A Landlord's Guide to Residential Letting

Mortgage Consent

If your property is subject to a mortgage or bank loan, written permission will be required to sub-let.  Allow yourself enough time to acquire this before beginning the rental process.

If your property is leasehold, you need to obtain written permission from the superior landlord or freeholder to sub-let.  There may be a charge for this.  You must also confirm if there are any conditions governing the sub-letting of your property.

In some areas, a licence to let is required for privately owned rental property.  Your local council department will provide you with the details of how to apply and the costs. 

You must inform your insurers that you intend to rent your property and ensure the building and contents are adequately covered.

In England, rental properties must meet minimum energy efficiency standards. You must have a valid Energy Performance Certificate in order to market your property. A property must have an (EPC) rating of at least E to be legally let.

If you have gas in your property, i.e. boiler, gas oven, hob or gas fire; then you will need to ensure that the appliance is maintained in a safe condition and checked by a Gas Safe registered engineer and a safety certificate issued every 12 months.

Every floor in your property must have a working smoke alarm and a carbon monoxide alarm in each room where there is a solid fuel based appliance.

If you are intending on renting your property with any items of furniture, you must ensure that everything conforms to the regulations.  These apply to all upholstery and upholstered furnishings, loose fittings, permanent or loose covers, fillings, etc.  All items must be suitably labelled with ignition resistance labels.  If they are not, proof of purchase must be supplied or must be removed from the property. All upholstery pre 1950 are exempt and excluded from the regulations.

The Regulations require landlords to ensure that every fixed electrical installation is inspected and tested at least every five years by a qualified person (contractors registered by NICEIC or NAPIT). 

• The landlord is required to obtain a report, typically an Electrical Installation Condition Report (EICR) is used to conduct the electrical installation safety inspection and test. The report gives the results of the inspection and test, supply that report to each tenant within 28 days and retain a copy until the next inspection is due. The report must show the fixed electrical installation is Satisfactory, or will be after reported remedial works are carried out.
• Upon request the report must be provided to the local housing authority within 7 days.
• The private landlord must supply a copy of the last report to any new tenant before occupation, or any prospective tenant within 28 days of a request from the prospective tenant.
• The Regulations require local housing authorities to enforce the rules and have the power to arrange remedial action. Proven breaches of the regulations can result in the local housing authority imposing a financial penalty of up to £30,000.

All electrics, including cabling, fuses, and plugs are required to be safe.  All hard wired appliances and installations should also be inspected and certificated by a registered engineer regularly.

All electrical appliances and portable equipment left in the property will need a series of visual inspections and electronic tests, i.e. any appliance that has a plug that is intended to be connected to a wall socket.  

You have a legal responsibility for general health and safety within your property and to ensure it is safe for the tenants and visitors. This includes making sure all water supplies are free from legionnaires disease, all blinds with cords are fitted with cleats, and no trip hazards, i.e. from loosely fitted carpets.

In accordance with the Health and Safety Executive code of practice Landlords are  advised to carry out a risk assessment of the premises prior to letting. You need to decide if there are water installations or systems on the premises which may give rise to a risk of Legionella bacteria being present, including air conditioning units. It is your responsibility to identify these.  You may need to obtain outside advice.  A risk assessment will be needed if any are identified.  You may be able to do this yourself but only if you are competent. If not you will need to appointment a competent person to carry out this assessment.

New European Regulations now apply to the installations for raising and lowering blinds; and the movement of curtains across windows. This means that new blinds and curtains being installed by a contractor will have fixed cords or ball bearing pulls to prevent any danger of asphyxiation to a young child; and a warning notice with the purchasing material.  Existing blinds and windows may need to be fitted with safety features to ensure compliance to ensure safety. If we are managing the Premises we will check all blinds and curtains on a management visit and if necessary arrange for the relevant safety feature to be fitted at the Landlord’s expense.  If we are not managing the Premises it is the Landlord’s responsibility to make such checks and arrange the fitting of any necessary safety feature.  We have no liability if such precautions are not carried out.

Right to Rent is part of The Immigration Act 2014 and came into force on 1st February 2014.  The Immigration Act 2014 places restrictions on illegal immigrants accessing rented accommodation.  It is a requirement for all landlords/agents of private rental accommodation in England & Wales to determine whether occupiers have the right to live in the UK.  This means that all prospective occupants aged 18 and over (including all live-in staff) must prove their immigration status and have it confirmed by the landlord/agent before a tenancy is granted.  None compliance can incur penalties, which include unlimited fines and/or up to 5 years imprisonment.

The tenant will be asked to pay a holding deposit to the Agent equivalent to one week’s rent. We will retain a prospective Tenant’s holding deposit in the event that it is withheld for a legally permissible reason. For example if any relevant person (including any guarantor(s) withdraws from the tenancy, fails a Right to-Rent check, provides materially significant false or misleading information, or fails to sign their tenancy agreement (and/or Deed of Guarantee) within 15 calendar days from the receipt of the holding deposit (or other Deadline for agreement as mutually agreed in writing). The Agent shall be entitled to deduct from any deposit that may be paid by a Tenant of the Landlord’s Property any fees or other monies properly due and payable by the said Tenant to the Agent. 

The tenant will be asked to pay a holding deposit to the Agent equal to one or two week’s rent. We will retain a prospective Tenant’s holding deposit in the event that it is withheld for a legally permissible reason. For example if any relevant person (including any guarantor(s) withdraws from the tenancy, fails a Right to-Rent check, provides materially significant false or misleading information, or fails to sign their tenancy agreement (and/or Deed of Guarantee). The Agent shall be entitled to deduct from any deposit that may be paid by a Tenant of the Landlord’s Property any fees or other monies properly due and payable by the said Tenant to the Agent.

The tenant will be asked to pay a security deposit: 

(RENT UNDER £50,000 PER YEAR) equivalent to Five weeks’ rent. This covers damages or defaults on the part of the Tenant during the tenancy. 

(RENT OVER £50,000 PER YEAR) equivalent to Six weeks’ rent. This covers damages or defaults on the part of the Tenant during the tenancy. 

All Assured Periodic Tenancy Agreement deposits are protected by the Tenancy Deposit Scheme, which provides protection to both Tenants and Landlords and offers an independent means of dispute resolution.

For tenancies that fall outside of the Housing Act a tenancy deposit can be agreed at an amount equivalent to six weeks rent. If the Tenant has a pet and the Landlord agrees and gives their consent for a pet to stay in the property then typically an additional two weeks rent is requested from the Tenant so the tenancy deposit is then equal to eight weeks rent.

We advise you to professionally clean your property prior to the commencement of the tenancy.

We recommend the services of an independent inventory clerk to produce the inventory report. This report will list, in fine detail, all the fixtures, fittings, furniture, schedule of condition and include meter readings. This report will be used at the end of the tenancy to determine any damages. If there is no inventory report, it is unlikely that you will be awarded damages against the deposit.  

Please note that the cost of the make of the inventory, check in and check out will be at the cost of the Landlord.

Please note that the cost of the make of the inventory and check-out is at the cost of the landlord and check-in will be at the cost of the tenant.

You must inform and arrange to settle all utility accounts prior to the commencement of the Tenancy.  These include gas, electricity, water, council tax, TV licensing, satellite, broadband and telephone companies.  All utilities will then need to be put into the tenants name.

You are responsible for notifying HMRC of the tenancy using Mandatory Digital Records.  Please make yourself aware of the tax implications when planning to let your property link here. We are advised that if you reside abroad for 6 months or more per year, you are classed as a non resident landlord (NRL) and need to apply to HMRC to receive your UK rental income without deduction of tax.  If you do not apply for this and/or do not get the correct permission, your letting agent or tenant will need to deduct the tax. Find out more here.

Tenants have the right to request permission to keep a pet. As a landlord, you must not unreasonably refuse such a request. If you do decide to refuse, you are required to provide the tenant with a written explanation, clearly outlining the reason—such as restrictions within a superior lease (e.g. a freehold or head lease). Each request should be assessed on a case-by-case basis, taking into account the specific circumstances of the property and tenancy. Be aware that tenants have the right to challenge a refusal through the courts. 

All appliances and machinery must be in good working order and serviced appropriately.  We advise you to have a folder of all instructions and user manuals of all the appliances and electrical equipment left in your property.