Letting Agent & Landlords legal responsibilities
The information contained in this section is not comprehensive legal guidance, it simply summarises some of the issues you may need to consider depending on your situation.
- General Responsibilities of a landlord
- Gas Safety, Electrical Safety and Fire Safety
- The Deposit Protection Scheme - Protect yourself and the tenant
- Providing your tenant with an Energy Performance Certificate
- Legislation - Useful links
Finding the ideal tenant
- Deciding on the rent & deposit
- Viewing's
- Choosing a tenant
- Referencing
- Setting a start date for the tenancy
- Complete an inventory
- Set Reminders
Dealing with problem tenants
- Dealing with common problems - Nuisance tenants, late or non payment of rent!
- Where to get Free legal help?
- Evicting a tenant
- Getting the deposit back!
- Further information
Letting Agent & Landlords legal responsibilities
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General Responsibilities of a landlord - England & Wales
- From 6th April 2007 all deposits paid to the landlord by tenants under an 'Assured Shorthold Tenancy' (AST) have to be protected within 14 days of receipt by the landlord and placed in the governments Deposit Protection Scheme (see below for more information).
- From the 1st October 2008 you will be legally required to show prospective tenants the Energy Performance Certificates prior to letting the property.
- Allow tenants to live in the accommodation without disturbance - Give reasonable notice if you wish to enter the premises.
- Follow specific legal procedures if you wish to evict tenants.
- Make repairs to and maintain the structure and exterior of the property, hot water installations and the water supply, electric wiring and basins, sinks, baths and toilets.
- Ensure the property complies with building regulations.
- Ensure that the gas supply and all appliances in the property are safe and are checked annually by a CORGI-registered engineer. You must keep a record of the safety check and issue a copy of the safety certificate to the tenant within 28 days of each annual check.
- Ensure any electrical equipment or appliances you provide are safe for use - though there is no requirement to get a certificate.
- Check and ensure that any furniture you provide is fire-resistant.
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Gas Safety, Electrical Safety and Fire Safety
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The Deposit Protection Scheme
- Resident landlords (those living in the property)
- Landlords of properties with rent of over £25,000 a year
- Company lets
- Student accommodation let directly by universities or colleges
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Energy Performance Certificate
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Useful Links
If you are a landlord, you must:
The Gas Safety (installation & use) Regulations 1998
Your must ensure that any gas appliances are safe and ensure safety checks on appliances and fittings are carried out at least once every twelve months. The inspection must be carried out by a qualified CORGI (Confederation of Registered Gas Installers) registered approved tradesman. You must also keep a record of the date of the check, any problems identified and any action taken. Tenant's have the right to see this record as long as you are given reasonable notice.
If you refuse the tenant to see the record of the check or you fail to ensure the gas supply and appliances are not checked annually, you could face enforcement or a fine from the local Health and Safety Executive.
Electrical Safety
Ensure any electrical equipment or appliances you provide are safe for use - though there is no requirement to get a certificate. You are not responsible for any appliances or electrical equipment that the tenant owns or is entitled to take with him or her at the end of the tenancy.
Fire Safety
As a landlord, you have a general duty to keep your tenant's home fit for them to live in and ensure that it does not endanger their health; this includes ensuring there are no fire hazards in the property.
It is recommended by the fire authority that you install disposable smoke alarms with a non-replaceable battery that has a 5 or 10 year life. These types of smoke alarms cannot be disabled by the tenant and they also prevent the tenant from removing the battery. The benefits of smoke alarm cannot be emphasised enough and should be installed in every domestic premises, as a minimum one smoke alarm should be fitted per floor on the ceiling especially outside bedrooms to give early warning of a fire and allow the occupants to escape when they are most at risk during the night.
If your property is a house split into separate bedsits or a shared house or flat where occupants have separate tenancy agreements this is called a house in multiple occupation (HMO), you have additional responsibilities. You may have to provide and maintain fire alarms and extinguishers, fire blankets, fire doors, fire escapes and escape routes and smoke or heat alarms.
It can sometimes be difficult to establish whether a property is classed as an HMO so you should contact the Fire Safety department at your local Fire Brigade for advice.
The Deposit Protection Service is the only Government-authorised FREE service and can be accessed online 24/7. Failure to protect a tenants deposit will mean you cannot issue a Section 21 Notice of Possession to the tenant or enforce the tenancy agreement.
The Government has introduced a tenancy deposit protection for all assured short hold tenancies (ASTs) in England and Wales from April 6th 2007, all deposits paid under an AST have had to be protected within 14 days of receipt by the landlord.
The legislation aims to ensure that tenants who have paid a deposit to a landlord or letting agent and are entitled to receive all or part of it back at the end of that tenancy, actually get it.
Who is affected?
The legislation covers virtually all new AST contracts through which private landlords let property in England and Wales.
However, the following will not need to be registered with a tenancy deposit protection scheme:
Deposits taken before 6 April 2007 do not need to be protected by a scheme such as The DPS. However, when an existing tenancy is renewed and a landlord agrees a new fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit protection scheme.
From the 1st October 2008 Landlords will be legally required to show any new prospective tenants an Energy Performance Certificates (EPC) prior to letting the property.
The purpose of an EPC is to tell you how energy efficient a property is on a scale of A-G, the most efficient property being band A should have the lowest energy bills.
The Certificate also includes recommendations and ways to improve the energy efficiency of the property to save you money and help the environment.
If you have a tenant in your property before the 1st October 2008 you will not be obliged to provide the EPC until the tenant leaves and the property is re-let. However if you suspect your rental property may become vacant in October, November or December it may be wise to order your EPC sooner rather than later as the most of the UK's qualified domestic energy assessors (DEA's) are likely to be busy dealing with the backlog of the estimated 3 million properties that will need to comply with this legislation.
The EPC and recommendation report must be made available free of charge to any prospective tenant that the landlord deems suitable. This is usually when there is a viewing or a request has been made for the property particulars, at the very least the EPC must be produced before the letting contract/tenancy agreement is signed.
Local Trading Standards Officers will police the legislation and Landlords who do not produce the EPC could be fined £200, once a fine has been imposed the Landlord must still obtain the EPC or risk further £200 fines.
Energy Performance Certificate
Finding the ideal tenant
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Deciding on the rent & deposit
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Viewing's
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Choosing a tenant
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Referencing
- Bank statements to confirm rent/mortgage payments have been made over the last 12 months; alternatively a written current landlord or lender reference can confirm payments.
- Write to their employer and get a written confirmation that they have a permanent contact of employment, their annual income and that they are not in any dispute or on notice of redundancy. If they are self employed write to their accountant for a written reference and confirmation that they are solvent, still trading and find out their Net profit for the previous year.
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Setting a date
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Complete an inventory
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Set reminders
- View the property reminder - to ensure they are looking after the property.
- England & Wales send a Section 21 notice - to end the Assured Shorthold Tenancy after the fixed term must be received (2 months before the tenancy fixed term ends) even if you intend to issue a new tenancy to the same tenant.
Although this process seems basic with the introduction of the Tenancy Deposit legislation in England and Wales some landlords are taking no deposit and instead require two months rent in advance. Put yourself in the worst scenario you have a tenant who is not paying you rent and they are also neglecting your property, by the time you have been through the eviction process months could have past you have had to pay the mortgage, clean the property and put good any damage.
Always take two months rent in advance plus a cash deposit that is more than the monthly rent, the tenant would be less likely to leave the property a mess or use the deposit as payment for rent during the last month. The tenant will also have to provide a forward address to the tenancy deposit scheme if they are to apply for their deposit back.
If the prospective tenants cannot afford to pay the deposit and the advanced rent then I would give them a miss as they have limited or no funds to fall back on. If something unexpected happens to the tenant e.g. they are unable to work because of short term sickness they may be unable to pay the rent.
Taking a deposit plus advance rent puts you the landlord in a far better position financially should they break the terms of your tenancy.
If possible arrange appointments to view all interested tenants in one afternoon or evening every spaced 15 or 20 minutes apart to make effective use of your time. You should also consider having someone else with you for safety reasons and for another opinion.
The EPC and recommendation report must be made available free of charge to any prospective tenant that the landlord deems suitable. This is usually when there is a viewing or a request has been made for the property particulars, at the very least the EPC must be produced before the letting contract/tenancy agreement is signed.
Find out about you prospective tenant their situation, where they live, what they do for a living, their current residential status (renting, with parents/friends etc…), are they looking for a short or long let and when they are looking to move, this will help you build a picture of the type of person they are and if their plans are compatible with yours with regards to moving time scales.
During the process score or rank each tenant in order of preference, we suggest you tell all the interested tenants that you will inform them once you have seen all potential tenants giving them a date to inform everyone know if they have been successful or not.
Once you have made your decision inform the successful tenant as soon as possible, but do not inform the unsuccessful tenants until you have a deposit and a signed rental agreement. This will give you the opportunity to complete the references and checks and if done quickly and your not happy to proceed reject this tenant and go to the next tenant on your preference list.
Before you agree or accept any tenant to take possession of your property you should always ensure that you are completely satisfied that the prospective tenant will look after your property, pay the rent and not be a nuisance to neighbours.
Don't rush to get a tenant in your property you may cut corners with the tenant checks to avoid having the property empty and as a result select a tenant who cannot or will not pay you rent.
Identification and address verification
Having selected a prospective tenant request they complete a tenancy application and provide a copy for your file plus the original copies of a utility bill dated within the last 3 months so you can confirm their identify. Make sure you examine the documents and check for expiry dates on passports or driving licence's to ensure they are in force and the address and name matches the tenancy application.
The purpose of obtaining a reference from a mortgage lender, landlord, or employer is to establish ability to pay and reliability of the person to pay on time.
Check the following:-
If affordability is an issue you could still consider this tenant if they can provide a suitable guarantor so that they will take responsibility jointly and severally with the tenants for the rent payments and the property. If you go down this route ensure you complete the suitability checks for guarantors as well as the tenants.
Obtaining a credit report will provide an insight into their ability to pay and willingness to pay so is vital. However although they could have an unblemished record this may not be up to date as recent defaults on payments or arrears with the current lender or landlord may not yet show on the record, so you should always check payment history with their current landlord and lender.
If you do identify past payment problems you may still consider them if they have a valid reason and they have not lied to you or tried to conceal their past. Consider what their financial situation was at the time they had the problems, it maybe quite different from now.
You need to provide the tenant with 7 full days to fully read the tenancy agreement before they sign it if it's to be enforceable in court. It's at this stage you may want to hand over a copy of the tenancy and request the deposit with the two months rent in advance to be taken before they move in (as cleared funds).
Take photos or video your property prior to granting a tenancy and make a detailed list of all items including curtains and poles, light shades bulbs everything you want back. Give the tenant a copy of the inventory as you guide them through the property on the day you give them the keys and get them to sign it for your records. Make a note of all utility readings.
Now the tenant has signed the agreement you should make a reminder note so that you don't forget to check on the tenants or issue vital notices.
Dealing with problem tenants - England & Wales
Dealing with common problems
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Nuisance tenants, late or non payment of rent!
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Where to get FREE legal help?
- Shelter - Find out what you need to do to get a tenant out
- Money Claim Online - Claim for rent arrears or damage (England & Wales)
- Citizens Advice Bureau - Contact for advice
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Evicting a Tenant
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Getting the deposit back
If your unfortunate to have a problem with your tenant its vital to make contact with the tenant as soon as the problem arises preferably by telephone so you can quickly get the matter resolved.
Where the tenant has breached any part of the tenancy this should be followed up with written confirmation of your response To ensure that they fully understand your position in most cases this will be sufficient to resolve the matter.
If this is unsuccessful you should now seek free legal advice to establish your responsibilities if you plan to serve a Notice Requiring Possession of your property as private landlords usually have to follow special legal procedures in order to evict tenants.
Look at your buildings insurance as some comprehensive policies offer legal protection option that may pay for your legal costs and advice. You could also get help and guidance free from the following orgainisations:-
Before you start the eviction process to ensure that you have every chance of being successful get legal advice from Shelter you could also consider the following points:-
1. Have you issued a notice requesting possession?
Before the last 2 months of the tenancy (if rent is paid monthly) you should
have issued a section 21 notice requesting possession of the property at the
end of the fixed term. Even if you want to offer them another fixed term tenancy.
If you miss this deadline and still within the tenancy fixed term issue the
notice without delay. However any delay will mean you will not be able to
get the tenants out until they have had TWO full months notice. i.e. starting
on the next monthly anniversary of the tenancy. Example: If they started their
6 month tenancy on the 9th Jan and you missed the deadline 8th May by two
days the tenants could stay two months starting from 9th June (8th Aug).
2. Are the tenants waiting for housing benefit?
If the tenants have not paid the rent because they are waiting for housing
benefit the court will expect you the landlord to have made a reasonable attempt
resolve the matter with both the tenant and the housing department before
proceeding with any court action to evict a tenant.
3. Have you safeguarded the tenants deposit?
If you claim is in relation to a Assured Shorthold Tenancy in England &
Wales where you have taken a deposit was taken after 6th April 2007 you will
also be required to provide evidence that the deposit is safeguarded with
a tenant deposit scheme authorised under Part 6 of the
Housing Act 2004 with your eviction application. Without this you cannot apply
to the court to evict a tenant. So if you have not placed the deposit
in a scheme do it now!
4. Have you issued a section 8 notice?
For breaches of the tenancy where you want to seek possession before the end
of the fixed term you should issue a section 8 notice, and the reasons why
you are requesting possession.
5. Do they have a Assured Shorthold Tenancy or Demoted Tenancy? In
England and Wales where tenants are in an Assured Shorthold Tenancy or Demoted
Assured Shorthold Tenancy you can select between two legal routes for eviction
If the tenancy is within the the first 6 month period you cannot use the accelerated
procedure you will need to use the standard Claim for Possession & arrears
procedure.
"Claim for Possession Accelerated Procedure" online form. Guidance notes (Example completed claim form)
or
"Claim for Possession & Rent Arrears" online application.
Once you have completed your court possession forms for you should get a letter from the court to confirm when the notice has been deemed served. The tenant will then have a set time of 14 days to get out or file a defense (If they have one).
To check the status of your order and see if the tenant has filed a defense contact the court and provide your reference number they can then confirm if they have had a reply from the tenant. Note the date and using the tear slip from the confirmation that the notice had been served, sign and date the form and cross out the paragraph that does not apply.
Example: Notice of issue (accelerated Possession Procedure) assured shorthold tenancy
The court will then make a judgment and where required issue confirmation letter within days stating that possession of the property should be given up. If the tenants don't leave by this date you will need to complete another form "Request for Warrant for Possession of Land" and pay yes another fee to get the bailiffs to kick the tenants out. If you need help completing the form contact your local court who can guide you. If baliffs do attend you will required to be there with a lock smith to change locks and secure the property so the tenants can't get back in. The police may also attend and will arrest anyone who disturbers the peace or becomes violent.
We would suggest that you avoid using the services of non qualified legal services that are often widely promoted on search engines and landlord forums. In most cases evicting a tenant is straight forward as long as you have complied with the notice requirements and read fully the instructions for completing all court forms (registered local law firms can help check over your form before you send it to the court) or the Citizens Advice Bureau so you don't waste time having to resubmit form if you have made an error. If you are able to proceed via the accelerated route court appearance is not required anyway.
If you have placed your deposit with The Deposit Protection Service once the tenancy has ended you can go online and request payment of the deposit and specify how much you will retain.
The tenants will then need to agree the amount to be rapid or you will need to resolve your differences using the The Deposit Service resolution service.
If you don't know where your tenant has gone or they owe rent after 14 days of the end of the tenancy you can contact The Deposit Protection Service to request a single claim form, which will need to be witnessed by a solicitor or commissioner of oaths for the repayment of the deposit in your favor.
The above information is for general guidance in England and Wales. Although we have taken all reasonable care to ensure that the information provided on this site is accurate we give no warranties of any kind, express or implied, with regard to the accuracy.
Further Information
- England & Wales Property Possession Civil Procedure Rules
- Finding your local county court - England & Wales
- Finding your local court - Scotland
- Landlords Energy Performance Certificate - New obligation for landlords
- Property To Let Boards
