For landlords in the Private Rented Sector, keeping track of the various changes to the rules and regulations can be a major headache.
We’ve put together a quick guide to the statutory responsibilities that all landlords need to cross off their to-do list for tenancies.
1. Right to Rent. Landlords have a legal obligation to ensure that all prospective tenants have the right to rent in the UK. This means checking original documents to be sure your tenant has the right to stay in the UK. Failure to do this can result in a hefty fine.
2. Deposits. When a tenant puts down a deposit on a property, it must be registered with a Government approved scheme like the Deposit Protection Scheme, MyDeposit or the Tenancy Deposit Scheme. Any landlord who fails to protect a tenant’s deposit in this way could be liable to pay compensation up to three times the amount of the deposit.
3. Licensing. While these are mandatory in Scotland and Wales, not every local authority in England requires landlords to be licensed – but it is an increasing trend amongst councils. The exceptions to this are Houses in Multiple Occupancy (HMOs) which have mandatory licensing throughout the UK. For other properties, many councils have introduced selective licensing to monitor quality standards within their PRS and as part of the drive to cut down on anti-social behaviour. License costs vary from just over £50 to over £1000 per year. But the penalty for renting an unlicensed property in a designated area can be as much as £30,000.
4. How to rent. It is every landlord’s responsibility to provide each tenant with a How To Rent document which details their rights and responsibilities. The document can be downloaded from the Government website and you can find it here.
5. It is common for lenders to insist that properties purchased with a buy-to-let mortgage have appropriate buildings insurance which may also cover any furniture and fittings included in the let and some form of rent guarantee insurance should the tenant fail to pay.
6. Energy efficiency. Every private rental property in the country must have an Energy Performance Certificate and tenants must receive a copy of the document before they move into the property. Currently all rented properties must have a minimum rating of ‘E’ but the Government has announced its intention to upgrade this to a ‘C’ in the future.
7. Health & Safety. All electrical appliances in the property must be tested by a suitably qualified person every five years and regular Portable Appliance Tests (PAT) are recommended after every tenancy. Gas appliances must be checked every year by a registered gas safety engineer. If there is a solid fuel heating appliance in the property, a carbon monoxide alarm should be installed in the same room and there should be smoke alarms on each floor.
Landlords also have a health and safety responsibility to carry out legionnaires disease risk assessments on residential property. Although the risk is low in domestic property, landlords have a responsibility to help prevent the spread of the disease. You can find out more here.
8. Furniture and furnishings. If furniture is provided with the property it is the duty of the landlord to ensure that it complies with fire regulations and displays the appropriate labels prominently.
9. Repairs and maintenance. According to the Landlord and Tenant Act, 1985 (as amended), landlords have a duty to maintain their rented property in a habitable condition throughout the tenancy. However, it should be noted that landlords are not responsible for damage caused by tenants and it is the tenant’s responsibility to make the landlord aware of damage to the property.
10. Data Protection. The information that landlords keep about their tenants (name, date of birth, place of work, etc) is regarded as their personal data and must be kept in accordance with the Data Protection Act 2018. You can find out more about Data protection and your responsibilities here.
Proctors estate agents has been providing a personal approach to buying, selling and letting for the Borough of Bromley and Shirley in Croydon, since 1946.
Proctors is an independent network of individual estate agent businesses with six branches. Our local knowledge is second to none and we are committed to making sure you get the best customer service and support to help with your move.
Find out more about us here.