Landlords must evaluate numerous aspects, ranging from property sales law to financial decisions. Being a landlord may be stressful, with costs rising and laws constantly being introduced and altered.
To provide you with a basic framework, we’ve compiled a list of avoidable blunders that landlords should be mindful of.
- Failure to conduct tenant reference checks
It is critical to understand who you are permitting to settle into your home. A rigorous background check can assist to provide piece of assurance that your new residents are trustworthy and loyal when it comes time to pay rentals and taking care of your property.
If you purchase rent guarantee insurance like just landlords, it may be a necessity of the coverage to do background investigations before entering into a rental agreement. Failure to do so may lead to your insurance policy being denied.
- Failure to comply with lettings legislation
Before renting out a house, you should be familiar with the guidelines and laws that apply to landlords. Following are some examples:
The major housing legislation for England and Wales is included in the Housing Act 2004. It compels landlords to fulfil the regulatory requirements for the maintenance of the property in the private rental sector (PRS). The Housing Health and Safety Rating System is a list of potential dangers prepared by the authorities.
Landlords should be mindful of Houses in Multiple Occupation (HMOs) restrictions when it relates to the number of tenants residing in a residence. If at least three renters reside in your property, comprising more than one household, and they end up sharing a toilet, bathroom, and kitchenette, your home may fall into this classification.
Identifying regulations related to evictions is also vital. There are several eviction methods based on the case, such as a Section 21 or Section 8 notification for landlords in England and Wales. There are, obviously, legal prerequisites that must be met for an ownership lawsuit to be effective. To utilise a Section 21 notification, for instance, renters in England with an assured shorthold tenancy (AST) must have received the following:
- A copy of the document titled ‘How to Rent: The Checklist for Renting in England.’
- A property’s energy performance certificate (EPC).
- Certification of gas safety
You must also have deposited your funds in a government-approved deposit protection scheme.
- Failure to keep contact information up to date
Make certain you possess the accurate contact information for your renters and that they do have yours from the start of a contract. A tenant’s bond can suffer as a result of bad communication. You would need a mobile number or an email account if they have an issue with the residence or if you need to contact them to arrange an inspection. Keep in mind to notify your tenants if your contact information changes.
- Not performing inspections on the state of your property
You can conduct routine maintenance on the property by doing regular checks. This may aid in detecting any emerging difficulties and ensuring that your residence is being properly cared for. According to the Landlord and Tenant Act of 1985, you will have to provide your renters with a written notification at least 24 hours before inspection and the inspection should be conducted at a decent time during the day.
- Failure to obtain adequate insurance for your property
Due to the different hazards involved, a rental property may necessitate different coverage than an owner-occupied residence. Your mortgage may also expressly demand you to obtain Landlord Insurance. If you don’t, you may be violating the restrictions of your mortgage deal. A complete policy may include coverage for your tenants’ accidental and malicious damage, as well as theft or attempted theft.
“There seem to be a lot of obligations to undertake as a landlord, but the main factor to keep in mind is that you will be offering much-needed secure and pleasant residences for tenants,” says James Collins, Managing Director of specialist landlord insurance company Just Landlords*. Consider the influence you would have on human livelihoods when it comes to keeping your let property and obeying lettings regulations, in addition to caring about your interests as a business person.”
NOTE TO EDITORS:
The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.
*Just Landlords is a trading name of Arthur J. Gallagher Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Buildings, 7th Floor, 55 Blythewood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.