Being aware of the latest lettings-related laws is essential for landlords in order to ensure the safety of their tenants and avoid various penalties. However, a variety of independent studies show the shocking ignorance about all the regulations they must be following.
There are more than 140 laws that are applicable to landlords, with additional legislation to be added over the coming years. It’s an enormous problem for landlords to keep up with ever-changing legislation and a failure to comply could lead to landlords being fined or restrictions, and possibly prison penalties, so acknowledging the law, understanding it and implementing the rules should be top of mind.
Here are eight important pieces of legislation that a lot of landlords aren’t aware of:
1.) the right to lease
The legislation was introduced in December and landlords who don’t abide by Right to Rent rules now could be fined up to PS3000 which could mean up to five years of prison. The law requires landlords or their letting agents have to conduct appropriate immigration checks to confirm that that a potential tenant has the legal right to reside in the UK prior to letting the property.
2.) Energy Efficiency regulations
Rental properties should, in general be able to achieve at minimum an ‘E’ score on the Energy Performance Certificate (EPC) before April 2018, or landlords might not be allowed to rent their properties out.
3.) Safety of electrical equipment
The latest white paper from the government on housing laid out an idea to address the problem of electrical safety. While no specifics have been released, new regulations are expected to be introduced in April. They may require landlords to prove that their properties have passed an electrical installation checked in addition to proving that all electrical devices were tested with a PAT before they can let it.
4.) Gas security
A recent study conducted by Gas Safe Register found more than one-in-five privately rented houses have at least one dangerous gas appliance. Landlords are legally required undergo a gas safety inspection conducted by a certified professional, and to provide tenants with an official gas report at the beginning of their lease (and each year after that).
5) Carbon monoxide and smoke alarms
Landlords are legally obliged to put in and keep at minimum one functioning smoke alarm on every property that is rented and carbon monoxide alarms in every room with any appliance burning solid fuel. The law was passed in October of 2015.
Head on over to Landlords Checks for more information.
6) Are you seeking access to the property? Send notice
Tenants must be given at minimum 24-hour notice when they intend to enter the property in the event of an emergency. If they fail to do so give notice, they’ll be in violation of the Tenancy Agreement. Even after notice, tenants may restrict access.
7) Take care of maintenance requests and lose your right serve notice
The Deregulation Act in 2015 introduced an order that landlords have to take care of repairs or maintenance requests made by tenants in a predetermined manner or risk being unable to take back ownership of the premises. Landlords now have to give an adequate response to demands in writing including their plans and the suggested timeframe to complete any task. If they do not, it are liable to nullify the validity of any Section 21 notice they serve.
8.) Reduction of tax relief on mortgage interest
The amount of tax relief that landlords enjoy will be phased into effect from April 2017. This means that landlords will no longer be able to claim their mortgage interest expenses from the rental earnings.