Top tips for a Landlord when renting a property to a Tenant

We recommend that a landlord seeks legal advice before entering into an agreement with a tenant because the legislation is complex, the obligations on a landlord can be daunting and the fines can be substantial if there is ever a dispute. 

For advice about drawing up tenancy agreements or resolving disputes between a landlord and a tenant, please contact Sarah Woolnough who is a member of our Landlord and Tenant Disputes team.

When a landlord rents a property there are many areas that should be considered, some of which are listed below. 

• If you are managing the property yourself, you should seek legal advice from a solicitor to draw up a tenancy agreement for you because the legislation is complex and a landlord has legal obligations to a tenant.
• Are you employing the services of an agent to find you a tenant and to check them out?  Thereafter will you require the agent to manage the property on your behalf and what are the agent’s charges for doing so?
• If you are instructing an agent they should be able to go through with you your obligations as a landlord. 
• If you are managing the property yourself you should ensure that you are fully up to date with current legalisation and requirements, seek legal advice before you consider renting.
• As from 1st October 2008 a landlord is required to produce an Energy Performance Certificate [EPC] for the property to all prospective tenants.  The certificate lasts for 10 years and has to be produced by an accredited assessor.  An assessment of the property must be carried out and a certificate obtained prior to letting the property.  Any existing landlord must carry out an assessment of the property after the current tenant leaves and before a new tenant moves in.
• As from 6th April 2007 a landlord has been required to protect any deposit taken from a tenant in one of the three Schemes set up by the Government.  If you are a landlord dealing with matters yourself you must consider which Scheme to join and obtain relevant details so that when you take a deposit from your tenant you can immediately take steps to protect it.  If you fail to protect a deposit you may find yourself facing Court action from your tenant for failure to protect the deposit and a penalty payment by you of not only the deposit back to the tenant but also an amount equal to 3 times the deposit by way of compensation. Many landlords are trying to find ways round the new legislation but in the years following its implementation it has been found that there are very few shortcuts and many landlords are now facing Court action by tenants who know their rights.
• A landlord must ensure that the property is checked by a Corgi registered gas engineer each year and a certificate produced to the tenant to confirm all appliances are in order.
• A landlord is also required to ensure the electrics and electrical appliances in the property meet current safety legislation.  It is advisable to carry out a check on the electrics after the vacation of every tenant to ensure that there has been no tampering with any of the wiring, sockets or appliances.
• If the landlord’s property is more than 3 storeys high and can accommodate 5 or more tenants, who don’t belong to the same family, i.e. students or professional sharers, then under the Housing Act 2004 the landlord is required to obtain a licence from the local council.  This is required as the house would be classed as a “house in multiple occupation”.  Failure to obtain a licence can result in action being taken through the criminal courts resulting in a fine of anything up to £20,000 against the landlord.  A landlord without a licence would also not be able to use the accelerated possession procedure to obtain possession of his property.
• Consider fitting smoke alarms and providing fire extinguishers.  Also consider fitting carbon monoxide detectors and ensure that all alarms or detectors that are fitted are regularly checked and maintained.
• When a prospective tenant wishes to rent your property it is strongly recommended that you carry out a credit reference check on them and/or take up references from previous landlords or employers and their bank.  At a time when renting is becoming more and more popular and in the current financial climate, it is more important than ever that a landlord takes all reasonable checks prior to signing up a tenant to ensure that the rent will be paid each month and that the tenant does not have any adverse financial past.  Once a credit report is obtained and if a tenant does have adverse entries, a landlord can still consider renting the property to the tenant based on the information before him and by having a discussion with the tenant.  A landlord, if he is managing the property himself, is entitled to charge an administration fee to the tenant, which is non-refundable, to obtain a credit report and/or references.  This charge must be reasonable and in proportion to the likely costs the landlord will incur in obtaining a report and/or references.
• Whether or not you are furnishing the property consider drawing up an inventory to use at check-in and check-out.  This is advisable as it can be used if any difficulties arise following the tenant vacating the property and in relation to the handing back of the deposit.  Both landlord and tenant can go through the inventory on check- in and note any minor defects or marks on carpets, walls etc and these can be listed on the inventory. When the tenant vacates the landlord and tenant can check the property noting any new defects or marks and in any resulting dispute over retention of the deposit, the inventory can be used as evidence.
• Consider whether you wish to allow the tenant to smoke in the property?
• Consider whether the tenant is responsible for the upkeep of any gardens at the property – if so are tools being provided and do you need an appropriate clause in the tenancy agreement?
• Consider whether the tenant should be allowed to decorate the property?  If not or if with permission from the landlord, an appropriate clause should be inserted in the tenancy agreement.
• Ensure that the tenant obtains contents insurance for their own belongings and also consider requesting the tenant to obtain extra cover to cover any accidental damage to landlord’s property.  There are now many insurance companies that offer this as an add on to tenant’s contents insurance.
• Consider whether to allow pets in the property?  Again an appropriate clause can be inserted into the agreement.
• If a landlord is a leasehold owner of a property that they are renting out consider whether the tenant is to be responsible for payment of any maintenance or service charges or whether an amount should be taken into account and included as part of the monthly rental figure?  Consent may be needed from the Landlord’s own Landlord (the Head Landlord).
• If a landlord has a mortgage on the property they are renting out they need to check whether the mortgage company’s permission is required to let the property and whether any special provisions or clauses need to be inserted into the tenancy agreement.  The mortgage company may also want to see a copy of the tenancy agreement.
• In the current financial climate a landlord should consider whether a guarantor to the agreement is necessary?  For example if a landlord is renting to students or young professionals this is a good idea.  The guarantor should be a home owner and relevant credit checks should be carried out on the guarantor prior to signing them up to the agreement.

• Services for Individuals
  • › Divorce Solicitors
  • › Family Law Solicitors
  • › Family Mediation
  • › French Property Law
  • › Independent Financial Advice
  • › Making A Will
  • › Notary Public
  • › Personal Injury Claim Solicitors
  • › Powers of Attorney
  • › Residential Property Law

• Services for Business
  • › Commercial Property Law
  • › Debt Recovery
  • › Dispute Resolution
  • › Employment Law Solicitors
  • › Landlord & Tenant Disputes
  • › Professional Negligence
  • › Health and Safety Law

• Services by Sector
  • › Agricultural Law
  • › Insurance Law
  • › Charity Law Solicitors
  • › Media & Technology Law
  • › Care Sector