“Who would want to move to Colchester in weather like
this?”, was what one landlord said to me as we shook hands outside his
property, the other afternoon. 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.. but this
landlord lived in neighbouring Ipswich and this was the earliest he could do.
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 as his tenant had handed in their notice
recently, on this new tenancy he called us for our opinion.
For those Colchester landlords that don’t know, landlords
will need to check the immigration status of any new tenants moving into
properties from February 2016 or face a £3,000 fine. It is called the 'Right to
Rent' rules. However, tenants should also be aware that as well as traditional
landlords, tenants who sub let rooms and homeowners who take in lodgers, must
also check the right of prospective tenants to reside in the UK.
Our landlord from Ipswich wanted to know how much of a real
issue was ‘Right to Rent’ in Colchester. I was able to tell him, the last
available figures (from a couple of years ago) show that 236 people (whom were
registered as Non-UK Born Short-term
Residents) moved into private rented accommodation in the Colchester Borough Council area in
one year alone. If all of those people weren’t supposed to be in the UK,
that would be a fine of £708,000 to the landlords of the town.
It doesn’t sound a lot
when you think there are 119,441 residents in Colchester Borough Council area,
and of those, 104,271 people (or 87.30%) were born in the UK. But Colchester is
a cosmopolitan town as the country of birth of the residents in the Colchester
Borough Council area can be split down as follows:
·
UK 87.30%
·
Ireland 0.52%
·
Europe 4.94%
·
Africa 1.87%
·
Middle East and Asia 4.18%
·
Americas and Caribbean 0.88%
·
Australia and Pacific region 0.29%
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 5,896 Europeans in the area necessarily have the right to live in the UK
either.
In a nutshell, Colchester
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 Colchester Property Blog for a
while and because of the knowledge we impart to the landlords of Colchester, 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 £55 per month for his property (when we found
him a tenant one week later). Now, together with the peace of mind we will keep
him the right side of the law and put a stop to midnight phone calls complaining
about dripping taps, it was a win-win situation for everyone.
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