Mortgage - Check with your lender
If your property is on a mortgage, you are legally bound to inform your lender about your plans to let the property. Few mortgages do not allow you to let your property, and other mortgages would require you to obtain a consent form before letting a property. There are instances where your lender may levy a fee or alter your interest rate when you want to let your property. So the first and foremost thing you must do as a landlord if your property is mortgaged is to check with your lender about the rules and regulations that apply to your mortgage.
Leaseholders
If you are a leaseholder, you should check the terms of your lease, and obtain any necessary written consent before letting.
Rental insurance
Finding the right rental insurance for your property is vital to cover any damage caused to the property or its possessions during the tenancy. While your tenant will be required to take contents insurance, as a landlord, you will have to invest in suitable rental insurance to cover for the damages caused to the property, possessions in property, accidents or injury to the tenant, or any visitor to the property. Mention all the high-value items that you leave in the property and pay the appropriate cover in order to claim any damages. It will also protect you from any loss of rent or breach of tenancy.
Calculate your tax
If you decide to let your property, you are legally bound to inform HM Revenue & Customs as you will be liable to pay taxes. You will have to do a self-assessment tax return, and it may also affect the Capital Gains Tax when you decide to sell your property. You may want to take the help of a professional accountant.
Necessary renovations
First impressions always matter. When you decide to let, make the property look attractive to impress the tenants at the viewing. At the bare minimum, it is essential that you declutter, repaint and clean the property before you let it. You can also do decorative and purposeful renovations if you wish to quote a higher rent. We can advise you on redecorating your property for a more successful let.
Essential safety & Legal requirements
It is mandatory to ensure your property is safe and secure before you let. The mandatory safety checks include a gas safety test, electrical safety test, and appliances safety tests. Smoke alarms must be fitted on every floor for the fire safety test and any furnishings must have the relevant safety tag attached. Only after fulfilling these tests can the property be listed to let.
The Housing Health And Safety Rating System (HHSRS)
The HHSRS provides an analysis of how hazardous a property is through assessment of 29 potential hazards found in housing. Landlords have to maintain their properties to provide a safe and healthy environment. The HHSRS is enforced by local authorities.
Finding the right tenant
Being a landlord can sometimes be daunting as it is quite challenging to find the perfect tenant. When the background checks are skipped, you might end up with unreliable tenants who skip or delay rent, cause damage to property, and more. It is essential to keep a solid background verification in place to select the right tenant who suits your requirements.
With so much to consider and a currently climbing 177 pieces of legislation, landlords have quite a task when they decide to let their property. Proper documentation and finding the right tenant is the key to have a smooth tenancy.
Remember, you can always get in touch with us to ease the process and help you through the relevant LEGAL and COMPLIANCE paperwork, whilst finding prospective tenants from our pre-selected database.
Inventory list
Do a complete inventory listing for all the items kept within the property to avoid any disputes while the tenancy ends. Appliances, furnishings and other items on the property are mentioned in the tenancy agreement to keep track of your belongings while letting and at the end of the tenancy.
The Energy Performance Of Buildings (Certificates And Inspections) (England And Wales) Regulations 2007
From 1st October 2008 landlords offering property to let will be required by law to provide prospective tenants with an Energy Performance Certificate for their property. A new certificate will not be required on each let since, in the case of rental property, EPCs will be valid for 10 years. We have a database of registered energy assessors, and we will be pleased to arrange an EPC inspection and assessment on your property upon request.
Please note that we cannot market your property unless we have in our possession a valid EPC for the property.
As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector to normally have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches. This guidance summarizes the regulations. There are separate regulations effective from 1st April 2016 under which a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties.
For most landlords this will mean that they will no longer be able to rent out a property with a rating of F or G after April 1st 2018. As such landlords with properties in this EPC bracket should begin preparing now for April 1st.
Tenancy Deposit Protection
Since 6 April 2007, all deposits taken by landlords and letting agents under Assured Shorthold Tenancies (ASTs) in England and Wales must be protected by a tenancy deposit protection scheme. Landlords and letting agents must not take a deposit unless it is dealt with under a tenancy deposit scheme. To avoid any disputes going to court, each scheme is supported by an alternative dispute resolution service (ADR). Landlords and letting agents can choose between two types of scheme; a single custodial scheme and two insurance-based schemes. Learn more here.