Whether you have been a landlord for years, or you are brand new to the rental market, it is always good to brush up on rental knowledge. As a landlord, there are responsibilities that must be considered to make a rental agreement a success.
- Safety – it is a given that any property needs to be safe at all costs. Keep a property free from health hazards such as damp and mould. Also, any property must have fitted and tested a smoke alarm and carbon monoxide alarm. This is to keep both a property and tenant safe at all costs.
- EPC – all properties within England and Wales must come with an EPC (Energy Performance Certificate). Although, this will be given before a property is bought.
- Gas and Electrical equipment – this must be safely installed into a property and, most importantly, be well maintained
- Tenant’s deposit – keeping the deposit in a safe place is key. The government advises that you should choose to put this in a government-approved scheme
- Checklist – a great way of keeping a rental property well kept is by sending tenants a ‘How To’ checklist. This could include types of cleaning and any details about the property.
- Check again – if a rental property is in England, it is crucial to check that the tenant has the right to rent
Health and Safety
It’s obvious that with any rental property, throughout the agreement, both the building and tenant need to be looked after. A property may need a Housing Health and Safety Rating System (HHSRS) depending on certain circumstances. Either a local council may think that a property is hazardous and needs investigating, or new tenants may have asked for this inspection. Within the inspection, it looks for possible hazards such as uneven staircases or other serious issues.
If there are any issues that arise from an inspection, then the council will give the property owner a list of amendments for within the house. These amendments will need to be made, if they aren’t then a council has the right to stop anyone from using the property.
When owning a rental property, there are two types of payments a landlord must make. Firstly, income tax on the rental property and secondly, if you rent property’s as a business, then it you would have to pay Class 2 National Insurance.
There are certain terms and conditions to renting a property. When a landlord lets a tenant rent a property, there will be an agreement drawn up.
Within the agreement, it will state when a landlord can increase rent. Usually, this is only once every year if it is a periodic tenancy. If the tenancy is classed as a fixed-term, then the rent can be increased whenever a fixed term has ended.
If tenants believe that it is unfair for a landlord to increase the rent rate of a property, they can ask for a First Tier Property Tribunal. In short, this means it will be deciphered what rate is most appropriate to charge.