The Landlord Compliance Health Check - Are You Compliant?
Purplebricks could be facing a huge £30m payout after it allegedly failed to properly serve legal documents to tenants regarding the registration of their deposits into a registered protection scheme. This could put thousands of landlords at risk of being fined through not following basic tenancy law.
Recent reports indicate that one of the most prominent Estate Agents in the UK had allowed its landlords to be potentially open to fines of between £9million and £30million in the last few days. This is because they allegedly failed to send legal paperwork to their tenants when their tenancy started.
This has had many Derby and Burton landlords picking up the phone to us to ensure they are compliant with their own rental properties.
This has prompted me to write an article to quickly detail what every landlord should consider to ensure they are compliant and won’t be fined.
To start, there around 170 pieces of legislation governing the private rental sector and the following are some of the most important ones that landlords should be aware of, especially if they choose to manage their property themselves.
Registering your tenant's deposit
Every single landlord - or their agent - needs to register the tenant’s deposit. It is believed that one in six tenants' deposits are not registered, leaving the landlord liable to a fine three times the amount of the deposit. This is the landlords liability whether they use an agent or not. As well as a hefty fine, it also makes it very difficult to potentially evict the tenant should this be necessary.
When your tenant pays their deposit, it has to be protected in one of the government approved schemes within 30 days.
Even if you do register the deposit, you must also give your tenant proof of being in the scheme. That must include information on which of the three schemes you chose; The Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS). You must also give the tenant details on how they can get their deposit back at the end of the tenancy.
Gas Safety Certificates
Every Derby and Burton landlord must provide a safe rental home for their tenants. Every rental property must have an annual Gas Safety Certificate. The certificate, issued by a qualified and registered Gas Safe engineer, is only valid for 12 months. All certificates must be retained for 24 months, and you MUST give your tenant a copy of the existing, valid certificate prior to the tenancy starting. Again, not doing this will could render any eviction procedures null and void.
EPC for your rental property
The Energy Performance Certificate (EPC) is just like the colour coded energy rating diagrams you see on fridges and washing machines. In this case, it shows the energy efficiency rating of your rental property. If you don’t have an EPC, you cannot even advertise your property for rental, never mind let it out.
Also, since this Summer, rental properties have had to achieve a minimum energy efficiency rating of 'E'. If your property doesn't meet this requirement, you'll be unable to rent it out, although there are a handful of exemptions. Again, you also must give your tenant a copy of the up-to-date EPC certificate. (There is a detailed blog on EPC regulations HERE).
Right to rent checks
Every landlord can only let their property to a tenant who has the legal right to rent in the UK. You have the legal responsibility of checking the prospective tenant’s identification and confirming that the tenant is legally in the British Isles. If you let your property to someone in the UK illegally, you may face a substantial fine.
Anything else landlords should be aware of?
How about...
Smoke Alarms
Local Authority Licencing
Health and Safety
Client Money Protection
Homes (Fitness for Human Habitation) Act 2018
Fire Safety Risk Assessment
Legionella Risk Appraisal
Electrical Safety Checks
Tenant Fee Act 2019
The list goes on!
As you can see, there are many things a landlord must consider when it comes to being compliant. As well as the logistical nuisance that adhering to these regulations offer, there are quite substantial financial penalties involved if your landlord obligations are not met.
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Final Thought for all Derby and Burton landlords
Landlords can make sure they are fully compliant by having a 'Landlord Compliance Health Check' with our letting experts at Professional Properties.
The cost of this Health Check... absolutely nothing!
All we want to do is give you peace of mind that you and your property are compliant. You may be a landlord that manages your rental property yourself or you may be with another agent - lets be honest, landlords using of the most prominent Estate Agents in the UK was no guarantee that they would be safe from prosecution!
Call our team on 01332 300190 and we can arrange a no obligation chat with one of our legal eagles. If you prefer, fill out the form on this page and send it to us.
What have you got to lose? Apart from potentially thousands of pounds!