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National Landlord Day 2018 - Ozone breakout session


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National Landlord Day 2018 - Ozone breakout session

  1. 1. National Landlord Day 2018 Ozone breakout sessions Conference and exhibition 13 November 2018 Sponsors: National Landlord Day
  2. 2. Dispute resolution – supporting a claim David Hackett The Letting Protection Service Scotland National Landlord Day 2018 National Landlord Day
  3. 3. Dispute resolution – supporting a claim David Hackett Head of Business Development, LPS Scotland
  4. 4. Agenda Fundamental principles Evidence See things from the adjudicator’s point of view Fair wear and tear/betterment Reasonable costs and the duty to mitigate loss
  5. 5. The principles Paper based ADR service offered by The LPS – the adjudicator does not act as arbitrator or mediator so does not: • liaise between the parties; • chase evidence; • conduct an open hearing. To ensure fully impartial and unbiased decision making, there is discretion to the adjudicator to raise queries or contact parties if appropriate - but they will not “fill the gaps” for the parties. Onus remains on the parties to submit all evidence in time. Intended to be quicker and more cost effective than litigation or arbitration.
  6. 6. The principles • the deposit is the tenant’s money; • onus on LL/LA to evidence otherwise - “he who asserts must prove”; • schemes can only deal with payment of the deposit funds - awards up to the value of the deposit only; • two stage test • breach by tenant; • reasonable cost incurred as a result.
  7. 7. What evidence can be submitted? • tenancy agreement; • signed and dated check-in report – or other relevant check in evidence? • signed and dated check-out report – or other relevant check out evidence? • photographs – dated, and preferably digital; • invoices, receipts, or estimates for costs being claimed; • DVD/video evidence; • statement of rent account; • interim inspections/reports; • correspondence/emails; • witness statements; • file notes; … but not physical evidence!
  8. 8. Paint the picture • The adjudicator has not visited the property • They can only glean information from the contents of the evidence, for example – what is the house like – old/new, detached, main road???
  9. 9. Fair wear and tear/betterment FWT: damage, depreciation or loss resulting from ordinary use ARLA guidance – factors to take into account: • original age, quality and condition, at commencement of tenancy; • average useful lifespan; • reasonable expected usage of such an item; • number and type of occupants in the property; • length of the tenants occupancy. Betterment: A landlord is not entitled to charge his tenants the full cost for having any part of his property back to the condition that it was at the start of the tenancy. Landlord/agent has a duty to adopt the most reasonable approach, the tenants’ deposit is not to be used like an insurance policy where you might get full replacement value/new for old.
  10. 10. Usual life expectancy guides Joint guidance issued by ARLA, NAEA, RICS and Asset Skills in the ‘Guide to Best Practice for Inventory Providers’ Useful lifespan of room decorations and various fitting and fixtures Decorations Hall, landing, stairs between 2 to 3 years Living rooms approximately 4 years Dining rooms approximately 6 years Kitchen and bathrooms between 2 to 3 years Bedrooms approximately 5 years Carpets Budget quality between 3 to 5 years Medium quality between 5 to 10 years Top quality up to 20 years White goods Washing machines between 3 to 5 years Cookers/ovens/hobs between 4 to 6 years Fridges between 5 to 8 years
  11. 11. Duty to mitigate loss Replacement of an item damaged beyond use or economic repair e.g. staining/burn mark to sofa. Repair e.g. sanding and re-varnishing of wooden kitchen worktop. Cleaning e.g. cleaning of carpets, curtains. Compensation e.g. small burn mark to work surface, carpet. Age of the item is therefore relevant – if the item would need replacing anyway, the “inherent value” is considered to be nil (ARLA, RICS NAEA etc.) Come along to the LPS stand to find out more…
  12. 12. Switching is easy • switching to our scheme is easy; • register an account and create your tenancies individually or through our simple bulk upload process; • we’ll contact your existing deposit protection provider and arrange for them to transfer your deposit funds to your dedicated account with us; • upon receipt of deposit funds, deposits will be active immediately and confirmation will be issued to all parties; • we will support you through the process, just contact us on 0330 303 0031.
  13. 13. Breakout sessions now available to attend National Landlord Day Short term letting – what’s all the fuss about? Top 10 things to look out for with landlord Insurance Could an empty home be your next investment? Quality (mid tenancy) data – are your SSORTed? Biosphere: Ozone: Showdome: Salisbury suite:
  14. 14. Top 10 things to look out for with landlord insurance Steve Cox National Landlord Day 2018 Alan Boswell Group National Landlord Day
  15. 15. Landlord Insurance Protect your Future
  16. 16. Steve Cox Business Account Manager 01603 218031 07766 715654
  17. 17. About Steve • with ABG for 27 years; • 8 people in the company at that time; • progressed through company up to Business Account Manager; • looks after portfolio landlords travelling the country; • looks after landlord associations and agents nationwide; • always contactable; • author of many articles in property publications.
  18. 18. • established in 1982 with 340 staff over 10 locations; • Independent Broker Of The Year (2015-2016) – Insurance Times Awards; • a top 15 independent broker (Insurance Age, top 100 list 2017); • provide insurance to over 17,000 landlords with over 55,000 properties with over £7.5bn assets insured; • 4 landlord products awarded 5 stars; • outstanding service scores of 4.8 out of 5 on FEEFO. About Alan Boswell Group
  19. 19. • malicious damage caused by the tenant (including cultivation of drugs); • carpets, curtains & white goods within the buildings definition; • 90 days FULL POLICY COVER between lets (whilst empty); • loss of rent AND/OR alternative accommodation (following a claim); • trace & access; • accidental damage; • £5M property owners liability; • extend or add Home Emergency / Legal / Rent Guarantee / Excess Protection; • £10M employers liability. “All policies are born equal?” LOOK FOR A POLICY THAT COVERS THE THINGS THAT ARE IMPORTANT TO YOU Cover
  20. 20. 1) Check for additional fees Some companies hook you with a cheap premium but charge hefty admin fees if you want to make changes down the line. While checking the small print, it’s worth looking at the payment options and charges, because a cheap premium can get expensive if you’re paying monthly.
  21. 21. 2) Review the implications if a tenant sublets the property Insurers can be wary of sublets, but normally accept them if there is a short assured tenancy (SAT) or private residential tenancy (PRT) in place, as it means the landlord has carried out the relevant checks and knows exactly who is in the property. If the tenant sublets the property, the landlord has lost control over who is housed in the property and any potential claim could be declined. It’s important to carry out regular checks on the property so you know who is in the property and it’s being kept in good order. If you are aware that they are subletting, make sure that you tell your insurer/broker so they can tell you if you need a different type of insurance.
  22. 22. 3) Home insurance is not the same as landlord insurance Many landlords don’t realise they need specific insurance for their buy-to-let properties. Home insurance is designed for owner-occupier properties, not tenanted properties. Although some home insurance products may stretch to renting out the property, they are not designed specifically for it. Make sure you seek out adequate landlord insurance and don’t leave things to chance.
  23. 23. 4) Make sure loss-of-rent is included If your property suffers a claim, most landlord products should include cover to provide an income while the property is uninhabitable. If your insurance policy does not include this, you could end up out of pocket as the result of a claim. You might also want cover for the cost of alternative accommodation for tenants (if the property is temporarily uninhabitable).
  24. 24. 5) Ensure that malicious damage and manufacture of drugs are both covered Malicious damage by a tenant is surprisingly common. When comparing policy details, look for malicious damage cover. It may be included, but it can also be an add-on, depending on the insurer. Make sure you’re clear about whether this is included before you buy a policy. Manufacture of drugs covers you in the event that a tenant damages your property through drug production. Cannabis farms, for example, can lead to the destruction of a property. Failure to insure against this could destroy your investment.
  25. 25. 6) Check excesses to avoid surprises Some claims occur more often than others and may have higher excesses applied as a result. Escape of water is the most common property claim and will often have a higher excess to cover these costs. There is generally a standard policy excess that applies, with specific excesses highlighted in your quotation documentation. Make sure you read them and be happy with what you’re signing.
  26. 26. 7) Read the important conditions of the policy All insurance products have terms and conditions attached and it is essential that these are adhered to. An example is the condition that a tenancy agreement is in place. While this may seem obvious, if you’re letting to friends or family you may not put one in place. However, the failure to do so could invalidate your insurance. The claims process is where you see the true value of your policy. Alongside making sure you understand the conditions of your policy, aim for a UK- based company that runs its own call centres and has control over the quality of its service.
  27. 27. 8) Review the rules for serviced accommodation Landlord insurance doesn’t automatically cover this sort of tenancy. This is due to a stipulation within these policies that there must be a short assured tenancy (SAT) or private residential tenancy (PRT) agreement in place. It doesn’t provide cover when properties or rooms are let on a per-night basis. Sometimes, holiday let insurance or serviced accommodation insurance might be more appropriate for you, so it’s worth reading up on the differences.
  28. 28. 9) Review unoccupancy rules We would all love our trouble-free tenants to stay forever, but when the average length of a tenancy is under a year, the chances are you will have untenanted periods. Depending on your insurer, your cover while your property is unoccupied could be limited to 90 days, or might become immediately restricted by including or excluding certain things, such as theft or accidental damage. Some insurers won’t change your cover, but will increase your premiums.
  29. 29. 10) Look at independent research The internet is a fantastic way of researching companies and products. Check out whether the company you’re about to place your trust in has the trust of its customers and has a satisfactory claims experience. For instance, we’re proud of our outstanding, independent customer reviews, which you can read on independent review site Feefo.
  30. 30. Immediate help with legal disputes With Alan Boswell Group landlord legal expenses cover, you’ll have peace of mind knowing that if a tenant defaults their rent, or refuses to vacate the property, immediate help is available. • cover for £100,000 of legal expenses (including eviction costs); • general property disputes relating to tenancies; • repair and renovation disputes; • health and safety prosecutions; • cover for HMOs and student lets; • recovery of unpaid rent by a tenant; • tax investigation cover; • access to UK-based legal advice helpline. Legal expenses
  31. 31. Protection for your rental income Our comprehensive policy provides peace of mind for landlords when renting out properties. It covers rent protection in the event of a tenant defaulting and any legal expenses you may face for issues such as eviction. • rental income cover up to £25,000; • legal expense helpline 24/7; • access to online health & safety documents; • up to 12 months’ cover; • full landlord legal expenses up to £100,000; • cover for HMOs and student lets. Rent guarantee
  32. 32. Swift and effective assistance Home emergency cover for landlords is vital in a crisis. That’s why Alan Boswell Group, in conjunction with Intana, provide swift and effective assistance when a domestic emergency occurs. • boiler breakdown cover; • cover for complete failure or breakdown of electricity or gas supply; • cover for the infestation of vermin; • up to £100 for alternative accommodation; • burst pipes and drainage; • 24/7 emergency helpline; • unlimited number of claims (up to £500 per claim); • UK-based call centre. Home emergency
  33. 33. Avoid unexpected expenses with excess protection This cover reimburses you for the cost of your policy excess in the event of a claim, helping you to avoid unexpected expenses relating to your property. It works alongside your normal property owner’s insurance policy and will cover the cost of your excess up to a pre-agreed limit. • available from £20 a year; • maximum cover limit of £3,000; • easier to manage excess costs; • use on multiple claims; • high cover limits; • UK-based advisers. Excess protection
  34. 34. • researches the market; • obtains quotes based on your needs; • handles the administration; • offers advice & guidance; • represents YOUR interests; • handles your claim. What does a good broker do?
  35. 35. Cannabis farm Flood Fire Liability Storm Malicious damage by tenant Claim examples
  36. 36. • 2017 Highly Commended Independent Insurance Broker of the Year (Insurance Times) • 2017 Finalist Commercial Lines Insurance Broker of the Year (Insurance Times) • 2017 Finalist Customer Service Insurance Broker of the Year (Insurance Age) • 2015/16 Winner – Independent Insurance Broker of the Year (Insurance Times) • 2014/15 Landlord & Letting awards Winner (Supplier category) • 2013/14 Landlord & Letting awards Winner (Supplier category) • 2012/13 Landlord & Letting awards Finalist (Supplier category) Our awards and accreditations
  37. 37. Impartial reviews
  38. 38. We guarantee to beat your existing premium* * Terms apply. See or call for full details. Price guarantee only applies where existing cover is held.
  39. 39. Steve Cox Business Account Manager – Alan Boswell Group 01603 218031 07766 715654 Thank you for listening
  40. 40. Questions?
  41. 41. National Landlord Day Lunch is served in the Stratosphere area Programme resumes 13:40 hrs Please visit our exhibitors’ stands Sponsors: National Landlord Day
  42. 42. Breakout sessions now available to attend National Landlord Day Handling difficult situations Reducing costs in implementing the letting agent code? Quality (mid tenancy) data – are your SSORTed? Understanding Universal Credit Biosphere: Ozone: Showdome: Salisbury suite:
  43. 43. Reducing costs in implementing the letting agent code Fraser Sutherland SME Professional National Landlord Day 2018 National Landlord Day
  44. 44. Reducing costs in implementing the letting agent code National Landlord Day November 2018
  45. 45. Property solutions Designed for Scotland
  46. 46. We do software
  47. 47. Cutting edge websites Market leading, mobile-friendly, fully managed. All for one competitive monthly price.
  48. 48. The biggest cost to your business?
  49. 49. Hiring new people
  50. 50. Client accounts
  51. 51. Direct debits & credit cards
  52. 52. Rent arrears & bulk paying landlords
  53. 53. Anti-money laundering, identity & compliance checks online Identity checks
  54. 54. How the process works 1. Vetting requests sent by email 2. Data provided via Amiqus ID portal 3. Photos and documents uploaded 4. Information validated 5. Results stored centrally with a clear audit trail Powered by
  55. 55. Electronic signatures
  56. 56. General Data Protection Regulation (GDPR)
  57. 57. Transparency
  58. 58. Landlord portal
  59. 59. Property maintenance
  60. 60. Emails Policies, procedures and consistency
  61. 61. Marketing portals
  62. 62. Advertising boards
  63. 63. Deposits
  64. 64. Property viewings
  65. 65. Keys
  66. 66. Wrap it up – terms of business “You must inform the landlords in writing of all applications made on the property as soon as possible, unless agreed otherwise with the landlords, along with all relevant information about the offer and the applicant.”
  67. 67. Council tax
  68. 68. Application forms
  69. 69. Property insurance
  70. 70. References
  71. 71. Contractors’ insurance
  72. 72. Check-outs (inventories & utilities)
  73. 73. Contact centre
  74. 74. Working on a solution…. 111. You must not communicate with landlords or tenants in any way that is abusive, intimidating, or threatening.
  75. 75. Dual Screens
  76. 76. ADDRESS Great Michael House 14 Links Place Edinburgh, EH6 7EZ PHONE 0131 285 1022 EMAIL WEBSITES
  77. 77. Breakout sessions now available to attend National Landlord Day Enforcing tribunal decisions – the role of the sheriff officer Understand your EPC and improve its rating Investing in training Could an empty home be your next investment? Biosphere: Ozone: Showdome: Salisbury suite:
  78. 78. Understand your EPC and improve its rating Stephen McAlaney Home Energy Scotland National Landlord Day 2018 National Landlord Day
  79. 79. Understand your EPC and improve its rating
  80. 80. Content • introduction to Energy Performance Certificates (EPCs) • standard assessment procedure (SAP) • understanding your EPC • minimum energy efficiency standards • Home Energy Scotland support • financial support • Q & A
  81. 81. Energy Performance Certificate 82 • introduced in 2009 • established as part of the home report • legal requirement for rental properties • valid for 10 years • lodged on the Scottish EPC register
  82. 82. SAP methodology SAP 2009 – 34 SAP points SAP 2012 – 30 SAP points
  83. 83. Energy rating – SAP score and band • scale of A-G with numerical values • average rating across Scotland • potential for improvement
  84. 84. Fabric of the building and energy efficiency • alternative build types • assumptions • different property types • star rating
  85. 85. Recommended measures • points for each individual measure • impact on the energy rating • indicative costs • potential savings • limited scope to illustrate alternative measures
  86. 86. Minimum energy efficiency standards Homes in the private rented sector are regarded as some of the least energy efficient in Scotland. To tackle this, the Scottish Government has announced that minimum energy efficiency standards will be introduced for privately rented housing fromApril 2020. These standards include: • from 1 April 2020, any new tenancy will need the property to have an Energy Performance Certificate (EPC) of at least band E; • by 31 March 2022, all properties will require at least EPC band E; • from 1 April 2022, any new tenancy will need the property to have an EPC of at least band D; • by 31 March 2025, all properties will require at least EPC band D.
  87. 87. Minimum energy efficiency standards Band E standard Band D standard Properties with change of tenancy 1 April 2020 1 April 2022 All properties 31 March 2022 31 March 2025 The Scottish Government will publish regulations in early 2019 that provide more detail on how the standards will be applied. It is expected that this will include: • what exceptions will apply and how they will work in practice; • what penalties will exist for landlords who do not meet the standards.
  88. 88. • five advice centres across Scotland • free, clear, independent, impartial, localised advice • energy efficiency, renewables, transport, water, resources & waste • managed by Energy Saving Trust • funded by Scottish Government Home Energy Scotland
  89. 89. Help for private landlords Specialist, tailored support aimed at: • private sector landlords • owner occupiers • coverage Scotland-wide • free home visits and report • suitability for renewables, solid wall insulation, other energy efficiency • fuel bill and CO2 savings provided • financial support explained
  90. 90. Home energy improvements report • utilises a bespoke modelling software (based on SAP) • can overwrite SAP default assumptions • create package scenarios (alternative options) • estimate energy, fuel bill and CO2 savings • highlight funding support available • provides access to funding Modelling energy use
  91. 91. Financial support and incentives Home Energy Scotland loan • interest-free loan (up to £38,500) with cashback • covers energy efficiency, renewables and energy storage RES SME loan • interest-free loan (up to £100,000) with cashback • energy efficiency and renewables HEEPS: area based scheme • run by local authorities and typically geography based HEEPS: equity loan • borrow against the value of your property (up to £40,000) • Covers energy efficiency, renewables and repair work
  92. 92. Questions?
  93. 93. National Landlord Day Refreshments are served in the Stratosphere area Please visit our exhibitors’ stands Programme resumes 15:30 hrs in the Biosphere Sponsors: National Landlord Day