RTM, Uncontrolled Subletting and Local Authorities
Whilst the positive elements of RTM are promoted, what seems to be overlooked is the real importance of two sections of the Commonhold and Leasehold Reform Act 2002: s100 (enforcement of tenant covenants) and s101 (tenant covenants: monitoring and reporting).
These two sections require the RTM Company to make sure that there are no breaches of the lease and to report to the freeholder any that occur. The company gets enforcement powers to sue for debts or seek injunctions for breaches such as repairs or nuisance and it also gets the right of entry into a property for the compliance of covenants. Where this becomes decidely complicated is where a) there is no freeholder and b) flats are sublet in breach of the subletting covenant.
There is also the legal issues surrounding the accessing of rented flats.
Which brings us nicely to the issue of uncontrolled subletting, the involvement of local authorities and the problems it added to the ones we already had.
HOUSING THE HOMELESS
After some considerable investigation we found that many landlords at Wellington Mansions were housing the homeless (or those about to become so) through various council-led schemes such as Private Sector Leasing. They were offered a number of incentives to hand over their properties because councils were under pressure to meet homelessness targets in terms of re-housing and they were leaning heavily on the PRS to help them. Sadly I was advised that councils did not have enough resources to make thorough checks on either the landlord or the properties.
It also introduced us to the first of our landlord and tenant nightmares,which can be read about here.