Becoming aware of lettings-related laws is essential for landlords who want to protect their tenants and avoid a variety of sanctions, however a range of independent studies have revealed the shocking ignorance about all the regulations they must be following.
There are more than 140 statutes that are applicable to landlords, with many more coming in the coming years. It’s quite a issue for landlords to stay up with the ever-changing laws however, failing to adhere to the rules could cause landlords to be liable for fines or even jail penalties, so acknowledging that they are aware of and complying with the laws should be a top priority.
Here are eight important laws that many landlords aren’t aware of:
1.) The right to rent
Legislation passed in December will mean landlords who don’t abide by Right to Rent rules now are subject to fines up to PS3000 and up to 5 years in jail. This means that landlords and their letting agents must conduct sufficient checks on immigration to make sure that a potential tenant has the legal right to reside in the UK before renting a property.
2.) Energy Efficiency regulations
Rental properties must, generally be able to achieve at minimum an ‘E’ grade on the Energy Performance Certificate (EPC) before April 2018, or landlords might not be permitted to rent the properties out.
3.) Safety of electrical equipment
The recent white paper of the government on housing laid out an idea to address the problem of electrical safety. Although no details have been revealed, new laws are expected in April . These may require landlords to prove that their properties have passed an electrical installation checked in addition to proving that all electrical devices were subjected to a PAT test before it is rented out.
Visit Landlords Checks for more information on what you need to do when you are a landlord.
4.) Gas security
A recent survey by Gas Safe Register found more than one-in-five privately-rented properties have at least one hazardous gas appliance. Landlords are legally required conduct a gas safety test conducted by a certified professional, and to provide tenants with an official gas report at the beginning of their lease (and at least every twelve months after that).
5) Carbon monoxide and smoke alarms
Landlords are legally obliged to put in and keep at minimum one functioning smoke alarm on every property that is rented and carbon monoxide alarms in every room with any appliance burning solid fuel. The law was passed in October of 2015.
6) Are you seeking access to the property? Notify the owner
Tenants have to be given at minimum one hour’s notice should they want to access the property in the event of an emergency. If they don’t give notice, they’ll be in breach of their lease. Even after notice, tenants may restrict access.
7) Handle maintenance requests otherwise, you lose the power serve notice
The Deregulation Act in 2015 introduced an order that landlords have to handle repairs or maintenance requests made by tenants in a specific manner or risk being unable to get back ownership of the premises. Landlords now have to give an appropriate response to these demands in writing including their motives and the estimated timeframe in the event of any repair. If they do not, it are liable to nullify every Section 21 notice they serve.
8.) Reduction of tax relief for mortgage interest
The amount of tax relief for landlords will begin to be phased in starting April 2017. This means that landlords will no longer be able to claim their mortgage interest expenses from their rental income.