Below, we discuss some of the most common questions we’re asked about and share our tips for success. This list isn’t exhaustive, but will provide you with a good starting point for researching and understanding how to manage your buy-to-let investments successfully.
It is important to ensure that you have all the mandatory certification throughout a tenancy. Whilst the primary consideration will always be tenant safety, it’s important to keep in mind that failing to maintain up-to-date certification not only puts you in breach of your regulatory obligations, but can invalidate your landlord insurance and may put you at a disadvantage when trying to regain possession of the property.
According to the Gas Safety (Installation and Use) Regulations Act 1998, a landlord’s duty is to ensure that a valid Gas Safety Record completed by a Gas Safe registered engineer is in place at all times. Copies should be kept for 2 years, issued to all new tenants prior to commencement of a tenancy, and to each existing tenant within 28 days of annual retesting.
For electrical installations, the latest regulations require landlords to have properties tested by qualified inspectors at least every 5 years. As a landlord, you must provide a copy of the electrical safety report to your tenants, and if requested, to the local authority.^
Landlords are under an obligation to ensure that appliances supplied by them within a property (often referred to as portable appliances) are safe to use. Unlike gas and electrical installations, there is no legal requirement for formal testing and certification which, in practice, is the only way a landlord can demonstrate compliance with the regulations. For this reason, we advise that you complete an annual Portable Appliance Test (PAT).
You might be wondering if you should allow your tenants to have pets, a great question when considering that 62% of households in the UK own a pet.***
If, as a landlord, you are willing to accept pets, include provisions in the tenancy agreement to ensure that any damage caused by the pet is not treated as fair wear and tear. In some instances where the rented property is unsuitable, or your lease contains restrictions concerning pets, you, as a landlord, may not be able to give a tenant consent to keep a pet.
As it currently stands, if you’re not keen on having pets, you must object in writing within 28 days of a written pet request from a tenant and provide a good reason*.
Our expert advice: To help ensure that any damage can be properly assessed, a thorough inventory is advised, which a good agent can create.
Ensuring that buildings, contents, fixtures and fittings are properly insured not only protects you, the landlord, from financial risk, but also helps you in meeting your regulatory and contractual obligations in quickly repairing damage caused to the property as a result of an insured risk. It is important to check that your policy protects you from potential injury claims from tenants, contractors and other visitors to the property.
Additionally, you may find it useful to understand policy restrictions and requirements and, where necessary, provide your tenant with relevant details so that cover is not affected.
Note that tenants' contents and possessions are not usually covered by their landlord's insurance, which is something they may not always be aware of.
Ensure you complete all the necessary checks and guidelines, including:
Rules around gaining possession of a property are strict. As an example, evicting/making a tenant homeless without a court order is a criminal offence. Additionally, changes are due towards the final quarter of this year in England (only) as the Government prepares for the Renters' Rights Bill to be passed into legislation.
Your agent will be able to advise you on regulations in place at the time and what options are open to you. Chat to us today.
In addition to mandatory property licensing for larger properties and households, a number of local authorities will have additional and selective schemes, all of which require landlords to hold a licence and abide by its conditions.
As breaching these regulations can result in a criminal record, unlimited fines and rent repayment orders, it is essential that you understand requirements relating to your property and the specific tenancy you are considering.
Last, but certainly not least, staying on top of legislation is a necessity and is one of the many parts of being a landlord that we can assist you with. Some examples of legislation landlords should also be aware of include the legionella risk assessment and the Minimum Energy Efficiency Standard Regulations (MEES) that came into effect in 2018 in England and Wales, as well as Scotland, though the Scottish regulations vary slightly.†
Speak to one of our friendly lettings experts to guide you on your buy-to-let journey.
Becoming a landlord comes with a certain level of responsibility, and whether you’re new to being a landlord or have years of experience, our team of letting experts are always on hand to discuss the latest deals and changes to the market.
Sources:
*https://www.statista.com/statistics/308235/estimated-pet-ownership-in-the-united-kingdom-uk/
^Guide for landlords: electrical safety standards in the private rented sector
† Energy Efficient Scotland: route map; Minimum Energy Performance of Buildings (No. 2) Bill
‡ Prove your right to rent in England ; mygov.scot
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