February 2021

Howsy has acquired The Happy Tenant Company

by Asif AliPosted on 19 February 20219 March 2021

We are delighted to announce the acquisition of The Happy Tenant Company. 🎉

This is our third such acquisition in the last 18 months. With more than 8,000 properties on our platform to date, this latest acquisition further cements our position as one of the leading players in the online lettings space and demonstrates our plans for ambitious growth over the coming months.

As a business, The Happy Tenant Company already shares our ambitions to make the rental market a better place for landlords. Happy Tenant Company was created in 2012 and founded by landlords who felt there needed to be massive changes to the way that properties were managed by letting agencies.

Extortionate maintenance fees and excessive markups by letting agencies had been the main drive to create The Happy Tenant Company. The Happy Tenant Company’s mission is to have total transparency and integrity first by having fixed fees for landlords and passing benefits back to members.

“The founders of The Happy Tenant Company have built a great business. Their brand values and ethos align with those of Howsy and we’re confident we can offer a greater selection of services for Happy Tenant customers to further enhance their experience,” says Calum Brannan, founder and CEO of Howsy.

Letting agent refusing to disclose tenant references?

by Asif AliPosted on 15 February 202110 March 2021

When taking over the management of properties from other agents we often encounter one particular issue. Whether or not we are entitled to the tenant’s references and whether or not the previous agent is entitled to rely on the UK General Data Protection Regulations when refusing to release it.

Is a landlord entitled to a tenant’s reference?

Put simply, yes, a landlord is legally entitled to their tenant’s reference. It is in fact a common misunderstanding in the lettings industry that a landlord is not entitled to a tenant’s reference for GDPR reasons.

When agents act on behalf of landlords they do so under the law of agency. This means that when a landlord instructs an agent they are instructed entirely on the landlord’s behalf. By the very nature of the agent and landlord relationship, an agent is an extension of a landlord and acts on their behalf. Therefore when an agent secures a tenant they do so on behalf of the landlord and arrange for a tenancy agreement to be signed between the landlord and tenant. This of course means that there is in fact no contractual relationship between the agent and tenant.

Any agent acting on behalf of their client the landlord is required to do so in their best interest. Landlords are ordinarily not a party or aware of the exchange between agents and tenants however, they are entitled to their tenancy documents, including references on demand due the agents responsibility and duty to account.

Tenant references and data protection

Further with regards to the specific statement that references cannot be provided for GDPR reasons, this is wholly misconceived. Agents obtain references on behalf of their clients and they belong to those landlords. In fact when agents obtain these references they do so as data processors and it is the landlord that is the data controller for GDPR purposes. This means that agents are freed from many of the ordinary responsibilities for data protection that apply in this scenario.

Furthermore, having paid for the references a landlord is entitled to them not only to be confident about the person renting their property but also to ensure that the references have been obtained in the first instance.

Finally, an agent can pass over data for processing by the landlord if it falls within the legitimate interests processing basis under the GDPR. Clearly, it is a legitimate interest of the landlord to have a copy of the references belonging to the tenant because they will have an interest in the identity of the person occupying their property as well as their ability to meet the tenancy obligations.

Gurdeep Clair
In-house Legal Counsel

The Tenant Eviction Ban: What you need to know (Update 11th March)

by Aaron CostelloPosted on 15 February 202111 March 2021

11th March 2021 – Update

Yesterday the government announced further support for tenants by extending the bailiff enforced eviction ban and Six-month notice periods until atleast the 31st May. Exceptions to the ban continue, with regards to anti-social behaviour and fraud.

Read the latest government press release here.

How Howsy can help protect landlords during this period

Howsy Protect is one of our comprehensive property management plans. It includes guaranteed rent protection, so your rental income is secure during the most challenging of times.

As an example, some of our landlords who are subscribed to our protect plan, have been able to support renters facing difficult situations over the past 12 months, without impacting their own financial wellbeing.

Howsy Protect also includes appliance and home emergency cover. Check out more here.

Speak to one of the Howsy team, give us a call on 0330 999 1234 or email us and we can begin the process of getting your rent protected.

14th February 2021 – Update

Over the weekend the Ministry of Housing, Communities and Local Government has announced an extension to the ban of bailiff evictions.

The ban was introduced as a result of the pandemic and was originally due to end in January this year however, it was extended to February and now it has been extended for a third time to 31st March. The announcement can be read here. https://www.gov.uk/government/news/housing-secretary-extends-support-for-renters-during-pandemic

At present all we know is that which is included in the press release. However, regulations are expected in the early part of this week. We will update this post as soon as more information is available.

In the meantime for those that are concerned about this extension, it is important to note that there are exemptions to the ban and they are expected to continue. Unless there is a change the current exemptions include illegal occupation, anti-social behaviour and arrears of 6 months’ rent or more.

The courts are likely to continue prioritising possession claims where there is anti social behaviour, illegal occupation or domestic abuse. Landlords will also continue to be offered the government free mediation pilot to support them and their tenants to resolve disputes before a formal court hearing takes place.

16th October 2020 – Update

The tenant eviction ban has been in force over the past five months to protect tenants from being evicted by their landlords throughout the coronavirus pandemic. Many individuals are facing financial hardship and struggling to keep up with rental payments due to job losses and a reduction in salary due to being furloughed. Before the ban, many tenants were at risk of eviction from their homes and the government has sought to protect tenants with this initiative. The English government has also announced that landlords will need to give tenants six months notice of eviction until the end of March 2021. Housing Secretary Robert Jenrick said this is to help protect tenants through the winter months but will keep these measures under review.

Yet, where there are cases of anti-social behaviour or domestic abuse, this will not apply. Once courts open, they will then priortise those cases and where landlords have not received rent for over a year.

Our advice to tenants

If you are having difficulty paying your rent, speak to your landlord asap and try to come to some arrangement. At least let them know the situation so they can be clear and understand what you’re going through.
If you’re receiving housing benefit or Universal credit currently and unable to be furloughed, you may be able to get a discretionary housing payment from the council.

What this means for landlords

Although the eviction ban supports tenants, it has left numerous landlords without rental income. Some landlords have said this “blanket approach” is unacceptable. Each landlord is different and in different circumstances. Some landlords may be renters themselves and rely on renting their property out to cover the mortgage for the property they currently live in. Some landlords rely on this income for their pension and financial stability. Ben Beadle, Chief Executive of the National Residential Landlords Association said, “Private landlords cannot be expected to foot the bill for government failure.”

Landlords also need to be given some way to have their income protected if tenants can’t pay their rent. Yet currently, there is no government support available. In some cases, landlords are able to have buy to let mortgage payment breaks but this can impact on landlords looking to get buy to let mortgages further down the line.

Although the current situation we’re facing is no fault of the nation’s tenants, it is simply unfair to expect landlords as the backbone of the rental market to foot the bill for unpaid rent. Not only has the ban been extended but landlords must now face an increased eviction notice period before they can even commence court proceedings.

With such an unprecedented backlog, there will no doubt be sizable delays that could see landlords face an even longer wait before they can reclaim their bricks and mortar investment. As a result, some could be facing in excess of a year without any rental income.

The Government is yet to provide any form of help other than the rather pitiful buy-to-let mortgage holiday which, in some cases, can impact a landlord’s financial credentials further down the line.