The Importance of Instructing a Letting Agent

Becoming a landlord can be one of the most rewarding and lucrative ventures that one can embark upon, but as you begin to build your portfolio, ensuring that all the necessary bits and pieces are in place for your properties can be more of a task than initially anticipated. With the endless rules and regulations that must be complied with when letting out your home, it can be difficult to stay up to date with compliance, and this can lead to being blindsided with a fine. Letting agents exist to keep everything running smoothly, in line with regulations, so opting to instruct one could save you a hefty amount of money. In this week’s article, we’ve provided some details on just how much in fees you can avoid, by simply leaving your home in the hands of an agency.

Electrical Safety

Complying with electrical safety is very important when letting out your property, so as to ensure that all occupants of the property can be rest assured that they are living in safe conditions. As per the Electrical Safety Standards in the Private Rented Sector, it is required that the landlord has the electrical conditions of the home checked at least every 5 years by a qualified assessor to produce a report, demonstrating that it meets standards. Instructing a letting agent to have this conducted and maintained for you, can save you up to £30,000 in fees for failing to comply.

Energy Efficiency

This regulation applies to all domestic private rented properties that are let on specific types of tenancy agreements and are legally required to have an Energy Performance Certificate. Properties aligning with the aforementioned criteria in the United Kingdom, must have an EPC rating of at least an E, to be let out and without doing so, landlords can be liable for a £150,000 fee, but when there are plenty of agents able to arrange for your property to fall back in line with standards, this is an avoidable penalty.

Gas Safety Standards

As a landlord, gas safety is of the utmost importance for your tenants and your property- gas safety checks must be conducted on a regular basis, usually annually, and a Gas Safety Record has to be curated by a registered and qualified surveyor for your property to be regulated. Smoke alarms and a valid carbon monoxide alarm must be present in the property, also. Letting agents always check this and supply a copy of this record to tenants, making it a priority to stay on top of the maintenance of this to be sure that you don’t face the £5000 fine or prosecution.

Deposit Registration

Some landlords, particularly first time landlords, are unaware that deposits must be protected by a government approved scheme for properties rented on an Assured Shorthold Tenancy. If the deposit is not placed under the protection of one of these schemes within 30 days of receipt, you will not be able to serve a Section 21 if the tenancy does not proceed as intended, you may be liable to pay them up to 3 times the amount of their deposit. This is a vital step for agencies and would be top of their checklist when preparing your property, to avoid you facing any nasty surprises.

House of Multiple Occupancy

A House of Multiple Occupancy, or HMO, consists of 3 or more people creating 2 or more households within a single property. Renting out a House of Multiple Occupancy requires a licence, and if you do not obtain one, you can be subject to an unlimited fine in court and paid rent may be repaid to tenants. You can also be banned from renting out properties altogether, so it is incredibly important to remain compliant regarding this.

Right to Rent

To be able to rent a property in the UK, tenants must have the legal right to rent, and it is your responsibility to ensure that this has been checked and confirmed. Letting agents would check the applicant’s passport or confirm documents directly with the Home Office, which would steer you from a £3000 fee and potential imprisonment, for failing to check and comply.

Unlawful Eviction

An assured tenancy cannot be brought to an end by the landlord without a warrant of possession or court order, as both you and the resident will have signed a contract, permitting them to occupy the property for a certain period of time. Evicting tenants without going through the correct legal process, can mean 2 years of imprisonment and an unlimited fine, but with the assistance of a competent agency, you can be certain that any necessary evictions are conducted in a lawful and efficient manner.

Tenant Fees Act

There are fees that landlords cannot legally charge the tenant and enforce them to pay. These include but are not limited to; more than five weeks rent as deposit, more than one week’s rent as holding deposit, the cost of referencing or the cost for conducting an inventory report. If you violate the Tenant Fees Act by charging any of the above, or other banned fees, you could end up paying £30,000 or even being sent to jail. With the guidance of a knowledgeable agent, you have the confidence that you are staying in line with regulations and only charging what you should be.

The aforementioned ordinances are just a fraction of those that must be complied with, meaning that there could be more laws, and fees for not abiding by these laws, that you could be unaware of and liable for. At Tutis Estates, our staff undergo all the relevant training and have dependable systems to assist them in offering the best service for you as a landlord, and to protect you by notifying you of what is out of compliance, and having it regulated in a timely manner, prior to occupation. If you’re feeling unsure on your property’s compliance, or if you are in line with regulations, feel free to contact us regarding a compliance appraisal, and we’ll help you get back on track.

Maya