UK Rental Market Update: Insights into the Current Landscape

Welcome to our Property Market blog, where we provide you with comprehensive insights into the current trends shaping the UK housing market. In this edition, we'll dive into key headlines of the current Rental Market - including supply and demand dynamics, challenges faced by investors, rental growth versus earnings, and regional snapshots. Let's explore the latest findings!

 

- Annual rental inflation for new lets in the UK remains high at an average of 11%, slightly down from 12.3% in mid-2022.

- Rental growth continues to outpace earnings growth, raising concerns about affordability for renters.

- The demand for rental properties remains significantly higher than the five-year average, while the supply of privately rented homes in Great Britain has seen a minimal 1% increase over five years.

 

Supply and Demand Imbalance:

- The stock of homes available for rent is 33% below the five-year average, highlighting the significant supply and demand imbalance.

- According to the recent ARLA Propertymark Report, the demand for rental properties recorded by member agents in April 2023 was 24% higher than the previous year, further exacerbating the supply shortage.

- Factors such as rapid growth in overseas students and high net immigration contribute to sustained demand for rental properties. This follows the Government shake-up of Visa rules in 2021 to help attract more skilled workers to the UK.

 

Challenges for Investors:

- The number of privately rented homes has only increased by 1% since 2016, as new investment is offset by properties leaving the rental sector.

- Tax changes, growing regulations, higher borrowing costs, and tighter lending criteria have prompted landlords to reassess their portfolios and investment strategies.

- Mortgage rates have increased, impacting the equity or deposit levels required for new buy-to-let purchases, along with stricter lending criteria and stress tests.

 

Rental Growth and Existing Tenancies:

- Existing tenancies have seen rental increases at an average of 4.4%, significantly lower than the market average for new tenancies.

- Landlords are encouraged to review their rents periodically, especially considering challenges such as tax changes and higher mortgage rates, as rent increases can positively impact investments.

 

Breakdown of the Private Rental Market:

- The core private rented sector, comprising long-term lets, accounts for 66% of the market, offering lower hassle and workload.

- Sub-sectors such as holiday and short lets or HMOs may provide higher yields but come with additional costs, workload, and regulations.

 

Regional Snapshot:

- In the West Midlands region, average rents have seen a year-on-year increase of just under 10%, with Birmingham ranking among the top five cities for rental growth.

- Manchester, Edinburgh, Glasgow, and Nottingham also demonstrate strong growth in rental prices.

 

Conclusion:

The UK rental market continues to experience robust demand, outpacing earnings growth and raising concerns about affordability. The supply shortage persists, presenting challenges for both tenants and landlords. Investors face changing dynamics, including higher mortgage rates and stricter lending criteria. Regular rent reviews are encouraged to ensure investments remain financially viable.

Thank you for reading our Rental Market Update blog. If you are a landlord or property investor and would like some advice or to share your views, please contact me anytime...

 

Ali Durrant MARLA

Director of Concentric Sales & Lettings 

ali@concentricproperty.co.uk

The Must-Known Legislation To Let A Property Compliantly

Landlords, are you aware of the two main pieces of legislation that you need to comply with to remain safe and compliant? 

In the ever-changing private rented sector, it can be difficult to keep up with the latest laws and regulations that govern this space. However, failing to meet the government’s requirements can result in serious consequences in the form of; notices, fines and prosecution.

That’s why we at Concentric Sales and Lettings are focused on helping you get the compliance information you need on all aspects of Landlord law. In this blog, we’re going to dive deeper into the two pieces of landlord legislation designed to ensure the safety of your tenants within your private rented properties. These two laws are The Landlord and Tenant Act 1985 and the more recent Homes for Fitness & Habitation Act 2020.

 

The Landlord and Tenant Act 1985

Section 11 of the Landlord and Tenant Act 1985 details a landlord’s obligation for repairs. Simply put, as a Landlord, you must ensure the safety of your rented properties.

Specifically, you must ensure that the air, space, water, and heating of the property are properly maintained and kept safe. The law also clearly states that you must carry out repairs on your properties as and when they are due. 

This brings up the question – when are repairs due? 

The legislation states that repairs should be carried out on a “reasonable timescale” based on when you are first notified of the repair requirement. “Reasonable” is somewhat subjective and difficult to define but generally depends on factors such as (a) whether or not the tenant is living in the property and (b) whether or not the severity of the repair warrants an urgent response.

Major repairs (as in water gushing through a ceiling) are required to be acted upon immediately. You, as a Landlord, should take all reasonable steps to carry out any maintenance work or repairs to the best of your ability. Some repairs may take time to be rectified, but as long as you have taken the steps that you can take, the law will consider it reasonable. 

 

Protect Yourself Against Claims

We recommend that you always act as quickly as possible when carrying out repairs for your tenants. This is not just for the comfort of your tenants within your rented property. It is also one of the best ways to protect yourself from potential claims that the tenant may choose to pursue against you. 

Under the law, tenants have the right to report any outstanding maintenance issues to the local authority. The council may then decide to carry out a full inspection which can often lead to a much longer list of repairs. 

It’s important to remember that you are not the only person given responsibilities under Section 11. Tenants are also obligated to “behave in a tenant-like manner”, meaning that they are required to take care of the normal maintenance activities that keep the property clean and functional. This includes things like changing lightbulbs, keeping the drains clear, cleaning the gutters, and other similar activities. Now that we’ve covered the first piece of legislation for landlords let’s cover the second, more recent law. 

 

Homes for Fitness & Habitation Act 2020

This law does not replace the one we’ve discussed but creates additional rights and responsibilities. Generally, it focuses on areas that are not necessarily covered under the Landlord and Tenant Act 1985. There are two key factors you should be aware of when it comes to this law. 

First, this act gives tenants the right, for the first time, to take a Landlord to court for not maintaining their repairing obligations. The government has removed the requirement to first go to the local authorities and has enabled the tenant to go directly to the courts. Landlords must be aware of this change.

Secondly, Landlords are now responsible for hazards and repairs within communal areas throughout the tenancy. You are obligated from the moment the tenancy begins through to the conclusion of the tenancy to ensure that the property is fit for human habitation at all times. The only way to achieve this is through regularly inspecting the property. You must not rely on tenants to report repairs because they do not always do so. 

 

Final Thoughts

Your main focus as a Landlord should be to ensure that your tenants are safe at all times. Failure to comply with these laws can result in; prosecution by the tenant in court, penalties issued by the local authority, fines, and improvement notices that can restrict your right to gain possession of your property. 

With over 170 different pieces of legislation regulating the private rented sector, you may be wondering how to be compliant as a Landlord. 

Fortunately, we have created several resources to help you stay safe, compliant, and up-to-date. That’s why we run a quarterly webinar hosted by Dawn Benett, where we spend 2 hours diving deep into various pieces of legislation that you need to know about. Click here to register for FREE today!

Should Your Address Be On A Tenancy Agreement?

Landlords, did you know that there are over 170 separate pieces of legislation that directly impact the private rented sector? Here at Concentric, one of our big goals is to help educate you to be able to navigate this maze of rules and regulations so that you can stay safe and compliant. 

While you may prefer not to share your residential address with your tenants, did you know that there are laws that govern whether or not you are permitted to withhold your address? The two main rules that apply to your address are Section 47 and Section 48 of the Landlord and Tenant Act (1985). Let’s get into them. 

 

What Section 47 Means To Your Tenancy Agreements

Let’s start with Section 47. Section 47 of the Landlord and Tenant Act of 1985 states that a landlord’s address must be present on all documents that are, in fact, a demand for payment. The document that most commonly falls within the purview of this legislation is your tenancy agreement. This means that you, as a landlord, have a legal obligation to include your residential address on your tenancy agreement. Is your address present on your agreement currently? If not, you could be falling foul of this regulation. What does this mean? 

Your tenants are not legally liable or responsible to pay any rent they may owe you until you have shared your residential address. The law is clear. If you’re using an agent, you are not permitted to use your agent’s address. Rather, the address on the agreement must be the landlord’s residential address, wherever that is in the world. The reason this legislation applies to the tenancy agreement is that it is, in the eyes of the law, a demand for payment. Until and when you have provided your residential address, the tenant does not legally have to pay. It makes sense that you, as a landlord, may feel some reservations about having to share your home address with your tenants. However, in the private rented sector, this is a given right that the tenants have been legally granted. Section 47 grants tenants the right to identify the person from whom they are renting. 

Moreover, if the tenant makes a formal demand, in writing, to you as the landlord or your agent, each party is obligated to respond to that request within 21 days. As we have already mentioned, failure to supply the information within that timeframe could result in the tenant refusing to pay rent until the information requested has been provided. In that situation, the tenant would be in their full legal rights to withhold payment from you, the landlord. 

 

Why You Need To Know About Section 48

The other significant rule that impacts whether or not a landlord must share their address is Section 48 of the same law. Again, this section focuses entirely on the landlord’s address. However, in this case, the legislation refers to an address being given to a tenant in England or Wales for the sole purpose of serving notice to that tenant. In this case, landlords have more flexibility, as the address can be that of your agent or your place of business, depending only on your preference. If you are a company landlord, then the address to provide tenants, under this section, would be the registered address of the business.

Ultimately, these sections of the Landlord and Tenant Act of 1985 do not carry penalties or fines if you are in violation. However, that does not mean that they are inconsequential. The ultimate penalty could be that your tenant simply chooses not to pay the rent. In that event, the law would not require the tenant to pay until the residential address of the landlord was provided. 

 

Conclusion

To recap, Section 47 places a clear obligation on landlords to provide their residential address to their tenants on their tenancy agreement and on any other documents that are payment requests. Section 48 requires that landlords share their business address (or the address of their agent) when serving notice to tenants, only when the tenants reside within England or Wales. 

We hope that you’ve found this information useful. It’s important to always stay informed about legislation so that you can remain in compliance and continue to serve your tenants. If you’re curious about where you can get more information on the latest and most important legislative updates, our very own Dawn Bennett hosts a quarterly webinar where she drills down into a variety of the many pieces of legislation that apply to our industry. 

What you need to know about the immigration act 2016 (2022 changes)

Are you aware of the changes that were made to the Immigration Act 2016 that just came into force in April 2022? The laws surrounding the private rented sector are changing all the time. As a landlord, it can be difficult to keep up with the many hundreds of different laws. However, you understand that there can be serious consequences if you fail to do so. Lettings law is serious. Here at Concentric Sales and Lettings, our goal is to help you by keeping you up to date with all the changes. We’re here to give you the knowledge and practical tips you need to always remain compliant.

So, without further ado, let’s get into the Immigration Act and the 2022 changes.

 

What is the Immigration Act of 2016?

The Immigration Act is a piece of legislation that applies to landlords and letting agents and came into force in England on February 1, 2016. The goal of the law is to ensure that properties are not rented to tenants or occupiers who do not possess a right to rent in the UK. Specifically, the legislation states that a landlord and/or a letting agent must be able to prove any occupier’s right to reside within the property throughout the tenancy. This means that landlords must check that any tenant or occupier within the property has the right to rent in the UK before the tenancy starts. This law applies to every adult who is 18 or more years old and who is living within the property, whether they are named on the tenancy or not. 

How to verify the right to rent

The most important part of the Immigration Act is the requirement that you verify your tenant’s right to rent in the UK. You mustn't discriminate when checking the occupant’s right to rent. Ask each of your tenants, regardless of their backgrounds, to provide the same evidence – namely, that they have the right to reside on the property. The easiest way to prove the right to reside in the UK is by presenting a passport. If it is a UK passport, you have all the evidence you need to prove that the tenant has the right to rent for the duration of the tenancy. If your tenant is from the EU, the process is a little different. In this case, their right to rent can be verified through the government website online. To do this, all you need to do is ask for a share code from the tenant or occupier. Using this code, along with their full name and date of birth, you can conduct an online rent check. Here is where you can do that. Finally, if your occupier is from outside the EU, other documentation will be required to verify their right to rent. Often, tenants from outside the EU prove their right to rent by showing a passport with a supporting Visa that shows the data the tenant or the occupier entered the UK and the expiry date of their visa. For any tenant or occupier that has a limited time to remain, you are required by law to conduct a follow-up check after completing the original right-to-rent check. The follow-up will need to be carried out either upon the date that the visa expires or 12 months after you carried out the initial check, whichever comes last. What this means is that you could, in theory, legally move a tenant into a property today, when their visa expires tomorrow. This wouldn’t be a violation of the law, but it might not make sense for you as a landlord. Therefore, you need to consider all the facts about a tenant’s right to rent before starting the tenancy. Some tenants may not be able to fulfil the fixed term of their tenancy. 

Landlords must keep documentation and evidence that the right-to-rent checks were carried out at the start of the tenancy. Also, landlords should keep records of any follow-up checks that were conducted while the tenant or occupier was living on the property. Finally, the right-to-rent requirements apply to all occupiers as well, so we recommend conducting further checks to ensure that no unauthorised occupants are living on the property.

Two big changes in 2022

Originally, the Immigration Act required these right-to-rent checks to be held face-to-face. However, due to recent events, for the past two years, we have been able to conduct right-to-rent checks via video call. The first big change to the act is that this amendment has been extended to the 30th of September 2022. The second big change is the alterations that have been made regarding biometric residence permits. Biometric residence permits are documentation that we have now used for many years for any tenant or occupier that has a set amount of time to reside. Based on the 2022 changes, these documents are no longer sufficient to demonstrate a right to rent in the UK. Tenants or occupiers that rely on these permits will also need to provide a share code just like EU nationals so that you, as the landlord, can verify their right to rent online. 

Stay compliant, stay safe

Although landlords are not immigration officers, this law is an essential piece of property law that you must comply with. This regulation carries with it fines of up to £3,000 per occupier and, potentially, a prison sentence. However, by ensuring that you are checking both your tenants and occupiers for their right to rent in the UK, you can remain safe and compliant. The Immigration Act of 2016 is just one piece of legislation in our private rented sector that you as a landlord should be aware of. If you’d like to learn more, feel free to join our FREE quarterly webinar hosted by our very own Dawn Bennett, where you can get more detailed information about the laws and regulations that you need to know.

 

The Minimum Energy Efficiency Standards You Must Comply With As A Landlord

As landlords, there are so many different laws, regulations, and standards that you need to comply with to avoid penalties. Plus, new legislation is constantly being added, further increasing the complexity of this space. Here at Concentric Sales and Lettings, we’re here to help guide you through the maze of rules and get you the information you need to stay safe, compliant, and up-to-date. 

Speaking of compliance, does your property/tenancy have an EPC rating of “E” or above? As a landlord, are you confident that your properties are compliant with the minimum energy efficiency standards (MEES)? In this article, we dive into what these energy efficiency requirements mean for you. 

What Are MEES?

Minimum Energy Efficiency Standards (MEES) first came into force in 2018. The standards focus on the energy efficiency of your property. Energy efficiency refers to the ability to use less energy to get the same amount of work done. With a higher energy efficiency rating, your property means that less energy is wasted and also can reduce energy costs for your property. 

What Does This Mean For You As A Landlord? 

The main MEES requirement for landlords is that any property that you own and rent out needs to have an energy rating of “E” or above. If your property falls below an “E” rating and you are not in receipt of an exemption, you are illegally renting out your property and could be subject to fines and penalties. The government expects landlords to spend a maximum of £3,500 to ensure that their properties are compliant. 

What If My Property Cannot Be Made Compliant? 

In the case that you are renting out a property that is not and cannot be made compliant, then we would recommend you head over to the government website and see if your property falls into one of the categories that are exempted from the energy efficiency requirements. 

You must be prepared to meet these standards. There is talk within the industry that the MEES will be higher in 2025 than it is now. It is currently being proposed that landlords’ properties will have to be a “C” rating or above. This could have a huge effect on many landlords. Fortunately, various funding opportunities are available to you as landlords and tenants right now and maybe more in the future too. We recommend seeking out that funding so that you can offset the costs that may accrue as a result of bringing your property into compliance. 

The EPC Requirement

Part of the MEES is the EPC requirement. The term “EPC” is short for energy performance certificate. It is part of the government’s rating scheme to describe the energy efficiency of buildings and properties. The ratings range from “A” (very efficient) down to “G” (inefficient). The EPC rating is how you as a landlord prove that your property complies with MEES. Providing a tenant with a valid EPC before the start of the tenancy is required under the Deregulation Act of 2015. Failure to provide them with a valid EPC would restrict your ability to serve a valid notice on them for possession of the property should the need arise. So although this piece of legislation may not seem that important, you need to ensure that you comply. 

The Penalties For Failure To Comply With This Piece Of Legislation Are Hefty, With A Maximum Fine Of £5000 Per Property

The size of this fine depends on the time that you let the property non-compliantly. EPCs are valid for ten years and, on average, cost less than £100. This means that for less than £10 per year, you could avoid that penalty and ensure that your property complies with the MEES regulations. Fortunately, it is also easy to get an EPC as there are EPC assessors in your area that can be found online and can carry out the job for you to ensure that your property is compliant and safe. It’s important to remember that funding is available at the moment for both landlords and tenants, so please be sure that you are researching any local funding within your area to improve the energy efficiency of your property. This will also help you to prepare yourself for the even higher requirements that may be coming in 2025. 

Always Remain Compliant

We hope you’ve found this post informative and enlightening. If you want to learn more, check out our YouTube channel, where we help keep you up-to-date on the latest and most important legislation for the private rented sector. There are over 170 pieces of legislation that you as a landlord need to comply with. That’s why we offer a free, quarterly webinar hosted by our very own Dawn Bennett, where you can get more details on all these different kinds of legislation. We’d love to see you there! 

What a Landlord Should Do When Their Tenant Has Fallen Into Rent Arrears

Do you know how to handle a tenant that’s fallen into arrears? This can be a difficult issue for landlords as you have to be careful to remain compliant with all of the relevant legislation throughout your process. Also, many landlords do not have a systemised formula for dealing with these situations, leaving them with the sense that they are unprepared. Today, we’re going to cover some of the do’s and don’ts of chasing rent arrears. We’re also going to discuss which legal notices to use, as well as the process we recommend for handling these complicated situations. 

 

A Tale of Two Tenants

At Concentric we have found that there are two different types of tenants who fall into arrears. There are those who do so against their will who have simply fallen on hard times and cannot pay at the moment. On the other hand, there are those who are capable of paying their rent but refuse to do so of their own volition. The tenants in the latter category are always more challenging to deal with. You need to have a process in place so that whether the tenant falls into one category or the other, you will know what to do. 

 

Dos and Don’ts of Chasing Rent Arrears

As you form your process, we’re going to share with you our recommendations for what you should and should not do in these kinds of situations. First of all, communication is key. You should try to make contact with the tenant as soon as you become aware of the missing payments and see if there is a problem and what it might be. 

You can use these communications to ascertain which group the tenant falls into, and hopefully, work your way to a solution that satisfies all parties. The first step to take when a tenant misses rent for 7 days is to send a formal letter demanding the payment. Then a follow-up letter should be sent again every 7 days throughout the process. During this time, you should also be attempting to contact them through phone or email to see if you can get an explanation and negotiate a plan for payment. 

It is of the utmost importance that you do not harass them. Contacting your tenant every hour of the day is legally defined as harassment and should be avoided. Rather, only contact them at previously scheduled times. 

If a tenant is simply unable to pay, it may be worth making an application to Universal Credit for a direct payment. The great thing about this step is that there is no harm done whether or not the tenant is actually in receipt of payments from Universal Credit. All you need to do is make an application. This can be a way to alleviate the tenant of the responsibility of making the rent payments themselves. 

 

What To Do When They Just Won’t Pay

Speed is of the essence when it comes to responding to tenants who are refusing to pay their rents despite their economic ability to do so. In these cases, we recommend quickly acting to take possession of your property. Ensure that the letters demanding rent are sent promptly every 7 days and then on the 28th day, you should send a notice of possession as soon as you can. You need to take court action as soon as you are legally able to do so. Now, you may be wondering, what is the appropriate notice to send tenants in arrears?

Serving a Section 8 notice is what we recommend, citing the grounds you wish to rely on (usually 8,10 and 11). It is the notice to send when the tenant is in two months of arrears or more. We recommend it because it comes with a 14-day notice period in England and is the quickest way to secure possession of your property in these cases. 

You may have also heard of serving a Section 21 notice to tenants in arrears. This is a valid option. However, the notice period on Section 21 is 2 months long, delaying your ability to deal with the situation effectively. 

 

Final Thoughts

In the end, communication is the most important aspect of responding to tenants who have fallen into arrears. For most tenants who may be struggling with financial difficulties and cannot pay the rent, communication will be a way to understand their problems and negotiate a payment plan that will work for you and them. Unfortunately, most tenants who refuse to pay of their own free will are not very communicative, and legal action is usually required. Comprehending the current legislation pertaining to these issues is important. A helpful resource that we recommend is Gov.UK, a site that will give you the latest guidance as well as information on the legal notices we’ve discussed today. 

Hopefully, this has given you more insight into what to do when a tenant falls into arrears. We at Concentric are dedicated to helping landlords manage their rental properties and have released tons of content that will help and advise you with practical step-by-step guidance on the specific legislation that matters for landlords. 

Visit and Subscribe to our Youtube channel for more legislative updates on how to handle your properties and tenancies in these challenging times.

Landlords- Selective Licensing Is Returning to Liverpool April 2022 - Are You Prepared?

Are you a landlord in Liverpool? 

If so, are you aware that in April 2022, selective licensing is returning to the borough? 

Today, we’re going to talk about what this change in legislation means, and the steps you can take to ensure that you remain compliant. Here at Concentric, our goal is to help landlords succeed by providing practical guidance surrounding each legislation update as well as helpful advice regarding overall best practices for landlords.  

What is Selective Licensing?

Selective licensing simply means that the city council has decided that they are going to selectively license a specific area. Thus, selective licensing in Liverpool means that the Liverpool City Council has agreed to selectively license a group of postal codes within the borough. In order to determine if this impacts you, you’ll need to see if you own any properties that fall within the range of postal codes that are covered by this new legislation. If you are a landlord in this area and you have a property from a one-bedroom flat all the way to an HMO, you may need a special license in order to continue letting that property.

What Does This Mean to You as a Landlord?

Now, we’re going to talk about what you need to do when selective licensing comes into place in Liverpool. Practically, this means that any property you rent that falls within the impacted area will need a special license as of April 2022 in order to be compliantly let. So, you’ll have to head to the Liverpool City Council and file applications, when the process is opened, for these licenses. There will be a cost element to this. You’re going to need to pay a fee to the Liverpool City Council in order to make the application for the license. Selective licensing is going to continue within Liverpool for the next 5 years until 2027.

Official guidance around the new law is still evolving, so we don’t yet know what the cost of licensing will actually be when selective licensing is rolled out. However, through experience with past licensing programs, we do know that there are many ways to secure discounts and reduce the licensing fee. This can be done by maintaining a good EPC rating, using accredited agents, and through other strategies. We recommend keeping an eye out for further updates on the Liverpool Government website. This is also the place to be when the application process opens for selective licensing. If you need help, contact us and we can help you with licensing applications.

How Do You Stay Compliant?

As of the time of this writing, the details of what will be specifically required to be compliant with this new legislation are not known, but we do know the general standards that have to be met in order to be compliant. There are a number of ways you can take care of your properties and ensure that you are always remaining compliant with the law. We’ve listed a few of them here:

  1. Have a valid gas certificate

  2. Have a valid electricity certificate
  3. Ensure that your EPC ratings are at ‘E’ or above
  4. Have your smoke alarms and carbon monoxide detectors tested
  5. Ensure that your property is fit for habitation

By following these main steps, you can be confident that your property is already a long way towards full compliance. Previously, when the Liverpool City Council enacted selective licensing, they added some additional requirements. This was in 2015. They required things like changes to the tenancy agreements to incorporate anti-social behavior clauses as well as adequate refuse management at properties. Thus, additional requirements may also be a part of the new selective licensing law.

It’s important to remember that the purpose of selective licensing is to regenerate areas and make the private rented sector the best that it can be. If landlords take good care of their properties and ensure that their tenants use the property responsibly, you’re ahead of the curve.

Licensing in the Private Renting Sector is Serious

Most landlords are probably already aware of the importance of remaining in compliance with all of the relevant laws. The penalties for not doing so can be immense. Failure to comply with selective, additional, or mandatory licensing as a private landlord can result in penalties up to £30,000. If your property falls under the category of selective licensing after April 1st of 2022, and you are not in possession of the correct license, your rights to gain possession of your property could be negatively impacted.

We hope we’ve answered some of your questions about this important new legislation. If you’re a landlord in the Liverpool area and would like some additional information, please contact us and we will be happy to help you in any way we can, also we are running a live webinar on this topic, which you can register for HERE.

Are Your Tenants Behaving In a Tenant Like Manner?

Where does the term ‘tenant like manner’ come from?

Back in 1953, there was a case brought to court to settle a dispute between a landlord and a tenant. The landlord brought forward a case that on vacating the property, it was left in such a state of demise that he believed that the tenant should be held responsible for cost of repairs. The argument was that there are some jobs which should not fall under the care of the landlord, but in fact should be taken care of as a matter of course while the tenant occupies the property.

When the judgment was made, the term ‘tenant like manner’ was phrased, and it was made clear that a tenant has a responsibility to treat a property with care and respect, and that they must ‘take proper care of the place’.

 

What are the tenants’ responsibilities in behaving in a ‘tenant-like manner’?

Let’s firstly put it out there that the majority of tenants are happy to take responsibility for basic jobs around the property. But it is worth noting that there are a very many complaints which could be avoided, if the tenants were fully aware of what their responsibilities are while they occupy a property.

A good example of this is damp. I’d gauge that there a very few landlords who haven’t at some point had a tenant complain about damp in a property, but did you know that the majority of these issues are, in fact, caused by the tenant?

That might surprise you – but there are numerous cases where the tenant causes damp issues inadvertently by drying washing indoors, failing to properly ventilate bathrooms and kitchens, not making use of ventilation fans etc.

There are many ‘little jobs’ which are simple for the tenant to take care of, and which go a long way in maintaining the comfort and structure of the property. Those expected of the tenant under the law are:

 

There are some jobs which are beyond my tenants’ expertise – what if they refuse or cannot do them?

OK, so you’ll recognise that jobs such as re-pressurising the boiler, dealing with pests, or unblocking drains might not be such simple tasks for the average tenant. But it’s important that they recognise that these tasks are not the responsibility of the landlord, and so should make efforts to find a tradesman or handyman who might assist with these kinds of jobs. Generally, as a tenant, they should be expected to deal with tasks which they would comfortably be able to handle if the property were their own – if it’s something that as a property owner, they wouldn’t pay someone else to do, then it’s feasible that they can take on those kinds of things themselves.

As a landlord, you should also make efforts to ensure that the tenant is well equipped to deal with things such as re-pressurising the boiler and bleeding radiators, and should provide full instructions for those kinds of tasks. Then it is up to the tenant to decide if he is comfortable in doing those, or whether to ask for assistance.

There are some items on that list that I’d happily do for my tenants – am I wrong?

It’s true that there are some landlords out there, particularly those who have reasonably small portfolios, who are quite happy to be on call for sorting out small jobs for their tenants. And of course, that’s fine. But don’t let it become an additional expense to you – remember that even those little jobs add up. Your tenants should always know that you’re doing these things out of kindness and concern for the upkeep of your property.

If you are looking to keep all your properties safe by staying compliant with current legislation, click HERE to download our FREE compliance checklist.

Things you should consider before you rent out your property (Part. 2)

Mortgage Consent

If you are renting out a property that you have previously lived in yourself, you will be required to apply for a buy-to-let mortgage. A property cannot legally be leased on an ordinary residential mortgage.

If you have lived in the property prior to wanting to let it out, first check with your lender, as there are some rules which may differ from lender to lender – for example, some lenders specify that you are required to have lived in the property for a minimum of 6 months, to ensure that you have not, in fact, bought the property with the intention of renting it out in order to cheat the system and avoid the fees and deposit required. So it’s a good idea to check this before you do anything else.

Check your lease

Something else that is easy to overlook is the lease. This applies if you are letting a leasehold property, usually a flat or apartment, but bear in mind that you will need to make sure that your lease allows you to rent out the property in the first place.

In addition to this, check that there are no other restrictions, such as allowing pets etc. If there are, these will need to be made clear to the prospective tenants when they view the property.

Insurance

Make sure that you have the right kind and level of insurance, one which covers you for tenant related issues. Your ordinary home insurance will likely not do what you need it to do, so if you have a buy-to-let on the property, it’s essential that you have the right insurance product to match your needs.

If you don’t live in the property, the kinds of risks are very different, and you will need to cover yourself as a landlord for things such as loss of rent, malicious damage, and legal expenses. A more specialised insurance will take that into account.

Tenancy Agreement

When did you last review your Tenancy Agreement Documents? It’s so easy to keep regurgitating the same cut-and-paste document you’ve always used – but in reality, things change. If your current document is more than 6 months old, it’s worth going through it, as there have been updates in terms and regulations which you might need to revise in the text.

Remember; the Tenancy Agreement is there to protect you and the tenant, and so anything that’s missed off or out of date can and will land you in hot water if something goes wrong. Do not put yourself in this situation – get it checked, and get it updated.

Inventory

An Inventory is not, as some landlords believe, just for furnished properties. It’s important that you list everything within the property to make sure that you are covered for any damages during the lifetime of the tenancy. This includes every aspect, from the condition of the walls, flooring, lighting and electrical furniture, doors and handles, windows, fitted appliances….

Your Inventory is the only evidence you are going to have if, at the end of a tenancy, you find that there is more than just wear and tear to the carpets, that kids have embellished their walls with crayon, or the kitchen units are damaged.

If you can, as well as a comprehensive list, take photos of everything within the property, so that you can prove the original condition of the property before the tenants move in.

Deposit Registration

You should sort out Deposit Registration BEFORE you rent out your property. Make sure that you have done your research, and looked for a suitable scheme in time for the start of the tenancy.

We’re often asked about the standard of free schemes vs paid ones; this really comes down to personal preference, there are some very good free schemes out there – just do your homework, ask for recommendations, and don’t rush in if you’re not sure.

Deposits must be lodged within 30 days of payment – in other words, you have 30 days from the payment date to lodge the deposit, and then you must issue the tenant with a certificate which lets them know the details of the company with which you have lodged their deposit. This should happen at the start of tenancy, and at the stage of renewal.

You as a landlord

How various landlords operate differs widely – from the types of properties they rent to how involved they are with management and upkeep. There is no one size fits all, but the one thing that all landlords should agree on is to make every effort to keep up to date with the lettings industry, with legislation, changes in the law, and current trends.

The more knowledgeable you are, the better prepared you are to deal with tenancy problems and queries down the line. Knowing current legislation can be the difference between a contented tenant and a spell in prison.

There are plenty of online communities and groups where you can go for help and advice, and if you personally know other landlords, it can be a great bonus to you. Seek them out, ask for their help and advice if you need it.

We run FREE monthly webinars that are purely for the benefit of landlords, all on specific legal advice and the latest updates in legislation. These are delivered by our compliance expert Dawn.

Click the link here to register for our next one, but be quick, as they are extremely popular and there are only a limited amount of spaces available!