Landlords: Are You Compliant?

The residential lettings sector has been subject to many recent and upcoming changes that could have a significant impact on Landlords.

If there was a time where re-decoration upon a Tenant vacating was enough to be ready for a new letting, things have moved on rapidly.  Tenants expect more and not only that, legislation requires more. 

Below we highlight just some of the issues that need to considered:

Energy Performance Certificates (EPC)

In order to let a property, it must have an EPC.  The Energy Act 2011 introduced new regulations to improve energy efficiency, by imposing restrictions on letting where a property falls below a specific band. Landlords can no longer unreasonably withhold consent to a Tenant’s request to carry out energy efficiency improvements where funding is available to do the work. In addition:

• From 1 April 2018 - A property that does not meet the minimum energy efficiency standards cannot be re-let on a new tenancy.

• From 1 April 2020 - A property that does not meet the minimum energy efficiency standards cannot continue to be let on an existing tenancy.

It is good practice to know the current EPC ratings of your property portfolios.  This allows budgeting for the energy efficient measures that are required to bring the property up to standard.  Taking advantage of vacant periods staggers the works and completes it ahead of deadlines.

Health & Safety

We are seeing increasing levels of responsibility being placed upon landlords and some of the key things to bear in mind are:

• Landlords annual gas safety inspections
• Compulsory fitting by landlords of smoke and carbon monoxide alarms
• Electrical safety
• Chimney sweeping
• Legionella risk assessments

Deregulation Act 2015

The Deregulation Act sets out measures to prevent retaliatory eviction.  A section 21 notice is normally served to regain possession within two months where the initial fixed term of a tenancy has expired.  The Act states that the notice will not be valid where a Tenant has made a compliant in writing regarding the condition of the house.  That compliant must be dealt with adequately.

Regular maintenance inspections give tenants the opportunity to raise concerns over the condition of the dwelling and for repairs to be actioned.  Ensuring that these are carried out helps to manage the risk and retain the flexibility associated with Assured Shorthold Tenancies.

The requirements upon letting agents and landlords to provide certain information to existing and new Tenants is also increasing.  Failure to provide items such as Tenancy Deposit Certificates can invalidate a section 21 notice.  The Government’s new “How to Rent” guides should also be provided. Click here

If you have any queries regarding compliance or strategy planning for the future, please contact:

Rob Browne on 07501 720418 or email here

Laura Airton on 07880 191685 or email here