Residential Lettings and Property Management
Southsea Branch
02392 293300
North End Branch
02392 658044
Southsea Branch
02392 293300
North End Branch
02392 658044
Whether you are a portfolio landlord or a first time investor legislation can sometimes become a bit of a minefield with rules and regulations constantly changing and updating. As an ARLA registered agent we ensure that we have our fingers on the pulse when it comes to legislation and can advise on how to stay compliant and avoid the large array of penalties for not staying within the law.
It is the Landlords responsibility to make sure that their property is fit for habitation. There are many areas which you will need to take into consideration when renting a property. By law it is the Landlords responsibility to ensure that all health and safety legislation is followed. The structure of the dwelling needs to be safe and any obvious hazards need to be dealt with promptly e g. a loose carpet on the stairs which could form a trip hazard, or an electrical socket hanging off the wall which could be a potential danger.
Tenant Network are specialists in Letting Property in Portsmouth and Southsea and can offer you total peace of mind that you property will be safe and advise on any improvements that need to be made. All work can be arranged via our network of local skilled tradesmen.
Below our some of the key areas which all Landlords should up be to speed with.
The current Gas Safety (Installation and Use) Regulations 1998 are designed to prevent injury to the public from carbon monoxide poisoning, fire and explosion. These regulations specify that it's the duty of landlords of 'relevant premises' to ensure that all gas appliances, fittings and flues provided for the use of tenants are safe. By 'relevant premises' they mean all residential properties occupied for residential purposes under a licence or a tenancy agreement for a set term.
What does the law require of you?
As a Landlord, You're legally required to ensure that:
What happens if you fail to comply?
Recent high profile prosecutions of landlords who have breached gas safety laws have highlighted the issue of tenant safety. Prosecution could result in a maximum penalty of £5000 for each offence. If the case goes to crown court, the maximum penalty could be an unlimited fine, or even imprisonment.
It is important to ensure that all electrical appliances and fittings within a rented property are safe and in good working order. Unlike gas regulations, there is no law that says you must have a landlord electrical safety certificate. But, should any electrical fittings or appliances within your rental property cause harm to a tenant you could be held liable. The tenant could sue you for damages and or worse you may be brought before a court for negligence under the regulations.
Regulations
There is no statutory obligation on landlords or agents to have professional checks carried out on the electrical system or appliances. However, under the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets etc. (Safety) Regulations 1994, both of which come under the Consumer Protection Act 1987, there is an obligation to ensure that all electrical equipment is safe.
In January 2005 new legislation under Part P of the Building Regulations make it a requirement that for certain types of electrical work in dwellings, plus garages, sheds, greenhouses and outbuildings comply with the standards. This means a competent electrician must carry out the work. For DIY electrical work you must belong to one of the Government's approved Competent Person Self-Certification schemes or submit a building notice to the local authority before doing the work.
Pat Tests
We recommend that PAT (Portable Appliance Test) is carried out on all electrical appliances left within a rented property an inspection and testing frequency of 12 months should be adequate. The guidance contained in the "IEE Code of Practice for in-service inspection and testing of electrical equipment" refers to electrical appliances rather than fixed installations although the document does state: "Similar procedures must be followed for the fixed installation". There are two main Acts of Parliament that impose a statutory duty on landlords with respect to the safety of electrical equipment:
The Consumer Protection Act affects all persons who let property in the course of their business because it defines them as "suppliers", i.e. they are supplying goods to the tenant. There are several items of secondary legislation under the umbrella of the Consumer protection Act which are directly relevant to the supply of electrical goods, including:
In essence, these regulations impose a duty on landlords to ensure that all electrical equipment supplied by them is safe for use by the tenant.
Compliance
We would strongly recommend that any Landlord, regardless of whether they see themselves as running a business or not, should make absolutely sure they are complying with these regulations to ensure that all electrical equipment supplied is safe.
In order to do this we recommend:
What happens if I fail to comply?
If you let property you must ensure that the electrical system and all appliances supplied are safe - failure to comply with the Electrical Equipment (Safety) Regulations 1994 and The Consumer Protection Act 1987 is a criminal offence and may result in:
Due Diligence
In the event of a tenant complaint or an incident the defence of "due diligence" may be accepted where it can be shown that the landlord took all reasonable steps to avoid committing an offence. However you will need documentary evidence of this.
From October 1st 2008, Landlords must provide Energy Performance Certificates whenever a new tenancy is due to begin. This means that landlords will have to organise an EPC in advance of a new tenancy, as the law requires you to show prospective tenants copies of the EPC on request, and to provide the EPC to the eventual tenant before the agreement is signed.
An EPC on a rental property lasts for ten years, whether or not improvements are carried out. In other words, if you carry out works such as extra insulation, you do not need to have a new EPC. However, if you do, then you are obliged to show this latest current EPC to prospective and eventual tenants.
The need for home energy certificates is required due to EU legislation the directive for the UK is known as 2002/91/EC. Certificates can only be issued by a qualified energy assessor or home inspector.
Property that is owned by a landlord and is part of their rental property portfolio will be subject to energy assessment to establish the performance of the building in a similar way to residential domestic property. A rating between A-G will be issued A meaning your home is very energy efficient and G meaning your home is inefficient there isn't any requirement by law to make improvements to improve efficiency its just mainly for tenant information. You risk being fined for failing to produce an EPC.
Most new furniture is marked with a display label (a triangle with a smoking cigarette) to show that it complies with this regulation. There should also be a permanent and non-detachable label stating compliance. Bed bases and mattresses are not required to bear a permanent label but compliance will be indicated if the item has a label stating that it meets BS7177. The aim of the regulation is to improve safety by requiring all furniture and furnishings in rented properties to meet the 'match test' or 'cigarette test'.
The regulations apply to all upholstery and upholstered furniture and loose fittings, permanent or loose covers including: beds, mattresses, pillows, armchairs and scatter cushions.
You therefore need to replace non-conforming items or let your property on an unfurnished/ part furnished basis. Carpets and curtains are not covered by the regulations.
In April 2007 it became law that all deposits collected by landlords or agents need to be registered in either a custodial scheme or an insurance based scheme. The schemes protect all deposits on assured short hold tenancies in England & Wales covering most tenancies since 1997. The Deposit protection service (DPS) is the main custodial scheme this works by the landlord /agent registering and then sending any deposits to the DPS who will then hold the deposit throughout the life of the tenancy. It is a free service and interest is split between the landlord and tenant. At the end of the tenancy the tenant applies for there deposit back and as long as the landlord does not require any money from it. If the landlord and tenant can't agree on a satisfactory figure the (ICE Independent case examiner) would adjudicate and decide on who gets what.
Tenancy Deposit Protection is designed to ensure:
The Housing Act 2004 (Chapter 4, sections 212-5; & Schedule 10) made provision for both the protection of tenancy deposits and the resolution of disputes over their return. The Dispute Service has been awarded a contract by the Government to run one such scheme: The Tenancy Deposit Scheme (TDS).
At Tenant Network we use the TDS (The Dispute Service) an insurance based scheme which works in very much the same way as the DPS the only difference being that the money is held in our secure client account and insured by the TDS. At the start of the tenancy both landlord and tenant will receive a certificate showing the amount of deposit held the name of the landlord, the names of all the tenants, the property address and the dates of the tenancy.
Within 14 days of receiving a deposit The landlord or agent must give the tenant the details about how their deposit is protected including:
Click here for an example of a certificate
At the end of the tenancy if we manage the property we would carryout a checkout inspection with the outgoing tenants whereby the inventory would be checked. If there was any damage or any items missing it would be noted by the checkout clerk and a check out report would be signed by the tenants stating that they are happy with our proposals. If the property is left in good order as it was taken the tenant would receive the deposit back in full. If there are repairs or items that need to be replaced we will get quotes immediately and on agreement with the landlord and tenant refund them their deposit minus any money held back for repairs or missing items. We act as an intermediary and try to ensure both tenant and landlord find common ground on the check out. In the unlikely event this is not possible then the case would be dealt with by an ICE from the TDS. Any disputed amounts would be withheld until the ICE had made their decision.
What are the penalties for failing to comply?
If a Landlord or agent fails to comply with deposit legislation they maybe ordered to pay the tenant three times the amount of rent paid over the duration of the tenancy, and further penalties include being unable to serve a section 21 notice for repossession of the property.
From April 2006 new legislation came into effect that states that all landlords and property managing agents who let large houses in multiple occupation (HMOs) need to apply for an HMO licence.
Properties of three or more floors, with five or more tenants sharing amenities or where two or more households reside in the same property sharing amenities will need a HMO licence. Licences are granted by local councils and last for 5 years. When applying for a HMO licence the council will arrange a time to inspect the property, they will be on the look out for any health hazards that do not comply with HHSR regulations. If any faults are found with the property the landlord will be given notice to rectify the faults, and a further inspection will be arranged to inspect the property before a licence is granted
We can advise on the prices and processes for obtaining an HMO licence call one of our members of staff on 02392 293300 if you require further information.
Listed below are some factors that local councils will have to consider before they grant a HMO licence.
In determining whether or not the proposed licence holder is a fit and proper person, the council will also take into account a number of factors including:
Also, whether the proposed licence holder has:
What are the penalties for non compliance?
It is a criminal offence not to have an HMO licence and you could be fined up to £20,000. Local councils will also be able to use rent repayment orders to claim back rent and housing benefit paid while the property was operated without a licence.
The Building Regulations 1991- Smoke Alarms
The 1991 Building Regulations require that all properties built since June 1992 must be fitted with mains operated interlinked smoke detectors/alarms on each floor. Such regulations regarding older properties do not exist but we strongly recommend that smoke alarms are fitted on each floor of all let properties and are regularly tested to ensure they are in full working order.
In the case of HMO property where there is a more stringent smoke alarm requirement, this part of the Repairing standard will only be met when the HMO smoke alarm conditions are met.
Approved carbon monoxide detectors are strongly recommended in rented properties, although these must not be used as a substitute for regular checks and servicing by a GAS SAFE registered installer.
Symptoms of carbon monoxide poisoning can include tiredness, drowsiness, headaches and breathlessness. Anyone who thinks carbon monoxide may be causing them problems should seek urgent advice.
