If you are just about to embark on becoming a landlord for the first time, this can be an exciting venture and something that can give you some extra financial security, however it is also something that comes with big responsibilities. When you rent out a property, there are lots of things that need to be managed correctly.
Firstly, it is important that you are aware of all of the regulations for landlords. Landlords in the UK need to make sure that their property is safe for the tenants and this means that you meet legal requirements. For example, you need to make sure that you have a valid Gas Safety Certificate done annually, ensure that there are suitable smoking alarms and carbon monoxide detectors in the correct places and also have an electrical safety report done. It is wise to look into these things to ensure that you meet the criteria before letting out your property.
Another thing that you need to ensure is that a deposit that is taken from the tenant for the property is placed in a deposit protection scheme that is approved by the governments and also that the necessary checks are done on tenants to ensure that they are able to rent the property.
For new landlords in particular, it is advisable that you use a professional local letting agent like this letting agents Gloucester based company www.thomasandthomasproperty.co.uk as they will be able to deal with the management of the property and also handle things like marketing of the property and dealing with maintenance issues which may arise.
Choosing the right landlord insurance policy
Insurance is one of the first things to sort out, because a landlord policy is very different from ordinary home insurance. A cheap policy is only good value if it gives the comprehensive cover a landlord needs, so check the details before comparing prices.
Loss of rent cover is one of the most useful extras. It pays out if rental income stops because the property is damaged or a tenant has to be evicted, which matters when the rent is the whole point of the investment. Public liability cover protects you if a tenant claims for injury or for damage to their belongings caused by a hazard in the property, covering damages and legal costs for both sides if you are found at fault.
There is plenty of competition among insurers, so get several quotes, and consider using a broker. As with home insurance, making the property safer can cut your premium, so fit smoke detectors, a burglar alarm and insurance-approved locks on doors and windows. Alongside insurance, remember your duties to tenants, such as protecting their deposit in a government-approved scheme and checking their right to rent.
Legal checks before a tenant moves in
Before anyone moves into your property, there are several legal checks to complete, and it is the landlord’s responsibility to make sure they are done. This is a starting point rather than an official guide, so take professional advice as well.
You must confirm that the tenant is over 18 and has the right to live in the UK, which means seeing and checking their documents yourself. It is also sensible to have a detailed inventory of the property and its condition completed before the tenancy begins.
The property’s safety must be confirmed before it is let. You need a valid Energy Performance Certificate, and a fire risk assessment should be carried out where it applies. Smoke alarms and carbon monoxide alarms must be fitted and tested. Gas appliances and the boiler need a safety check every year, and electrical safety checks are required too. There are other obligations, but these are the most important ones to have in place first.
Safety duties and deposit protection
Keeping the property safe is the first legal duty of any landlord. That means an annual gas safety check, electrical installations that meet safety standards, working smoke alarms, clear and accessible fire escape routes, and fire-safe furniture where you supply it. Failing to meet these duties can lead to fines and, in some cases, criminal liability.
Safety also depends on good repair. Some upkeep falls to the tenant, but the exterior and structure of the building are the landlord’s responsibility, along with water pipes, electrical wiring, plumbing and heating. Landlord insurance helps make sure you are not left seriously out of pocket when something goes wrong.
Any deposit you take must be placed in a government-approved deposit protection scheme, and the tenant must be told which scheme holds it. Failing to protect the deposit or to notify the tenant can lead to heavy penalties. Tenants should also receive the tenancy agreement, the property’s EPC rating and copies of the safety certificates.