COVID-19: General Property Management Guidance

COVID-19 General Property Management Guidance Updated May 14th 2020

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Contents Government support for landlords and residential renters .............................................................1 Repairs and Residential Compliance .............................................................................................2 Protection of Commercial Tenants ...............................................................................................3 New Lettings ................................................................................................................................3 Debtors Management ...................................................................................................................4 National Heritage Property ...........................................................................................................4 Public Rights of Way ....................................................................................................................5 Insurance .....................................................................................................................................5 Fraud ..........................................................................................................................................6

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

General Property Management Guidance Government support for landlords and residential renters The government has brought forward a package of measures to protect renters affected by coronavirus (COVID-19). With these in force, no renter in either social or private accommodation will be forced out of their home.

From 26 March 2020 landlords must give all renters 3 months’ notice if they intend to seek possession (i.e. serve notice that they want to end the tenancy) – this means the landlord can’t apply to start the court process until after this period.

This extended buffer period will apply in law until 30 September 2020 and both the end point, and the 3-month notice period can be extended if needed.

This protection covers most tenants in the private and social rented sectors in England and Wales, and all grounds of evictions. This includes possession of tenancies in the Rent Act 1977, the Housing Act 1985, the Housing Act 1996 and the Housing Act 1988. After 3 months if the tenant has not moved a landlord needs to apply to court in order to proceed.

From 27 March 2020 following a decision by the Master of the Rolls with the Lord Chancellor’s agreement the court service will suspend all ongoing housing possession action – this means that neither cases currently in the system or any about to go in to it can progress to the stage where someone could be evicted.

This suspension of housing possessions action will initially last for 90 days, but this can be extended if needed. This measure will protect all private and social renters, as well as those with mortgages and those with licenses covered by the Protection from Eviction Act 1977. This will apply to both England and Wales.

Tenants are still liable for their rent and should pay this as usual. If they face financial hardship and struggle to pay this, support is available. In the first instance they should speak to their landlord if they think they will have difficulty meeting a rental payment, and in this unique context we would encourage tenants and landlords to work together to put in place a rent payment scheme.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

The government is committed to supporting landlords and maintaining the positive partnership between tenants and their landlords. Landlords will be protected by a 3-month mortgage payment holiday where they have a Buy to Let mortgages.

Landlords remain legally obligated to ensure properties meet the required standard – urgent, essential health and safety repairs should be made.

An agreement for non-urgent repairs to be done later should be made between tenants and landlords.

Local authorities are also encouraged to take a pragmatic, risk-based approach to enforcement.

Repairs and Residential Compliance The Health and Safety Executive has issued guidance on fulfilling safety check and emergency repair obligations as an agent, landlord, contractor and tenant. Landlords should make every effort to abide by existing gas safety regulations and electrical safety regulations which come into force on 1 July.

There are provisions in both regulations to account for situations in which a landlord cannot do this and they must demonstrate they have taken all reasonable steps to comply with the law.

If agents and landlords are unable to do this, under current circumstances, then all communication with tenants should be documented. Annual gas safety checks can be carried out two months before the deadline date, if difficulty gaining access is anticipated.

Landlords can have the annual gas safety checks at their properties carried out any time from 10 to 12 calendar months after the previous check and still retain the original deadline date as if the check had been carried out exactly 12 months after the previous check.

What does the current situation mean for repairs to my property?

Landlords’ repair obligations have not changed. Tenants have a right to a decent, warm and safe place to live – and it is in the best interests of both tenants and landlords to ensure that properties are kept in good repair and free from hazards.

Good management requires regular review and maintenance of a property. We understand that planned inspections may be more difficult at this time. However, that is no reason to allow dangerous conditions to persist.

We are encouraging tenants to inform landlords early and engage constructively in the event that they encounter any issues with the condition of the property. Technological solutions such as smartphones can be used to reduce the need for in-person inspections of property issues.

Where reasonable and safe for you, and in line with other government guidance, you should make every effort to review and address issues brought to your attention by your tenants, and keep records of your efforts.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

in these unprecedented times we encourage tenants and landlords to take a pragmatic, commonsense approach to non-urgent issues which are affected by COVID-19 related restrictions.

Urgent health and safety issues are those which will affect your tenant’s ability to live safely and maintain their mental and physical health in the property.

What about the risk of catching the virus?

You must follow sensible precautions to keep yourself safe when you or contractors or others are visiting the property. You can take additional measures such as ensuring contractors and tenants remain in separate rooms during any visits and following government advice on hygiene and cleanliness before, during and after visits. Wherever possible avoid all direct contact between residents and visitors to the property.

In cases of emergency, the contractor must be well and have no symptoms and maintain the 2 metre distance from others. Where occupants are isolating or where an occupant is being shielded, liaise with the occupant to explore whether any further safeguards can be put in place.

Protection of Commercial Tenants Commercial tenants in England, Wales and Northern Ireland who cannot pay their rent because of COVID-19 will be protected from eviction. These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June. There is the option for the government to extend this period if needed.

This is not a rental holiday. All commercial tenants will still be liable for the rent.

New Lettings Energy Performance Certificates (EPCs) requirements when selling or letting a property A valid Energy Performance Certificate (EPC) is a legal requirement when a property is sold, let or constructed and must be completed by an accredited assessor unless an exemption can be applied.

Where a building is to be let or sold, the Energy Performance of Buildings Regulations (EPB) require that all reasonable efforts must be made to obtain a valid EPC for the building before the end of a period of 7 days starting with the day on which the building was first put on the market.

If all reasonable efforts have been made to obtain a valid EPC but this has not been possible, a further 21 days are allowed as a grace period. After this period, enforcement action can be taken by enforcement authorities in line with the EPB Regulations.

The legal requirement to obtain an EPC before selling or letting a property remains in place.

EPC assessments should only be conducted in accordance with government advice on home moving during the coronavirus (COVID-19) outbreak and where the EPC assessment can be conducted safely.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

Debtors Management Many landlords will be concerned by their tenants’ ability to pay rent in this current crisis and it is important that they are dealt with on a case by case basis. We recommend the following steps: ▪

Sensitively remind the tenant that the rent is still due.

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Direct a tenant experiencing difficulties to the many options for government Support e.g. here or here.

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Ask a tenant to confirm their concerns in writing to you. This will provide a useful record of the relevant facts.

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Consider a "rent holiday" for your tenant by deferring payments or a temporary reduction in the rent for a specific period e.g. 3 months. If either are undertaken it is important that any changes are formally documented so both landlord and tenant have a written record of the changes to refer too and prevent any future disputes.

National Heritage Property Advice for properties that are conditionally exempt from inheritance tax and capital gains tax HMRC has updated advice for properties that are conditionally exempt from inheritance tax and capital gains tax and as part of their conditions have to give access to the public.

They will not consider an agreement has been broken if the owner of a national heritage property closes it, or delays its opening to later in 2020. This will apply even if it means the property will miss some of the period covered by the agreement, or the property does not open at all in 2020.

If the situation improves, HMRC will expect the property to be open later in the year to make up for any lost days, if that is possible. But HMRC does not expect additional open days next year to make up for those missed in 2020.

It is important to follow Public Health England's social distancing guidance if you are the owner of a national heritage property.

Objects on loan to other organisations that close due to government advice If a conditionally exempted object is on loan to a museum, gallery or other venue which closes HMRC will not treat the withdrawal of public access to the object as if the property has broken an agreement. This will apply even if it means the object is not on show at all in 2020.

Objects that can only be seen by appointment If an object can only be seen by appointment then HMRC do not expect the property to agree to an appointment until the government's advice changes, and again, the agreement will not have been broken.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

Public Rights of Way The government’s priority is to save lives and the best way to protect yourself and others from illness is to stay at home. Exercise is still important for people’s physical and mental wellbeing, so the government has said people can leave their homes for exercise.

It appears that these restrictions have resulted in a significant reduction in the numbers of people using many public rights of way compared to what was seen immediately before the restrictions were implemented; there are no plans currently to implement further closures of the right of way network.

However, Defra has issued guidance on public access, including some sample wording that can be used on signs for those with busy public rights of way passing through farmyards, gardens or close to residential properties.

The rights of way network remains open and owners/occupiers should not unlawfully obstruct or restrict the rights of way network, where large numbers of people are using such routes, landowners may consider the following measures:

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Tying gates open if it is safe to do so, so that walkers do not need to touch the gate

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Temporarily displaying polite notices that encourage users to respect local residents and workers by following social distancing guidelines and consider using alternative routes that do not pass through gardens, farmyards or schools. (Note: this is a polite request only, and there is no power under the Countryside and Rights of Way Act 2000 for landowners to close or obstruct a public right of way)

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Offering a permissive alternative route around gardens and farmyards only where it is safe to do so (permission must be obtained from relevant landowners and steps must be taken to make sure the route is safe for users and livestock) provided that the original right of way is maintained. It is also necessary to check the insurance position before doing this to ensure that appropriate cover is in place.

Insurance Commercial Insurance Most commercial insurance policies are unlikely to cover pandemics or unspecified notifiable diseases, such as COVID-19.

However, those businesses which have an insurance policy that covers government ordered closure and pandemics or government ordered closure and unspecified notifiable disease should be able to make a claim (subject to the terms and conditions of their policy).

Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.

Business Interruption/Loss of Revenue – It is possible that businesses who have this cover under their Farm, Estate or Commercial policies, may find that their cover only provides insurance for revenue lost due to an insured contingency where physical damage has been caused such as fire, storm, flood etc. There is unlikely to be any cover for Loss of earnings due to the impact of coronavirus.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

Notifiable Disease/Infection Disease Extended cover - a small minority of business may have elected to extend their Business Interruption/Loss of Revenue cover section to include a ‘Notifiable disease’ extension. However, most insurers in the market have wordings that define all diseases that are covered under this extension and they will find it does not include coronavirus. It is worth checking with your broker or insurer if you are unsure as wording does vary in the market.

Workplace Health & Safety - protecting Employees where you have Employers Liability insured the policy will continue to cover your legal liability for injury to employees or third parties (which includes illness or disease) however you would have to be negligent in some way for you to be found liable. An example of this would be not following government guidelines or not providing enough washing facilities for third parties.

Public Liability – Most commercial insurance packages include Public Liability this will protect your legal liability against injury or damage to persons or property. For your protection (particularly from a liability perspective), we recommend that you ensure that you keep thorough records of any additional precautions you are taking during this pandemic e.g. any additional cleaning undertaken, additional protective gear provided, changes to procedures for staff/guests etc.

Fraud Like other organisations, we've seen a rise in scams targeting the COVID-19 coronavirus pandemic.

Criminals are playing on peoples’ fears of the virus, and on the current uncertainties around travel, isolation and the wider economy.

During these turbulent times, it is important to be extra vigilant to financial crime risks and apply the normal “sense test” - question what does not seem right.

Things to look out for: ▪

Purchase scams - only purchase goods from reputable companies that you know and trust.

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Smishing - fraudsters can ‘spoof’ text messages to look like they’ve originated from someone they haven’t i.e. the government. Never click on any links provided in text messages, and make sure you verify any telephone numbers given before calling them.

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Phishing- COVID-19 tax refunds, safety advice via email and donation requests are all ways in which fraudsters could try and make you click on dodgy links or make you part with sensitive personal and financial information. An email offering you a refund should always be treated with great suspicion.

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Vishing- always be suspicious of unsolicited phone calls. Don’t be afraid to put the phone down if you can’t verify the caller and always guard your details.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

This information has been produced by Fisher German LLP in good faith and we have tried to ensure accuracy based on information known at the time of writing. We cannot accept liability for errors, fact or opinion. This information should not be relied upon as your only source and advice may vary depending on individual circumstances.

Fisher German LLP is a limited liability partnership.

Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.