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! 

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.

What Is The Rental And Property Investing Market Like In Liverpool Right Now?

We have let thousands of tenancies, worked with hundreds of investors, and managed hundreds of properties, helping landlords navigate the local Selective Licensing schemes since their inception in 2015.

Like tenants, landlords and investors come in all shapes and sizes, have different levels of experience, and have different wants and needs, but there are a few questions that we get asked all of the time, and right now, it seems like everyone wants to buy property in Liverpool and the surrounding areas... and I can see why.

We have been instrumental in letting property in and around the west of Liverpool for over 10 years now, our focus; to work with the landlord investors in the area.

We have let thousands of tenancies, worked with hundreds of investors, and managed hundreds of properties, helping landlords navigate the local Selective Licensing schemes since their inception in 2015.

Like tenants, landlords and investors come in all shapes and sizes, have different levels of experience, and have different wants and needs, but there are a few questions that we get asked all of the time, and right now, it seems like everyone wants to buy property in Liverpool and the surrounding areas... and I can see why.

There's a lot of investment opportunity in the area with great property prices compared to many other city locations, and will generate fantastic income (and now capital) returns.

So, if you are thinking of buying a property in the area, here are a few questions you should be asking yourself.

 

What are the most in-demand areas from tenants at the moment?

The top areas that are most in-demand from tenants right now are Bootle, Walton & Fazakerly.

 

What sort of property cannot you get enough of? 

There appears to be a real shortage of 2/3 bedroom houses, maybe because people want more space or a place to work from home, we have all experienced being locked in, and a 1 bed flat can become less desirable. 

 

Where are most investors looking to buy at the moment? 

Most Investors are looking to buy property in Bootle & Walton, which ties in nicely with the increased tenant demands we are seeing. 

 

What rent increase levels have YOU seen in the branch? 

With rents across the UK increasing on average by 8.5% (according to Homelet), we have seen rents across the board here increase by at least 10% over the last year and in some cases a lot more! 

 

What property price increases have you seen in your area?

According to the Liverpool Echo, Liverpool has the fastest rising house prices of any UK city. This year is set to be the busiest for the UK housing market since 2007, with Liverpool topping the house price charts at 10.6% and some areas such as Toxteth maxing out at over 20% in just 12 months.

 

Are unfurnished properties renting better than furnished? 

We find that most properties rent better if they are unfurnished, that is unless they are a house share or student accommodation, then of course furnished is best.

 

What are the key features tenants are asking for right now?

Of course they still want the usual, a good location that feels safe, a nicely presented property that’s clean and has good access to facilities and transport, but this year we have seen a rise in tenants asking for gardens, and to be allowed pets (probably due to the experience of lockdown), and with HMO’s they really do all want en-suite facilities (due to becoming more germ aware). 

 

How many applications from tenants are you getting per property?

During most of 2021, we were seeing around 10 applications from tenants per property, however, this year it has more than doubled, we seem to currently (January and February) be getting up to 25 pre-applications for each property, it's gone crazy!

 

If you were looking to buy a property right now Elisha, what would you buy?

If I was to buy a property now, I would definitely be looking to secure a 3-bedroom terraced house for around £130k, generating me a monthly rent of around £750pcm which results in a 7% gross yield, because I know I could rent it over and over again with zero problems and get good quality tenants.

 

What sort of landlords are buying at the moment?

It seems all types of landlords are buying at the moment, from 1st-time landlords, those with 1 or 2 properties looking to expand their portfolio and large landlords alike, it feels like everyone is buying right now, it’s a very busy market, driven in the main by the huge increase in demand and the shortage of stock out there.

 

What’s the big challenge for the Liverpool market at the moment?

It has to be the introduction of another Selective Licensing scheme across Liverpool from April 2022. This is going to be an additional cost and more paperwork for those landlords in the areas affected, but we have been through this before with Sefton, so we are ready to support our landlords through it.

If you have any queries regarding any of the subjects covered in this article or want to learn how the introduction of the new Selective Licensing laws could effect you as a landlord in the Liverpool area, we're running and inviting you to a free-to-attend webinar on the 23rd March 2022 at 18:30. On the webinar, we will cover all the nitty-gritty details you should 100% be aware of.

Register for the webinar on the next page.

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.

Electrical Certificates – why every landlord should have them

The risks

Imagine if you picked up the phone in the middle of the night to be told that there was a fire at your rented property. As horrific as that news would be, one of the first things that the fire department, the police, and the insurance company would check is whether or not the electrics and electrical appliances within the premises were safe, or whether they could have been the cause of the fire.

And if that were the case, who do you think liability would automatically be with?

If you fail to produce a valid electrical certificate, it could very well be you, the landlord. That would mean that not only do you risk prosecution, but it’s highly unlikely that your insurance would payout.

But, if you have a valid, up to date certificate from a qualified electrician, then you have proof that you have done everything you can to ensure that the electrics in that property are safe. In that case, liability would no longer lie with you as the landlord, but with the electrician, as the question would be whether he had completed the work properly, or with the tenant, who has a responsibility to take care of the property while he or she lives there.

Is it law to have an electrical certificate for my property?

It will be, as right now Government are in processing a law which will mean that all rented properties will have to have electrical checks every 5 years. However, until that time, most agencies are recommending that their landlords get ahead of the game and make sure that all new tenancies start with a valid and up to date electrical certificate, before the tenant moves in.

That’s because, under the Consumer Protection Act Section 37 and Section 19, you have a responsibility to guarantee that your property is safe and fit for tenants to live in. And having an electrical certificate is part of that responsibility.

What will the new law mean for landlords?

Landlords will be required to have electrics checked in their properties every 5 years. This is mandatory, and must be carried out by a qualified electrician. This will be phased in over 24 months; in the first year, all new private tenancies will be affected, and in the second year, all existing private tenancies will also have to adhere.

If a property has recently had an electrical installation condition report (EICR) and has a valid certificate, then the property will not be required to have an inspection until 5 years has lapsed since the date of issue.

What will the required checks include?

The new legislation will require 5 mandatory recommended electrical safety features, which are:

What’s the difference between an EICR and a PAT test?

When we talk about getting an electrical certificate for your property, we’re really talking about the EICR – this is a test carried out by a qualified electrician, and tests the infrastructure of the properties electrics. As detailed above, this includes the wiring, units, plug sockets and switches etc.

A PAT test is really there for the appliances within that property. That would be anything that you include as portable appliances in the property, which might be things like a fridge or freezer, electric oven, dishwasher etc. It’s not mandatory for you to have a PAT test, but some landlords like to get one if they do include these appliances, as again, it provides an extra layer of cover if anything should happen.

In conclusion

While it’s not law to provide an electrical certificate at the time of writing, it’s highly recommended that you obtain one. It’s a small price to pay for peace of mind that your property is safe, and that you won’t be held accountable if something should go wrong.

The Government will be changing the law on this soon, so get ahead and make sure that you’re properties are protected, if not on existing properties, but on all of your new tenancies going forward.

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

Section 11 Repairing Obligations – what you need to know

Statutory Implied Terms

Firstly, what are the obligations of the landlord under the Landlord and Tenant Act? The official line states that:

“The landlord [is] to maintain the structure and exterior of the property, including installations for the supply of water, gas and, electricity, heating systems, drainage, and sanitary appliances.”

In simple terms, this means that if anything you as the landlord have provided as part of the tenancy, it is your obligation to keep it in good working order throughout the duration of the tenancy.

If we look a little deeper, the statement implies that the installations are ‘maintained’, which tells us that they must indeed be in proper working order before the start of the tenancy. It’s important that anything that isn’t in good repair is dealt with before the tenant moves in, otherwise, the landlord can be deemed in breach of Section 11, and therefore can be prosecuted.

So, what is included, and what do we mean by installations?

Maintenance of the structure and exterior is quite self-explanatory; by this, we would include the brickwork and external structure, roof, drains and gutters, and windows and doors, etc. It is expected that the property is structurally sound, will not be subject to leaks or damp caused by damage to brickwork or roof damage, and is secure, with adequately fitted doors and windows etc.

With regards to installations, you should include in this anything that is included in the property as part of the agreement. That includes any appliances which are already in the property when the tenant moves in. It also includes all and any water or gas pipes, electrical wiring, water tanks, boilers, radiators, and other space heating installations such as vents for under-floor heating, baths and sinks, and sanitary ware.

 

Supplied appliances

If you have provided appliances to the tenant as part of the tenancy, i.e. they are not gifted or provided as a goodwill gesture, then these must also be kept in good repair as part of the agreement. These might include:

As a landlord, it is not under your responsibility to repair items that belong to and were brought into the property by the tenant. Make sure that any items you have provided are included in your tenancy agreement, and are listed on your inventory. It is also important that you can prove the condition of provided appliances in your inventory, so that your tenants cannot claim for damages for which they are responsible.

 

Advertising the property and the Consumer Protection Act

Something you’ll want to consider when you’re advertising the property is what you’re including in the tenancy. If, in your photographs, you have shown the property with white good, and you are not intending to include them, you must state that in your advert, and make it clear whether you are willing to gift those items, or whether they will be removed before the tenant moves in.

 

Tenancy Issues

Something we’ve seen come up and have frequently been asked about is whether the landlord’s responsibility under Section 11 changes if the tenant is behind on their rent, or is under dispute for some other reason.

The answer is absolutely not. Regardless of any issues with the tenant, you as the landlord are still under obligation to make good any repairs to the structure and installations included within your property.

You must also get the permission of the tenant to gain entry to the property to make any necessary repairs. While we know that when a tenancy is under dispute, this can sometimes be difficult, but remember that if you don’t have permission to enter from the tenant, then you can be liable for trespass.

In all circumstances, the tenants right to privacy in their home should be respected.

If the health of your property is a concern, you can download our FREE compliance check download here.

Electrical Certificates – Why Every Landlord Should Have Them

As a landlord, you might be aware that there will be a change in the law with regards to electrical checks in all rented properties. That’s not compulsory as yet; however, we would urge all landlords to be ahead of the game and make sure that regular electrical checks are carried out on properties, and especially on new tenancies. Here’s why.

The risks

Imagine if you picked up the phone in the middle of the night to be told that there was a fire at your rented property. As horrific as that news would be, one of the first things that the fire department, the police, and the insurance company would check is whether or not the electrics and electrical appliances within the premises were safe, or whether they could have been the cause of the fire.

And if that were the case, who do you think liability would automatically be with?

If you fail to produce a valid electrical certificate, it could very well be you, the landlord. That would mean that not only do you risk prosecution, but it’s highly unlikely that your insurance would pay out.

But, if you have a valid, up to date certificate from a qualified electrician, then you have proof that you have done everything you can to ensure that the electrics in that property are safe. In that case, liability would no longer lie with you as the landlord, but with the electrician, as the question would be whether he had completed the work properly, or with the tenant, who has a responsibility to take care of the property while he or she lives there.

Is it law to have an electrical certificate for my property?

It will be, as right now Government are in processing a law which will mean that all rented properties will have to have electrical checks every 5 years. However, until that time, most agencies are recommending that their landlords get ahead of the game and make sure that all new tenancies start with a valid and up to date electrical certificate, before the tenant moves in.

That’s because, under the Consumer Protection Act Section 37 and Section 19, you have a responsibility to guarantee that your property is safe and fit for tenants to live in. And having an electrical certificate is part of that responsibility.

What will the new law mean for landlords?

Landlords will be required to have electrics checked in their properties every 5 years. This is mandatory, and must be carried out by a qualified electrician. This will be phased in over 24 months; in the first year, all new private tenancies will be affected, and in the second year, all existing private tenancies will also have to adhere.

If a property has recently had an electrical installation condition report (EICR) and has a valid certificate, then the property will not be required to have an inspection until 5 years has lapsed since the date of issue.

What will the required checks include?

The new legislation will require 5 mandatory recommended electrical safety features, which are:

What’s the difference between an EICR and a PAT test?

When we talk about getting an electrical certificate for your property, we’re really talking about the EICR – this is a test carried out by a qualified electrician, and tests the infrastructure of the properties electrics. As detailed above, this includes the wiring, units, plug sockets and switches etc.

A PAT test is really there for the appliances within that property. That would be anything that you include as portable appliances in the property, which might be things like a fridge or freezer, electric oven, dishwasher etc. It’s not mandatory for you to have a PAT test, but some landlords like to get one if they do include these appliances, as again, it provides an extra layer of cover if anything should happen.

In conclusion

While it’s not law to provide an electrical certificate at the time of writing, it’s highly recommended that you obtain one. It’s a small price to pay for peace of mind that your property is safe, and that you won’t be held accountable if something should go wrong.

The Government will be changing the law on this soon, so get ahead and make sure that you’re properties are protected, if not on existing properties, but on all of your new tenancies going forward.

Planning on investing in HMOS? The 7 Essential Factors You Need to Consider...

Like any investments, HMOs come with risks and rewards. If you want insider knowledge gained from my many years’ experience in the property industry, I’ve got some insights that I’d love to share with you. Read on to discover how you can get ahead of the game when investing in HMOs.

   1. Planning and Building Regulations:

   2. Refurbishment:

   3. Fire Safety:

   4. HMO Compliance Considerations:

   5. Neighbours:

   6. Presentation:

   7. Licensing:

For a FREE 16-page document on HMO investment, detailing how Concentric can help you streamline your experience and maximise your investment funds, click here.