Landlord Obligations & Requirements - The Law
As a landlord there are a number of legal responsibilities and obligations which you MUST (and should) abide by. These are all necessary; failing to comply with these could result in prosecution.
Please note, this leaflet is for private residential properties in England and Wales that is Governed under the Housing Act (the official rulebook), which may not necessarily apply to mixed use premises such as houses in multiple occupation (HMOs) where unrelated occupiers, who live independently from one another, share common areas of the same building.
- Landlord License
- Gas Safety Appliances regulation
- Fire Safety regulation
- Smoke and Carbon Monoxide Alarms regulation
- Furniture and furnishings regulation
- Repairs & Maintenance
- Electrical Equipment regulation
- Plug & Sockets Regulation
- Consent to let
- Tenancy Deposit Protection
- Taxation regulations
- Energy Performance Certificate (EPC)
- Legionnaires Disease Safety
- ‘Right to rent’ Immigration regulation
- ‘How to rent’ Guide
Sections 79, 80 and 81 of the Housing Act 2004 provide for the introduction of a “Private rented property licensing” scheme.
Landlords with properties in selective areas are required to get a “private rented property license” from their local council before being permitted to let their property. These areas are selected based on low demand for housing and significant or persistent anti-social behaviour problems. Failing to do so can result in punishable fines of a financial penalty notice of up to £30,000 or an unlimited fine in court.
To qualify for a licence a landlord must be able to demonstrate that they are acting within the law and taking appropriate steps to manage their properties, which is defined by the local council. If you’re unsure if your property is in a landlord license zone, you can call your local council or speak to local letting agents.
Please visit your local council’s official website for more information on the private rented property licensing scheme.
Gas safety appliances
The Gas Safety Regulations 1998 place a statutory duty on all landlords of residential property to ensure that all gas appliances, pipe work and flues are maintained in a safe condition.
An inspection of all gas appliances that are provided with in the property by the landlord must be inspected annually by a Gas Safe Registered Engineer. After inspection a warranted Gas Safety Certificate will be issued for proof of inspection; both tenant and landlord should keep a copy.
Fire Safety, Housing Act 2004
This area of law is covered by both the Housing Act 2004 and the Regulatory Reform (Fire Safety) Order 2005.
Landlords are under a common law duty to ensure that the property they provide is safe. All residential properties in England and Wales should comply with building regulations.
The Smoke and Carbon Monoxide Alarm (England) Regulations 2015
Landlords in England are required, from 1 October 2015, to:
- have at least one smoke alarm installed on every storey of their rental property which is used as living accommodation, and
- have a carbon monoxide alarm in any room used as living accommodation where solid fuel appliances are contained. The Smoke and Carbon Monoxide Alarm booklet provided by the Government defines that as appliances that are powered using a type of solid fuel, such as coal, wood etc.
- check that each prescribed alarm is in proper working order on the day the tenancy begins if it is a new tenancy (this part only applies to “new” tenancies that start on and after the 1st of October 2015).
The Furniture and Furnishings Regulation 1993
All furniture a landlord provides must be fire resistant. Furniture must meet the fire resistance requirements in the Furniture and Furnishings (Fire) (Safety) Regulations 1988.
These regulations require that the following furniture supplied by the landlord in let properties meet fire safety standards:
- beds, headboards of beds, mattresses
- sofas, sofa-beds, futons and other convertibles
- nursery furniture
- garden furniture which is suitable for use in a dwelling
- scatter cushions, bean bags, window seats and seat pads; pillows
- padded stools and padded chests
- put-u-up beds and garden loungers/seats
- loose and stretch covers for furniture
Furniture manufactured since March 1989 will comply with these regulations and most will be marked with a label showing compliance.
The regulations do not apply to:
- sleeping bags
- bed-clothes, duvets and pillowcases
- loose covers for mattresses
- curtains and carpets
- furniture and furnishings manufactured before 1 January 1950 as the inflammable materials were not in use prior to 1950
- properties let continuously to the same tenant since prior to December 1996 until there is change of tenancy
Non-compliance with the above regulations is a criminal offence and carries penalties of a £5,000 fine, 6 month’s imprisonment, or both. In the event of a death, charges could extend to manslaughter.
Repairs & Maintenance- Section 11, Landlord and Tenant Act 1985
The landlord is responsible for the structure and exterior of the property; baths, sinks and other sanitary items; heating and hot water installations. However, this only applies if the tenant has a fixed tenancy contract for under 7 years, else these issues become the tenant’s responsibility. The landlord is not responsible for damages caused by the tenants.
This legislation requires landlords to:
- keep the structure and exterior of the property in good repair, including drains, gutters and external pipes
- keep installations for the supply of water, gas, electricity and sanitation in good repair and proper working order
- keep installations for space heating and water heating in good repair and proper working order
A more detailed guide on the Landlords Responsibility to Repair and Maintain can be obtained on request from our office or you can download from the GOV.UK website.
The Electrical Equipment (Safety) Regulations 1994
Every electrical appliance supplied by the landlord must be safe to use; the electrical installation in the house must be completely safe.
Unlike the Gas Safety Regulations, there is no mandatory requirement for the equipment to undergo any safety testing, but that should NOT be an incentive to be careless.
Although there is no requirement for equipment to be checked, it’s recommended for every landlord to check all electrical appliances and electrics before the start of a tenancy and regularly thereafter.
The following guidelines apply to all electrical appliances supplied for the tenancy:
- live parts should not be accessible
- leads should not be worn or frayed and be complete with no joins
- trailing leads and the use of multiple plug adaptors should be avoided
- correct plugs (marked ‘B SECTION 136’) should be fitted and correctly fused
- plug sockets should be firmly fastened to the wall or skirting
- any moving parts should be guarded
- electric blankets should be serviced according to the manufacturer’s instructions
- microwave doors should be clean, free from corrosion and effective
- washing machines, cookers, etc, should be serviced and in good working order
- electrical heaters and central heating appliances should be serviced annually
- fireguards should meet BS3248
- any fire extinguishers should be marked ‘BS6575 1985’.
Plugs and Sockets (Safety) Regulations 1994
This regulation requires that any plug, socket or adapter supplied for intended domestic use complies with the appropriate current standard, and specifically that:
- the live and neutral pins on plugs are part insulated so as to prevent shocks when removing plugs from sockets and all plugs are pre-wired.
Obtaining consent to let a property
Before letting a property, landlords must obtain permission and/or inform the following:
- mortgage lender
- In respect of leasehold properties, the head landlord
- Any housing association or other body which has regulations applying to the property, e.g. shared ownership
- Any adult who has been living in the property with the landlord as husband, wife or partner who may have occupancy rights.
- The landlord’s insurance company who must confirm that cover will be maintained if the property is let.
Tenancy Deposit Protection
Landlords must secure their tenants deposits into one of three government approved Tenancy Deposit Protection (TDP) schemes within 30 days of receiving the deposit, and they must also serve their tenants with Prescribed Information related to the deposit, within 30 days.
Over the years a lot of tenants have complained that they have unfairly lost their security deposit; consequently, the government introduced this legislation to help apply some unbiased moderation to the disputes.
Taxation of Income from Land (Non-Residents) Regulations 1995
Being a landlord is like any other profiteering business, which means any profit made is subject to taxation.
Generally speaking, this can work in two ways…
- If you’re not operating your properties through a limited company, you’ll need to file a Self-Assessment tax return form for each tax year. The standard income tax rules and price brackets will apply.
- If you are operating through a Limited company (because it can be more tax efficient), then your company will be subject to business taxation rules.
More information on Landlord tax is available on request from our office.
Energy Performance Certificate (EPC)
Landlords must provide an Energy Performance Certificate to all new and prospective tenants during the viewing, or at least before the tenancy agreements are signed.
The certificate will give each building a SAP (Standard Assessment Procedure – out of 100 possible) rating, and this will equate to an energy rating from A to G, similar to those seen on white goods. For those who don’t speak geek, in English it means, it reports the energy efficiency levels of a property, so tenants can assess how much they will need to spend on utility bills e.g. heating.
A certificate is valid for 10 years, and then property needs to be reassessed again and issued with a new and valid certificate.
Word of warning, from April 2018, properties rented out in the private rented sector will be required to have a minimum energy performance rating of E. The regulations will apply to new lets and renewals of tenancies, and will apply to all existing tenancies on 1st April 2020. It will be against the law to rent a property which has a rating lower than E, unless there is an applicable exemption.
More information on Energy Performance Certificates is available on request from our office.
Minimise risks of Legionella
This is a bit of an odd one. It’s fairly new, and probably the most unknown and neglected legal requirement.
The person responsible for managing the property, whether it be the Landlord or letting agent, is responsible for combating Legionnaires Disease.
Health and safety legislation requires that risk assessments for the Legionella bacteria which cause Legionnaires’ disease are taken. The assessments must identify and assess potential sources of exposure, and steps taken to prevent/control any risk that is identified.
Anyone can be appointed to assess/monitor Legionella as long as they have the relevant skills to implement the control measures and strategies i.e. they are suitably informed, instructed, trained and assessed. There must be evidence to show that the risk assessment has taken place, and records showing what precautions were taken.
A more detailed article on the Landlord Legionella Legislation is available on request from our office.
‘Right to rent’ immigration checks
Under section 22 of the Immigration Act 2014, Landlords in England should not authorise an adult to occupy property as their only or main home under a residential tenancy agreement unless the adult is a British citizen, or EEA or Swiss national, or has a “right to rent” in the UK.
This legislation is applicable to the whole country from February 1, 2016. This means all private landlords, or their agents, in England, including those subletting or taking in lodgers, will have to check new tenants have the right to be in the UK before renting out their property.
Essentially, the landlord is required to check for proof of ID and citizenship. More details can be found on the landlord ‘Right to rent’ guide, including how to fully comply.
“How to rent: the checklist for renting in England” Guide
Landlords should provide their tenants with a document entitled “How to rent: the checklist for renting in England”, as published by the Department for Communities and Local Government, at the beginning of new tenancies that start on or after October 2015 in England only.
It’s important to note that the guide will get updated over time, so you need to provide your tenants with the most up to date version at the time the tenancy begins. If a ‘new’ tenancy agreement is granted with the same tenants and a new version of the guide has been released, you should supply a copy of the latest version.
Serving the booklet isn’t a legal requirement, however, it is part of the Section 21 legislation. That means a copy of the “Rent Guide” should be given to tenants in order to serve a valid Section 21 notice (this is a notice given to tenants when landlords want to repossess the property). It’s pretty crucial to be able to serve a valid repossession notice, and that’s why it’s been added to the list.
You can either email your tenants a copy or provide them with a hard copy (i.e. provide them with a printed version).