'll go backwards and forwards, backwards and forwards, and we'll end up with what we said in the first place, but you spent two, three weeks doing that, but at least you still got some sort of rent increase.

[00:19:01]>> Yeah. Well, that's where I think it's great for a tenant. You know, some tenants love to hate on landlords and agents, but as a tenant, I think you're much better off, and I see posts all the time, like on Facebook groups and stuff, looking for a private landlord, cuz I'm looking for a two-bed flat. I genuinely believe that tenants will be better looked after and more protected if they rent via an agent.

[00:19:26]>> Yeah. Because some landlords, we don't really deal with them because we will soon sack them, but if some landlords are still trying to push the boundaries of what's possible and it's just not fair.

[00:19:36]>> Yeah.

[00:19:36]>> What would you say? So, one of these questions on this list that people are asking quite a lot is, did my old fixedterm teny survive unchanged?

[00:19:46]>> The only thing that has changed for the landlords is the notice period. Um obviously now whereas it was two months notice now um with tenants when it went on to periodic be previously the tenants could serve a month's notice now they're still serving two months notice where the landlord is 2 months notice or 4 months if they're wanting to gain it back for putting the house on the market or something like that. So where it's gone from a two to a four to a landlord with a tenant it's gone from one to two.

[00:20:21]So the existing teny survived semi unchanged. Yeah. As in that fixedterm teny that you might have had, you know, let's say your agent moved a tenant in on the 1st of March for 12 months.

[00:20:33]>> Yeah.

[00:20:34]>> From the 1st of May, the 12 months is gone.

[00:20:36]>> Yeah.

[00:20:37]>> Tenant can serve two months notice at any point.

[00:20:40]>> Yeah. But tenants at the moment are forgetting that. Yeah.

[00:20:43]>> Cuz we've had a few that have served their notice recently said, "Oh, I'm giving a month's notice. I believe in No, no, no. It's two months notice.

[00:20:50]>> Yeah.

[00:20:51]>> But again, um when we're talking to landlords about remarketing it and get it on quickly, um you know, tenants may be a lot of our tenants now are actually going on to buy their own properties.

[00:21:06]>> Um and it's because of completion dates and things like that and they want to move quicker. So what we're saying to our landlords is, you know, if we can accommodate, >> you know, get it on the market, give them early release, etc., then we're still trying to work towards that. We're working in the best interest for the tenant and for the landlords.

[00:21:23]>> Um so it's you know doing as much we can but pointing out that their liability still is they can move out whenever they want. If they want to move out tomorrow they can move out tomorrow but their legal liability is still what they yeah is to pay the rent. The other thing um that's important to note on the tenencies changing is that by now every landlord should have served their tenant with the information sheet.

[00:21:48]>> Yeah.

[00:21:49]>> Um I think and if you didn't serve your tenant with the information sheet, you should do it really quickly.

[00:21:58]It's kind of passed. you might still get fined, but I think local councils are going to be trying to make um examples to show this was a great idea >> and the money.

[00:22:10]>> It's £7,000 fine or something, can it?

[00:22:13]>> Yeah.

[00:22:13]>> So, if you >> if you didn't serve the information sheet that's on that's available to download from the government website, your managing agent should have done it for you if it's managed. If you self-manage, you have to have made sure that you serve the information sheet which is downloadable from the government's website by the 31st of May.

[00:22:30]Right.

[00:22:30]>> Yeah. Because that also took over it superseded the how to rent guide.

[00:22:34]Whereas before you had to serve the how to rent guide when you served um notice and would have from move in date and then when you were serving notice you had to serve all your paperwork again.

[00:22:45]But now this is superseded.

[00:22:47]>> But if you didn't do it and you think, "Oh, I've missed the 31st of May. Oh, well, just do it now, would you say?

[00:22:54]Because you're less likely to get a fine or severe fine if at least you've done it.

[00:22:58]>> Yeah. And the other thing is is as and when you're wanting to serve notice to gain possession on any of those grounds, if you haven't got the proof that you served it, >> you won't get your property back. Again, it would be one of those that if it goes to uh go to the judge, he'll look at it and say, "Well, no, you didn't serve that." So, um, basically he'd be screwed.

[00:23:22]>> I'm just interested to see how that pans out in the real world. Like, judge will throw it out.

[00:23:29]Can he throw it out? As in like will it be will we'll give the judge can't just say actually no, you can stay there indefinitely. Like surely it's going to be like you're going to have to give 6 months notice and be more lenient with the tenant.

[00:23:44]>> It find the landlord or or Yeah. Yeah, I mean >> I mean going back to when I used to go to court for the old section 21s prior to COVID and during you know the postcoid when all the the section 21s are served then I mean literally judges again it depends which magistrate you got on the day. Some would would literally go through every single piece of documentation and like you know if the tenant moved in in in 19 uh 20 2019 and they'd want to see that every gas safety was served up until that notice period. Okay. If one was missing but you'd got the following year and the one before, there were some magistrates that look and say, "Well, actually, we can see um that for whatever reason you forgot to serve it, but we can see that you've got a copy of it. that's fine.

[00:24:34]Yes, you can still have possession.

[00:24:36]Others would turn around and say, "No, I want to see every single copy of your gas safeties and that they were served on those days." And they would literally throw it out and then you'd have to serve your section 21 again.

[00:24:48]>> Um, again is if you were serving a notice and someone's name >> um was spelled and a letter was round the wrong way, like you put an A instead of an E. And because the notice wasn't served with the correct spelling.

[00:25:02]>> Well, I guess that's what they throw out.

[00:25:04]>> So, it's literally depending resubmit your four months notice >> and then it's got to start again, maybe.

[00:25:10]>> Yeah.

[00:25:11]>> So, next question lots of landlords are asking is, can I still increase the rent?

[00:25:16]>> Yes, only once a year, which we've only ever done anyway. You should only have ever increased the rent uh once a year.

[00:25:23]>> Yeah.

[00:25:24]in line with what the current market is.

[00:25:27]So, you got to make sure you do your research. And, you know, going back to what I said before, a landlord can say he wants £100 a month, but if rents in his area when we've looked at what else is available, what is in a quarter mile radius, half a mile radius, done our comparisons, and realized it's actually it's the same or it's only 2.2% or 1%, whatever it is, or it's come down.

[00:25:49]>> Yeah. Um, that's what we've got to advise them. Mhm.

[00:25:52]>> And going back and if we are and the thing is if if if rent has come down then we can go back to the landlord and say actually what you're getting now is above current market. So on this one this year don't increase your rent.

[00:26:07]>> Yeah.

[00:26:08]>> And have that conversation with the tenant and explain to the tenant why we're not. But let them know that come next year we will be doing exactly the same processing. Again, it's treating tenants as you will want to be treated yourself. Give everybody the information >> and keeping everybody on the same page.

[00:26:27]>> Yeah. So, you can >> you can increase >> once a year. once a year, >> not during the first year obviously >> and it's normally on the anniversary of when so where it's gone from um fixedterm contracts and on to periodic we still using as in Palespoke we're still using that date as the anniversary date. Yeah. And that's when we'll still contact the tenants even though it's periodic to say, you know, you've been in there another year. Um, you're still happy blah blah blah blah blah. Um, and that's when we can approach them for the conversation because we're keeping it to exactly the yearly dates for their increases.

[00:27:03]>> And you got to give at least two months notice as well. And I I know some landlords kind of give four months notice. They've kind of said, "Look, let's let's be reasonable. We are going to put up a little bit, but we're going to give you four months notice of that rent going up. It just can't be less than two months." Yeah.

[00:27:17]>> And I've had some landlords ring up to be like from next month now it's periodic we increase the rent and no you got to follow the right processes >> and this is where it's good to have a good agent >> um on your side in your corner.

[00:27:31]>> Um another question landlords ask a lot of must I accept every pet?

[00:27:35]>> This is going to be a tricky one.

[00:27:39]Landlords now cannot refuse but again it's on what type of property they've got. So, if you're on a fourth floor flat um and someone wants to put a dopamine in there, the answer will probably be no because that not only the landlord because it's not practical, but it's also what the rules of their lease are with their block agents, etc. >> If they've got a ground floor flat with small garden, it may be that they cannot refuse, but again, that would be on the terms of their lease. Yeah. Now there are rumors that the government on the next phase are going to be looking at rules and regulations of block agents and lease holders and what have you. Um because that goes on to uh surface charges and all that as well. That's another conversation.

[00:28:25]>> Um so that in the future may be changing but if someone has got a house with a garden very difficult.

[00:28:35]>> Now again it goes back to what type of pet can I have? Yeah.

[00:28:39]>> If someone turns around and says, "I want a micro pig >> and they've got a garden." It may well be that you can't refuse because it's a pet.

[00:28:49]>> Yeah. Or a massive pig.

[00:28:52]>> Yeah.

[00:28:52]>> Yeah. I guess the kind of guidance is that written request >> Yeah.

[00:28:57]>> must be reasonably and fairly responded to within a reasonable time span. I mean, in literally within the first I'd say we started getting rumors of pets before >> May, >> I would say in the first three weeks of May, we had four or five requests for small dogs, >> cats, and quite a few of those were for apartments, but the apartments that they were in is a big block that we that we we managed the block on [snorts] >> um luxury apartments, nice big apartments, some have got outside space and they have got beautiful grounds around them >> and the landlords had to agree to them.

[00:29:42]>> M >> but again it's putting in additional pet clauses um just to protect landlords and tenant.

[00:29:52]So, in reverse to that, we also want to make sure that tenants get the right advice because I think there's a lot of tenants that are misinformed, don't know the true laws now, and that's not good either.

[00:30:03]>> Um, so I've got a few questions here that >> are the most commonly searched tenant questions, >> and it ties in a bit. We might have semi answered them with the landlord advice, but let's let's go from the top again.

[00:30:14]So, tenants are asking, "Can I leave whenever I like now?" if they want to, but they still got to be liable for their rent >> because they've signed a legally binding document. So, you know, we know that people's circumstances change um unforeseen circumstances, but legally they have to serve their notice and should leave within the terms of that. We will always work with those and with the landlord to see if we can remarket it quickly, get a replacement, give them early release. But you know if they serve notice today and says I want to leave tomorrow absolutely fine. But they are liable for the rent >> for the next two months.

[00:30:53]>> Yeah.

[00:30:54]>> And it's not even calendar months either. Like is it it's just >> anniversary months?

[00:30:59]>> Yeah. Just whenever they serve it, it's two months.

[00:31:01]>> Two months from that date >> and they can move out and their rent liability will cease.

[00:31:05]>> Yeah. This is where I think it's really important for good agents again because the minute a tenant serves notice and says, "I know my notice is 2 months, but I'm in a bit of a pick pickle at the minute. A bit of a tricky situation. Any chance I can be released sooner?"

[00:31:20]>> Our response to that generally is, "Let's speak to the landlord. No reason why not." Yeah, >> once we've replaced you as a tenant, if if you can be accommodating and we can have viewings there this Saturday and someone can move in the following Saturday, >> you can be out in two or three weeks potentially.

[00:31:36]>> But I think there's some agents that just won't be asked. They'll just be like, "Oh, no, two months." And they'll go nice and slow and they'll put it back on the market when they're ready.

[00:31:44]>> I don't want tenants in properties in our agency that don't want to be there.

[00:31:47]>> No. And that's the thing. I mean, we've got a classic example with won't say the name of the person, but she's been there >> for a long time, >> a while with four years or so.

[00:31:57]>> Lovely talent going through a real tricky time. Served notice a few months ago, withdrew that. Thought everything was hunky dory. Her circumstances have really changed >> and she it she needs to move.

[00:32:10]>> Yeah.

[00:32:11]>> We've got a really good working relationship with her. We've got a really good working relationship with the landlord and we said we will do everything that house within two days.

[00:32:21]>> It's back on the market. Yeah.

[00:32:22]>> We've got viewings booked in. We've had a really good response.

[00:32:26]>> I've seen the inquiry about five, seven viewing.

[00:32:28]>> And if we can get her >> moved out within the month that she would like >> or if we can release her early, getting someone in, she'll be over the moon.

[00:32:39]Now, >> if we can't, she knows she's still got her liability, but we will do everything we can, and we will do that for every tenant. The fact that she's been a really good tenant makes you want to do even more for her, >> even though you treat every tenant the same, but it's just like we will work as closely as we can with those tenants to be accommodating because bearing in mind, we have a reputation >> that we want to maintain. And if [snorts] you know we can help someone out of a difficult situation that goes a long way for us on recommendations and how we are as agents and what have you. So you know we've got to look at everything in the picture.

[00:33:20]It's not just all about making money.

[00:33:21]This is people's lives >> and most landlords like that particular landlord is a professional landlord.

[00:33:26]Right. So and and his response was like look absolutely as long as I'm not losing any money.

[00:33:31]>> Yeah.

[00:33:32]>> And that's generally how it goes.

[00:33:33]Whether you're Mrs. begins as well be the same response.

[00:33:36]>> Yeah.

[00:33:37]>> Um so he asked us to get it back on the market as soon as possible, get it relet. She's being flexible with viewings. What frustrates me though, really frustrates me is when tenants serve notice >> as to leave early and then they're an absolute nightmare to get any viewings booked in.

[00:33:54]>> Or when the viewings are booked, the place is absolutely looking the right state. It's like, look, we can only help you if you can help yourself.

[00:34:02]>> Otherwise, we'll take it off the market.

[00:34:04]wait until you're gone and all your stuff's out so it's nice and tidy. So, you know, bit of give and take. And I've said to tenants recently, I'm like, we want to have you released early, but you've got to want it to relet more than us. And we don't really, it doesn't matter to us because it is going to be relet whether you're while you're in it or when you leave.

[00:34:24]>> I think as well, it's having the conversation with the tenants is that if you don't tidy up, yes, we know you're going to be moving out. I mean, I went to one yesterday and it was it's a big big house. Um, but doing a second viewing and the she's actually sort of said to the people when they came in, she went, "Really sorry, like in her little office where she was working, she said, "Oh, you can see we're starting to pack some stuff up."

[00:34:50]So, there was a few boxes, but it didn't mean there was boxes all over the all the house, but she'd explained why, but it was still clean and tidy and lovely.

[00:34:59]Now, the way that we can explain to tenants is that if you were going to view a property roles reversed, you're now coming to look at the property that you're moving out of. You're coming to see this for the first time.

[00:35:11]>> Would you seeing your house, >> seeing this property in the state that it's in now, would you automatically think, "Oh my god, I want to live here."

[00:35:19]>> Yeah. Yeah. Yeah.

[00:35:20]>> So, look at look at how your house is at the moment or your flat is at the moment. Was it like this when you came to view it? What made you want to move into this property?

[00:35:30]>> Because would you move into it now how you've left it or how it's how it's being presented?

[00:35:36]>> So, next one. Can a landlord still evict me?

[00:35:39]>> Yeah.

[00:35:41]>> A landlord can regain their property under those grounds.

[00:35:45]>> Yeah. Through the valley grounds.

[00:35:46]>> Through the valley grounds. It's not just I want to get rid of you cuz I don't like you anymore or I don't I want to get rid of you because you're not paying your rent. It has to fall in line with those grounds.

[00:35:58]>> It's important for a tenant to disting distinguish though between a notice and an eviction order.

[00:36:04]>> A notice isn't an eviction order.

[00:36:07]>> No.

[00:36:08]>> If a tenant was was to kind of say, do you know what? You've not done stuff properly.

[00:36:16]>> Sorry, I'm not going to leave.

[00:36:17]>> The landlord would have to go to court to get an eviction order.

[00:36:20]>> Yeah. So, you know, 99% of the time it's, you know, four months notice.

[00:36:26]Another really important thing for landlords to understand is if they are selling, we we've got a couple at the minute, >> and they've given their tenant 4 months notice, they should be offering the tenant to leave whenever they want.

[00:36:38]>> Yeah.

[00:36:39]>> In that four months.

[00:36:40]>> Yeah.

[00:36:40]>> Because what's going to happen, >> very few properties on the rental market now are going to wait four months or 3 months potentially for someone to move in. So, we we're saying to our tenants, look, Yana's had a change of circumstances. He needs to sell the property or you need to sell the property. Um, here's your 4 months notice, but if you find somewhere and you need to move on it in a month, then that's totally fine. You can leave earlier.

[00:37:04]>> The landlord's got to build that into his figures. Yeah. when he's looking at putting his house on the market because again um what the the landlord on on the flip side of that one is that even though he served a tenant 4 months notice >> they still don't have to go at the end of that 4 months >> because they can still say I haven't found anywhere nowhere suitable affordability again going back to you know maybe if they're on a low rent and they can't >> they can't pay what you the price of what's on the market now and they go to the council etc. Um because they need some help, it will still be the the even they've been given four months notice be does serve correctly because the landlord is putting the property on the market, the council will still tell them to say we've got one at the moment. Do not go until you've gone to court and it's been you've been evicted. You've physically been evicted.

[00:38:05]is still still up.

[00:38:07]>> Final question which I think is important as well for tenants to understand the laws on this is can I challenge a rent rise?

[00:38:14]>> Yeah.

[00:38:16]>> And I mean that's that's for a rent valuation tribunal, right? The first year tri a first tier tribunal which could take >> a long time.

[00:38:24]>> Yeah. And that's why we we've not we've not had touchwood. Anybody mentioned that yet? because we're doing and we've always done the things that I've explained earlier on is that >> we'll work with the landlord with an I mean last year it was 4%.

[00:38:42]>> Um sand some landlords again we're saying oh no no no I'm happy with the tenants I don't want to do an increase at all we were given the advice you're going to do the tenants your disservice because of the the discussions that we've heard earlier on. So, it's still the same thing is that um if we're presenting an increase to a tenant and to a to a landlord and to a tenant and the tenant isn't happy, we're doing one at the moment and the tenants sort of said landlords, you know, the increase is is £100. Um I think it's wrong. It's this that the other. We haven't just gone back to the landlord and said no. It's like speak to the tenant. Come back with a counter offer.

[00:39:24]What do you think is reasonable? And then we do our negotiations with the landlord and with the tenant cuz but ultimately if the landlord wants that then he's got to then take the risk of the you know saying I want the £100 the tenant challenging it and it goes to the tribunal which then doesn't make the landlord look good once he's then you know on the new register that's going to be coming in place and all the rest of it. So it's all these other things that that's why if you've got a good agent you should never ever get to those situations.

[00:39:52]>> Yeah. I think ultimately I'd be surprised. I want to understand how and why it's got to that stage.

[00:39:58]>> Yeah.

[00:39:58]>> What I think is going to happen though potentially, and this is where I think landlords are going to be bang out of order, and I would massively defend a tenant on this as well, >> is that if you've not increased your rent for 5 years, >> tenants fault, >> then you end up, you know, things get a bit tight or you lose your job and then you're like, do you know what? I'm quite skinn at the minute. Increase that rent from 900 to 1,200. That's wrong.

[00:40:23]>> That's completely wrong. And that's where I think these tribunals are really good cuz they would say, "Hang on a minute. You can't go from 0 to 100 overnight.

[00:40:32]>> You go from 900 maybe to 950." Yeah.

[00:40:34]>> And that's why it's so important that landlords do increase rents a bit if the market's increasing >> little and annually.

[00:40:44]>> The flip side to that as well is tenants need to be clued up with the rental market. This is where again, you know, people shoot me down on here thinking I'm pro- landlord anti-tenant, but tenants should make it their job to keep up to date with the rental market price fluctuations.

[00:41:01]>> And if rents have dropped, which could happen, >> unlikely with the lack of supply because of this renters's rights act, it's causing lands to sell. Less supply, still a lot of demand, rents will go up.

[00:41:14]But let's say rents did fall. Is the land is the tenants job to say, "Oh, on the 24th of August, that's my anniversary that you could ask me for a rent increase. I've assessed the market and I feel like the market's gone down, so I want to drop my rent from a,000 to 950." Tenants can do that as well, you know, >> and it's important that they know that it's not all one-sided. But where landlords will are being out of order is where they're trying to go too high through lack of good management for the last four or five years. And where we're noticing changes with landlords is that because of what you said earlier on where when they bought they bought, you know, maybe 5 years, got a really good mortgage rate deal, blah blah blah.

[00:41:59]They're coming to the end of that term and all of a sudden they're coming off their good low fixed rate. Now they're going on to higher rates or onto a variable rate and all of a sudden they're seeing their mortgage payments go from, you know, zero to 100. And it's like that's what they're saying. Well, um that's why I need it because my mortgage is go up. Unfortunately, that's the risk you take when you are a landlord.

[00:42:22]>> Yeah.

[00:42:22]>> Um and you still cannot take that out on a tenant because you have to >> um what your mortgage costs has no relevance to what your flat's worth to rent.

[00:42:34]>> I mean, it might luckily marry up, >> but just cuz your mortgage is 1,100 quid a month doesn't mean you can squeeze your tenant to pay that because your market rent might only be a grand a month.

[00:42:44]>> No. And the other thing is with landlords as well when they're bit getting squeezed on that and you know we've had the conversation time and time again is that when someone purchases a property be it a flat or a rent to be a landlord they should never ever rely on the tenants's rent to pay their mortgage and cover the bills and you know if a boiler goes wrong whatever you know they've always should have at least 6 months to a year's money in the bank that they may have to pull that pot because people's circumstances change.

[00:43:16]>> I had a call from an landlord this week actually. She was I was recommended to her. She rang me to say I bought this property in Mitchum um kind of sorry South London borders um for 210 and my tenants moving out uh my fixed term ends in a year. I'm going to sell it in a year's time. I was like okay cool because currently it looks like it's worth 175.

[00:43:38]>> Okay. She was I just can't afford to sell it for Okay, cool. Rent it for another year. I said, "But before you do that, speak to your broker and just pretend you're going to be reorggaging it this year." [snorts] Um, because if you're going to hold off a year to sell because the rates and the reortgage, you might be wasting a year.

[00:43:58]Anyway, they done all the figures and she r said, "I need to sell it now because I literally in a year's time I'll be losing more money than I am now per month. There's no point renting it out." but she's stuck with one. She paid 210 for it. She's spent £10,000 to increase the lease. That's 220 and she'll be lucky to get 175 180 for it.

[00:44:20]And that's [snorts] the whole problem at the minute with the overs supplied lease hold >> market. Investors aren't buying unless it's cheap cheap to make it feasible on a return on investment basis. So [snorts] yeah, that was a good overview, Mariam. We covered a lot. We've done landlords.

[00:44:40]We've done tenants. I think that's going to wrap it up for today.

[00:44:43]>> Cool.

[00:44:44]>> We'll come back in here. I want to keep coming back periodically because I want to document and give advice on how this Renters Rights Act is >> rolling out.

[00:44:53]>> Yeah.

[00:44:53]>> Cuz we've also got EPC things talk about. There's there's the landlord database that's probably going to come out at some point. There's all this stuff that's part of the act, but they've not even That's what makes me laugh. Like it's part of the act, but they've not actually detailed how it's going to come to fruition. And I I really it'd be interesting to see where the market will be on before then, but where the market is in May next year cuz that's then give us a full year.

[00:45:20]>> Yeah.

[00:45:20]>> So you've got all the section 21s that was served, you know, up until like 2 days before >> Mhm.

[00:45:27]>> the 1st of May, they'll be going through and you know, they may have they may go through properly or whatever. In which case, if they're then thrown out on whatever grounds, it means the landlords have then got to serve the section eights. Yeah. So, it's starting again.

[00:45:40]How long is that going to take to go through the process? Because we've actually got um I've been reading doing some research on something at the moment and there was someone that served a section 21 before >> the end of May.

[00:45:54]>> The end of May.

[00:45:56]Um and the the the scenario is that the landlord desperately needs to sell. So served the section 21 before um didn't have rental warranty or anything like that. Tenant because of her circumstances can't move. She's had to go to the council. Council have said that they will rehouse her. Um so she knows she's got to go to eviction.

[00:46:20]Landlords I say didn't have rental warranty. They've now appointed a solicitor. All the stuff has gone to the solicitor. But of course, under the section 21 grounds, you had to provide all your gas safety certificates. And there's one gas safety that they can't prove that it was served to the tenant.

[00:46:40]So unless the landlord can come up with that section 21 to prove that it was served on a particular date, >> that section 21 will be null and void.

[00:46:51]then it will have to go back to being reserved under the new grounds on section 8 which means it's got to be a four month. So the whole process is going to be pushed back >> but that's four months notice and there's talk that the courts won't be able to cope and it could be nine months.

[00:47:06]>> So the whole the whole thing some of these new things it's [music] going to really elongate the process.

[00:47:12]>> It just takes time to see what the real effects really are.

[00:47:14]>> Yeah. So I think [music] this May next year we'll have had a full year of seeing where the hiccups are, where >> things [music] things are still settling. Um people are getting used to things. But yeah, I think there's more more to come. Definitely more to come.

[00:47:30]>> Well, in that case, we'll see you in May next year, >> if not before. [laughter] >> Cheers, Mario.

[00:47:35]>> Cheers.

[00:47:42]>> [music]