National Landlord Day 2018 - Ozone breakout session

National Landlord Day 2018
Ozone breakout sessions
Conference and exhibition 13 November 2018
Sponsors:
National Landlord Day

Dispute resolution –
supporting a claim
David Hackett
The Letting Protection Service Scotland

Dispute resolution – supporting a claim
David Hackett
Head of Business Development, LPS Scotland

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

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.

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.

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!

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???

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.

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

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…

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.

Breakout sessions now available to attend
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:

Top 10 things to look out for
with landlord insurance
Steve Cox
Alan Boswell Group

Landlord Insurance
Protect your Future
landlords@alanboswell.com
alanboswell.com/landlords

Steve Cox
Business Account Manager
01603 218031
07766 715654
scox@alanboswell.com

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.

• 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

• 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

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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

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

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

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

• 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?

Cannabis farm Flood Fire
Liability Storm Malicious damage by tenant
Claim examples

• 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

Impartial reviews

We guarantee to beat your existing
premium*
* Terms apply. See www.alanboswell.com/terms or call for full details. Price guarantee only applies where existing cover is held.

Steve Cox
Business Account Manager – Alan Boswell Group
01603 218031
07766 715654
scox@alanboswell.com
Thank you for listening

Questions?

Lunch is served in the Stratosphere area
Programme resumes 13:40 hrs
Please visit our exhibitors’ stands
Sponsors:

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:

Reducing costs in implementing
the letting agent code
Fraser Sutherland
SME Professional

Reducing costs in implementing the
letting agent code
November 2018

Property solutions
Designed for Scotland

Cutting edge
websites
Market leading, mobile-friendly, fully
managed. All for one competitive monthly
price.

The biggest cost
to your business?

Rent arrears &
bulk paying landlords

Anti-money laundering, identity & compliance
checks online
Identity
checks

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

General Data Protection
Regulation
(GDPR)

Emails
Policies, procedures and consistency

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.”

Check-outs
(inventories &
utilities)

Working on a solution….
111. You must not communicate with
landlords or tenants in any way that is
abusive, intimidating, or threatening.

ADDRESS
Great Michael House
14 Links Place
Edinburgh, EH6 7EZ
PHONE
0131 285 1022
EMAIL
contactus@smeprofessional.co.uk
WEBSITES
www.smeprofessional.co.uk

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:

Understand your EPC
and improve its rating
Stephen McAlaney
Home Energy Scotland

Understand your EPC and improve
its rating

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

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

SAP methodology
SAP 2009 – 34 SAP points SAP 2012 – 30 SAP points

Energy rating – SAP score and band
• scale of A-G with numerical values
• average rating across Scotland
• potential for improvement

Fabric of the building and energy efficiency
• alternative build types
• assumptions
• different property types
• star rating

Recommended measures
• points for each individual measure
• impact on the energy rating
• indicative costs
• potential savings
• limited scope to illustrate alternative
measures

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.

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.

• 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

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

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

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

Refreshments are served in the Stratosphere area
Please visit our exhibitors’ stands
Programme resumes 15:30 hrs in the Biosphere
Sponsors:

National Landlord Day 2018 - Ozone breakout session

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