Landlords Legal Obligations
General Legal Obligations
What legal obligations apply to Gas?
The Gas Safety (Installation and Use) Regulations 1998.
The regulations state that all gas appliances, pipework and flues must be checked annually by a CORGl registered engineer to ensure they are safe. At the commencement of any tenancy, a copy of a current Gas Safety Record rnust be provided to the tenant. Annual checks are required thereafter and a new Gas Safety Record must be provided to the Tenants within 28 days of the expiry of the previous one. Records should be retained for a period of two years from the date of the check and made available for inspection upon request. Failure to comply with the Gas Safety Regulations could result in imprisonment and/or a fine.
What legal obligations apply to Furniture and Fittings?
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 as amended 1993, place a legal obligation on residential landlords to ensure that upholstered articles meet fire resistance regulations. Regulations apply to beds, mattresses, sofas and other soft furniture. All affected furniture must carry the resistant label. Non-compliant furniture must be removed from a property prior to letting. An easy way to check is to look at the label on your furniture and if it reads “carelessness causes fire” this item of furniture is of the current standard. Should you have any doubt please ask and we will be happy to check it for you. If a property is found not to comply, the landlord could face up to sx months’ imprisonment and/or a flne of up to £5.000.
What legal obligations apply to Electrical appliances?
The Electrical Equipment (Safety) Regulations 1994. The regulations state that ‘persons who, in the course of business, let accommodation which contains electrical equipment’ must comply. The regulations make it very clear that equipment must be ‘safe’ and not cause ‘danger’.In order to meet these requirements the electrical supply and all electrical appliances must be tested by a ‘competent person’ such as an NlCElC qualified electrician. A check annually, or when a new tenant takes possession of the property, is recommended. Instruction booklets or written instructions for all electrical equipment should be left in the property. A note of these together with the date of the safety check should be recorded in the inventory. If the electrical equipment does not comply with the regulations and an accident occurs, it could result in up to six months’ imprisonment and/or a fine of up to £5.000.
Part P Building Regulations
In January 2005 Part P of the Building Regulations came into force. The main thrust of the legislation is to make it a legal requirement that any electrical installation work carried out in dwellings from 1st January 2005 -whether professional or DIY and regardless of whether the work are minor or major - the parts that are fixed to the building such as sockets, switches consumer units and ceilings fittings - are fixed in accordance with BS 7671, which is the British Standard for electrical installations. Any such work carried out will need to be certificated to show that they comply with BS 7671. This can either be done through the local authority or by an NlCElC registered installer who can be an individual or firm. Any certification does not cover the inspection and testing of existing electrical installations, however it will cover remedial work required to correct deficiencies found on an electrical inspection. Any Inspection Report should be carried out by a NlCElC approved contractor.
Smoke detectors
The Department of Environment (DOE) brought out regulations governing the installation of smoke detectors in new hornes, which are incorporated in the Building Regulations 1991. Since June 1992 all new hornes must be fitted with mains operated smoke detectors. They rnust be installed on every floor and be interlinking. Although there are no such regulations governing older properties, it is advisable to install at least battery operated devices on each floor, if not mains operated ones. It is important that all devices are checked regularly, especially if battery operated.
What is a HMO?
The legal definition of “House in Multiple Occupation” is a “house which is occupied by persons who do not form a single household”. The terms also include any purpose built or converted flat whose occupants do not form a single household. If the property you are letting is divided into a number of separate accommodation units (such as bedsits or flats) the property is probably “a House in Multiple Occupation” (an HMO). The Council has further requirements of the owner or manager of an HMO. These are legally enforceable and cover standards of fire safety and general management and upkeep of the HMO’s common parts of services. If you are contemplating letting out the property as an HMO - either bedsits or flats you should seek advice from the HMO Team in the Local Authority.
Do I need to tell anyone I am renting my property out?
Yes most building societies & banks need to give you permission to rent your property out, in some cases they will change the mortgage to a ‘buy to let’ mortgage which can incur more costs, please get permission from your bank or building society beforeputting the property on the market. In some cases the Freeholder or the Management Company (in the case of leasehold properties) may need to give permission too please check your lease. If you are unsure about any of these points we will be pleased to help.
Lettings and Tax
Whether you have to pay tax on your letting income depends on your finanical circumstances. For example, if the let property is mortgaged and your costs exceed the rent you receive, then it is possible no tax will be payable.
You will need to complete your tax returns each year keeping records of income and receipts, so as to be able to file returns.
