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Thursday, February 18, 2016

Maidenhead Landlords could be fined £666,000 per year



“Who would want to move to Maidenhead in weather like this?”, was what one landlord said to me as we shook hands outside his property the other day. It was windy, cold, it had been raining most of the day and it was the last appointment of the day at 4.45pm. I will admit, as I had been out of the office all day, I was looking forward to getting home, putting the fire on, and watching telly with a big mug of tea.

It turned out he had been self-managing the property himself over the last few years, but was worried with all the new legislation that had been introduced recently. He was particularly concerned about the up and coming ‘Right to Rent’ legislation, so he called us for our opinion on a new tenancy after his current tenant had handed in their notice recently.

For those Maidenhead landlords that don’t know, landlords will need to check the immigration status  (i.e. the right to reside in the UK) of any new tenants moving into properties from February 2016 or face a £3,000 fine. It is called the 'Right to Rent' rules. Landlords should also be aware that as well as traditional tenants, this also applies to tenants who sub-let rooms and homeowners who take in lodgers.

Our landlord from Cookham wanted to know how much of a real issue was ‘Right to Rent’ in Maidenhead. I was able to tell him that the last available figures (from a couple of years ago) show that 222 people (whom were registered as Non-UK Born Short-term Residents) moved into private rented accommodation in the Royal Borough of Windsor and Maidenhead Council area in one year alone. Assuming none of those 222 people had the right to live in the UK, this would equate to a fine of a whopping £666,000 to the landlords of the town.

It doesn’t sound a lot when you think there are 63,580 residents in Maidenhead, and of those, 51,808 people (or 81.48%) were born in the UK. But Maidenhead is a cosmopolitan town as the country of birth of the residents in Maidenhead can be split down as follows:

UK                                                     81.48%
Ireland                                               1.08%
Europe                                               5.75%
Africa                                                 2.79%
Middle East and Asia                           6.95%
Americas and Caribbean                     1.32%
Australia and Pacific region                 0.58% 

However, it must also be recognised that landlords, by checking up on tenants, could potentially be accused of discrimination under the Equality Act. This is a real minefield for landlords, especially when you consider that not all of the 3,655 Europeans in the area necessarily have the right to live in the UK either.

In a nutshell, Maidenhead landlords will need to check and retain copies of certain documents that show a potential tenant has the right to live in the UK. These include ....

UK Passport
EEA Passport/Identity card
Travel document or Permanent Residence Card showing indefinite leave to remain
Paperwork from Home Office stating their Immigration status
Certificate of registration or naturalisation as a British citizen.

I hope the new law will target dishonest landlords who repeatedly fail to carry out Right to Rent checks by making it a criminal offence. This means they could face imprisonment for failing to check on their tenants. That is why more and more landlords are asking agents to manage their properties, so they can stay the right side of the law.
So what did our landlord do?


Well after our chat, he asked us to find a tenant and manage the property for him - he had been reading the Maidenhead Property Blog for a while and because of the knowledge we impart to the landlords of Maidenhead, we obviously know what we are talking about.  Even better news for him, even though this would cost him agency fees, I was able to get him an additional £85 per month for his property when we found him a tenant one week later. Now, together with the peace of mind that we will keep him the right side of the law and putting a stop to midnight phone calls complaining about dripping taps, it was a win-win situation for everyone.

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