UK law imposes a number of special duties and restrictions on landlords. If you earn a living in this way, you’ll need to abide by these – or face the legal consequences. Let’s run through a few of the basics.
Making sure properties are habitable
You are responsible for upkeep of the commercial properties you are letting out. This means that any damage to the fabric of the building or to major appliances like boilers needs to be addressed promptly. Ideally, you’ll also need to take a proactive maintenance approach.
For example, you might have someone regularly inspect and service the boiler. This will help you reduce the risk of failure in the long term, thereby driving down your overall costs. You’ll also be less likely to face legal challenges for having allowed the property to fall into disrepair.
Other proactive measures are more specifically mandated. You’ll need to ensure that there is a working smoke alarm on every floor of the property, and carbon monoxide detectors, too. Testing the alarms is something that your tenants will need to do – but if they report that one of them is broken, you’ll need to intervene quickly.
Any electrical appliance should be PAT tested, and gas safety certificates should be issued for the property. To stay on the right side of the law, you should have an EPC certificate for the property, too – and it should be an E or better. An EPC lasts for ten years.
What about letting agents?
Landlords might not trust themselves to fulfil all of their obligations. They might lack exhaustive knowledge of the subject or the time to chase everything up. If you’re in this position, then you can entrust the task to a specialist letting agent. This organisation or individual will look after the property, and all of the associated work, on your behalf. That way, you’ll be able to earn money from the property and enjoy the peace of mind that comes with having an experienced hand at the wheel.
Securing the deposit
There are a number of ways of safeguarding your tenant’s deposits. You might use a government-approved escrow service and keep your tenants apprised of the details. This way, if there’s a dispute, you’ll be able to get the money back, but your tenants won’t be at your mercy.
Vetting the tenant
Before you allow the tenant to move into the empty property, you’ll need to make sure that they have the legal right to do so. Collect the relevant details; if you don’t, then you could be held legally accountable. Nowadays, tenants are able to demonstrate their right to rent via a single code – which makes it easy to stay out of hot water.
If you have a letting agency appointed, they usually do the vetting and paperwork for you. They also take responsibility for hosting viewings to find the right tenant to take on the property.