Top tips for accidental landlords

SAFETY FIRST:

Anyone new to letting their home should familiarise themselves with the health and safety measures they must undertake before bringing their property to the market. This includes: a valid gas safety record and annual boiler service, an electrical safety test, portable appliance test, and an oil and solid fuel heating appliance annual service. Smoke alarms and carbon monoxide alarms must be installed and, where relevant, a home must have had a water hygiene risk assessment and be subject to an asbestos management plan. Most properties will also need an Energy Performance Certificate (EPC) and if a selective or additional licencing scheme is in operation, landlords must apply for a licence and follow scheme rules. In addition, in line with the Digital Markets Competition Consumer Act 2024, applicants must be made aware if a property contains any form of cladding prior to viewing so that they can make an informed decision before deciding to live in it. If your home features an exterior surface which contains cladding, this must be disclosed to your agent before marketing activity commences.

READY SET GO:

Keeping on top of paperwork is vital as ultimately being on the front foot with admin will enable a rental to proceed without delay. For example, it’s important to remember that to let your home you’ll need confirmation from all legal owners of the property, your mortgage provider and any superior landlord or freeholder as well as your insurance company.

Timings:

The lettings market is fast paced and the time frame between going to market and securing a tenant can be very brief, with offers sometimes received within 24 hours of launching. It’s essential that landlords don’t list their home until they are ready to proceed, and that they are confident about what their onward plans look like because an incoming tenant may need to move in in just a few weeks’ time.

Look ahead

Those not currently active in the rental sector may not know about the Renters’ Rights Bill (RRB) which will give tenants greater protection and mark the end of Assured Shorthold Tenancies. It means that landlords and tenants will no longer agree fixed tenancy periods but tenancies will instead run from month to month until either the tenant serves notice, or the landlord meets one of the grounds for regaining possession of the property. These tenancies will be known as assured periodic tenancies. Understanding what’s ahead, and what it will mean as a landlord is essential. We’ve explained more about the effect of this Bill, as it is currently proposed, here (note there may be changes to the draft Bill as it completes the Parliamentary process, which in principle could materially change the effect of the Bill).

Home sweet home

The quality of property belonging to accidental landlords tends to be higher, as owner occupiers traditionally invest more in their homes than rental investors. This can make them very appealing to tenants, as there is strong demand for well-presented homes. Landlords should make sure property is market ready – from tackling maintenance issues and de-cluttering to a thorough clean – as first impressions really do count. Keeping the property well maintained and providing a safe and healthy environment is the landlord’s responsibility for the whole time the property is let.

UNDERSTANDING MARKET CONDITIONS

Choosing the right agent is essential, and appointing one with a proven track record in your local area is key. It’s important they are able to demonstrate a strong understanding of the local lettings market which is backed up by plenty of experience and examples of comparable rentals. As a first-time landlord, don’t be afraid to ask them for advice throughout the process.

Further information

Contact Amelia Brown and Danielle Hardy