The role of a landlord is not an easy one, therefore, a lot choose to instruct an agent to look after their property and portfolios.
Did you know there are currently around 145 pieces of legislation you need to adhere to when letting property? The law states you must ensure your property is fit for purpose and the safe for your tenants.
The main things you need to know.
Electrical Safety Standards
The electrical safety standards came into force on 1 June 2020 and all rental properties must have a report carried out and a certificate issued once any faults are fixed and they must be maintained, throughout the tenancy. These Certificates last for 5 years before having to check again.
Smoke Alarms
Smoke alarms must be present in every property whether battery operated, or mains wired. One needs to be installed on each level and would recommend a heat one in the kitchen. Although Carbon monoxide alarms are only needed with solid fuel, we highly recommend this is installed also.
Gas Safety Checks for Landlords
Did you know research has shown that more than 1 in 3 private landlords did not know they needed to get gas appliances checked. It is important to carry out this check annually and to ensure you use a qualified Gas engineer and they can be checked on the Gas safe register.
Energy Performance Certificates
All properties need to have an EPC Certificate in place, and these last for 10 years. The minimum energy efficiency standards (MEES) allowed for rented properties are a minimum of an E rating on their Energy Performance Certificate (EPC). However, the new EPC regulations would mean that from 2025, your rented property would need to have a certification rating of C or above
Right To Rent Checks
In England, landlords are expected to carry out Right to Rent checks in line with the Immigration Act. As a landlord or agent, we must check whether your tenants have the right to lawfully live in the UK. If this is not carried out it can lead to fines and possible jail terms.
Deposits
When taking a Deposit from tenants they must protected within 30 days of receipt into one of the protection schemes available. In the UK deposits are capped, at five weeks’ rent where the annual rent is less than £50,000, and six weeks’ rent where the annual rent is £50,000 or more.
Once the deposit has been protected, the tenants are issued with ‘Prescribed Information’ This outlines the scheme it is protected in and state whether it is insurance based or a custodial scheme.
If you fail to protect a deposit, this can lead to problems when it comes to evictions. Sometimes a landlord could be liable to pay the full deposit back and be fined up to three times the value of the deposit. (all payable to the tenant).
Avoid Disputes with a Detailed Inventory
We highly recommend that a prepared inventory is carried out, and for this use a 3rd party company to ensure it is independent opinion. It helps show what you provide at the start of the tenancy. It also plays a significant role in protecting both you and your tenant. This Detailed document will help avoid any disputes and can help to resolve them quickly at the end of the tenancy.
We would advise that also regular inspections are carried out, normally every 6 months of the tenancy. You must remember you cannot legally enter the property without the tenant’s permission. It is advisable to give them at least 48 hours’ written notice ( Or notice agreement as per the tenancy agreement).
It is also a good idea to take copies of any keys a tenant may need for windows. doors, gas supply and electricity meters etc. And it you have any instruction manuals for the boiler, cooker, white goods, thermostat or house alarm leave them so tenants know how to use them properly.
Landlord Insurance
Your current buildings and contents insurer or mortgage company must be made aware of your intention to let the property. If you do not do this you run the risk of the insurance been invalid. Some Companies do specialise in landlord policies to protect your assets. We would advise you to shop around to find the right deal for you. Landlord insurance can be expensive but can be very valuable in the long run.
Ensure that the policy you choose includes:
- Buildings: for potential damage to the property’s structure or built-in features eg: kitchens Bathroom, doors.
- Loss of rent: when you’re unable to rent out your property through no fault of your own (such as a flood or fire), this covers the potential rent lost.
- Tenant default/rent guarantee covers any rent lost due to the tenant not paying, there will be certain things that apply in this, and advisable to ask the insurance company.
- Contents insurance: covers any contents that you have provided (tenants are advised to take out a separate policy for their belongings)
- Liability insurance: covers any legal costs if you are taken to court, e.g. if the property causes injury to a tenant or visitor.
Are Legal Fees Covered in your Insurance Policy?
Be aware that in extreme cases you might need to take a tenant to court (or they may take you to court) which will incur further costs. Some insurance policies will cover potential legal costs as a result of being a landlord. However, by ensuring your responsibilities are upheld and you have followed the law correctly, you should avoid court altogether.
So What Does A Letting Agent Do?
Handing the reigns to a letting agent is sometimes the best decision, but what exactly does a letting agent do and how can you find one that’s right for you?
We are here to help protect your assets. We are the property professionals and are aware of all the up to date legislation. We can take care of everything for you. Offering various levels of service and you can choose the best to suit your lifestyle, whether you want no involvement or want to be a little hands on, we can help.
EPI Lettings Limited is registered in England and Wales under Registered No.: 13138532. Registered Address: 52 Park Road, Askern Doncaster, DN6 0BA
Regulated members for the following scheme: Data Protection Registration ICO: ZA887683; Property Redress Scheme: : PRS026184; Insurance (Simply Business): MHGB3008392XB;
Regulated members for the following scheme: UK Association of Lettings Agents (UKALA), Client Money Protection (CMP) certified Membership No. 006160; Deposit Protection Service (DPS) Agent ID.: 1861154
