Thinking of renting out your property?
10th Oct 2023
Renting out a property can be a profitable venture, but it comes with certain responsibilities and considerations. As a landlord, you will need to familiarise yourself with your legal responsibilities, consider the financial implications of becoming a landlord and ensure you are able to communicate effectively with your new tenants. Let’s look at some important things you need to know:
- Right to Rent: You must check the immigration status of your tenancies and ensure they have the right to rent in the UK.
- Gas Safety: You’re required by law to have an annual gas safety check and provide tenants with a copy of the Gas Safety Certificate.
- Electrical Safety: From July 1, 2020, new regulations require landlords to have the electrical installations in their properties inspected and tested every 5 years.
- Energy Performance Certificate (EPC): You must provide an EPC to tenants before they move in, which rates the energy efficiency of the property. READ MORE.
- Tenancy Deposit Protection: If you take a deposit, you must protect it in a government-approved scheme and provide tenants with prescribed information about the deposit protection. READ MORE.
- House Health and Safety rating System (HHSRS): Ensure that your property meets the required health and safety standards. READ MORE.
Tenancy Agreements: Create a written tenancy agreement that outlines the terms of the tenancy, including rent, responsibilities, and any restrictions.
Repair and Maintenance: You will need to ensure that the property is in a safe and habitable condition, making necessary repairs promptly and maintain common areas (if applicable) as well as ensure that tenants have access to necessary services.
Rent and Deposits: It is your responsibility as a landlord to set a fair market rent for the property and decide whether to take a security deposit. If you do, then ensure you follow the rules for protecting and returning it.
Tenant Communication: You must provide tenants with proper notice before entering the property, except in cases of emergency and respect a tenants’ privacy and rights as outlined in the tenancy agreement and UK law.
Evictions and Ending Tenancies: Follow proper procedures if you need to evict a tenant. In most cases, you’ll be required to provide a valid reason for eviction and follow the legal process.
Tax Considerations: Rental income is subject to income tax, so make sure to report your rental income to HM Revenue & Customs (HMRC). You can deduct certain expenses related to the property, such as mortgage interest, maintenance costs and letting agent fees.
Insurance: Consider getting landlord insurance to cover potential risks and liabilities associated with renting out your property.
Local Regulations: Some local authorities may have additional regulations or licensing requirements for landlords. Check with the council in which your property is located to determine any further requirements.
Tenant Rights: Tenants have certain rights, including the right to live in a safe and habitable property, the right to privacy and protection against unfair eviction, the right to challenge excessively high charges and the right to know who their landlord is. READ MORE.
It’s highly recommended to seek legal advice, and stay up to date with changes in UK landlord and tenant law. You could consider joining a landlord association such as the NRLA to help you stay compliant, save time and stress, save money, and ultimately help see your rental business thrive. Read more about the NRLA.
This information is a general overview and not exhaustive, so be sure to conduct further research or consult legal professionals for specific guidance based on your situation, location, and circumstances.
At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.
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*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.