Letting Your Property: Essential Legal Requirements and Landlord Responsibilities
All too often, we hear from landlords who have attempted to let and manage their property themselves, only to discover later that overlooking a legal requirement can have catastrophic consequences.
There are over 150 pieces of legislation relating to the private rented sector and with the Introduction of the Renters Rights Act earlier this year, it has only become more complex, with more landlords seeing the benefit of seeking the expertise of an agent to support them.
Claire Pile MARLA, Partner and Head of Residential Lettings, shares some of the key elements you need to consider when letting your property:
1. Prepare Your Property for the Rental Market
Tenants expectations are increasing and therefore considering how you present your property for letting is important. Ensure the property is clean, odour free, and well maintained, with the gardens and outside areas kept tidy. First impressions do count and can have an impact on interest generated.
2. Complete All Required Landlord Safety Checks
As a landlord, you are legally responsible for ensuring a number of health and safety requirements are met both at the start of a tenancy and at the appropriate intervals throughout its duration.
Gas appliances in the property need to be checked by a Gas Safe-registered engineer annually, and tenants must be provided with a Gas Safety Certificate within 28 days of the inspection.
It is a landlord’s liability to ensure that smoke alarms are fitted on every floor of the property and carbon monoxide detectors are installed in rooms containing a gas appliance. All alarms should be tested and confirmed as working at the start of the tenancy, with an appropriate record retained.
Every let property is required to have a satisfactory electrical installation condition report (EICR) which should be renewed every five years by a qualified electrician.
In addition, landlords may need to consider other requirements such as chimney sweeping, legionnaires risk assessments, and Portable Appliance Testing (PAT) where applicable.
3. Provide a Valid Energy Performance Certificate (EPC)
Following the introduction of the Minimum Energy Efficiency Standards (MEES), landlords must ensure that their property is at least an ‘E’ rating in order to market their property, and a copy of the Energy Performance Certificate (EPC) should be made available as part of the marketing material.
In addition to the EPC, the Gas safety certificate and EICR, alongside other prescribed documentation, should be provided to the tenant.
4. Put a Legally Compliant Tenancy Agreement in Place
Whilst not a legal requirement, having a tenancy agreement in place is highly recommended. The most common form of tenancy is now an Assured Periodic Tenancy (APT), which should be signed by both the landlord and tenant.
It clearly explains both the tenants and the landlords responsibilities, during and at the end of tenancy. Once the agreement is drawn up, it is a legally binding document between the landlord and the tenant, setting out the ‘rules’ of the tenancy.
Following the introduction of the Renters' Rights Act, the tenancy agreement must be completed before any request is made for the first month's rent or the tenancy deposit.
5. Protect Your Tenant's Deposit in an Approved Scheme
A tenant's deposit must be protected within a government-approved tenancy deposit scheme within 30 days of receipt.
Once the deposit has been registered, the tenant must be provided with the Deposit Protection Certificate and Prescribed Information confirming where and how their deposit is being protected.
6. Ensure You Have Appropriate Landlord Insurance
While tenants are responsible for insuring their own belongings, landlords are responsible for insuring the property itself. A good insurance policy for landlords will cover loss of rent, damage, legal expenses, and liabilities.
It is also important to inform your insurer that the property is being let, as failing to do so could invalidate your policy.
All sounding too much?
If you’re considering letting and want to avoid the all-too-common pitfalls, before during and at the end of the tenancy, contact your local Stags office who will be happy to help.
For more advice on the recent Renters’ Rights Act, visit our Hub.
All too often, we hear from landlords who have attempted to let and manage their property themselves, only to discover later that overlooking a legal requirement can have catastrophic consequences.
