Landlord responsibilities go beyond simply keeping the property in good condition; there are also specific regulations that must be followed. Should you be out of compliance, you will face either hefty fines or a loss of your landlord’s rights. That is not a risk worth taking.
Do you know what legal obligations landlords must follow when letting properties in England? Work through each of these questions to determine if you are in compliance with applicable UK laws and regulations.
Q1: Are you licensed?
It is essential that you check with the local council to determine if selective licensing schemes are in effect in the area where you are letting properties. If you do not have the proper licence in an area where it is required, you could face significant fines or limitations on your business. HMO properties will need licences, but local councils beyond that vary. Every part of the country has different rules about licensing, so there is not a cut-and-dry answer about whether or not you need to get a landlord licence to let property.
Q2: Are your energy performance certificate assessments up-to-date?
Before a tenant moves in or a tenancy agreement is signed, you must provide tenants with a valid Energy Performance Certificate. An Energy Performance Certificate is an assessment that shows that rented homes meet the necessary energy efficiency requirements. If a property doesn’t rate high enough to meet the minimum requirement, landlords must improve the energy efficiency. EPC assessments are valid for ten years but should be reassessed sooner if major renovations are completed. A copy of the EPC assessment result is given to every tenant that lets the property. If the rules for EPC minimum standards are not followed, landlords face fines of as much as £4,000.
Q3: Are your tenants’ deposits properly secured?
As part of the tenancy agreement, landlords that collect a tenant’s deposit must secure it into one of three approved protection schemes. These are government-backed schemes, and the deposit must be entered into them within 30 days. The three approved schemes are Deposit Protection Service; MyDeposits and Tenancy Deposit Scheme.
The deposit money is kept in a scheme to ensure it is safe and ready to be returned to tenants at the end of tenancy, minus any deductions from settled disputes. It is a legal requirement to register the deposit, and tenants must receive a copy of the deposit information as well as info on how their deposit will be returned.
Q4: Are your properties safe?
All basic letting rules must be followed to ensure that your property is safe for habitation. The HHSRH (Housing Health and Safety Rating System) is the most common tool used to address any rented homes with sub-par conditions. The legislation assesses 29 housing hazards and the effect that each may have on the health and safety of the tenant/s. Issues are ranked in categories, with a 'category 1' hazard being the most dangerous.
Q5: Are all tenants allowed to rent in the UK?
The Immigration Act of 2014 clarified what tenants landlords are allowed to let property to in the UK. Section 22 confirms adults cannot occupy a property through a tenancy contract until they are a British citizen an EEA or Swiss national Have a “right to rent” in the UK.
What exactly is the right to rent in the UK? Adults can prove that they have this right as long as their presence in the UK is legal and lawful according to current immigration laws.
Q6: Are smoke alarms and carbon monoxide monitors properly installed?
Smoke alarms must be installed in every story of any properties that you let. Additionally, install carbon monoxide alarms as well if fuel burners are present in the rented home. All of these alarms must be tested on the day that the tenant moves in to ensure they are in working condition.
Q7: Are you legally permitted to let the property?
Depending on how you own or occupy a property, there may be specific organisations that you must receive permission from to let the property.
Q8: Are you doing repairs according to the law?
As a private landlord, it is essential to familiarise yourself with the Repairs and Maintenance regulations laid out in the Landlord and Tenant Act. Anything that needs to be repaired in these areas to keep the property safe and habitable is the landlord’s responsibility.
Q9: Do you have insurance?
Unlike many compliance items on this checklist, this one is not a legal requirement. However, it is highly recommended for private landlords to invest in landlord insurance or a rent guarantee. Landlord insurance comes in many varieties and is a great way to protect your property from costly repairs that you cannot prevent.
Q10: Have your tenants received all necessary information?
Finally, the UK requires all tenants to receive a copy of a government-supplied guide titled ‘How to Rent.’ This guide should be emailed or printed out and given to all new tenants when they begin their tenancy. The latest version can be accessed here.
Get in touch if you’re looking to let out your property
Completing the amount of documentation and compliance checks required as a landlord can be confusing and time-consuming. If you would like help in this department, you can use the services of a letting agent.
At Adam Hayes we ensure all our landlords are compliant with current legislation and rules. Our in-house handyman team is also on hand to make sure rental properties are free from hazards, safe to let out, and comply with all current rules and legislation.
If you have any questions, or want to make sure your property complies with current legislation, get in touch with us today on 020 8445 4008.
