Key Documents - The Notices
Formal notices form a fundamental part of the lettings process, and ensuring that the prescribed documents and relevant legislation are properly complied with, is of paramount importance.
Before serving notices, ensuring the notice is properly served is key. Under PART 6 of the Civil Procedure Rules (CPRs) the process of serving documents must be carefully adhered to and so it is important to check the methods of service cited in the tenancy agreement as well as complying with the relevant time frames. For example, does the tenancy agreement allow for notice to be served by email and if so, when would that notice be deemed served?
There are key notices which play an integral part in the lettings process.
What next for the Renters Reform Bill?
A lot of chatter has appeared in the trade press over the last 24 hours regarding the Renters Reform Bill and the intentions of the Labour Party if they win a general election. A lot of the discussion circulates around the abolition of Section 21 (Form 6A), so much so that landlords are constantly having a ‘knee jerk’ reaction every time the trade press, national press, TV reports, a blog make reference to the notice disappearing. This has lead to many landlords selling up and exiting the letting sector.
With the greatest of respect to all those who report on the Renters Reform Bill, it’s irresponsible to mislead landlords in this way; landlords who in 2019 reacted to the initial proposal of abolishing the Section 21 notice were unfortunately mislead into thinking that firstly the notice would be abolished imminently. But let’s also think about tenants and the impact this ‘misinformation’ has affected them. Many tenants could have avoided having notice served on them and worse still, facing accelerated possession through the courts and possibly eviction. It has not and will not be abolished for a while.
The Importance of Creating a Strong Audit Trail
Over the last 2 years, we have conducted a significant number of audits. The audits are not finance related, the focus is on compliance on 2 levels - Compliance of the letting agency and compliance related to process and systems. Our desktop audits are conducted to ensure that GLM members are complying with membership criteria and relevant statutory requirements.
We have been asked by clients to audit their property portfolio to ensure compliance, to prepare for the sale of their business or to invest in other agencies; most recently we have been involved in auditing agencies being acquired.
Into the Detail of the Renters Reform Bill
Since the White Paper was published last Thursday, our Advice Line has been bombarded with questions about the Bill And rightly so given this is the most significant change in the Private Rented Sector since the Housing Act 1988 was introduced. We will be dealing with the detail of the Bill on June 29th in London during the training session we will be running, however, there are some important questions that need to be answered quite urgently. (Questions asked through our Advice Line).
1. Will the Section 21 Notice disappear next month?
No definitely not
2. What will replace the Section 21 Notice?
A re-vamped version of the Section 8 Notice with additional Grounds
3. How quickly will the legislation be implemented?
Before the Bill becomes an Act. There is no set time limit - the Bill it will be scrutinised by peers and MPs as it makes its way through parliament. This process is known as 'Parliamentary Ping-pong' and refers to the to and fro of amendments to Bills between the House of Commons and the House of Lords. It is during these multiple stages that amendments are made before the Bill finally becomes law.Given the complexity of the content of the Bill, this process may last 12 months or more.