The following information will help you get up-to-speed with your obligations as a landlord and provide you with a checklist of actions you need to take to ensure your tenancy starts off correctly.
Preparing the Property
We have found that building a good working relationship with tenants is the key to a smooth-running tenancy. If you take our Full Management service, we manage your tenant relationship and make sure that your tenants feel comfortable in their home, and that they are receiving the service they have paid for.
A well presented and maintained property in a good decorative order will help tenants feel valued and will earn you a higher rental income. A smart home will also make your tenants feel more inclined to treat such a property with greater respect.
Electrical, gas plumbing, waste, central heating and hot water systems must be safe, sound and in good working order. Repairs and maintenance are at the Landlords expense unless misuse can be established. Interior decorations should be in good condition and preferably plain, light and neutral.
Your property can be let fully furnished, part furnished or unfurnished. Which of these is appropriate will depend on the type of property and local market conditions. We will be pleased to give you advice on whether to furnish or not and to what level. As a minimum you will need to provide decent quality carpets, curtains and light fittings. Remember that there will be wear and tear on the property and any items provided so select items that are appropriate for your target tenants.
Personal Items, Ornaments etc.
Personal possessions, ornaments, pictures, books etc. should be removed from the premises, especially those of real or sentimental value. Some items may be boxed, sealed and stored in the loft at the owner’s risk. All cupboards and shelf space should be left clear for the Tenant’s own use.
Gardens should be left neat, tidy and rubbish free, with any lawns cut. Tenants are required to maintain the gardens to a reasonable standard, provided they are left the necessary tools. However, few Tenants are experienced gardeners, and if you value your garden, or if it is particularly large, you may wish us to arrange visits by our regular gardener.
At the commencement of the tenancy the property must be in a thoroughly clean condition, and at the end of each tenancy it is the Tenants’ responsibility to leave the property in a similar condition. Where they fail to do so, cleaning will be arranged at their expense.
Information for the Tenant
It is helpful if you leave a folder explaining how to run the property. e.g. Operating the central heating and hot water system, washing machine and alarm system, and the day refuse is collected etc.
You should provide one set of keys for each Tenant. Where we are managing agents, we will arrange to have duplicates cut as required.
If your property is mortgaged, you should obtain your mortgage company’s written consent to the letting. They may require additional clauses in the tenancy agreement of which you must inform us. This may not be necessary if the property is mortgaged with a Buy To Let product. It will be necessary if you hold a standard residential mortgage.
If you are a leaseholder, you must check the terms of your lease, and obtain any necessary written consent before letting your property.
You should ensure that you are suitably covered for letting under both your buildings and contents insurance. Failure to inform your insurers may invalidate your policies. We are approved Introducers for several insurance brokers and can advise on Landlords Legal Protection, Rent Guarantee Cover and Landlords Contents and Buildings Insurance if required.
Bills and Regular Outgoings
We recommend that you arrange for regular outgoings e.g. service charges, maintenance contracts etc. to be paid by standing order or direct debit. Where we are managing the property, by prior written agreement we may make payment of certain bills on your behalf, provided such bills are received in your name at our office, and that sufficient funds are held in your account when payments are due.
Council Tax and Utility Accounts
Under our Full Management service, we arrange for the transfer of Council Tax and utility accounts to the Tenant. We also take meter readings so that exiting tenants can close their accounts and new tenants are only charged for their actual consumption. Please note that British Telecom will only accept instructions directly from you and your tenants.
When resident in the UK, it is entirely the Landlords responsibility to inform the Revenue & Customs of rental income received, and to pay any tax due. If you are resident outside the UK during a tenancy, your will require an exemption certificate from the Revenue & Customs before your can receive rental balances without deduction of tax. Where we are managing the property we will provide advice and assistance on applying for such exemption.
An inventory forms a critical part of your contract with the tenant as it avoids any misunderstandings or disputes at the end of a tenancy. Without such safeguards, it will be impossible for you to prove any loss, damage, or significant deterioration of the property or contents. You are welcome to document your property’s inventory or we will prepare an inventory and schedule of condition, at the cost quoted in our Agency Agreement.
What is an Assured Shorthold Tenancy?
Most tenancies will automatically be Assured Shorthold Tenancies (ASTs), provided the rent is under £100,000 a year and the property is let to private individuals. Tenancies are usually granted for an initial fixed term of either 6 to 12 months. When the fixed term has expired the landlord is able to regain possession of the property provided he gives two months written notice to the tenant.
Health and Safety, and other Legal Requirements
The following requirements are the responsibility of the landlord. Where you have signed our Full Management Agency Agreement, they are also our responsibility. This means that we will source quotes for you to conduct the necessary works to ensure compliance.
Under the Gas Safety (Installation and Use) Regulations 1998 all gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed, and thereafter at least every 12 months by a competent engineer (e.g. a CORGI registered gas installer).
- Maintenance: There is a duty to ensure that all gas appliances, flues and associated pipe work are maintained in a safe condition at all times.
- Records: Full records must be kept for at least 2 years of the inspections of each appliance and flue, of any defects found and of any remedial action taken.
- Copies to tenants: A copy of the safety certificate issued by the engineer must be given to each new tenant before their tenancy commences, or to each existing tenant within 28 days of the check being carried out.
There are several regulations relating to electrical installations, equipment and appliance safety which affect landlords and their agents in that they are ‘supplying in the course of business’. They include the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets Regulations 1994, the 2005 Building Regulation – ‘Part P, and British Standard BS1363 relating to plugs and sockets. Although with tenanted property there is currently no legal requirement for electrical safety certificates (except in the case of all HMOs) it is now widely accepted in the letting industry that the only safe way to ensure safety, and to avoid the risk of being accused of neglecting your ‘duty of care’, or even of manslaughter is to arrange electrical inspections and the issue of safety certificates. There are 2 types of electrical inspections; one for the actual installation and the other for any portable electrical appliances (PAT test).
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 & 1993) provide that specified items supplied in the course of letting property must meet minimum fire resistance standards. The regulations apply to all upholstered furniture, beds, headboards and mattresses, sofa-beds, futons and other convertibles, nursery furniture, garden furniture suitable for use in a dwelling, scatter cushions, pillows and non-original covers for furniture. They do not apply to antique furniture or furniture made before 1950, bedcovers including duvets, loose covers for mattresses, pillowcases, curtains, carpets or sleeping bags. Items which comply will have a suitable permanent label attached. Non-compliant items must be removed before a tenancy commences.
All properties built since June 1992 must have been fitted with mains powered smoke detector alarms from new. Although there is no legislation requiring smoke alarms to be fitted in other ordinary tenanted properties, it is generally considered that the common law ‘duty of care’ means that Landlords and their Agents could be liable should a fire cause injury or damage in a tenanted property where smoke alarms are not fitted.
NOTE: We strongly recommend that Landlords fit at least one smoke alarm on each floor of their properties (in the hall and landing areas).
Is your property a House in Multiple Occupation (HMO)?
If your property is on 3 or more levels and let to 5 or more tenants comprising 2 or more households (i.e. not all of the same family) it will be subject to mandatory licensing by your local authority. Whether mandatory licensing as above applies or not, if there are 3 or more tenants not all related in any property, it is still likely to be classified as an HMO by your local Council, and special Management rules apply. Ask your Letting Agent or visit your local authority website for details.
The Housing Health and Safety Rating System (HHSRS)
The HHSRS provides an analysis of how hazardous a property is through assessment of 29 potential hazards found in housing. Landlords have to maintain their properties to provide a safe and healthy environment. The HHSRS is enforced by local authorities. For further information visit your local authority website.
Tenancy Deposit Protection
All deposits taken by landlords and letting agents under Assured Shorthold Tenancies (ASTs) in England and Wales must be protected by a tenancy deposit protection scheme. To avoid any disputes going to court, each scheme is supported by an alternative dispute resolution service (ADR). Landlords and letting agents can choose between two types of scheme; a single custodial scheme and two insurance-based schemes.
The Disability Discrimination Act (DDA) 2005
The DDA 2005 addresses the limitations of current legislation by extending disabled people’s rights in respect of premises that are let or to be let, and commonhold premises. Landlords and managers of let premises and premises that are to let will be required to make reasonable adjustments for disabled people. Under the new duties, provided certain conditions are met (for example, that a request has been made), landlords and managers of premises which are to let, or of premises which have already been let, must make reasonable adjustments, and a failure to do so will be unlawful unless it can be justified under the Act. Landlords will only have to make reasonable adjustments. And they will not have to remove or alter physical features of the premises.
Energy Performance Certificates (EPCs)
Since 1st October 2008, landlords offering property to let have been required by law to provide prospective tenants with an Energy Performance Certificate for their property. EPCs are valid for 10 years, so you won’t need to buy a new one for each let during this period.
EPCs must be provided to prospective tenants free of charge either when (or before) any written information about the property is provided to tenants or a viewing is conducted. Honeysuckle Homes has a preferred list of Energy Assessors in Croydon and we will be pleased to arrange an EPC inspection and assessment on your property upon request.
NOTE: We cannot market your property to let until we have in our possession a valid EPC for the property.
The above is a brief summary of landlords’ responsibilities and of the laws surrounding tenanted property in England. We hope that you find it useful. If there are any aspects of which you are unsure, please ask us.
We look forward to helping you to manage your rental properties.
Disclaimer: The information contained herein is not a commentary on the law, nor does it cover all legislation and aspects of lettings. For legal advice you should always consult your own solicitor.