Top Tips for the First Time Landlord
In this video Laura Maltby, Head of Commercial Property at Starck Uberoi discusses Hints and Tips for the First Time Landlord.
This is recommended viewing for anyone who is thinking of becoming a landlord.
Laura provides a breakdown of all the key legal requirements every landlord needs to know to ensure they are renting a property legally. She also considers the best practices which will help landlords to manage their property effectively.
Prefer to read about becoming a Landlord?
Here’s the video transcript.
Today we’re sharing valuable insights for anyone who is thinking of becoming a Landlord of residential properties in England and Wales.
If you’re new to renting out property understanding your legal obligations and best practices is essential so let’s break it down.
Becoming a landlord can be a rewarding venture and provide you with a second course of income but it does come with it landlord responsibilities and legal requirements. Getting these wrong, or being unaware of what is legally required of you as a Landlord, can have serious ramifications.
Here are some crucial tips to help you navigate this journey successfully.
Let’s start with your legal obligations as a landlord, here are some of the key legal obligations that you must fulfil.
- Tenancy agreements – ensure you have a written tenancy agreement in place. Right to rent checks verify that your tenants have the legal right to rent in England. Deposit protection ensures that your tenants deposit is in a government approved scheme.
- Safety regulations – comply with safety regulations including gas safety checks and electrical safety standards.
- Energy Performance Certificate – provide an EPC rating of E or above
- Repairs and maintenance – keep the property in good repair and handle maintenance issues promptly and finally
- Notice requirements – follow the proper procedures when serving notice on your tenants now let’s delve into each of these obligations in more detail.
Tenancy Agreements
First tenancy agreements, a written tenancy agreement outlines the terms and conditions of the tenancy. It protects you and your tenant by clearly stating both of your rights and obligations. Whilst it’s not actually a legal requirement for a tenancy agreement to be in writing, practically speaking a written tenancy agreement will protect you far better and make it clear to both parties where they stand. If you have a lender then they will almost certainly require there to be a written tenancy agreement in place.
Right to Rent Checks
Next right to rent checks, you are legally required to check that all tenants over 18 have the right to rent in England. This involves verifying and keeping copies of original documents that prove their right to reside in the UK. It is actually an offense for a landlord to authorise the occupation of premises by an adult who does not have a right to rent and there are financial penalties in place for landlords who breach these rules. Therefore if you’re not sure how to undertake satisfactory right to rent checks you should consider instructing a letting agent who can do this on your behalf.
Deposit Protection
Deposit protection is crucial. You must place your tenants deposit in one of the three government approved schemes within 30 days of receipt. This protects the tenant and ensures fair handling of the deposit and at the end of the tenancy if the deposit is not protected then the tenant can by law request financial compensation. In addition, your option for recovering the property should you need to do so will be limited.
Safety Regulations
Safety regulations include an annual gas safety by a gas safety engineer, electrical safety inspections and ensuring smoke and carbon oxide alarms are installed and functioning. You must also make sure that any furniture and furnishings supplied with the property are fire safe. As the landlord you have a duty to keep the property safe and free from health hazards. Note it is a legal requirement to have an annual gas safety check carried out by a gas safe registered engineer and to provide your tenant with the certificate within 28 days of each annual check.
An Energy Performance Certificate is required before renting out any property. The property must have an EPC rating of E or above to be legally let. Further the tenant must be provided with a copy of the EPC, otherwise you risk not being able to get the tenant out and take back the property should you need to do so later on.
Repairs and Maintenance
Repairs and maintenance are your responsibility. You must ensure the property is safe and habitable, promptly address any repairs needed and maintain the property to a good standard. Local authorities have the power to take action against you if the property contains serious health and safety hazards.
Ending a Tenancy
When ending a tenancy you must adhere to the notice requirements. The notice period varies depending on the tenancy type and the reason for ending the tenancy. You must ensure you follow the correct legal procedure to avoid disputes. If you are unsure then it’s essential that you seek legal advice to ensure proper procedure is followed.
Should you need help with evicting tenants, it’s worth knowing that Starck Uberoi Solicitors offer an express tenant eviction service.
Those are your key legal obligations. If you are becoming a landlord it’s also good to be aware of some best practices to help you manage your rental property effectively.
Here are some best practices for first time landlords:
- Screen your tenants – carefully, conduct thorough background checks to ensure reliable tenants or instruct a letting agent to assist you if you feel you’re not comfortable in doing this.
- Keep records -maintain detailed records of all transactions, communications and repairs.
- Stay informed – Keep up to date with changes in landlord tenant laws.
- Insurance – Get comprehensive landlord insurance to protect your investment.
- Open communication – Maintain clear and open communication with your tenants
- Professional help – Consider hiring a property management service for assistance
Let’s explore these further:
Screen Tenants
Carefully conducting thorough background checks including credit checks, employment verification and references can help you ensure you find reliable tenants who will respect your property and pay their rent.
Keep records
Becoming a landlord involves lots of administration. Maintaining detailed records of all financial transactions, communications with tenants and repair works can help you manage your property more effectively and provide evidence if any disputes arise.
Stay Informed
Landlord and tenant laws have changed frequently, staying informed about the latest legal requirements and best practices helps you remain compliant and protect your interest.
Insurance
Landlord insurance can cover risks not included in standard home insurance such as loss of rent, property damage and liability claims. It is a worthwhile investment to protect your asset.
Open Communication
Maintaining clear and open lines of communication with your tenants can foster a positive relationship and ensure that any issues are addressed promptly and amicably.
Professional Help
If managing the property becomes overwhelming consider hiring a letting agent. They can handle day-to-day operations, tenant relations and ensure compliance with all legal requirements.
Summary: Becoming a Landlord
So to recap becoming landlord involves understanding your legal obligations and adopting best practice to manage your property effectively by following these guidelines you can ensure a successful and smooth experience as a landlord.
We hope this video has provided some valuable tips for first time landlords. For expert help and advice on your property transactions please get contact the the Landlord Solicitors at Starck Uberoi.
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- The Buy to Let Conveyancing Calculator
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Buy to Let: A First Time Buyer’s Guide – provides a comprehensive overview of the legal, tax and borrowing considerations for the first time landlord
Instant Conveyancing Quote
At Starck Uberoi we are committed to providing you with efficient and clear legal advice. We understand that finding a reliable conveyancer can be a time consuming and difficult task; to make it easier for you, we provide a free, online conveyancing quote calculator to save you time on your search.
