LANDLORDS COMPLIANCE HEALTH CHECK
With talks of regulation and local authority clampdowns on Landlords, have you ever checked to see if you are compliant? are you aware of the penalties if not?
Are you compliant?
Reports have recently come about that one of the most prominent Estate Agents in the UK have allowed its landlords to be open to fines of between £9million and £30million in the last few weeks! This is because they allegedly failed to send paperwork to tenants at the start of their tenancy regarding the placement of their deposits. This has resulted in landlords picking up the phone to ensure that they are fully compliant with their rental property.
So, what should every landlord do to ensure that they are compliant and are not liable for fines? To start with there are over 150 pieces of legislation, here are a few of the more important ones that landlords should be aware of.
Registering your tenant's deposit
Every landlord (or their agent) needs to register the tenant’s deposit. It is believed that one in six tenants' deposits are not registered, leaving the landlord (not the agent) liable for a fine of up to three times the amount of the deposit. It will also make it extremely difficult to evict them if necessary.
When your tenant pays their deposit, it must be protected in one of the government approved insured schemes within 30 days. You must also give your tenant proof of the scheme, this must include information on which of the three schemes you have chosen to secure the deposit with (The Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme) and how your tenant can get their deposit back at the end of the tenancy. This is called Prescribed Information and must be served at the correct stage in the process to be valid.
Gas Safety Certificates
Every landlord must offer a safe rental home for your tenants. Every rental property must have an annual Gas Safety Certificate. The certificate, which must be issued by a qualified and registered Gas Safe engineer, is only valid for 12 months. All certificates must be retained for at least 24 months after they have expired, and you must also give your tenant a copy of the existing certificate within 28 days of it being carried out.
EPC (Energy Performance Certificate)
The Energy Performance Certificate (EPC) is just like the colour coded energy rating diagrams you see on fridges and washing machines, If you don’t have an EPC, you cannot rent out your property. Also, rental properties currently have to achieve a minimum energy efficiency rating of 'E'. If your property doesn't meet this requirement, you'll be unable to rent it out (although there are a handful of exemptions). Again, you also must give your tenant a copy of the up-to-date EPC certificate before the tenancy starts. There are proposals in place for the minimum energy efficiency rating to be increased to a C, this will take place from 2025 for new tenancies and from 2028 for all existing tenancies.
EICR’s (Electrical installation certificates)
All rental properties must have an electrical check carried out by a qualified/registered electrician. The standards that should be met are set out in the 18th edition of the wiring regulations. Landlords must then supply a copy of this report to the tenant within 28 days of the inspection and test, to a new tenant before they occupy the premises, and to any prospective tenant within 28 days of receiving a request for the report.
If a local authority requests it, landlords must supply them with a copy of this report within 7 days of receiving the request. If the report requires remedial work or further investigation, landlords must provide written confirmation that the work has been carried out to their tenant and to the local authority within 28 days of completing the work. Landlords must retain a copy of the report to give to the inspector and tester who will undertake the next inspection and test.
Right to rent checks
Every landlord can only let their property to a tenant who has the legal right to rent in the UK. You have the legal responsibility of checking the prospective tenant’s identification and confirming that the tenant is legally in the British Isles. If you let your property to someone in the UK illegally, you might face a substantial fine. Did you know that you can check your tenants right to rent status with their own unique share code?
Anything else landlords should be aware of?
Smoke alarms
Carbon monoxide alarms
Client Money Protection
Homes (Fitness for Human Habitation) Act 2018
HHSRS (Housing Health and Safety Rating System)
Furniture and Furnishings (Fire Safety) Regulations 1988/1989, 1993 and 2010
Legionella risk appraisal
HMRC / Tax obligations
Non-resident landlords
Information Commissioners Office
Breathing space (Debt respite Scheme)
That’s just the tip of the iceberg, the list goes on …
As you can see, there are many things a landlord must consider when it comes to being compliant. It is not only time consuming and stressful keeping up with the ever changing legislation but there are financial penalties involved if you do not observe all of your landlord obligations.
Compliance Health Check
Love Property can give you peace of mind that you are fully compliant by carrying out compliance health check on your rental property. Why not give Sal a call on 01748 834373 to have a no obligation chat to see if we can assist in making sure your investment is as healthy and safe as it can be!
