Guide to letting your property and keeping compliant
There are so many factors to consider when letting your property, from choosing the right type of property to rent out, to achieving the best rent, finding the right tenant and remaining fully compliant at all times; our national award-winning team are here to help and advise you. We provide comprehensive support during your landlord journey.
Being a Landlord in England can be a lucrative venture, but it comes with its own set of legal responsibilities and obligations. Ensuring compliance with regulations is crucial to avoid potential legal issues and penalties. This guide provides an overview of the steps you need to take and consider.
Preparing your property to rent
Every tenancy should start with a clean home, ideally this means a professional clean throughout, including windows, and a tidy up of the garden to ensure your tenants will be happy from Day 1. The condition of the property should be noted on an independent inventory to avoid any contentious issues at a later date. We are able to provide our Landlords with a comprehensive inventory as part of our package.
Check for those squeaky floorboards or doors, are there any trip hazards, would you be happy to live in it as it is? Are the appliances in good working order and clean? Addressing all these points prior to finding a tenant will not only help show your property in it’s best light when looking for a tenant but it will help you achieve the best rent and ensure a happy tenancy. Need a trade? We can recommend local tradespeople to you.
Ensure all your compliance certificates are up to date, we can help with arranging these on your behalf, speak to one of the team.
Anti Money Laundering (AML)
Anti money laundering is a legal requirement each time you market a property for sale or rent with an estate agent. We will require you to provide valid photographic ID and proof of address from a recent utility or council tax bill. For a list of acceptable documents speak to one of our team for further information.
HMRC target the property sector to ensure all landlords are compliant. Please be assured we are also obliged to carry out the same checks on your tenants.
Finding the right tenants
During a buoyant market for every property there are plenty of tenants, but are they the right tenants for your property? Whilst there are, quite rightly, strong laws against discrimination it is important that we find the right tenant for you. It may be that you would prefer just a short-term tenancy, eg 6 months, to keep your options open or you may be looking for tenants that wish to settle down and make your property their home for the foreseeable future.
Our award-winning team are adept at sourcing the right tenant for you. Your property will be marketed through our extensive tenant database and on all the major property portals. They will work with you to ensure your happiness and peace of mind as a landlord and will carry out stringent, third party, referencing checks against the tenants which include Right to Rent checks, identity checks, previous rental history, affordability, credit checks and income source. If necessary we are able to request a suitable Guarantor who will need to go through the same checks as the tenant.
Inventory
Having a comprehensive inventory of your property prepared at the start of a tenancy will detail the condition of the interior of your property, it’s outside areas, the cleanliness, meter readings and show exactly how it is handed to the tenants. It is paramount to resolving any deposit issues that may arise and will enable you to provide independent evidence. We are able to arrange an inventory for you as part of our marketing packages, ask one of the team for more details.
No inventory equals no proof and therefore a ‘he said-she said’ scenario which never ends well!
Compliance
It is the duty of every landlord to ensure their property is let fully compliant with all the laws governing rented accommodation. The main criteria to look out for are as follows:
Energy Performance Certificate (EPC):
Every property marketed for rent or for sale in the UK has to provide a valid Energy Performance Certificate (unless an exemption certificate has been issued). EPCs last for 10 years and to enable you to rent your property the current rating must be an E rating as a minimum, it is the government’s intention to reduce this in future years to reduce this to an C rating, but no definitive dates have been tabled as yet. Naturally the higher the rating the more appealing your property will be for prospective tenants. It can also impact on the amount of monthly rent you are able to achieve.
EPCs are with the property, not the owner, we are able to check the register for you to find out whether there is a certificate and the current rating and if necessary, conduct a new EPC on your behalf.
Gas Safety Certification (GSC)
Every rented property that uses gas must hold a current Gas Safety Certificate which is completed by a registered Gas Safe Engineer. All gas appliances must be checked, including the flue. The certificate must be in place before the tenant moves in and a copy must be provided to the tenant prior to the commencement of the tenancy. Thereafter the check must be carried out annually and a copy of the certificate given to the tenant within 28 days.
Keep an eye out for recommendations made, even if the property has passed it may suggest remedial action to the taken at some point.
Be mindful of the age of your boiler or appliance, constant repair can be false economy. The age of your boiler will also have an impact on your EPC rating and the fuel economy of the property.
We are able to instruct a gas safety inspection on your property on your behalf, please ask the team for details.
Electrical Inspection Condition Report (EICR)
A suitably qualified electrician will be required to carry out an EICR on the property to assess the condition and safety of the existing electrical installation and report on their findings. A pass certificate will be required prior to the tenants taking occupation of the property and a copy of the certificate must be provided to the tenants at point of move in.
Recommendations may be made by the electrician and remedial works may be required before a satisfactory certificate is issued.
It is usual for an inspection to be carried out every 5 years but in some cases it may be recommended by the electrician in a shorter period, this will usually be due to the nature or age of the wiring. Make sure you check the next due date on your certificate to ensure ongoing compliance. Any new certificates must be given to the tenants once completed.
We are able to instruct an EICR on your behalf, please ask the team for details.
Legionnaire’s Disease
Whilst rare, it is incumbent on a Landlord to ensure their property is safe from legionella. It is a water-born bacteria which can lead to pneumonia if inhaled through droplets.
Most normal domestic systems are at extremely low risk due to regular usage but any standing water for long periods, in water tanks for example, is at risk. A simple initial assessment will flag a risk and following guidelines to flush through taps, shower heads and toilets prior to a tenant’s occupation will help to limit this.
Ask one of our team for more information.
Licencing
It is possible that your property may require a licence from the local authority for you to be able to rent it out:
Selective Licence
There is currently no active requirement to obtain a Selective Licence in the Thanet area. There is a licence scheme which is still in force for those who applied previously but this expires at the end of the individual license term or is revoked by the Council. All current licence holders must comply with the conditions of their licence.
Houses of Multiple Occupancy (HMO Licence)
There are 4 test which determine whether your property meets the requirement to have an HMO licence. Further details of these test can be found on Thanet District Council’s website
Most standard rental properties will not require an HMO licence, however it is imperative that you check with the Local Authority to ensure you are compliant with any of the licensing requirements. If you are unsure please speak to one of our team who will be able to advise you on whether your property may fall into this category.
HMO Licences are designed to improve the standards of management and care within the HMO property.
Property Management
Having the peace of mind that your property and tenant are being looked after by a dedicated property manager is priceless. Many tenants prefer to deal with a property manager than directly with the landlord, we have the technology for them to be able to report issues and repairs 24/7 and 365 days a year. An emergency helpline is in place throughout the hours our offices are closed ensuring any true emergency is dealt with expediently to minimise damage to your property or disruption to the tenancy.
Your property manager will keep you abreast of all your legal obligations as they occur and will instruct trades, with your consent, on your behalf for any works that are required. Your property will be periodically inspected, and a full report will be provided to you along with photographs detailing the ongoing condition of your property.
Repairs and maintenance are overseen by your property manager with quotes arranged from either your preferred trade or a local qualified tradesperson. We keep copies of trade’s insurance policies on file and regularly check competition to ensure you are receiving the best service at a competitive price. All quotes are discussed with you prior to instruction of works.
Rent payments are processed and accounted for via our online system and duly protected within a designated client account. You will be kept updated and informed at all times and monthly statements will be provided to you. Any arrears, should they occur, are actively chased and if you have the benefit of a Rent Protection Insurance policy then we are able to liaise with the insurers on your behalf.
We organise a formal check out of the property when your tenant leave and negotiate any deposit deductions, should they be due, on your behalf. Meter readings are taken and utility companies and council are notified of the change of bill payer on your behalf.
Void periods are expensive, as a landlord, and we aim to minimise these for you by actively sourcing your next tenant as soon as we receive Notice.
If you already have a tenant in situ we are able to take over the property management from you, or another agent, to give you greater peace of mind.
Our property management team are all highly experienced and we are able to tailor our package to suit your needs. Why not talk to one of our team today to see how we can assist you.
Right to Rent
Right to Rent checks were introduced under the Immigration Act 2014 and checks on all tenants are now mandatory; we are able to undertake these on your behalf as part of our referencing process. Any tenants requiring a visa will be monitored throughout the tenancy to ensure that their right to rent remains in force.
Tenants are required to provide their identity documents to the Agent/Landlord and copies are then taken and the date and check are recorded. Any visa required must be in date at the commencement of the tenancy.
If we are only sourcing a tenant for you, and not managing the tenancy on your behalf, the obligation for continued compliance will revert to you to manage.
If you have any questions relating to the Right to Rent please ask one of our team.
Deposits
There are several Government backed deposit schemes available ranging from custodial deposit schemes, insured deposit schemes or zero deposit schemes which are then protected by an insurance policy paid for by the tenant.
Oakwood homes choose to use the Deposit Protection Service Custodial Scheme and also the Zero Deposit Scheme.
The maximum deposit that can be held against an Assured Shorthold Tenancy is equivalent to 5 weeks rent. This must be placed within one of the designated schemes within 30 days of receipt; failure to register a deposit within one of the schemes will leave the landlord open to potential prosecution and forfeiture of the ability to claim against the deposit should any funds be due to breach of tenancy.
The Zero Deposit Scheme allows up to 8 weeks rent protection for a landlord.
Any questions you may have regarding letting your property can be answered by our experienced team. We're here to help!