Obligations as a landlord

Becoming a landlord comes with many responsibilities. In this episode, we discuss a landlord’s legal obligations in this role. Listen below to find out more.

Hello and welcome to this podcast brought to you by Charles Cameron and Associates. Today we will discuss how to be a landlord and your obligations in this role.  

Being a landlord comes with legal responsibilities, and before you go ahead and purchase an investment property, it is essential that you understand them and that you are prepared to fulfil them.  

The tenancy deposit scheme is one of the main things to understand when becoming a landlord. 

Nowadays, most tenancies are assured shorthold tenancies (also known as AST), and since 2004, landlords must protect the tenancy deposit with a UK government-approved deposit protection scheme. The landlord must do this within a given timeframe and issue the tenants the deposit scheme’s prescribed information and supporting documentation. Deposits must be returned in full at the end of the tenancy unless there is a dispute about damage caused to the property or unpaid rent.  

Next up is an Energy Performance Certificate (or EPC) 

As a landlord, you must purchase an EPC for a property before you let it. EPCs are valid for 10 years. Right now, the property must have a minimum EPC rating of E, but the recent Government change in rules will require that from 2025, all newly rented properties will have an EPC rating of C or above. Landlords with existing tenancy contracts in place will have until 2028 to implement these changes.  

One more important requirement for landlords is to have a building insurance policy in place. You have no legal obligation to have landlord insurance, but most buy-to-let mortgages include this as a condition. This insurance should cover the structure of your property, which should cover the rebuilding costs in the event of a fire or flood. 

Moreover, landlords must ensure that their property is safe for their tenants by following the below safety precautions:  

• A working smoke alarm must be installed on each floor of the property.
• Carbon Monoxide Detectors must be placed in rooms with a coal fire or wood-burning stove.
• Gas Safety Certificates must be obtained for each gas appliance inside the property.
• Any furniture supplied to tenants must meet current fire safety standards and display appropriate labels.
• All electrical devices must be tested for safety, and it is recommended that you use PAT

(Portable Appliance Testing) to ensure you are compliant. 

Landlords are also responsible for keeping the equipment supplying water, gas and electricity in safe working order. 

It’s important to remember that tenants are not responsible for repairing the property. As a landlord, you are responsible for most maintenance and repairs needed to the exterior or structure of a property. This means that the landlord is responsible for any problems with the roof, chimneys, walls, guttering and drains. These could include a cracked window, clogged gutters, a faulty boiler, a leak in the kitchen or a leaky seal in the window to give a few examples. 

Next up is the Right to Rent. 

Landlords have a legal responsibility to check that tenants that occupy the property have legal status to live in the UK. If a landlord does rent out a property to a tenant who does not have the right to rent, the penalty is an unlimited fine and up to 5 years in prison. 

In June 2022, the Government announced new rental reforms which affect landlords. The key information of this announcement was the confirmation that section 21 evictions will be scrapped, meaning that landlords can not evict tenants without a ‘valid’ reason anymore. Moreover, landlords will no longer be able to ban families with children or people receiving benefits from renting their property without a ‘good reason’ or to unreasonably withhold consent to own a pet in their home.   

Finally, if you decide to self-manage the property, remember that communication is at the base of everything. This is not a legal requirement, but setting up a great communication channel is essential to create a good relationship with your tenants. It is always better to communicate in writing, phone calls can be inconvenient, and it is always better to have a record of every conversation. Any form of writing would work, messages, whatsapp, emails and/or letters.  

Remember, you should always get independent and professional advice from a fully qualified mortgage adviser to understand and explore all available options. Our team of friendly brokers are waiting to support you!  

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