landlord authority and permmisions prior to letting

Whilst appropriate permissions should be sorted out and compliance issues dealt with, many first time landlords often simply choose to ignore these requirements for they are either oblivious to the consequences or simply wish to save money.

Permissions and compliance issues that MUST be complied with prior to letting the property

• Mortgage Company – The mortgage must be a Buy to Let policy or permission granted to let. Permission being granted can depend on a number of criteria such as current mortgages arrears, renting as an HMO [shared house], rented on an AST is usually mandatory. There are also strict criteria on the amount of rental income required to cover the mortgage payment. Many policies also impose restrictions on renting to tenants on housing benefit tenants such clauses are probably unenforceable due to discrimination laws.
• Buy to Let Insurance is required to cover liability to tenants, their guests and trades persons, where an apartment Landlords should ask the management company to see their policy [so they know what insurance they have in place]. Landlords should also be aware that many policies assume the tenant is a working professional, so if your tenant becomes unemployed update your insurer. Read policies and beware of clauses such as property empty periods. Know what you are and NOT insured for.
• Freeholder and Management company- Some properties have exclusions in their deeds that prevent them from being rented for they are exclusively owner/occupier. This should always be validated in the due diligence when acquiring a property.
• Renting Rooms or Shared Houses If renting rooms or letting a house to three or more sharers there could be HMO or planning compliance requirements.
• Mandatory HMO Licensing [and Additional Licencing) – It is mandatory that a landlord be in possession of a property licence where the property five or more persons occupying it and persons living in two or more households living in the property. Non-compliance £20,000 fine. ! Some councils have introduced Additional Licencing whereby they require you to have a licence where yu rent to 3/4 persons etc
• Selective Licensing – In some parts of the country, councils have powers of Selective licensing whereby JUST because the property, irrespective of type, is in a certain postcode the landlord MUST pay a fee to the local council. These historically were in areas of low housing demand in more recent times it is simply a nice earner for the council coffers.
• GAS safety – YOU CANNOT let a property without a valid Gas safety certificate.
• Energy Performance Check – Since April 2012, you cannot let a property to a new tenant without having firsly produced an Energy Performance Certificate report for that property.
• Deposits – Since April 07, ALL deposits accepted by tenants MUST be protected. As from April 2012 the definition for non compliance has been further defined as a result there are now mandatory penalties for failing to comply see April 12 Taking Deposits
• Fit for Purpose – Prior to occupation by a Tenant the property MUST provide a safe environment and comply with Health & Safety so before you let conduct a property inspection.
• Letting Agents – Sometimes a Landlord will make a conscious decision they simply do not have the time or inclination to deal with such compliance issues, in such circumstance consider employing the services of a managing agent. See Using a Letting Agent.
• Where a Landlord has failed to comply with the above they should remedy at their earliest opportunity this may mitigate any potential loss or fine arising from non-compliance.