Landlord Legal Responsibilities
Renting out a property is one of the best ways to make a profitable passive income. You can gain from the rental income and make a healthy return on your investments. Rental income can be a source that can see you through to your retirement. But it is not just a case of sticking your property on the books of a letting agency. You may have invested in a Buy to let, or plan to rent a property of your own. But there are some important landlord responsibilities that you may not be aware of. It is, for instance, important that you have the correct tenancy agreement. That you have carbon monoxide alarms and that you are aware of all Government approved schemes. That you have an assured shorthold tenancy. That your property is energy efficient and you understand what a Section 21 Notice is (now due to be abolished).
Health and Safety regulations
As a residential and commercial landlord, you will need to ensure that your property is safe to rent. You will need to make sure of whether there are any signs of damp and mould which often means that there is condensation. As a landlord, it is your responsibility to maintain the structure and the exterior of the premises including the drains, gutters and external pipes. If the property is a house the whole structure including the land it sits on is the landlords’ responsibility such as steps in the street, structures on the exterior, garden paths and steps. It is important to inspect water and gas pipes and electrical wiring together with basins, baths, and toilets. As well as all fixed heaters and water heaters.
Mould is the most common complaint from students as they believe that mould is growing on their property and they think it is “damp”. Water ingress causes damp, either from roofs, leaks, blocked gutters, rising damp and cracks in internal walls.
Condensation can also cause mould. It is caused by poor ventilation in the property and moisture on the building and walls and around windows. Condensation looks like black spots on the walls and is an easy problem to solve by simply opening the window on a regular basis. You may find that this is not necessarily a landlord responsibility but for a tenant to ensure that it is wiped down.
Gas Safety Certificate
All gas appliances within the property require a gas safety certificate. It must be carried out by a gas safety engineer. This is to ensure that the installation is correct. It also ensures that the boiler has no carbon monoxide emanating from it which means that it could kill. You must provide a copy of this certificate to the tenants and have it acknowledged within 30 days of the gas safety taking place. This is now law.
EICR reports i.e. electrical installation condition reports
These start to become compulsory from the end of the year and landlords should ensure that they do. The check is to ensure that all electrics i.e. lights, sockets, and wiring follow the electrical equipment safety regulations. They need to done by a qualified electrician every five years.
It is the law to now install smoke alarms on every floor of the property. A Co2 detector is also required in any room that has a solid fuel burner. This does not mean a boiler i.e. a gas combination boiler but it is always safe to do so. If the property has an HMO license i.e. a house in multiple occupation. It may require fire alarms and fire extinguishers. Each individual local council will let you know what their regulations are.
If you are renting out a furnished property. Then you must ensure that all soft furnishings adhere to the furniture and furnishing regulations. This includes such items as beds, sofas and mattresses and even cushions. Each item must have a carelessness causes fire label attached to ensure that they are compliant. This is critical to ensure that you are legally compliant.
Energy Performance Certificate
All rented properties now have to have an energy performance certificate which lasts for a period of ten years. This outlines the energy efficiency rating and whether the property requires any improvements if any. It contains information on energy costs and energy efficiency. Together with recommendations on resuming energy consumption. They are carried out every ten years. At present there is a rule for landlords to have a minimum rating of E. This will change over the next few years and you need to ensure that you are compliant.
Tenancy Deposit Protection
All Deposits paid by tenants are now put into a tenancy deposit scheme. There are various schemes that are all backed by the Government. Legal documentation has to be served on the tenant to ensure that they are aware of their requirements. It is critical that landlords understand what needs to be served on tenants. If for instance, you wish to evict a tenant in future the paperwork has to be correct. In the case of Cardon Property limited –v- Monty Shooltz. The court held that a Section 21 Notice could not be served on the tenant unless all the other documentation was carried out first. In this case, a gas safety had not given to the tenant at the start of the tenancy before the tenant took up occupation. The court held that the tenant did not have to follow the Section 21 Notice as the landlord had not served the gas safety at the time.
It is so critical if you are unsure of what you should be serving on a tenant when they take the property. Or when they go on to a month to month contract i.e. at the end of their term. That you check with your solicitor or your letting agents.
Landlords insurance
You will need to insure the whole building. This will include the bricks and mortar, roof and foundations. There may be a certain amount of contents which will need to be accounted for, such as carpets and blinds or curtains. Tenants will need to insure their own contents separately. There will be insurance for third party liability i.e. where something falls off the building and hurts or injures somebody. It is important that you are aware that as a landlord you are responsible for insuring the building on a comprehensive basis.
Landlord insurance will cover fire, flood, accidental damage and malicious damage. If you lived there before then your current home insurance wouldn’t cover you. It is important that you are aware of the actual insurance that you need. If you are buying a property on a buy to let basis then you will need the correct landlord insurance. To make sure that you’re covered and to provide this to your mortgage company before you let it out and complete. Why not talk to us to discuss your requirements and to get you the best policy at the best rate.
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