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Letter From Landlord

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Recieved this through the door today :lol:

Dear tenant.

Thanks you for your continued business. I would like to acknowledge your business as a tenant but also to let you know how much I enjoy working for and with you as your landlord.

You’ll have seen that in the 8th July 2015 Budget this year, the Chancellor introduced a new tax that prohibits me from claiming the mortgage on your home against my takings. It has been spun as a Restriction on Finance Costs Relief for Individual landlords or clause 24 of the Finance Bill 2015. It is effectively a Tenant Tax as the cost has to be passed on to you and it relates directly to the mortgage on your home.

I know that you pay your rent from already taxed income but it seems the Chancellor wants you to specifically pay the interest charges for your home in the same way owners pay their interest on their home. The chancellor thinks this is only fair.

In order to pay the new Tenant Tax, I of course have to increase your rent in line with the new tax £ for £. I therefore have to increase your rent today by £x which i assure you will all be paid to the Chancellor as Tenant Tax. If interest rates rise then there will of course be further revision to your rent as the tax will increase in line with the mortgage on your home.

Again, I thank you for your business and understanding in this matter and the introduction of a fairer tax system. In the event you believe your rent increase is unjust and or you believe the Chancellor has not introduced a fairer tax system with this measure, please don’t complain to me as I have no option but to pass on the tax. If you wish to complain please do so by e-mailing XX who is your MP. His e-mail address xxx

Regards,

Your Landlord

Edited by thewig

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Is it legal to word it like that, that it has to be passed on to you? Does that class as some kind of embezzlement, with false premise?

Edited by Si1

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I suspect in 60 minutes you'll have some cracking responses. I started penning one but it made me sound like a complete crackpot. Keep it short, witty and with clear contempt, but without even the whiff of anger, that'll keep the spivs head spinning.

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From Property118:

Darren Bell 30/09/2015 at 10:32

Following the lead of a local landlord, I’m about to start putting my rents up subject to the final draft of the bill. First time ever during a tenancy as they are all good tenants at the moment.
In my cover letter I was going to polity explain the reasons behind it, basically the tax on turn over. Without a long winded, emotionally driven speal, does anyone have some good wording in layman’s terms to get the point across that its not landlords being greedy, its simply preparing for the tax hikes.

Got to be done though as in the time that for instance one property was was let it was fetching £675/m now similar properties on the same street are achieving £850/m. After all, I’ve been the nice guy too long, now the government are forcing my hand, so its time to look after my interests alone.

Mark Brown 30/09/2015 at 20:13

Reply to the comment left by “Darren Bell” at “30/09/2015 – 10:32“:

Darren you wanted a letter for tenants…. Try this….

Dear tenant.

Thanks you for your continued business. I would like to acknowledge your business as a tenant but also to let you know how much I enjoy working for and with you as your landlord.

You’ll have seen that in the 8th July 2015 Budget this year, the Chancellor introduced a new tax that prohibits me from claiming the mortgage on your home against my takings. It has been spun as a Restriction on Finance Costs Relief for Individual landlords or clause 24 of the Finance Bill 2015. It is effectively a Tenant Tax as the cost has to be passed on to you and it relates directly to the mortgage on your home.

I know that you pay your rent from already taxed income but it seems the Chancellor wants you to specifically pay the interest charges for your home in the same way owners pay their interest on their home. The chancellor thinks this is only fair.

In order to pay the new Tenant Tax, I of course have to increase your rent in line with the new tax £ for £. I therefore have to increase your rent today by £xx which i assure you will all be paid to the Chancellor as Tenant Tax. If interest rates rise then there will of course be further revision to your rent as the tax will increase in line with the mortgage on your home.

Again, I thank you for your business and understanding in this matter and the introduction of a fairer tax system. In the event you believe your rent increase is unjust and or you believe the Chancellor has not introduced a fairer tax system with this measure, please don’t complain to me as I have no option but to pass on the tax. If you wish to complain please do so by e-mailing XX who is your MP. His/her e-mail address XX.mp@parliament.uk

Edited by Neverwhere

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Mark Alexander 30/09/2015 at 20:54

Reply to the comment left by “Mark Brown” at “30/09/2015 – 20:13“:

Hi Mark

I sincerely hope that you have posted your letter as a proposed draft for feedback and haven’t actually sent it?

In my opinion, unless you are seriously under charging and you are in an area with extremely high rental demand I think sending this letter template is about as close as you could get to signing your own death warrant.

If you do send it then I suspect your tenants will be taking the next available appointment slot with Citizens Advice or Shelter who never admit to it but regularly advise tenants to stay put until they get a Court order. Expect rent arrears and all sorts of other grief. At best I think your tenants will find somewhere else to live and serve 30 days notice, leaving you with a property that is likely to need redecoration and inevitable rental voids until such time as it is priced and presented as an attractive rental property in comparison to others in your area.

If the outcome is any different to what I have said above then you should consider yourself incredibly fortunate.

All the best

Mark

Edited by Neverwhere

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Mark Alexander 30/09/2015 at 20:54

Reply to the comment left by Mark Brown at 30/09/2015 20:13:

Hi Mark

I sincerely hope that you have posted your letter as a proposed draft for feedback and havent actually sent it?

In my opinion, unless you are seriously under charging and you are in an area with extremely high rental demand I think sending this letter template is about as close as you could get to signing your own death warrant.

If you do send it then I suspect your tenants will be taking the next available appointment slot with Citizens Advice or Shelter who never admit to it but regularly advise tenants to stay put until they get a Court order. Expect rent arrears and all sorts of other grief. At best I think your tenants will find somewhere else to live and serve 30 days notice, leaving you with a property that is likely to need redecoration and inevitable rental voids until such time as it is priced and presented as an attractive rental property in comparison to others in your area.

If the outcome is any different to what I have said above then you should consider yourself incredibly fortunate.

All the best

Mark

In the land of the blind...

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You beat me to it, Neverwhere. Glad someone else spotted it was a word-for-word copy of the 118 letter. Its author, Mark Brown, seems to be rather obnoxious IMHO - even Mark Alexander was aghast at the letter.

Idea: why don't we pool our resources into creating a template rebuttal to it, posting here, so that they can all get the same reply as well? It's only fair - remember, we want a level playing field.

My suggestion is that it should end with David Gauke's fantastic sentence "Please accept my thanks for taking the trouble to make me aware of your concerns."

Edited by mrtickle

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watchdog@bbc.co.uk

This.

Do it, seriously. And if you know of any other tenants who've received the same letter, encourage them to make the same complaint so Watchdog are more likely to investigate it.

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Saeef Khan 30/09/2015 at 21:32

Reply to the comment left by “Mark Brown” at “30/09/2015 – 20:13“:

What an appalling and emotional letter…you will dig yourself a big hole where you will find difficult to reverse the situation.

Had I been your tenant, I would have used this letter to my advantage and would have made your life living hell.

You do not mix business and emotions.

Edited by Neverwhere

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if that really is a letter received from a LL then, whatever you reply, do please end with

PS The boiler has been making some strange noises these last couple of days

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if that really is a letter received from a LL then, whatever you reply, do please end with

PS The boiler has been making some strange noises these last couple of days

Brilliant!

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You beat me to it, Neverwhere. Glad someone else spotted it was a word-for-word copy of the 118 letter.

Idea: why don't we pool our resources into creating a template rebuttal to it, posting here, so that they can all get the same reply as well? It's only fair - remember, we want a level playing field.

My suggestion is that it should end with David Gauke's fantastic sentence "Please accept my thanks for taking the trouble to make me aware of your concerns."

It's word for word but it's not necessarily a copy! Only thewig will have a clear idea (and obviously should feel under no obligation to say anything either way) but there is always the possibility that the poster of the letter and the sender of the letter are one and the same.

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Stop paying your rent. Let him evict you.

6 months with no money should remind him he's running business rather than a charity for himself.

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Scan it and post it here or on Social media- it will be ablaze with another spectacular PR own goal for the debt junkie idiots.

Any response should point out that the tax changes have yet to occur, so it is puzzling as to why they propose a rent hike before it is implemented if it a straightforward attempt to pass through additional costs.

Edited by Cry and Regret

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Recieved this through the door today :lol:

Dear tenant.

Thanks you for your continued business. I would like to acknowledge your business as a tenant but also to let you know how much I enjoy working for and with you as your landlord.

You’ll have seen that in the 8th July 2015 Budget this year, the Chancellor introduced a new tax that prohibits me from claiming the mortgage on your home against my takings. It has been spun as a Restriction on Finance Costs Relief for Individual landlords or clause 24 of the Finance Bill 2015. It is effectively a Tenant Tax as the cost has to be passed on to you and it relates directly to the mortgage on your home.

I know that you pay your rent from already taxed income but it seems the Chancellor wants you to specifically pay the interest charges for your home in the same way owners pay their interest on their home. The chancellor thinks this is only fair.

In order to pay the new Tenant Tax, I of course have to increase your rent in line with the new tax £ for £. I therefore have to increase your rent today by £x which i assure you will all be paid to the Chancellor as Tenant Tax. If interest rates rise then there will of course be further revision to your rent as the tax will increase in line with the mortgage on your home.

Again, I thank you for your business and understanding in this matter and the introduction of a fairer tax system. In the event you believe your rent increase is unjust and or you believe the Chancellor has not introduced a fairer tax system with this measure, please don’t complain to me as I have no option but to pass on the tax. If you wish to complain please do so by e-mailing XX who is your MP. His e-mail address xxx

Regards,

Your Landlord

I'd guess you have to thank him for giving you advance warning of a change that is coming in to place in a limited extent in 18 months time. I'd have thought that would give you plenty of time to sort out alternative accommodation.

Or is he really increasing it today - in which case he's profiteering rather than passing on a cost. In that case you should tell him that the changes start in 18 months time and that you'd be happy to let market forces decide the rent at that point.

And you must thank him on behalf of his then tenants for reducing the rents so drastically in 2007-8-9 when interest rates dropped - or does he only change the rents when interest rates go up?

It might also be sensible to point out to him that you aren't interested in his financial arrangements - you might as well regard the house/flat as being owned outright, in which case the change in taxation rules will have no impact at all. And, presumably, these people who own outright are competing against him for tenants, and they won't need to increase rents when the taxes come into force.

Probably best not to tell him how the changes will also give him a higher income wrt all benefits/pension/other taxes. Or perhaps wait until you leave.

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Mark Brown 30/09/2015 at 23:42

Reply to the comment left by “Saeef Khan” at “30/09/2015 – 21:32“:

Relax Mark A & Saeef it isn’t real….

Mark A it was as you suppose, “for comment”

I am glad it has raised the relies it has….

when you think about the facts though, it is not wrong and it is not really spin either…

The government are cleaver people and so have looked at landlord affordability and typical portfolio models. When they met you, Mark A, there was no “Aha moment” for them. Your comment immediately after the meeting was ” I felt like king ***** trying to hold back the tide” – They knew! – They already knew the impact, & they have not changed a thing except tuning their rhetoric. And so, GO and DG knew and know Tenant tax would be a costs landlords could not bear = they knew and know the tax would have to be passed onto tenants.

In my humble experience, tenants are reasonable people they know the costs of houses and the mortgages – they get it! They know, not because I told them but because they are smart people, that their rent goes to pay for “their home” buying, interest, maintenance and yes a part goes to me as income – I don’t hide that from them. They know I don’t drive a Porsche, as if that were a measure, but that is to say, they know I am fair. They call me and I am always there to fix or replace or explain and so they know they have a fair deal.

I do enjoy working for and with my tenants, and if I didn’t, I would be an armchair investor. When I put rents up shortly I will explain it to my tenants in detail as they have a right to know why their rents are being increased. The outcome is the same, if I have to pay more tax from the same income the ends will not meet & the rent will go up or I will default on my tax or mortgages and either way, the tenant will be homeless. The alternative to telling them the truth about the Tenant Tax is to do what? – Lie? or simply evict them and make them homeless anyway?

If, as i believe, tenants know their rent pays for their home, its buying and maintenance, then they have a right to expect it to properly maintained. It follows that they also have a right to be told that maintenance is going to be curbed if it is going to be by reduced income. When bank rates go up my mortgage will go up! Why would a tenant not expect their rent to go up if interest rates have gone up – of course they do.

I don’t mix business and emotions – but unless i am missing a huge point here and please explain if I am – there is no advantage to the tenant in any outcome! Finance costs relief either stays as it is for all businesses or the tenant gets screwed one way or another – and that is the saddest part.

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From Property118:

Well found. One of them over there is always on about calling it the Tenant Tax.

What a letter.

Also this bit: If interest rates rise then there will of course be further revision to your rent as the tax will increase in line with the mortgage on your home.

Take them out HMRC.

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