Choosing to rent out property can be a profitable venture, but it does come with a number of important responsibilities. Regardless of whether you are a seasoned landlord or renting out your own house for the very first time, it is vital that you understand the legal and safety regulations involved. New guidance highlights what landlords across the UK must watch out for in order to remain current and ensure both their property and tenants are safe.
Let us take a look at the key duties landlords have when they rent out property, from ensuring safety standards to addressing financial requirements.
Safety & Compliance Obligations
Also, the landlords must provide an Energy Performance Certificate (EPC) of the building. The certificate gives the prospective tenants important information concerning the energy efficiency of the property and the possible expenses.
Landlords in England are also required to check that the tenant is legally entitled to rent out property before they can enter into a tenancy agreement. It is also legally required that tenants be supplied with a copy of the government’s ‘How to rent’ checklist at the start of a new tenancy — a publication designed to assist renters with navigating their rights and obligations.
Fire & Health Safety Measures
Fire safety is another important area that landlords must address. This includes fitting working smoke alarms on each floor of the building and installing carbon monoxide alarms in each room where there is a solid fuel appliance. Both types of alarms must be tested at the beginning of each tenancy.
For flats in purpose-built blocks of flats or converted buildings consisting of a number of flats, landlords will also be required to comply with certain fire safety measures, such as communal exit, fire doors, and alarm systems.
Financial Responsibilities & Tax Consequences
Landlords in some cases can also choose to make voluntary National Insurance contributions, especially if renting property out is their main source of income.
It is also important for mortgage holders to get the approval of their lender before they rent out their house. Not doing this may contradict the agreed upon mortgage agreement and could result in financial penalties or other sanctions.
Conclusion
Being a landlord can open new doors to income opportunities, but it comes with a set of separate core duties. From ensuring that the properties are secure and in line with the law to handling rental income tax and mortgage permissions, landlords need to follow the necessary requirements and stay aware.
Understanding these requirements is not just about avoiding the possible penalties — it’s also about providing a secure and fair environment for the tenants. For those that are considering entering into the rental market or reviewing their obligations, now is a good time to familiarise yourselves with the latest guidance and stay on top of the legal duties.