But because the local council must
give homeowners 24 hours’ notice of an inspection, it gives landlords
ample time to clear out a back-garden shack.

Results of the ten-year census of
England and Wales, published by the Office for National Statistics last
year, revealed home-ownership has decreased from 68 per cent of
households in 2001 to 64 per cent last year.

The private rental sector has absorbed
much of this shift. Between 2001 and 2011 there was a rise in the share
of households renting from a private landlord or letting agency – from
nine per cent in 2001 to 15 per cent in 2011.

The situation can prove nightmarish
for landlords, as insurance policies and buildings cover can be
invalidated if multiple occupants are living in a property but not
listed on the tenancy agreement.

Direct Line says it is important
landlords regularly check that the people listed as the occupants on
their rental agreement are actually the tenants of the property, and
that the tenants have not sublet or allowed others to also live in the
property full time.  

It added that if a landlord can prove
‘due diligence’ and they did as much as they could to ensure the
property wasn’t being sublet or hadn’t allowed others in when making an
insurance claim, they would usually be covered.

Jane Guaschi, business manager at
Direct Line for Business, said: ‘Lettings agents have seen significant
damage caused to properties where people were crammed into a home while
not listed on the lease.

‘In one property we heard of, shelving had been removed from a cupboard under the stairs to create a makeshift bedroom.

Resident ‘Ghosts’: As the number of people renting increases, so do the number of those unofficially living in them. Pictured, 1984 film Ghostbusters

‘Landlords can reduce the financial
risks associated with renting out properties by taking out insurance to
cover against risks such as accidental damage.  However, this cover
could be invalidated if there are occupants who are not listed on the
tenancy agreement.’

‘Ghostbusting’ in rental properties isn’t easy.

The National Landlords Association
advises that unless there is an outright emergency which necessitates
immediate access, a landlord needs to serve at least 24 hours written
notice that they require access. This leaves plenty of time for tenants
to remove any evidence.

The research also highlighted the vast
majority of landlords do not change the locks on properties between
tenancies, even if not all the keys have been returned.

Lettings agencies said that 9 out of
10 landlords on their books did not change the locks between tenancies. 
With many tenants cutting multiple sets of keys to give to partners or
family this poses a significant security risk. 

LANDLORDS SHOULD CHECK PROPERTY EVERY QUARTER

Blending in: Landlords have to give 24 hours notice for a visit, making it easy to hide extra inhabitants

Chris Norris, head of policy at the NLA, says: ‘It’s essential landlords have a professional relationship with their tenants. It is best practice for a landlord to carry out thorough tenant checks before offering a property to a prospective tenant – it is important that they know who they are letting to.

‘An element of churn is common within the private-rented sector, particularly in houses of multiple occupations occupied by young professionals, but landlords should keep a regular dialogue with tenants so that they are aware when a tenant moves out and a new one moves in.

‘All landlords should obtain a deed of assignment for every change of tenant within a tenancy to ensure they maintain records of who is in situ and from when. Landlords will also need to handle their deposits in accordance with the government-authorised deposit protection schemes when there is a change of tenant.

‘Good communication is the best means of ensuring landlords have a professional relationship with tenants. We also advise all landlords to arrange quarterly visits to their properties to ensure there are no safety or maintenance tasks to complete. This is an ideal opportunity for landlords to meet with tenants and discuss plans for the future.

‘A good landlord wants their tenants to live without disruption but it is essential that they know who is renting their property.’

WE ARE SUBLETTING SO THAT WE CAN AFFORD TO LIVE IN LONDON

Subletting: Most tenancy agreements warn not to sublet – but it is believed many do anyway

Lucy and her fiancé Paul – not their real names – recently moved into a two bedroom flat in Wandsworth in South London.

The rent is £1,500 per calendar month – a sum they say would stretch their finances to the ‘absolute limit.’

However, they have chosen to sublet the second room to a friend for £500 per month – meaning they are now paying just £1,000 between them.

They have told the friend the situation and he is happy to go along with it.

The reason for choosing a two bedroom, they say, is that one-bed homes in the area were overpriced and only couple of hundred pounds cheaper than a two-bed. So subletting a spare room makes the rent far cheaper, while their property is more spacious than any one bedroom or studio flat they had seen.

Lucy said: ‘What’s the point of living in London if you have no spare cash. We’re not hurting anybody. This way, we get to choose the person who lives with us and can live in a far better, spacious flat than the space in a pokey one bedroom or studio.

‘The landlord will never know – he has to give us a day’s notice if he wants to inspect the place, so we can hide all evidence. It works for all parties. We get cheaper rent, the our friend gets cheaper rent and the landlord still gets paid. It’s win-win.’

The pair also say this isn’t the first time that they have sublet – and they have never been caught in the past as landlord visits had been ‘sporadic.’

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All being caused by the greedy landlords.- Is it me, York, United Kingdom, 20/9/2013 20:25 —— Not really, the real problem is a shortage in housing. Landlords are a very small proportion of the population and not all are greedy. If you had a chance to own multiple properties and collecting rent each month you would do the same so you would be just as ‘greedy’ if given the chance.

–

Mr Spock
,

Hounslow,
22/9/2013 21:32

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When people think they are being clever and constantly try to outwit each other, or the system, imo it usually ends in tears eventually.

–

Click Negg
,

London, United Kingdom,
22/9/2013 10:16

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Expect much more of this to come. I believe we are heading for a slum housing problem of the type not seen since the days of “Rachman”

–

anon_1966
,

london,
22/9/2013 09:20

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Well i am a land lord. It good sense for the couple to sub let a room. It helps not only them, but also their friend. With the rent being more affordable there is less chance of problems with the rent.
I would be quite happy to let them rent my house.
Perhaps they should come clean with the landlord, it may not be as bigger issue as we think.

–

mark mark
,

london, United Kingdom,
22/9/2013 07:25

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Probably more than just a few living in council houses whilst their official tenants moan about the withdrawal of the bedroom subsidy

–

alimac
,

Reading,
21/9/2013 17:26

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Ordinary people just have to try and survive and the Tories have used this way to help the housing crisis caused by 3 million illegals in the country.

–

Ron
,

Leeds,
21/9/2013 11:54

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not all btl landlords are unscruplous like these pse dont tar us all with the same brush

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christy
,

cardiff,
21/9/2013 10:25

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who ya gonna call when the rest of the EU get’s here

–

sundog
,

Colchester,
21/9/2013 10:11

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– Penelope , Beaconsfield, United Kingdom, 21/9/2013 00:07. So what? Just live and let live……….. And when the Fire Brigade is called out to a property where only two people are supposed to live in how many bodies will they find. it is the safety aspect you should think about.

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PaulP Leeds
,

Leeds,
21/9/2013 00:45

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So what? Just live and let live………..

–

Penelope
,

Beaconsfield, United Kingdom,
21/9/2013 00:07

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