Everything you need to know

 

1. Have you secured the required "consent to let" for your property?

 

If you plan to let out your property, it may be necessary to obtain consent from relevant parties, such as your mortgage lender, insurance company, or the main landlord in a leasehold property. You must ensure that letting out your property does not violate any pre-existing agreements, such as covenants or housing loans.

 

This is especially important if you have become an accidental landlord and have a standard residential mortgage on the property. The lender may grant you permission to let the property for a limited period but typically, they would raise the interest rate to cover the additional risks of letting out the property. Alternatively, they may require you to apply for a buy-to-let mortgage.

 

It's important to note that if you rent out your property in violation of your insurance policy, your insurer may refuse to pay out in case of any claims. Similarly, if you sublet a leasehold property in violation of the lease terms, you could ultimately risk losing your lease.

 

2. Is a landlord license required?

 

Currently in the UK, only properties let as an HMO (House in Multiple Occupation) with five or more occupiers from two or more "households" (with additional requirements in Wales) are subject to mandatory licensing. The definition of a licensable HMO and the terms of the license differ between nations. In England and Wales, the blanket rule only applies to large HMOs.

 

In addition, individual councils in England and Wales have the power to introduce additional and selective licensing schemes. Additional licensing enables them to expand the definition of a licensable HMO, and selective licensing can require any rented property to be licensed.

 

These licensing schemes help local authorities maintain a balanced housing stock, monitor rented properties in their area, and ensure that rental accommodation meets certain standards. They also make it easier to address anti-social behaviour and identify and prosecute landlords who violate the law.

 

Landlords who fail to comply with licensing requirements, especially HMO landlords, may be subject to significant fines imposed by courts. Therefore, it's crucial to check with the local council to determine if the rental property is considered a licensable HMO and whether any additional or selective licensing schemes are in place.

 

3. Have you ensured compliance with MEES (Minimum Energy Efficiency Standards) requirements?

 

In April 2018, the Domestic Minimum Energy Efficiency Standard Regulations (MEES) came into effect in England and Wales for new and renewed tenancies, with the landlord legislation extended to existing tenancies in April 2020. This means all privately rented properties must achieve an Energy Performance Certificate (EPC) rating of E or above in order to be legally let and landlords must provide their tenants with the EPC before the tenancy begins.

 

These requirements were introduced to help improve the energy efficiency of private rented properties, making heating costs more affordable for tenants and giving them a more comfortable home, as well as helping with environmental targets. Breaching the regulations can lead to a fine for the landlord of up to £5,000 per property.

 

It’s also important for landlords to be aware that the minimum EPC rating to legally let a property is likely to rise to ‘C’ before 2030. Current proposals are for that to take effect from 31 December 2025 for new tenancies and from 31 December 2028 for all existing tenancies – however, the Minimum Energy Performance of Buildings (No. 2) Bill, which was introduced in parliament in November 2021, is still only at the ‘second reading’ stage in the House of Commons.

 

Meanwhile, in their ‘Levelling Up’ White Paper, published in February 2022, the Government announced its plans to introduce a legally binding Decent Homes Standard in the private rented sector. A consultation on this closed in October 2022 and feedback is currently being analysed.

 

There is concern among landlords and industry bodies about how effective a ‘one-size-fits-all’ approach will be for reaching the target, considering the age of some properties and the considerable financial strain that many landlords are already experiencing. Nevertheless, if your rented property is currently rated ‘D’ or ‘E’, it’s worth looking now at what you can do to improve that to ‘C’ or above over the next few years.

 

4. Is your property safe?

 

As a landlord, your top priority should be ensuring the safety of your rental property. This means eliminating obvious hazards and complying with all health and safety regulations related to letting.

 

The Housing Health and Safety Rating System (HHSRS) is the primary tool used by local councils to address poor conditions in privately rented homes. It identifies 29 distinct hazards that landlords must take reasonable steps to protect their tenants from, including electrical and gas safety faults, damp and mould issues, and trip hazards such as frayed carpets.

 

The government has been planning to overhaul the HHSRS for some time, aiming to simplify the system and establish minimum standards for common health and safety hazards.

 

Following the publication of the long-awaited White Paper on rental reform, "A Fairer Private Rented Sector," in June 2022, we anticipate that a revised HHSRS will be forthcoming. In the meantime, we advise all landlords to utilize the HHSRS guidelines to conduct a full risk assessment of their property and keep their tenants safe.

 

5. Have you completed the annual gas safety inspection?

 

According to the Gas Safety (Installation and Use) Regulations 1998, landlords are responsible for maintaining gas appliances, pipework, and flues in a safe condition. This includes obtaining a gas safety certificate annually.

 

A Gas Safe registered engineer must perform the yearly gas safety inspection. They will check all gas appliances and pipework to ensure they are functioning safely and issue a gas safety certificate after making any necessary repairs.

 

The original certificate must be securely kept by the landlord or agent for at least two years (though landlords should keep them for the entire tenancy), and a copy must be given to the tenant within 28 days of the inspection. Landlords must provide the current certificate to new tenants before they move in to comply with landlord regulations, which are consistent throughout the UK.

 

In rare cases, tenants may refuse access for gas safety inspections, creating a challenging situation for landlords. However, landlords can follow a step-by-step process to adhere to their legal obligations.

 

6. Are you compliant with electrical safety regulations for landlords?

 

To comply with landlord obligations, landlords in England must ensure that the electrical system and any electrical appliances supplied to tenants are safe throughout the tenancy.

 

Under The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, landlords are required by law to conduct a full electrical inspection and test every five years, or sooner if recommended on the previous report. A qualified electrician or approved contractor must carry out the inspection and issue an Electrical Installation Condition Report (EICR). Any necessary investigations or repairs must be completed within 28 days.

 

Landlords must provide existing tenants with a copy of the report within 28 days of the inspection, and new tenants must receive a copy before moving in. Although Portable Appliance Testing (PAT) is not legally required for single-let properties in England and Wales, some local councils in England may require it, and it is considered best practice to have the electrical appliances in rented properties tested annually or between tenants.

 

7. Are you compliant with smoke and carbon monoxide alarm regulations?

 

Landlords in England and Wales must comply with the Smoke and Carbon Monoxide Alarm (England) Regulations 2015. This regulation mandates that every rental property in England and Wales must have at least one functioning smoke alarm on each floor, and a carbon monoxide alarm in every room that has a solid fuel-burning appliance or a gas or oil-fired boiler. If a solid fuel-burning appliance is installed or replaced, a CO alarm must be fitted.

 

If tenants report any faults with the smoke or CO alarms during the tenancy, the landlord must repair or replace them.

 

8. Have you carried out a fire safety risk assessment?

 

Landlords in England and Wales are not required to obtain a fire safety certificate, but they must conduct periodic fire risk assessments as part of their legal responsibilities under the Regulatory Reform (Fire Safety) Order 2005. A fire risk assessment involves carefully analyzing the property and its potential fire hazards to identify and mitigate risks.

 

To meet legal requirements, landlords must ensure that all furniture and furnishings provided in the rental property are fire-safe and bear manufacturers' labels that confirm compliance with relevant safety requirements, such as "match" and "cigarette" test labels. Tenants must have clear access to escape routes at all times, and HMOs require a fire escape route lit with emergency lighting that can resist fire, smoke, and fumes long enough for everyone to evacuate. This may include an external fire escape or specially treated fire-resistant internal stairs and corridors.

 

While fire extinguishers are not mandatory in rental properties (except for HMOs, where at least one fire extinguisher must be provided on each floor), providing them shows that landlords prioritize tenant safety. Landlords must ensure that any provided extinguishers are serviced regularly, ideally annually. HMOs also require at least one fire blanket in each shared kitchen.

 

Although landlords are only legally required to install fire doors in HMOs, it is a good idea to fit them in other types of rental property to delay the spread of fire and smoke and provide tenants with added security and time to escape. Landlords must ensure that tenants do not disable the self-closing devices on fire doors and meet their responsibilities regarding fire safety.

 

9. Have you carried out a legionella risk assessment?

 

Landlords must perform a legionella risk assessment as part of their obligations under the Control of Substances Hazardous to Health Regulations (2002) and the Homes (Fitness for Human Habitation) Act 2018. Legionella bacteria can thrive in water temperatures between 20 and 45 degrees Celsius, and can be found in water storage units, air conditioning units, hot tubs, and other man-made hot or cold water systems.

 

If the bacteria are inhaled through water droplets, it can lead to Legionnaires’ disease, a severe type of pneumonia that can be fatal if left untreated. Therefore, it is crucial for landlords to identify and assess any potential sources of legionella bacteria and take necessary precautions to minimize the risk. The extent of the risk assessment required is dependent on the property type.

 

However, if a propertyis occupied, the risk of legionella is relatively low as the hot and cold water is used frequently, which keeps the supply flowing. Additionally, if the rental property has electric showers and a combination boiler, the risk is further reduced since water isn't stored.

 

Here are some key steps you can take to minimise the risk of legionella bacteria forming:

 

• Flush the system between lets
• Have any redundant pipework removed
• If you have a hot water cylinder, make sure the water is stored at 60°C
• Check the water temperature during property inspections

 

10. Are you familiar with the Homes (Fitness for Human Habitation) Act 2018?

 

The Homes (Fitness for Human Habitation) Act 2018  requires landlords to make sure their rented homes are fit to live in at the start of a tenancy and remain in good condition for the duration of the let.

 

The Act, which is an amendment to the Landlord and Tenant Act 1985, was introduced in March 2019 for new and renewed tenancies, then extended to all tenancies from 20 March 2020. Although the Act doesn’t impose any new landlord obligations in terms of health and safety measures, it clarifies the law to make sure minimum standards are met at the outset of a tenancy and allows tenants to take legal action if standards drop. You should be aware that there is no limit to the level of compensation that can be awarded to the tenant – it’s at the discretion of the judge.

 

Note: this Act extends to England and Wales, but its practical changes only apply to properties in England. Wales has its own fitness for human habitation rules, which came into force from 1 December 2022, under the Renting Homes (Wales) Act 2016