New reports have shown that one of the most prominent Estate Agents in the UK has allowed its landlords open to fines of between £9million and £30million collectively in the last few days.
This is all because they allegedly failed to send some paperwork to their tenants at the start of their tenancy.
This has had many West Lothian landlords picking up the phone to us to ensure they and their property are fully compliant and up to date with the ever-changing regulations
So, what should every landlord consider to ensure they safely & confidently navigate the minefield of regulations?
To start with, there are currently over 150 pieces of legislation. Listed below are some ‘headline’ ones that you should be aware of.
Registering Your Tenant's Deposit
Every landlord (or their agent) needs to register the tenant’s deposit within one of the three government approved Tenancy Deposit Schemes. It is believed that one in six tenants' deposits are not registered, leaving the landlord (not the agent) liable to a fine up to three times the deposit amount. Additionally it is extremely difficult to evict a tenant under these circumstances.
When your tenant pays their deposit, it has to be protected in one of the government-approved schemes within 30 days of the tenancy start date. Once the deposit is lodged you are then responsible for giving your tenant proof that it has been registered. That must include information on which of the three schemes have been used (The Lettings Protection Service, My Deposits Scotland or the Safe Deposit Scotland Scheme) and how your tenant can get their deposit back at the end of the tenancy.
Gas Safety Certificates
Every landlord must offer 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 your tenant must receive a copy.
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, albeit it's for your rental property. Basically it gives prospective tenants an idea of how energy efficient the property is. If you don’t have an EPC, you can't rent your property. Also, from this Summer, rental properties have 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.
Anything Else Landlords Should Be Aware Of?
How about ..
Smoke alarms
Licencing
Health and Safety
Client Money Protection
Homes (Fitness for Human Habitation) Act 2018
Fire safety risk assessment
Legionella risk appraisal
Electrical Safety checks
That’s just the tip of the iceberg
The list goes on …
As you can see, there are many things a landlord must consider when it comes to being legal & compliant. Yet, apart from a logistical nuisance there are actual financial penalties involved if you do not observe with all your landlord obligations.
Final Thought For All Landlords
Landlords can make sure they are fully compliant by having a Landlord Compliance Health Check with ourselves at KnightBain. The cost of the compliance check is £150.00. We can, within a couple of days, give you peace of mind that you are compliant or recommend what steps need to be taken to bring the property in line with legislation be you a landlord that manages your own property or even if it’s managed by another agent, because as many landlords are finding out, even being with some of the most prominent Letting Agents in the UK does not guarantee you would safe from prosecution).
Call me, Mark, on01506 852000and let's have a no-obligation chat before you commit to anything. What have you got to lose versus you potentially losing thousands of pounds.. the choice is yours?
