5 Legal Requirements You Have as A Private Landlord
As a private landlord, there are several responsibilities that you must uphold legally in respect of your tenant. Whether you’re a new landlord embarking on your first buy-to-let property, or you have experience managing a portfolio of properties, understanding what legal requirements you have is absolutely key to protecting your investment, protecting your tenant, and protecting yourself. Here at RDC Solicitors, we regularly work with both tenants and landlords in a variety of areas. So, here is your comprehensive list of the top 5 legal requirements you have as a private landlord.
1. Keeping your Tenants Safe
Keeping your rented properties safe and free from health hazards in order to protect your tenants is a key responsibility as a private landlord. For example, it is imperative that gas, electrical and fire safety requirements are strictly adhered to. By law, if there is a gas supply you must have an annual gas inspection at your property and a copy of the gas safety certificate must be provided to tenants.
In addition, all electrical fittings within the property must be safe throughout the tenancy, and if you are a landlord of a house that is occupied by multiple people (HMO), by law you must have an electrical safety test carried out on the property once every five years. Finally, fire safety obligations must also be met, which include making sure your property has an accessible escape route, providing fire safe furniture and furnishings, and ensuring that fire alarms and carbon monoxide detectors are fitted in the property.
2. Energy Performance Certificate
Unless there is a registered exemption, every tenanted property requires an Energy Performance Certificate (EPC) which must be rated E or above in line with MEES regulations.
3. Financial Responsibilities
As a private landlord, you have to pay Income Tax on your rental income, minus your day-to-day running expenses, plus Class 2 National Insurance if the work you do renting out property counts as running a business. It’s also worth noting that if you have a mortgage on the property you want to rent out, you must get permission from your mortgage lender.
It is also your responsibility to protect the tenancy deposit with a UK government approved deposit protection scheme for assured shorthold tenancies (AST). A landlord of an AST who doesn’t protect the deposit can not only be fined, but it can make it more difficult to end the tenancy. Unless there is a dispute about damage caused to the property or unpaid rent, deposits must be returned in full at the end of the tenancy.
4. Right to Rent
The law requires all landlords of private rental accommodation in England to carry out Right to Rent checks for new tenancy agreements. This is primarily to determine whether occupiers aged 18 and over have the right to live in the UK legally. Failure to comply with the requirements of the Immigration Act can result in penalties including unlimited fines and up to 5 years in prison.
5. Repairs to the Property
As a private landlord, you are responsible for most of the repairs to the structure or exterior of the property. For example, any problems with the walls, guttering, roof, chimney, or drains are the landlord’s responsibility, as well as any problems with the equipment that supplies water, gas, and electricity.
For more information about legal requirements as a private landlord, please contact us on Bradford 01274 735 511, Bingley 01274 723 858 or Ilkley 01943 601173. If you’re in the position where your landlord isn’t upholding the responsibilities above, we can also help.
