Starting a Tenancy Check List

As from 1 st June 2019 the start date for the Ban on Tenant Fees – Gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. There are very strict rules, caps on deposits, restrictions on holding fees and defined permitted charges

Prior to granting a tenancy, you must comply with some basic ground rules of letting a property. Always use and have a signed credible binding tenancy agreement this will protect your interests. Always ask for a guarantor and ensure such is witnessed. Be diligent in your tenant vetting process for removing problematic tenants is often a drawn out affair.

A popular question asked by new Landlords is “Should I manage the let myself or use a Letting Agent? If you are new to being a Landlord read this section thoroughly.

Prior to granting a Tenancy you must have authority to Let

The Mortgage company must grant permission to let and you may need to convert your mortgage to a buy to let policy.
If renting apartments you may be required to check with your management company that you have permission.
The Freeholder as there may be restrictive convenants on the property.
If renting rooms or letting a house to three or more sharers there could be HMO or planning compliance requirements.
Your insurance company – You will require a Landlord’s policy otherwise, you may not be covered in the event of damage, fire, theft or personal injury claims.
An Energy Performance Certificate (revised April 2012) must be commisioned prior to advertising the property

Basis Legal requirements

Taking Tenant deposits – Since 6th April 2007 (revised rules April 2019 See PIMS Full Guide to Tenant Fees Act)- Where a Landlord or Letting Agent issues a tenancy agreement which is in respect of a new tenancy or a tenancy being renewed, if a deposit is received such deposit should be protected in an authorised tenancy deposit scheme. Deposit capped 5 weeks rent upto 50K rent per annum 6 weeks cap above
Deposit information MUST be issued to the Tenant within 30 days or be fined
Do not discriminate when advertising or conducting viewings – The Disability Discrimination Act, Sex, Race Relations Act also apply to anyone letting.

Health and Safety

Ensure that the property is fit for purpose before habitation
An Annual Gas Safety check is required to be conducted by an approved Engineer.
An Energy Performance Certificate must be commisioned prior to advertising for the property for let
Ensure Electrical Safety and compliance of supplies with Building Regs Part P.
Ensure the fire safety of Furniture and Furnishings provided under the tenancy.
You must keep in working order the premises and any equipment supplied which is specified in the inventory see Landlord Repair Obligations.
The common areas in multi-occupancy dwellings see HMO and Smoking in rented premises
Since March 1997 a tenant has the right to ask their Landlord to provide a statement of the terms of their tenancy.

What is the tenant responsible for ?

The tenant’s obligations are defined in the Tenancy Agreement . The minimum requirement should be no less than rent payable (when, amount and rental period), taking care of the property, payment of bills for council tax, gas, water, electricity, telephone, etc.

How to minimise risk and make protect yourself from loss

Inventory when checking out – should the tenant refute any damage or deductions the burden of proof will be on the Landlord or their Agent. The landlord must then be in a position to substantiate such a loss see inventory check out .
If you had issued the correct documents at the inception [tenancy application stage] of the tenancy you will be better placed to recover any loss for you are able to trace the tenant or pursue a Guarantor.
Move in check list before tenant moves in .
Failure to comply the legislation including providing the tenant with prescribed information exposes you to Penalties and fines.
The Tenancy Agreement – MUST always be signed prior to move in
Landlords Insurance should at least cover the following.
Compliance with rent arrears and pursuing Eviction processes are very defined.
Compliance with the new Landlord Tenancy Deposit rules.
As part of your management process issue a Section 21 Notice as good practice.