Three key rules for landlords to stay compliant
Private residential landlords have been increasingly pounded by regulations and tax changes. Without counting (because frankly we have better things to do and it is hard to keep up), there are over 170 regulations governing management of your rental property. And the average fine for breaching a regulation is over £12k.
Serious breaches attract unlimited penalties and a prison sentence.
Clearly, health and safety concerns are at the forefront of a landlord’s obligations. Your tenants are entitled to live in a safe and well-maintained home.
Here are three tips from Capital Estate Agents for staying on the right side of the law and avoiding any financial penalty:
1. Appoint a professional Letting Agent to manage your property.
An agent, such as Capital, who voluntarily chooses to comply with the professional standards set by industry bodies (such as Propertymark and the Property Ombudsman) will be kept up to date with legislation as part of their on-going training. Research the market and find yourself an agent who has been in the lettings business for many years and one who intends to be at the top of their game for many years to come.
To help you decide on an agent, speak to them regarding their maintenance and compliance monitoring procedures, check their industry body membership and insurance certificates, read their customer testimonials and evidence of professionalism such as awards won. The reviews we post on our website are independently available on Google.
2. Know the law
If you wish to go it alone, keep abreast of legislation by signing up to an organisation such as the National Residential Landlords Association who provide online guidance and telephone advice. Read everything they send through and plan ahead for changes so as not to be caught out by the timing. Changes in the law have a lead in time so you know well in advance what you are required to do and by when, but if notified too far in advance there’s a risk you will forget.
We would also recommend you sign up to an online news portal such as Landlord Today, which will report on compliance updates and highlight key changes in a News Flash. An efficient Lettings Agent who is managing your property will, of course, be doing all of this on your behalf and will have software that makes it easy for them to keep track of inspection dates, maintenance dates and deadlines for compliance.
3. Keep on top of the admin
Without an automated system, independent landlords need to keep a detailed checklist to make sure all the mandatory elements of renting out a residential property are completed. You will need to meet extensive obligations, including providing a ‘How to Rent Guide’, carrying out Right to Rent checks before the tenancy commences, carrying out routine inspections, electrical and gas safety checks, and putting client money into an approved client money protection scheme amongst others.
Actions taken also need to be recorded diligently in case of a future legal action or review. Paperwork needs to be filed, contractor appointments made, follow up or remedial action tracked, future appointments diarised, and tenants informed throughout. You need to be masters of planning, filing and organising!
We hope we haven’t scared you into selling your buy-to-let property! Our intention is to reassure you that with a professional letting agent helping you to manage your property and keep on top of all your legal obligations, compliance need not be a worry. Capital Estate Agents take care of your investments as if they were our own.
If you would like to speak to Capital Estate Agents to find out more about our rental service for landlords: call 0208 313 0010 or email us on: info@capitalestateagents.com