Being a landlord today can be both challenging and rewarding.  It is important to consider that you’re fulfilling a vital role in providing a home to your tenant and as such it needs to be safe and secure to protect both them and your investment.  According to the Gov.uk site you’re a landlord if you rent out your property and as a landlord you must:

(a) keep your rented properties safe and free from health hazards

(b) make sure all gas and electrical equipment is safely installed and maintained

(c) provide an Energy Performance Certificate for the property

(d) protect your tenant’s deposit in a government-approved scheme

(e) check your tenant has the right to rent your property if it’s in England

(f) give your tenant a copy of the How to rent checklist (available at gov.uk/government/publications/how-to-rent) when they start renting from you

A good way to familiarise yourself with the rules and regulations is to attend a landlord accreditation day.  These are available through many reputable schemes such as the Council, National Landlord Association (NLA), Residential Landlords Association (RLA) or Midlands Landlord Accreditation Scheme (MLAS).  Other things to consider are tax implications, financial viability and risk (especially if taking out a mortgage), insurance, lease restrictions (if the property is leasehold) and how you’ll manage it.

You may consider if you wish to ‘self-manage’ the property or employ an agent to look after it for you.  There are pros and cons for both sides and much depends upon your personal abilities, circumstances and location of property.  Speaking to local letting agents can help you assess the type of demand in an area and if you decide to use an agent the gov.uk site advises to check:

What independent complaints scheme is the agent a member of?

Do they offer client money protection?

And accredited through a professional body like ARLA, NALS, RICS or UKALA?

Look for the SAFEagent sign too.

It is also a good idea to speak with fellow landlords who use agents and take

recommendations from them.

Preparation for the Private Rented Sector

The purchase of a property is a huge financial responsibility so it is vital that you do everything you can to ensure that you get maximum return for your investment and reduce your overheads where possible while ensuring you provide safe housing.

Consider the type of property you want, or have, then couple this with consideration for the type of tenant you would like to rent to.  Are they compatible?  Is the house big enough, in the right situation for employment, schools, shops, transport routes etc.  All of these considerations could impact on your long term returns or the amount of rent you could reasonably expect to achieve from such a property, if you are not having a professional homebuyers survey carried out then use your eyes and your nose to seek out signs of damp and defect.  Look also at the neighbours and surrounding areas, go back in the evening when the locals are home from school and work.  Talk to some of them and get a picture of the type of people that live in that area and how long they stay.

You can save a fortune by getting tenants that are going to stay for a few years and let their children grow up in the community, thus negating the necessity of setting up new tenancies every six months and the expense of advertising or the possibility of having an empty property for a few weeks.  If there are obvious alterations or repairs that will need to be done then take your builder along with you and get an estimate  of costs.

A quick scan through the local paper or websites and checking with local agents will give you a good indication of what rent you could reasonably charge and may influence your decision with regard to the type of tenant you aim for.  You may also make decisions regarding the benefits of providing furnished or unfurnished properties.  Unfurnished usually means that the landlord still provides carpets and curtains.

Much will depend upon what type of tenant you decide upon with regard to how you go about finding them in the first place. If you have a ‘Student Let’ then obviously the local University would be a good place to start. If it’s a family home you may ask neighbours if they know of anyone who would be looking to move into that area. Obviously they are not going to want the ‘neighbours from hell’ living by them. You may like to leave the selection and interview stage up to your letting agent or you may wish to do it yourself . It’s all down to personal preference, but either way you need to ensure that the correct checks are being carried out. It is always a good idea to go and visit the prospects in their current home to see how they live and how they treat their property. When you get down to the final few take details of previous landlords, addresses, names, number of children etc.. Before you commit, conduct a reference check and check with Wrekin Landlords Association referencing system which may assist you in your decision.

To get the maximum potential from your property it should be prepared correctly. The decoration should be in neutral colours which should be acceptable to most prospective tenants. If you supply furniture it should be clean, in good repair  and comply with current fire safety legislation. The same goes for gas and electrical appliances which must be tested and certified. A decent kitchen and bathroom is a main selling point for tenants, these should be clean and functional. If you have any doubts you may well find it beneficial to replace them as it is no longer the major expense that it was a few years ago. There are many good deals to be had in stores and on-line. An investment in these will probably pay you back in no time by avoiding weeks without rent and ensuring short turn-around of tenants. Just like selling a house the ’street appeal’ should be good. Make sure that the outside of the property looks good, the gardens, lawns and so on, paint work touched up in suitable colours and doors and windows  in good order and secure. The basic rule is that a poor quality property will attract only poor quality tenants. It is an investment in your investment to ensure that you do everything in your power to make the property safe and attractive.

Once you have satisfied yourself that your tenant is suitable and can afford the property, you will need to issue them with an ’assured shorthold tenancy’ agreement. At the time of writing there is not a standard agreement that is obligatory for this purpose and many landlords use their own version of one, some are unnecessarily long and convoluted whilst others are too brief and would not stand up under scrutiny in a court of law, if necessary. It may be best to buy a ready made one on-line or have one drawn up by a solicitor. If you use a letting agent they will have their own version . If you are letting to someone who you feel will not be responsible, then you’d be advised to ensure you have  a guarantor for them (often in the case of a student, their parents may guarantee the rent and the condition of the property). When the tenant moves in you should do an inventory check including photographic and video evidence including the tenant, to record the condition of the property on the day they moved in. That way they will be unable to argue the point should it come up when they leave. You need to ensure you’re providing the prescribed information at this time, take meter readings and check that the smoke and carbon monoxide detectors are working. It is vital for both parties to have a clear understanding with regard to maintenance, who is responsible for what? Consider also one of the many ‘emergency call-out’ schemes available to avoid the hassle and high call out costs. These costs are tax-deductable.

As the very name suggests this type of insurance is very specialised and is needed to cover all eventualities that can occur in a rented property which may not be applicable in a traditional residence. You may find if you do not have the correct insurance then you may well not even be covered by insurance which in itself could contravene your mortgage agreement. The policy we recommend is a specialist one prepared by Alan Boswell (Click Here) which is tried and tested and has proven to be reliable for our members for a number of years, it can also cover your contents if required but tenants are responsible for their own cover.

Council Tax

As soon as you buy a property you are liable to pay the Council Tax. From the date the tenant moves in they become responsible for payment of Council Tax provided only one tenancy agreement applies to that property, otherwise it could be viewed as a HMO and therefore the landlord is responsible.  There are certain exemptions available for full time students but again it is vital that you take advice from your local office or you could end up paying the Council tax yourself.

Taxation for rented properties

This is an area undergoing considerable changes particularly for those who have mortgages on their rental properties as the way interest is accounted for is changing due to Clause 24 of the 2015 finance bill.  Assuming that you retain personal ownership of your property and not set up a limited company then you will ultimately, as the person ’receiving’ or ’entitled to the income’, be liable to pay income tax on any profits made.   We recommend that you use an accountant who is experienced in property who will be aware of changes and what costs can be offset.  However, if you choose to submit your own tax returns then it is important that you understand the expenses that can be offset against your income to ensure you pay the correct tax.  This schedule of allowances is available from the Inland Revenue direct or through their website (www.hmrc.gov).  The basic premise of allowances is that you can claim for repairs and maintenance but not for capital improvement.  If an expense is purely because the property is rented it will likely fall under allowable costs as will cost of employing maintenance staff, Solicitors costs, insurance, legal and administration costs and travel (provided it is wholly for the purposes of your rental business) going to visit your property or to collect rent etc. Your membership fee to your Landlords Association is also deductible.

Capital Gains Tax

If you sell your rental property you will be liable to pay Capital Gains Tax. However, this is an area where you really do need professional advice as much has changed in the last few years and  you need to be abreast of the current rules. There still exists, at present, an annual allowance which can be doubled in the case of joint ownership, this  can be used to offset the amount due but there are other factors which need to be taken into account such as; “ was this property ever your principal residence? or  “do you still live in part of the house” and so on.. This calculation could also take into account such things as capital expenditure which improved the value of the property but could not be claimed as relief against income tax. You may also seek professional advice on splitting sales across multiple tax years to use your annual reliefs which could  save you a lot of money.

Taking a deposit against unreasonable damage to a property is one of the few safeguards open to landlords. From April 2007 the Government, under the Housing Act 2004, introduced mandatory tenancy deposit protection schemes.  This means that any Landlord in England and Wales who takes a deposit on an Assured Shorthold Tenancy is BY LAW required to protect it in a recognised Tenancy Deposit Scheme.  Landlords do not have to take a deposit if they do not want to…

HOW IT WORKS:

There are two types of scheme: Custodial and Insurance based. The custodial scheme is free to use but the deposit must be paid to the scheme administrator to hold until the tenancy ends. The insurance based scheme allows you to keep the deposit in a ring-fenced bank account.  If the landlord chooses to use the insurance based scheme he must pay the scheme administrator a fee.  If there is a dispute at the end of the tenancy the deposit amount must be transferred to the scheme administrator until resolution is achieved.

There are three authorised schemes landlords can choose from:-

THE DEPOSIT PROTECTION SERVICE (Custodial and insurance based)

www.depositprotection.com

MY DEPOSITS (Insurance and custodial based schemes)

www.mydeposits.co.uk (0844 980 0290)

TENANCY DEPOSIT SCHEME (Insurance based )

www.tds.gb.uk (0845 266 7837)

If a landlords decides to take a deposit they must register with one of these three schemes and these schemes will provide the details to the Local Authority on request.  When a landlord receives a deposit, they have 30 days in which to protect it Failure to do so can lead to a Landlord being fined between 1 and 3 times the deposit amount.

There are other requirements allied to these deposit protections but because the rules are constantly changing it is as well to read up when actually choosing a scheme. It is vital that a Landlord not only protects the deposit but gives the Tenant the “Prescribed Information” and obtains a signature from the tenant to say he has received it.

Best practise – insert a clause in the Tenancy Agreement to this effect.

If a landlord fails to provide prescribed information, he cannot issue a Section 21 Notice.

Gaining Possession of your Property (see additional separate info)

If a tenant refuses to leave your property voluntarily you must obtain a Court Order for possession. It is important that you DO NOT take any actions that are in contravention of the Protection from Eviction Act (1977)  or any offence under the Criminal law Act (1977). Common law requires that a Section 8 Notice or Section 21 – Notice to quit – is given to the tenant in writing.

For Court purposes a Section 21 notice must give the tenant at least 2 months’ notice to leave the premises. (The Government are looking at extending this to 3 months)

It is important in case of future problems that a landlord has a signature from the Tenant acknowledging the receipt of this notice.

Before issuing a S8 / S21 notice, Landlords need to ensure that there are no circumstances which preclude such action, i.e. most HMO’s must have a valid license from the Local Authority, deposits must have been protected, valid notices issued to the tenant at the beginning of the tenancy etc.

It is vital now that any instruction to tenants of your intention to proceed with a section 21 repossession, MUST BE DONE on a FORM 6a which is easily downloaded free of charge.

Click Here for more information.

If a landlord received in writing a complaint from his tenant about the condition of the property and either did not respond within 14 days, or provided a response that was not adequate or gave a Section 21 notice, and the tenant goes on to complain to the Local Authority, any Section 21 the landlord serves on the tenant (even before the Local Authority issue a notice) will be invalid.

Adequate response by the landlord must be in writing and provide a description of the action that the landlord proposes to take AND sets out a reasonable timescale for that action to be taken. There are two exceptions to this rule and that is if the property is genuinely on the market for sale OR the poor condition of the property has been caused by the tenant.

The Act has done away with the requirement to tie the expiry date of a Section 21 notice to an end of a period of the tenancy. However, you should make sure that your tenancy agreement reflects this.

A Section 21 can now be served with a straight 2 months’ notice, assuming it will not expire sooner than the end of the fixed term and of course allowing time for service.  The Act prescribes a formula for working out rent on a daily basis, if your notice does not expire on an end of a period of the tenancy:  – rent x number of days divided by period.

The Act introduces time limits now for Section 21 notices.  They cannot be served within the first 4 months of a tenancy and landlords will only have 6 months from the time the notice was issued to the time they commence court proceedings. The Act also requires that certain prescribed information is provided to tenants before a valid Section 21 notice can be served. In addition to the Prescribed Information in relation to the deposit, landlords must also give tenants, a copy of the EPC (Energy Performance Certificate)

Gas Safety Certificate if applicable and  a copy of the Governments booklet entitled ‘How to Rent’. The easiest way to obtain proof of service of the aforementioned  documents is to detail them in the tenancy agreement.

SECTION 21 Notices

    Changes to Section 21 notices have been introduced that affect all new tenancies created on or after 1st October 2015.

The Deregulation Act 2015 introduced several changes to the way Section 21 notices can be used. Tenancies that commenced before 1st October 2015. are not affected.

These changes include:-

If a landlord received in writing a complaint from his tenant about the condition of the property and either did not respond within 14 days, or provided a response that was not adequate or gave a Section 21 notice, and the tenant goes on to complain to the Local Authority, any Section 21 the landlord serves on the tenant (even before the Local Authority issue a notice) will be invalid.

Adequate response by the landlord must be in writing and provide a description of the action that the landlord proposes to take AND sets out a reasonable timescale for that action to be taken. There are two exceptions to this rule and that is if the property is genuinely on the market for sale OR the poor condition of the property has been caused by the tenant.

The Act has done away with the requirement to tie the expiry date of a Section 21 notice to an end of a period of the tenancy. However, you should make sure that your tenancy agreement reflects this.

A Section 21 can now be served with a straight 2 months’ notice, assuming it will not expire sooner than the end of the fixed term and of course allowing time for service.  The Act prescribes a formula for working out rent on a daily basis, if your notice does not expire on an end of a period of the tenancy:  – rent x number of days divided by period.

The Act introduces time limits now for Section 21 notices.  They cannot be served within the first 4 months of a tenancy and landlords will only have 6 months from the time the notice was issued to the time they commence court proceedings.

The Act also requires that certain prescribed information is provided to tenants before a valid Section 21 notice can be served. In addition to the Prescribed Information in

relation to the deposit, landlords must also give tenants:

a copy of the EPC (Energy Performance Certificate)

Gas Safety Certificate (if applicable) and

a copy of the Governments booklet entitled ‘How to Rent’.

The easiest way to obtain proof of service of these documents is to detail them in the tenancy agreement.  Alternatively, if the tenant agrees, these documents can be served on them by email.  Again, it is best to get this in the tenancy agreement and to retain a copy of the email as proof of service.

Lastly, the Act requires landlords to use a prescribed form for Section 21 known as Form 6A.

Remember – if the tenancy began before 1st October 2015

A landlord cannot regain possession during the first six months of an Assured Shorthold Tenancy.

A Section 21 Notice must be served on the tenant after the tenancy has commenced but 2 months before the date that possession is required.

If the notice has been served correctly during the fixed term and the tenant does not move out at the end of it, the landlord may start possession proceedings immediately without having to serve any further notices.  A Section 21 is designed to deal with recovering a property following a shorthold tenancy at the end of the term.

If your circumstances are different you may need to use a Section 8.

When a Section 21 notice cannot be used

The following is a summary of situations in which a landlord cannot get possession through the courts using a section 21 notice.

If the tenancy is an Assured Tenancy

If the tenancy deposit has not been protected at the point where court proceedings begin

If the property is an HMO which should be licensed but is not licensed at the point where court proceedings begin.  (If the landlord can demonstrate that he has applied for a licence but the local authority has yet to decide whether or not to grant the licence the section 21 notice should be valid)

During the fixed term of the assured shorthold tenancy (unless there is a valid break clause in the agreement and the notice was served at that point)

During the first six months of the assured shorthold tenancy, if the fixed term is shorter than six months In addition for tenancies commencing on or after 1st October 2015 landlords cannot get possession under Section 21

If the tenant has complained about the condition of the property and it remains unresolved or a notice has been served by the Local Authority

If the notice was served within the first 4 months of the tenancy

If the notice was issued more than 6 months previously

If the ‘How to Rent’, EPC (Energy Performance Certificate) and Gas Safety Certificate (if applicable) have not been served on the tenant.

If any of these situations apply the landlord can only get possession on one of the mandatory or discretionary grounds for possession under the Housing Act 1988 and if he has served a section 8 notice.

This is used to start proceedings against an assured shorthold tenant before the fixed term has come to an end (e.g. Due to a breach of the contract such as non-payment of rent), the landlord will need to serve notice of his intention to seek possession, based on one or more legal grounds of possession under the Housing Act (1988). There are many grounds for this and it is important that you choose the right ones and give the correct notices. For instance grounds 1,2,5,6,7,9,and 16 require at least 2 months notice whilst all the others require just 2 weeks except Ground 14 which is immediate.

In view of this it is vital that you take correct guidance in these matters checking with the Courts that you are using the correct form and using the exact words cited in the act.

SECTION 8 NOTICES

This is used to start proceedings against an assured shorthold tenant before the fixed term has come to an end (e.g. Due to a breach of the contract such as non-payment of rent), the landlord will need to serve notice of his intention to seek possession, based on one or more legal grounds of possession under the Housing Act (1988). There are many grounds for this and it is important that you choose the right ones and give the correct notices. For instance grounds 1,2,5,6,7,9,and 16 require at least 2 months notice whilst all the others require just 2 weeks except Ground 14 which is immediate.

In view of the above it is vital that you take correct guidance in these matters checking with the Courts that you are using the correct form and using the exact words cited in the act.

NOTE: New legislation came into force in April 2015 and October 2016 to change the wording of the Section 8 notice in England.

It is very important that anyone following the Section 8 route serves the correct legal notice.  The new wording must now be used for any Section 8 Notices served.  If you have used the old wording, your case may be thrown out by a judge if you subsequently need to apply for a Possession Order.

The new wording only applies to Assured Shorthold Tenancies in England. 

There is information and help available on-line about application and completion of the above.  Also, the local authority is often willing to give advice and guidance about completion of the forms, or landlords can employ a Solicitor or similar to act on their behalf.  In all these cases landlords must have their dates and paperwork up to date and beyond reproach.

There are also Accelerated Possession Procedures and Summary Judgements available in certain circumstances, it is wise to check out all options and select whichever suits your particular circumstances and tenant at that time.

When a tenant seemingly abandons a property, it puts the landlord in a vulnerable position.  If he enters the property, decides it is empty and subsequently re-lets it, the tenant may return and accuse him of unlawful eviction.  Therefore, the best practice to protect the landlord is to apply to the court for a possession order.  Once granted, re-enter the building in the presence of a Court Bailiff, to witness the changing of the locks.

The law does give the landlord the right to enter premises which are believed to be abandoned.  However, if a landlord chooses to do this, best practice is to ask a reliable person to accompany you, who can verify (in writing if necessary) what was found on entering the premises.  Photographs and video help as well.  If a landlord is satisfied that the tenants have definitely abandoned the property and that sufficient measures to satisfy a Court have been taken, then a landlord may want to risk re-letting the property without a court order.  It is wise to post notices in prominent positions on the property of your intention to do so.  An adequate notice would read:

I (Landlords details including telephone no) being the landlord of (Property Address) believe that the tenant, known to me as (Name of tenant), who has lived in this property since (Date) has vacated this property without notification to me of their intention to do so.  In the company of (Name) I entered the property on (Date) and confirmed my belief that the said tenant has vacated. Anyone with relevant information as to the whereabouts of the tenant should contact me not later than (Date).  If by then I have not been able to contact the tenant, or the tenant has not contacted me, I will take back the subject property on the not unreasonable assumption that the tenant has indeed left.  Prior to this date the tenant is free to return to this property. (Sign and date)

Property with goods and chattels

If there are still ’goods and chattels’ (furniture & clothing ) left in the property, landlords need to make further decisions, as this clouds the distinction between whether a tenant has actually left (abandoned) or is simply away for an extended period of time.  Never the less the same rules apply as above, although in these circumstances landlords need to be extra diligent to try and contact relatives, local doctor etc.  If a landlord cannot satisfy him/her self that the tenant has abandoned the property, the landlord has an obligation to store those items for a minimum of three months.  It is vital that a strict inventory with pictures and witnesses is taken, in case the tenant tries to make a claim against the landlord for damages and/or loss.

In these circumstances the landlord needs to make additions to the notice of abandonment , as above, to include all goods and chattels which reflects the costs of such storage being passed on to the former tenant.

Best practise – take advice from your insurance company about coverage of an empty property and cover of legal proceedings against you.

Harassment and Illegal Eviction

Tenants are protected by Law against harassment by a landlord or measures to evict them that have not been sanctioned by the Courts.  If a landlord illegally harasses their tenant, the landlord could be liable to civil or criminal sanctions.  Conviction of these offences will disqualify a landlord from being considered a ’fit and proper person’ and could result in them not being able to continue to conduct such a business in the future.

THE PROTECTION FROM EVICTION ACT (1977)  

This Act imposes criminal penalties in cases of harassment and unlawful eviction.

Section 1 (M) of the act states ’it is an offence for a landlord to interfere with the peace and comfort of a residential occupier, or to withhold services required for the occupation of the premises, if he knows or has reasonable cause to believe that such conduct is likely to cause the occupier to give up occupation of the premises.

Actions construed as harassment would include: Threats of violence, Removing doors and windows, Changing the locks, Disconnecting Services

There is no requirement to prove that the landlord intended the occupier to leave.  Local authorities will normally bring action under this act and if found guilty, a landlord could go to prison, be fined and compensation may also be given to the tenant.

THE CRIMINAL LAW ACT (1977)

Under section 6(2) of this act it is an offence for anyone ‘without lawful authority’ to use, or threaten to use, violence to gain entry to a property where someone is trying to prevent him from doing so.  The Police will normally prosecute a landlord under this act.  However, criminal courts are not empowered to order a landlord to allow tenants back into a property.

CIVIL PROCEEDINGS

This course of action is more suited to tenants who may need an injunction to restrain a landlord or to regain possession of a property or to sue for damages or bring injunctions which are only available in civil proceedings through a County Court.  For such proceedings a ‘cause for action’ must be evident.  Therefore, a landlord must be shown to have broken some rule of law by his actions and caused the tenant to suffer loss or harm as a result. Such things could include: Breach of the covenant for quiet enjoyment , breach of a contract in general, trespass to land  (e.g. assault /battery), trespass to goods (damage to tenants belongings, furniture etc)

The above cases can generate quite substantial damages and compensation payments so it is advisable not to take these matters lightly and to seek professional legal help.

The Housing Health & Safety Rating System (HHSRS) is the way in which Local Authorities (Councils) assess housing conditions in England and Wales.  It uses a risk assessment approach.  The aim is to provide a system (not a standard) to enable risks from hazards to health and safety in dwellings to be removed or minimised.

It provides a method of grading the severity of threats to health and safety in any dwelling, in all sectors, including: a house, self-contained flat, a non self-contained flat, bedsit, a room in a university hall or similar residential building and includes the means of access and shared or common rooms and facilities.

The key principle of the system is that a dwelling, including the structure and associated outbuildings and garden, yard and/or other amenity space, and means of access, should provide a safe and healthy environment for the occupants and, by implication, for any visitors. The council may decide to do an HHSRS inspection because, your tenants have asked for an inspection or the council has done a survey of local properties and thinks your property might be hazardous

The inspection process is a risk based assessment and considers the effect of any ‘hazards’ in the property.  Hazards are rated according to how serious they are and the effect they are having, or could have, on the occupants, that is, ‘the effect of the defect’.  It should be borne in mind that all properties contain hazards, for example stairs, electrical outlets etc. and it is not possible (or desirable) to remove all hazards.  The emphasis should be to minimise the risk to health and safety as far as possible either by removing the hazard altogether or minimising the effect, as appropriate.

Each hazard is assessed separately, and if judged to be ‘serious’, with a ‘high score’, is deemed to be a category 1 hazard.  All other hazards are called category 2 hazards.  Therefore, from a landlord point of view considering safety in rental properties, it is always better to over compensate than to regret the consequences.

The system can deal with 29 hazards summarised as follows:

 Damp and Mould Growth: Health threat from dust mites, mould or fungal growths caused by dampness and/or high humidity. It includes threats to mental health and social wellbeing from living with damp, damp staining and/or mould growth.

Excess cold: Most vulnerable 65 plus, from sub-optimal indoor temperatures.

Excess heat: Most vulnerable 65 plus, from excessive high indoor temperatures

Asbestos (and MMF): Caused by exposure to asbestos fibre and manufactured mineral fibre.

Biocides: Threats to health from those chemicals used to treat timber and mould growth in dwellings. Insecticides and rodentcides to control pest infestations (e.g. cockroaches or rats and mice), these are not considered for the purposes of HHSRS.

Carbon monoxide and fuel combustion products: Hazards due to excess levels of carbon monoxide, nitrogen dioxide, sulphur dioxide and smoke in the dwellings atmosphere. Special consideration should be made to over 65’s.

Lead: Threats to health from the ingestion of lead.

Radiation: This category covers the threats to health from radon gas and its daughters, primarily airborne, but also radon dissolved in water. Whilst rare, leakage from microwave ovens might also be considered. Evidence of health risks from low-level exposure to electro-magnetic fields from phone masts have not, to date, been proven.

Uncombusted fuel gas: The threat of asphyxiation due to fuel gas escaping into the atmosphere within a dwelling.

Volatile organic compounds are a diverse group of organic chemicals which include formaldehyde, that are gaseous at room temperature and are found in a wide variety of materials in the home.

Crowding and space: Health hazards linked to a lack of living space for sleeping and normal family/household life.

Entry by intruders: Problems keeping a dwelling secure against unauthorized entry and the maintenance of defensible space.

Lighting: Threats to physical and mental health linked to inadequate natural and/or artificial light. It includes the psychological effect associated with the view from the dwelling through glazing.

Noise: Threats to physical and mental health caused by noise exposure inside the dwelling and within its curtilage.

Domestic hygiene, pests and refuse: Health hazards due to poor design, layout and construction to the point where the dwelling cannot be readily kept clean and hygienic, access into, and harborage within, the dwelling for pests; and inadequate and unhygienic provision for storing and disposal of household waste.

Food safety: Threats of infection due to inadequate facilities for the storage, preparation and cooking of food.

Personal hygiene, sanitation and drainage: Threats of infection and threats to mental health associated with personal hygiene, including personal washing and clothes washing facilities, sanitation and drainage.

Water supply for domestic purposes: The quality and adequacy of the water supply for drinking and for domestic purposes such as cooking, washing, cleaning and sanitation. Also, threats to health from contamination by bacteria, protozoa, parasites, viruses and chemical pollutants.

Falls associated with baths etc.: Falls associated with a bath or shower facility. Falls on the level: Falls  on any level surface such as floors, yards and paths. Also includes falls associated with trip steps, thresholds or ramps, where the change in level is less than 300mm.

Falls associated with stairs and steps: Falls associated with stairs, steps and ramps where the change in level is greater than 300mm. It includes falls on internal stairs or ramps within the dwelling, internal common stairs or ramps, external steps or ramps within the curtilage of the dwelling, access to the dwelling and to shared facilities or means of escape in case of fire. It also includes falls over stair, step or ramp guarding (Balustrading).

Falls between levels: Falls from one level to another, inside or outside a dwelling,

where the difference in levels is more than 300mm. For example falls out of a window, falls from balconies or landings, falls from accessible roofs, into basement wells and over garden retaining walls.

Electrical hazards: Hazards from  electric shock and electricity burns, including from lightning strikes.

Fire: Threats from uncontrolled fire and associated smoke. It includes injuries from clothing catching alight, apparently common when people attempt to put out a fire. It does not include clothing catching alight from a controlled fire by reaching across a gas flame or an open fire used for space heating.

Hot surfaces and materials: Burns or injuries caused by contact with a hot flame or fire and contact with hot objects or hot non-water based liquids and scalds– injuries caused by contact with hot liquids and vapours. It includes burns caused by clothing catching alight from a controlled fire or flame.

Collision and entrapment: This category may include risk of physical injury from, (a) trapping body parts in architectural features, such as trapping limbs or fingers  in doors or windows or (b) striking (colliding with) objects such as architectural glazing, windows, doors, low ceilings and walls.

Explosion: Threat from blast of an explosion, from debris generated by the blast and from the partial or total collapse of a building as the result of an explosion.

Ergonomics: Threats of physical strain associated with functional space and other features at dwellings

Structural collapse and falling elements: The threat of the dwelling collapsing or of an element or part of the fabric being displaced or falling because of  inadequate fixing or disrepair, or as a result of adverse weather conditions. Structural failure may occur internally or externally.

Following an inspection you must take action on enforcement notices from the council. You also have the right to appeal enforcement notices.  The council can do any of the following if they find a serious hazard: Issue an improvement notice,  fix the hazard themselves and bill you for the cost, stop you or anyone else from using part or all of the property.

As from 1 October 2008 it is a legal requirement for all Landlords in England and Wales to provide an Energy Performance Certificate (EPC) to all new and prospective tenants which indicates the thermal efficiency of the property.  The certificate should be provided at no cost to prospective tenants and should be shown before any tenancy is formed.  From October 2015, if landlords fail to show prospective tenants a valid EPC they will not be complying with the Section 21 rules and so will not be able to serve a valid Section 21 notice.

From 1 April 2018 the EPC must show a minimum rating of E.  This regulation comes into force for new lets and renewals of tenancies from 1 April 2018 and for all existing tenancies on 1 April 2020.  An inspection must be carried out by an authorized inspector who will issue the certificate, which is valid for ten years. The idea behind this scheme is that tenants may be able to compare the possible costs of heating a property.

before they agree to sign a contract and/or move in.  These certificates are not required if a tenant is sharing accommodation or is renting a room in a house with shared facilities.  A certificate relates to a specific property and cannot be used for any other.  Your inspector may also make suggestions with regard to future improvements for the energy efficiency of your property in order to improve the thermal rating.

The rental income from a furnished property can often be greater than from an unfurnished property but it comes with an additional set of challenges attached. Firstly it

must be pointed out that SOME properties are reliant upon inclusive furniture. Examples include Student lets and short term lets for professionals who you would not expect to provide their own furniture. In these cases you would be expected to provide everything down to the plates, cutlery etc. However, ‘furniture and furnishings’ are covered by the (Fire Safety) Regulations 1988 (amended 89 and 93). The interpretation for these purposes  are “Upholstered furniture of any description, intended for private use to include chairs, suites, beds, cushions, mattresses etc. (This does not however, include bedding or floor covering)

Since 1990 all new upholstered furniture supplied for rental must comply with ignitability tests (refer to the labels on the furniture which should remain permanently fixed to such furnishings) If in doubt contact your local fire department, who are always happy to advise. In new lets from January 1997 all upholstered furniture included in rented property MUST comply with the ignitability tests of the regulations whether the Landlord or the Tenant has purchased it. You may be held responsible in common law for any damages, injury or death resulting from fire involving furniture that does not comply with current regulations. It is again vital in these situations to ensure that your insurance cover is totally comprehensive and covers such eventualities. Proof of purchases dated after 1988 is evidence the Landlord bought the furniture in good faith and the supplier is responsible to ensure that the standards are adhered to. Your local trading standards office may also advise in such matters of ‘merchantable quality’.

It is always a wise move to ensure the safety of your property in every way possible. Remember you are taking responsibility for the lives of your tenants and their families.

You may also qualify for free smoke alarms although we do recommend that you have a ‘hard wired’ system with 10 year batteries. It is a legal requirement to have a minimum of one alarm per level, check that these are working when a new tenancy starts. Test these on a regular basis and advise your tenant in this regard too. It is also a legal requirement to fit a carbon monoxide alarm in rooms containing a solid fuel appliance.

It’s your responsibility to: fit and test smoke alarms and carbon monoxide alarms follow fire safety regulations for property in a purpose-built block of flats or for houses and property adapted into flats

Houses in multiple occupation (HMO’s) offer a cheaper alternative to the renter whilst offering a potentially higher return to the Landlord. As with all things higher returns come with additional work and responsibilities.

Often these properties are simply family homes converted to accommodate separate  people in shared accommodation. This usually means individual private bedrooms, shared kitchens, living rooms, bathrooms etc. There is a higher risk of fire in this type of property and therefore it is usually insisted upon that changes include higher grade fire safety like fire doors, alarms, extinguishers, emergency lighting, fire blankets and escape routes for all residents, including doors that open from the inside without a key. This advice MUST be taken from your local Council and MAY include applications for planning permission. If you are considering changing a family home into an HMO,  please check with the Council first then cost up the implications of these alterations before embarking on such a project. The rewards may be higher if you do go ahead but it’s an increasingly competitive market and you should assess demand for rooms versus existing supply before you embark on this type of venture.  The landlord should also consider they will have additional duties like taking responsibility for all bills, communal areas, gardens etc., and you will almost certainly have a greater turnover of tenants due to the very nature of the type of tenant who live in this kind of property.

In order to operate your HMO you may also need a license which is applied for via the Council.

Mandatory licensing

This currently covers properties that are 3 or more storeys high, have five or more people in more than one household, and share amenities such as bathrooms, toilets and

cooking facilities. The government has carried out a consultation to extend this criteria and it’s expected that from April 2018 the 3 story rule will no longer apply.  Please check on our website for updates.

Additional licensing

Councils may use discretionary powers to apply to extend licensing to a particular type of HMO, for example, two storey properties occupied by three or more sharers.

The Council will almost certainly specify the maximum number of people who may occupy your property and will insist on seeing electrical and gas safety certificates, including PAT tests for any appliances supplied if they are out of manufacturers guarantee.  You may have a situation where you have a couple of friends sharing a property and this is NOT considered to be a HMO, again it’s always best to check it out with the Council or gov.uk for definitions.  As with all things please ensure that you have the correct Insurance cover as some Insurance companies are very specific about who or what they

will insure for. Saving a few pounds on a cheaper insurance is of no consolation if you need to claim and find you were not covered through a technicality.

Selective licensing

Although not related to HMO’s the same area of legislation gives Local Authorities the ability to target an area whith “Selective” Licencing.  This type of license makes ALL residential rented accommodation in an area subject to requiring a licence and adhering to conditions outlined by the Local Authority.  It should be bought into a problem area as a last resort after the Local Authority has exhausted other avenues to raising standards in that area.

Bed sits/ Studios

If renting out bed sits in a property, check if you do need a license and then also consider

the implications of providing fully equipped properties and what that entails,

including the warnings on furniture advised under HMO’s. By their very nature these properties can command a higher return and will usually have tenants who are only looking for short term accommodation so build this into your initial costs. This is also an area which will likely require planning so please check with your planning department.

Landlords Rights

The Landlord has a right to ‘charge a market rent’ this amount is very subjective and will differ from one area to another and one property to another.  There is a term that is used which basically describes this state of flux and that is “Whatever, the local market will stand” which loosely means if a tenant can get a similar house in your area cheaper than you are asking then you will find it difficult to rent yours out.  Either improve what you are offering or lower your rent.  You have a right to have your property back when you require it and expect it to be in a decent condition.  Such conditions must be stated in your rental agreement and must be done in accordance with the law.  You retain the right of inspection but you must give the tenant written notice of 24 hrs prior to your visit.

Tenants Rights

The Tenant has the right of quiet enjoyment of the property, to know the duration and terms, in writing through thier assured shorthold tenancy. They should have a name and address for the Landlord also copies of Energy Performance Certificates and Gas Certificates. They should expect to have a property that would pass an HHSRS inspection. If they paid a deposit they have a right know with whom this was placed and the relevant terms of such a scheme. (see page 6) If a Landlord or his agents should wish to visit the property they should give  at least 24hrs notice in writing.

Tenants responsibilities

These normally include paying the Council Tax, and required utilities etc. (These will probably differ in HMOs where the Landlord would normally cover these costs). The original tenancy agreement must stress that they must look after the property and pay the rent as agreed when taking on the property, take responsibility for the safety of any appliances/devices brought into the property and take out their own contents insurance.

Landlords responsibilities

These would normally include repairing and maintaining the structure of the property, baths, sinks, toilets, heating and so on in accordance with the HHSRS.  On leasehold properties the Landlord is usually only responsible for internal, non-communal items (see the terms of your lease) but will pay a share of all other works done.  The Landlords biggest responsibility is for the safety and well-being of their Tenants and must therefore ensure all checks are done for gas, carbon-monoxide, electrical safety and so on.  A Landlord must keep copies of all gas safety certificates for two years and issue a copy to new tenants within 28 days.  The landlord is also responsible for ensuring the tenant has the Right to Rent property in the UK and should take legal steps to ensure this is done.A Landlord is not responsible for repairing damage caused by the tenant but must, at the same time, ensure that such damage does not threaten the health, safety and wellbeing of the occupants of the property; no matter who caused the damage. Common sense is always the key, as in most matters relating to dealing with tenants and property.

The Housing Benefit system has been fraught with changes over the last few years and looks set to undergo even more changes in the future with the full rollout of Universal Credit in Telford & Wrekin council areas planned in November 2018.  Universal credit is replacing many of the benefits which customers of the department for work and pension (DWP) are entitled to and therefore the amount shown as “Housing” allowance is impacted by all the other benefits a claimant receives.  The total benefits a Department for Work and Pension (DWP) customer can claim is now capped at £20,000 per year outside of greater London.  Your Landlords Association will attempt to keep you informed of relevant changes which may affect entitlement to Housing benefits.

What follows is an extract from a comprehensive booklet available from the benefits office or downloaded from the following web address http://www.telford.gov.uk/downloads/download/207/landlord_information_pack   (currently undergoing updates)

Housing Benefit and Local Housing Allowance (LHA) are means tested benefits which are administered by the Council on behalf of the Department for Work & Pensions (DWP).  They provide assistance to tenants who are receiving a low income to help meet their rental liability.

Local Housing Allowance?

Local Housing Allowance (LHA) was introduced on 7th April 2008 as part of the Government’s reform programme which aims to simplify Housing Benefit and support the wider objectives of welfare reform.

The LHA scheme is currently only applicable to the Private Rental Sector and applies to:

– Any customer making a new claim for Housing Benefit

– Any existing Housing Benefit customer who changes address

– Any existing customer who has a break in their Housing Benefit of one week or more

Most customers living in privately rented accommodation will now be receiving Local Housing Allowance.

Local Housing Allowance currently does not apply to accommodation provided by Registered Social Landlords, Housing Associations, Council homes and similar. .

Who Can Claim?

A landlord cannot claim Housing Benefit or LHA on behalf of their tenant. This is because benefit entitlement depends on the personal circumstances of the tenant and takes into account the rent level, income and household composition.

To be eligible to claim benefit a tenant must meet three basic requirements:

the tenant must have a liability to pay rent, and must be living in the property as their normal home, and make a claim for benefit.. If a tenant fails to meet any of these requirements, they will not be eligible for benefit (there are some rare exceptions to this such as temporary absence from the home or if the tenant is in hospital).

There are a few instances where a person may have a liability to pay rent but is treated as not liable for Housing Benefit and LHA purposes. Circumstances include where a tenancy is not on a commercial basis or the resident landlord is a close relative of the tenant or their partner.

How is Housing Benefit/LHA calculated?

The process involves comparing the weekly income of the tenant and their family with an applicable amount that the Government sets which represents the basic living needs of a family.  The level of applicable amount is specified in Housing Benefit Regulations and is impacted by both the composition of the family, rooms deemed required and the total income from all sources received.  Maximum benefit is not the same as maximum rent.  The rental/housing allowance may be restricted due to other factors.

The Rent

Housing Benefit (only received by tenants claiming prior to April 2008) takes into account the eligible rent of the property, which is set by the Rent Officer.  Housing Benefit may also include a few eligible services such as the cleaning of communal areas but it does not cover heating, cooking, hot water, lighting, water rates, laundry, room cleaning and meals. If a landlord provides any of these services, the tenant will have to pay for these themselves.

Local Housing Allowance (LHA) is not based on the property in which the tenant lives or the rent they are charged.  The maximum rent used in an LHA claim is based on the number of bedrooms that the tenant and their family need as determined by government guideline but is capped at the LHA rate for 4 bedrooms.

The LHA rates applicable for the number of bedrooms a tenant is deemed eligible for are published nationally on the government website https://www.gov.uk/government/publications/local-housing-allowance-lha-rates-applicable-from-april-2017-march-2018.  Landlords are asked to provide rental information to the Valuations office so they can monitor the LHA rate versus the actual rents charged in each area which can then impact future LHA level decisions.

Discretionary housing payment

Discretionary Housing Payments (DHPs) are extra payments that the Council may be able to pay if a tenants Housing Benefit (or Local Housing Allowance) doesn’t cover their full rent and they are struggling to afford to pay the difference.  For information on discretionary housing payment and how it may help your tenants see http://www.telford.gov.uk/info/1002/benefits/96/discretionary_housing_payment.  Due to the rollout of universal credits Local Authorities have temporary access to greater funding which can be used to help impacted households through this period of change.