Most experienced Landlords will know the comprehensive requirements when letting a property to ensure they remain compliant throughout the Tenancy. When it feels like there is a new piece of legislation introduced every few months, it can be easy for self-managed Landlords to miss things out.
At Excel, we work with a range of clients, from those who just want us to find a Tenant and then handle everything themselves, right through to the those that want a fully “hands-off” experience where we look after all aspects of the Tenancy for them.
All too often we come across situations where Landlords have missed an important step or process in keeping compliant, which opens them up to a potential raft of hefty fines and penalties, or the inability to regain possession of their property when they need to.
We’ve put together a list of the some of the key compliance factors that need to be carried out before and during a Tenancy to ensure Landlords are fully compliant. Part 1 of this list focuses in on the aspects of letting a property that pose the most sever penalties for non-compliance. We will follow up with Part 2 in a separate post that will highlight some of the areas that are more often overlooked, so make sure to keep an eye out for that in the coming months.
PART 1
Energy Performance Certificate (EPC)
Ensure a valid Energy Performance Certificate is commissioned and made available when marketing the Property for rent in line with The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level of ‘E’ for domestic private rented properties, including those being marketed for rent from April 2018 and all existing tenancies from April 2020. An EPC lasts for ten years after which it must be renewed. This must also be served on the Tenants at the start of the tenancy and at the commencement of a fixed term renewal
Penalty for non-compliance – fine of up to £5,000 & invalidate Section 21 notice (used to regain possession of the property)
How to Rent Guide
Download the most recent version of the “How to Rent Guide” (www.gov.uk/government/publications/how-to-rent) and issue this to the prospective Tenant and document proof of receipt, where the proposed Tenancy is to be an Assured Shorthold Tenancy (“AST”)
Penalty for non-compliance – invalidate Section 21 notice (used to regain possession of the property)
Right to Rent Checks
Carry out all Right to Rent checks at the start of the Tenancy to comply with the Immigration Act 2014 & 2016. Also check the Tenant’s work permit or visa is renewed every twelve months or the date of renewal of the visa or work permit if later and carry out the relevant Right to Rent checks on any new or additional residential occupiers during the Tenancy at the Property and any subsequent renewed Tenancies
Penalty for non-compliance – Unlimited fine or up to 5 year prison sentence
Information for Tenants
Issue to the Tenant “Information for Tenants – A Tenant’s Guide to mydeposits” where the proposed Tenancy is an AST
Penalty for non-compliance – invalidate Section 21 notice (used to regain possession of the property)
Gas Safety Certificate
Arrange all gas appliances flues and pipe-work to be checked by a Gas Safe Registered engineer to comply with the Gas Safety (Installation and Use) Regulations 1998 & 2018 prior to the start of the Tenancy and annually thereafter and a copy of the Gas Safety certificate provided to each person forming the Tenant and document proof of receipt. Provide a copy of the Gas Safety Certificate to each Tenant and document proof of receipt within 28 days of each annual Gas Safety check.
Penalty for non-compliance – Unlimited fine, imprisonment & invalidate Section 21 notice (used to regain possession of the property)
Electrical Installation Condition Report
Arrange all electrical safety checks and serve the relevant documentation on the Tenant in line with The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 to ensure that the electrical safety standards are met during any period when the residential premises are occupied under a Tenancy, and that every fixed electrical installation is inspected and tested at least every five years by a qualified person. “Electrical safety standards” means the standards for electrical installations in the 18th Edition of the Wiring Regulations. An Electrical Installation Condition Report or EICR will be provided by the contractor conducting the inspection and test which explains its outcomes and any investigative or remedial work required. A copy of this report will be supplied to each person forming the Tenant within 28 days of the inspection and test, to a new Tenant before they occupy the premises, and to any prospective Tenant within 28 days of receiving a request for the report. If requested by a local authority, supply a copy of the EICR within 7 days of receiving the request. If the report requires remedial work or further investigation, arrange any remedial works and provide written confirmation that the work has been carried out to the Tenant and to the local authority within 28 days of completing the work. Retain a copy of the report to supply to the inspector and tester who will undertake the next inspection and test.
Penalty for non-compliance – fine of up to £30,000
Smoke and Carbon Monoxide Alarms
Arrange for the installation of one battery operated smoke detector on each and every floor of the Property unless there is a mains wired alarm system where there is living accommodation plus carbon monoxide alarms in any rooms used as living accommodation with a fuel burning appliance. To ensure compliance with the Smoke and Carbon Monoxide Alarm (England) Regulations 2015, arrange for checks to be carried out on the first day of a new Tenancy to ensure that smoke and carbon monoxide alarms are in working order and notify the Tenants.
Penalty for non-compliance – fine of up to £5,000
It’s important to note that it’s not just sufficient to carry out the above checks, or hand over paper copies of documentation or certificates. It’s crucial that everything that needs to be served on a Tenant is done so in a way that can be proven, should it be questioned further down the line. At Excel, we serve all documents on Tenants via electronic signature, so that there is a clear trail of the time, date and recipient of the documents, which removes any doubt that may arise using simple email.
A reminder that at Excel, our Landlords who have taken up our Fully Managed level of service are safe in the knowledge that all of the above are taken care of on their behalf by our experienced Team. If you are a self-managed Landlord looking for more peace of mind with your rental investments, please don’t hesitate to contact us for a chat to see how we can assist you.