When deciding to rent out a property, it’s not quite as simple as just deciding how much to charge each month and then finding a good tenant. There are many safety checks and permissions that you may need to seek before you can let your property out satisfactorily, which is why getting a letting agent involved can make your job as a landlord a lot easier.
Legal Requirements
First, all rental properties must have a valid Energy Performance Certificate which explains the energy efficiency of the property and rates it from A-G, with A being the most energy efficient rating. An EPC is valid for 10 years and can be checked on the Government website to see if it is in date. Currently it needs to be a minimum of a band E to comply, but there is talk of this being changed to a band C in the coming years.
When considering the safety of the property, there are two main checks that are legal requirements. An electrical inspection must be carried out at least every 5 years to ensure that the electrics are still up to current standards and comply with current legislation.
An annual gas safety check conducted by a qualified gas safe engineer is also necessary to ensure the safety of any gas appliances. Each floor must also house a working smoke alarm, and each gas appliance, apart from the oven/hob, must have its own carbon monoxide alarm.
Insurance
Building insurance for the property is the responsibility of the Landlord, so your insurer needs to know that you are renting the property and will likely need to be made aware if the property is due to be empty for any period of time. The tenants will need to be made aware that they are responsible for insuring their own contents.
Tenancy agreements
These should outline the terms and conditions of the tenancy between the private landlord and the tenant and are essential to minimise disputes and protect everyone’s interests. Landlords in England and Wales are also required to protect tenancy deposits by placing them in a government-approved tenancy deposit scheme (TDS) if the tenancy is an assured shorthold tenancy that started after April 6, 2007.
Consent
When looking to let a property out, it’s vital that you have the correct consents in place to be able to do so. If your property is owned with a mortgage, the mortgage lender needs to be aware that the property is a rental rather than a primary or secondary residence. This may affect your mortgage deal, and some mortgage lenders may not allow it in certain instances.
It’s worth checking with your mortgage lender or mortgage adviser, to ensure that you’ve got approval. If you’ve yet to purchase the property, then there are specific buy to let mortgages available.
Finally, if the property has a superior Landlord or a property management company, you’ll likely need to make sure that they are aware that the property is being let out and therefore get their consent for you to do this. Some buildings will have a clause in the lease that prohibits letting, be it short or long term, so checking with the people responsible for the building, if you’re not in a stand-alone property, is vital.
If you’re considering renting your property out, but don’t know where to start, or you have queries on the legislation, our Lettings team are available to guide you through it. Their support means they can monitor any changes to legislation, inspect and manage the property for any queries, and ensure a smooth transition to new tenants when agreements finish.
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