The Legal Requirements facing Landlords and how to Meet them
For those aspiring to be private landlords, the current market makes for an extremely inviting proposition. The buy-to-let market is currently riding high in the UK; with confidence soaring and plenty of demand for those who cannot afford to purchase properties. The result of this is that nearly half of British home-owners currently harbour ambitions to become a landlord in the next two years, at least according to recent studies.
While this should come as no surprise, however, there remain concerns that the majority of aspiring landlords have significant gaps in knowledge with the regards to the buy-to-let market. Although many understand the benefits of operating as a private landlord, for example, fewer have a grasp of the associated tax requirements and implications.
The Legal Requirements Facing Landlords: 3 Important Considerations
With this in mind, let’s take a look at some of the pressing legal requirements that landlords must attend to if they are to comply with UK law. These include: -
1. 1 Tenant Deposits and Short-hold Lease Arrangements
The tenant deposit is a central feature of the buy-to-let market, and landlords must be particularly careful in terms of how they handle this capital. This is especially true if the property is let under an assured tenancy that commenced after 6th April 2007, as landlords bound by these terms are obliged by law to place all deposits in a tenancy protection scheme. There are currently three schemes that are operated in England and Wales, and you comply with this relatively new law if you are to avoid sanctions.
1.2 Gas and Electrical Services
Arguably the single most important law for buy-to-let landlords to follow concerns the provision of gas and electrical services. Not only must you organise an annual inspection of your gas supply and all functional appliances, for example, but you must also ensure that this is carried out by a tradesman who is industry accredited by the Capita Group. Failure to comply with these regulations will result in criminal sanctions and a potential fine of up to £25,000. In terms of electrics, you must also complete a comprehensive inspection and safety check to the commencement of a tenancy, utilising the services of a Part P qualified electrician.
1.3. Energy Performance Certificates
On a final note, modern landlords are also required to provide either rental or purchase properties with up-to-date energy certification. This comes in the form of an Energy Performance Certificate (EPC), which records numerous performance factors including insulation, heating, hot water systems, ventilation and the use of fuels. The average EPC rating for a British dwelling is band E (46), and you should aim to achieve this as a minimum standard. This will not only help you to provide a compliant rental home, but it will also assist in affordably future proofing the structure over time.
From Vickie Harrison