Law of the landords

By Stephanie Burns
Posted: 2008/09/26

THE new breed of accidental landlords should take note of the increasing amounts of red tape concerning tenants in case they fall foul of the law.

Many homeowners are being pushed into this category due to housing slowdown.
Stephen Ludlow, of online letting agent ludlowthompson.com, said: "Virtually overnight people who never anticipated becoming landlords are letting their properties because they are unwilling to accept lower prices, and circumstances mean they are unable to live in the property themselves."

Others are owners with good equity in their homes wishing to trade up in the downturn by using the rent to increase their borrowing capacity. Some are would-be buy-to-let millionaires who have not made the expected quick profit.

Then there are those who have inherited and others again who bought a property for a son or daughter at university who has moved on.

According to the National Landlords Association (NLA), nearly half of all landlords have come into the residential letting market by "mistake" and some do not face up to the responsibilities that they have assumed, preferring to adopt a friendly but unprofessional "take it or leave it" approach to problems and issues concerning tenancies.
 
This is where the trap lies, for a tenant well-versed in their legal rights can cause serious problems for the landlord.

Every landlord, however small, is subject to the same laws and regulations that apply to letting properties, and these are becoming increasingly onerous.

New rules are being introduced all the time, the latest being the requirement for an energy certificate for rented homes.

In the last 18 months changes were also introduced to the system of paying DSS rents directly to the tenant rather than the landlord.

New regulations apply where a property is let to more than five unrelated tenants. There are further obligations on gas, electricity, furniture and furnishings.

There are also strict rules regarding deposits which much be held in an escrow account so that landlords cannot use the money for their own ends. Joining a professional association such as the NLA ensures landlords can keep up with regulations.

There are also many other sources of guidance online.

Ludlowthompson.com has the following tips:
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1.    Be aware of recent legislation for landlords, such as rules regarding houses of multiple occupancy and tenant deposit schemes required to safeguard tenants' deposits.

2.    Compile a inventory or schedule of condition and take a damage deposit equivalent to six weeks' rent.

3.    If using a lettings agent check it belong to a professional association such as Association of Residential Lettings Agents (Arla) or the National Association of Estate Agents (NAEA).

4.    With energy costs rising don't include utility bills in the rent.

5.    Do not overfurnish the property and try to keep the decor neutral.

6.    Put electrical appliances and boilers under a service contract so that the tenant can call an emergency engineer directly.

7.    You must have written permission to let your property from your mortgage provider.

8.    Take out contents insurance as this will provide you with public liability insurance.