Landlords: Are you compliant with current regulations?
Being a landlord goes hand in hand with ensuring you are kept up to date with regulations and responsibilities. Not only is it paramount that you are up to date, it is equally important to be compliant with the latest landlord requirements. Failure to do so could result in huge fines, or a loss of your section 21 rights as a landlord.
Yes, mistakes can be made, but a 2018 private letting Government survey found that a number of landlords fail to comply with some of the basic requirements. 38% failed to check a tenant's right to rent, whilst 48% didn't issue tenants with the governments 'How To Rent' guide.
More concerning was the failure for over 30% of landlords to provide adequate carbon monoxide alarms in their properties. This type of negligence would have potentially serious consequences for all parties involved.
At Sandersons UK, we want to offer you, the landlord, the opportunity to think about your current compliance status, and what it means for you to be fully up to date with regulations. Summarised below is a checklist that is always worth having close to you.
Landlord's compliance checklist
It can be overwhelming to find your feet as a landlord. You might feel lost amongst all the rules and regulations. Whether letting is new to you, or whether you've been doing it for years, let's look at what you need to know.
Consent to let
If you own the property and your plan is to rent it out and have a standard residential mortgage, you'll need the permission of your lender. In most cases, you will need to switch to a buy-to-let mortgage, but there are good short-term solutions in obtaining consent to let from your lender. These include:
- If you only plan on letting out your property for a short time
- If you are in the mist of a particular mortgage deal
Furthermore, if the property you're planning to rent out is a leasehold property, you'll also need the permission of your freeholder to let it. The building's management agent should be able to provide this.
As well as this, you may want to check whether there are any planning restrictions or if there is a local authority licensing scheme in operation.
Health, safety, and compliance obligations
In order to legally let your property, you'll legally need to comply with the following:
Electrical safety
You must have an Electrical Installation Condition Report (EICR) carried out every five years when renting your property. This must be carried out by a qualified electrical engineer, and a copy must be passed to tenants within 28 days of the inspection.
Gas safety
A gas safety inspection must be carried out annually by a Gas Safe engineer, with a copy of this certificate being passed to your tenants.
Energy efficiency standards
Legally, your property must be provided with an Energy Performance Certificate (EPC) with a rating no lower than 'E.'
Fire safety regulations
Working smoke detectors on each floor, carbon monoxide alarms placed in any room with a solid fuel burning or gas appliance and all furnishings complying with fire safety regulations are all a necessity. The regulations updated in October 2022- click here to find out more.
Rental property safety and hazard assessment
Your local council can assess your rental property's compliance against 29 different potential hazards, under the Housing Health and Safety Rating System (HHSRH). As a landlord, it is your responsibility to ensure your property is safe for tenants to reside under these regulations.
Tenancy deposit protection and deposit caps
Tenant deposits must be protected in a government protection scheme. This should be within 30 days of receipt of funds. Details of where the tenants money is held and any other prescribed information must be provided to the tenants.
Landlord insurance
Protecting yourself is vital, so your property and its contents need the right kind of insurance. Landlords should cover third party liability, ensuring any damage caused to the property by tenants is covered.
Please note, a basic landlord policy may not cover you if tenants fail to pay their rent, so we recommend you take a Rent Guarantee & Legal Expenses cover out via Sandersons UK once a satisfactory tenant reference is obtained.
Prepare your property
Your property should be clean, with all decorating work complete by the time potential tenants view it. Tenants can tell if a property has been cared for, and will be more likely to look after it during their time there.
Tenant referencing
All potential tenants should be vetted and referenced before any tenancy agreement is reached, to protect your own interests.
Good tenant referencing should include:
- Credit and ID checks
- Employer and previous landlord references
- A financial and affordability assessment
As well as referencing, all tenants must undergo Right to Rent checks, which determine their legal immigration status.
Certain documents are acceptable as proof of a tenant’s right to remain in the UK indefinitely or for a limited time, including:
- A British passport
- A Home Office document confirming the right to indefinite or time-limited stay
- A permanent residence card
- A biometric immigration document confirming right to indefinite or time-limited stay
- A passport confirming right to indefinite or time-limited stay
- A birth certificate issued in the UK, Channel Islands, Isle of Man, or Ireland
Property inventory
A property inventory is one of the most important documents you’ll need as a landlord.
The inventory details the condition of the property at the start of a tenancy, including information on the condition of walls, carpets, fixtures, and fittings.
Your property inventory should include clear photos to support the information given and needs to be signed and dated by you and your tenant.
As well as this you should also ensure your tenant knows:
- The codes for any alarms and how to switch them off
- How the heating system works
- Where the water stop cock is in case of a leak
- Where the gas and electricity meters are and how to read them
Tenant agreements
The tenancy agreement is an incredibly important document for you as a landlord, as well as your tenants. These should be properly drafted and legally sound, with everything signed, defined and dated.
Property inspections, repairs and maintenance
In order to stay on top of any potential issues at your rental property, regular inspections are key.
You must give your tenants 24 hours' notice prior to any inspection of your property, and you should never turn up unannounced.
Under the Landlord & Tenant Act 1985, you're also obligated to ensure your property is kept in a good state of repair, including:
- Maintaining and repairing the property’s exterior and structure, including roofs, chimneys, walls, guttering and drainage
- Maintaining and repairing key services, including water, gas, and electric
Your tenant should know who to contact in the event of a maintenance emergency and you are obligated to complete major maintenance or repairs as quickly as possible.
The list can seem exhausting, but renting property is certainly not to be taken lightly. You're directly responsible for the safety of your property, and in knowing this and your responsibilities, you'll already be on track to be a top landlord.
