Here are a few examples of current regulations governing the letting of property, but these examples do not represent a complete list of the same.
As a landlord, you have an obligation to ensure that your property complies with all the necessary regulations covering the safety of gas appliances, electrical installations and any furnishings supplied for the tenancy. We will advise you on this and arrange the necessary inspections.
This legislation relates to the 'supply' of furnishings in property that is available for letting. It is an offence to 'supply' furniture, which does not comply with the Fire Resistance Regulation as in Regulation 14 of the 1988 Regulations. Essentially any furniture provided by a landlord must carry appropriate labels and meet the fire resistance regulations. Landlords should ascertain whether their furnishings conform to these regulations and not purchase (either new or second hand) any furnishings, which do not conform or carry the appropriate labels. Furnishings manufactured pre 1st January 1950 are exempt from this legislation. We understand this legislation to include: Generally all domestic upholstered furniture, furnishings and other products containing upholstery. Including the following which may contain upholstery - Beds, headboards, mattresses, sofa beds, futons and other convertibles, nursery furniture, garden furniture suitable for use in a dwelling, scatter cushions, seat pads, pillows, loose and stretch covers; But not curtains, carpets, duvets and bedclothes. Our advice to all landlords is that non-compliant furniture and furnishings be replaced. We ask that landlords consider the intention behind the regulations, which is not to cause them unnecessary expense but to save lives.
As from the 1st June 1992 regulations require that properties built from that date must be fitted with mains operated fire detectors on every floor. We believe it is a matter of time before all properties within the private rental sector will fall within these regulations. We therefore strongly recommend that smoke and carbon dioxide detectors are installed in all property to be let.
All gas appliances, pipe work, flues and installations MUST be checked annually and a report issued confirming the inspection has been carried out. This safety check can only be carried out by a suitably qualified GAS SAFE registered contractor / engineer. Under the Gas Safety Regulations all letting agents (whether managing the property or not) are responsible for holding on file a copy of the Landlords Gas Safety Certificate issued by the qualified GAS SAFE registered engineer. A copy of the certificate must be provided to the Tenant prior to a tenancy commencing. In the event the engineer or contractor fails any items that require inspection it will be the landlords responsibility to ensure such failure is remedied and the certificate re-issued with a full pass.
These regulations apply to the electrical supply along with new and second-hand equipment including mobile and fixed appliances e.g. kettles, irons, vacuum cleaners, cookers, etc. All electrical appliances plugs sockets and wiring in a property and the electrical supply must be 'safe', will not cause 'danger' and must comply with statutory requirements. All new electrical appliances must carry a 'CE' mark. Instruction booklets or clear working instructions must also be provided. Newly installed plugs and sockets must also comply with regulations.
If you have a freehold property with no mortgage on it, there should be no title barriers to letting. If you have a leasehold property however, you must check the lease in connection with sub-letting and obtain the necessary consent if required. If you have a mortgage on the property, consent may also be needed from your lender.
You will need to make sure both the property and its contents are fully insured. This requirement is normally provided for in the Tenancy Agreement. You must inform your insurance company that the property is to be let, check that the conditions of the policy are complied with and that there are no restrictions on letting.
As a general rule, tenants are responsible for paying all gas, electricity, telephone, water and council tax bills during their tenancy. However, you can make exceptions which should be covered in the Tenancy Agreement.
We recommend that you create a detailed inventory for every tenancy. We can help you find a professional freelance inventory clerk who can do this swiftly and efficiently. This kind of agreement protects both you and your tenants. Under the terms of the Tenancy Agreement, the tenant must return the property and contents in the same state and condition as recorded in the inventory, fair wear and tear excepted. If you do want to make a claim for damages, the inventory will form the basis of that claim.
Rental income is subject to UK income tax at the appropriate rate. Legislation exists and applies to all non-UK resident landlords including non-UK resident trusts and overseas companies. Those serving with the British armed forces, serving members of the diplomatic service and other Crown servants are included within these regulations. Under the present system of self-assessment landlords may apply directly to the Inland Revenue for an 'approval number' enabling rent to be paid from their agent to the landlord without deduction of tax. Please contact us for details of how to apply for the relevant forms.
