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How to ensure you are compliant with current landlord regulation

How to ensure you are compliant with current landlord regulationSignificant changes introduced in recent times are transforming the regulatory landscape for landlords. Are you compliant with the latest legislation? Failure to comply could result in hefty fines or a loss of your Section 21 rights as a landlord.

Follow our comprehensive checklist to ensure you are up to date with your legal obligations.

Landlord compliance checklist:1. Do you need a landlord licence?

Selective licensing was introduced in 2006 to try to force rogue landlords to clean up their acts. Any council can introduce a scheme if there are problems with antisocial behaviour or poor housing in certain wards or areas of their remit. Selective licensing schemes require landlords to agree to specific property management rules, with the threat of significant fines if they fail to do so. It is therefore important that you check with your local council as to whether you are required to have a selective or a mandatory licence and what conditions you are required to comply with in order to qualify for the relevant license.

2. Have you carried out right-to-rent checks on all tenants?

Under section 22 of the Immigration Act 2014 a landlord should not authorise an adult to occupy a property as their only or main home under a residential tenancy agreement unless the adult is a British citizen, or EEA or Swiss national, or has a ‘right to rent’ in the UK. Someone will have the ‘right to rent’ in the UK provided they are present lawfully in accordance with immigration laws. The requirement to check whether a tenant has a ‘right to rent’ came into effect on 1st February 2016 and landlords who breach section 22 may be liable for a civil penalty.

The government has provided this link to help with checking immigration documents

Rules and acceptable documents: right to rent checks

You can read the full advice from the government by visiting the gov.uk website

Landlords: immigration right to rent checks

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3. Have you protected your tenant’s deposit in a licensed government scheme?

You must secure your tenant’s deposit in one of the three tenancy deposit protection schemes that the government has approved.

There are two types of deposit protection schemes:

• Custodial: the tenant pays you as landlord the deposit and then you pay it to the scheme. The deposit is held with the scheme for the duration of the tenancy and returned minus deductions at the end of the tenancy once any disputes have been settled.

• Insurance: the tenant pays you as landlord and you pay a premium to the scheme to insure the deposit.

Hamilton Frasers’ mydeposits is one of the three government approved schemes providing simple deposit protection for landlords, letting agents and tenants. Find out more at www.mydeposits.co.uk

Are you prepared for the new energy efficiency minimum standards which come into force on 1st April 2018?

The government is introducing new energy efficiency requirements for rented homes - from 1st April 2018, any properties rented out privately must have a minimum emergency performance rating of E. If a property has an EP rating of ‘F’ or ‘G’, steps should be taken to improve the energy efficiency of the property so that it meets minimum requirements. The rules will apply to new tenancies from April 2018 and for existing tenancies from April 2020. Fines of up to £4,000 can be imposed for landlords who breach the rules.

Landlords are legally obliged to provide an Energy Performance Certificate before a tenant moves in, either during the viewing or at least before the tenancy agreement is signed. A copy of the certificate must be given to any tenant who moves in to the property. Certificates are valid for ten years but the property should be reassessed if there have been any major changes since the last evaluation, particularly in the light of the introduction of new minimum standards.

The government has produced a guidance document which sets out the rules in detail

The Private Rented Property minimum standard – landlord guidance documents

4. Have you carried out an Energy Performance Certificate (EPC) assessment?

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5. Is your property safe?

Your main priority as a landlord is to make sure that your rental property is safe; that there are no obvious hazards and that it complies with basic letting rules and regulations.

The Housing Health and Safety Rating System (HHSRH) is the main enforcement tool used by local councils to address poor conditions in private rented homes. The powers, introduced under Part I of the Housing Act 2004, provide a mechanism for assessing the likelihood of serious harm and the range of health outcomes when considering 29 separate hazards in residential accommodation. These range from electrical and gas safety faults and damp issues to smaller potential hazards such as a frayed carpet or a broken banister.

There are a whole host of guidance documents about the HHSRS, including the original detailed guidance for landlords

Guidance on HHSRS for landlords and other property professionals by DCLG - May 2006

6. Have you carried out an annual gas safety inspection?

The Gas Safety Regulations of 1998 require all landlords to maintain all gas appliances, pipe work and flues in safe condition. An annual gas safety inspection must be carried out by a Gas Safe Registered Engineer who will issue a Gas Safety Certificate as proof of the inspection. A copy of this should be kept by you as the landlord and also by the tenant. To find out more about gas safety for landlords visit the government website at

Gas safety - landlords and letting agents

7. Are you compliant with electrical safety regulations? Landlords are required by law to ensure that the electrics in their rental property are safe when tenants move in and maintained in a safe condition throughout the duration of a tenancy. This requirement covers the electrical system (for example sockets and light fittings) as well as appliances (for example cookers and kettles). Houses in Multiple Occupation (HMOs) are required to have a periodic inspection carried out on the property every five years.

The Electrical Equipment (Safety) Regulations 1994 were updated in 2016 when a greater onus was placed on landlords for acting with due care to ensure that the electrical equipment is safe. Anything purchased after December 2016 is subject to the more recent regulations.

In addition to the visual checks and the cross-referencing of the fuses with the plugs, landlords and agents must also ensure that the electrical equipment:

� Bears the CE Marking• Is accompanied by instructions and safety information in English• Is labelled correctly by the manufacturer• Contains information identifying the importer

8. Are you compliant with smoke and carbon monoxide alarm regulations?Since 1st October 2015 landlords are required to have at least one smoke alarm installed on every floor of their rental property. They must also have a carbon monoxide alarm in all rooms with a solid fuel source. The landlord is also responsible for checking that each prescribed alarm is working on the day that the tenancy begins.

9. Have you carried out a fire safety risk assessment? Under the Regulatory Reform (Fire Safety) Order 2005, landlords are required to carry out periodical fire risk assessments in the common areas of HMOs, flats, maisonettes and sheltered accommodation. A fire risk assessment is a careful analysis of the property and the likelihood that a fire could start and cause harm. The risk assessment should identify the level of risk that any hazards may present and the suitable precautions that will be taken. For an HMO or large portfolio we advise employing a qualified Fire Risk Assessor to carry out the assessment.

An HMO requires an escape route lit with emergency lighting that can resist fire, smoke and fumes long enough for everyone to leave. This could be an external fire escape or specially treated fire resistant internal stairs and corridors. All doors leading to the escape route need to be fire resistant and must close automatically. No matter what the property, we would recommend fitting self-closing doors to all rooms in order to help contain a fire should there be one.

If you let a furnished property you must be careful when selecting furniture (see point number 11).

Fire extinguishers aren’t obligatory (unless it is a HMO where at least one fire extinguisher has to be provided on every floor) but they are a good idea and show you take your tenants’ safety seriously. If you do provide extinguishers you must arrange for them to be serviced regularly. A HMO also needs at least one fire blanket in each shared kitchen.

10. Have you carried out checks for Legionnaire’s disease? Landlords are responsible for carrying out a risk assessment for Legionnaire’s disease. Landlords must identify and evaluate any potential sources of the disease and then take steps to prevent or minimize any risk. The level of risk assessment required depends on the type of property. Failure to carry out a risk assessment can result in a fine.

Government advice from the Health and Safety Executive

Legionnaires’ disease Frequently Asked Questions

11. Have you ensured that all furniture and furnishings meet the required standards? All furniture supplied by the landlord must meet the standards of the Furniture and Furnishings Regulation 1993.

All upholstered furnishings need to be made from a fire resistant material. When buying furniture for your rental property, you can check it is fire resistant by ensuring that the manufacturers’ label displays the fire safe symbol. The only items that may not have the fire safe symbol are mattresses, bed-bases, pillows, cushions and covers. Furniture manufactured after 1989 should comply with the regulations.

12. Have you provided your tenants with “How to rent: the checklist for renting in England” guide?

Prior to starting a tenancy, all landlords renting out properties in England are required to provide tenants with a copy of the government’s ‘How to rent’ guide that can be found here

How to Rent Guide

Always make sure you download the latest version and send this to your tenants by email or print out.

13. Are you aware of your repairing obligations?

15. If you are using a letting agent, make sure your agent belongs to a redress schemeUnder the Consumer Rights Act 2015 it is now a legal requirement for all letting and managing agents in England and Wales to publicise details of their fees and to advertise whether they have client money protection. Membership of a redress scheme is now compulsory for agents and they must also give the name of the redress scheme of which they are a member. The government is currently going through consultations regarding banning letting agent fees, introducing mandatory client money protection for landlords as well as agents and introducing compulsory membership of a redress scheme for landlords as well as agents. With the regulatory landscape in this area changing all the time, it is up to you to make sure you are up to date with the latest developments.

14. Have you obtained any consent required to let a property? In order to rent out a property there could be people or organisations you may need to inform or consult, for example your mortgage lender, insurance company or the main landlord of a leasehold property.

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Under Repairs & Maintenance Section 11 of the Landlord and Tenant Act 1985, landlords are responsible for repairs to the exterior and structure of a property including problems with the roof, chimneys, walls, guttering and drains. Landlords must also make sure that the equipment for supplying water, gas and electricity is kept in safe working order.

If you need to access the property to inspect it or carry out repairs, you must give reasonable notice in writing and obtain the tenants’ consent if needed (the precise notice period may be indicated in the tenancy agreement).

16. If you are a landlord with property in Wales or you are using an agent in Wales, are you aware that you must abide by Rent Smart Wales legislation?

Changes to the law in Wales as a result of the Housing Act (Wales) 2014 means that all landlords and letting agents must either register or licence themselves and their properties, to avoid penalties. Failure to do so means landlords and agents will be letting properties illegally. Self-managing landlords and agents must obtain a licence following the completion of a relevant training course and passing a ‘fit and proper’ assessment.

Despite the name of the act this legislation applies to all landlords with properties in Wales even if they do not reside in Wales themselves.

For further information about specific registration details and how to comply with the law visit the Rent Smart Wales website here

Rent Smart Wales website

17. Is your insurance up to date?

Finally, you never know when something may go wrong, so make sure you are covered. While there is no legal obligation for a landlord to take out a dedicated insurance policy, it is important to know that your homeowners’ policy most likely will not cover damage to your rental property. In addition, if you have a mortgage on your property, it is very likely that your lender will require you to take out insurance before you take on tenants.

Hamilton Fraser’s Total Landlord Insurance Premier package includes cover for malicious damage by tenants and their guests as well as extensive property disputes support. To find out more visit our website at

www.totallandlordinsurance.co.uk

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For more resources and advice, please go to our website www.totallandlordinsurance.co.uk

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