Ever had your investment abused by careless tenants? Whether it’s damage to the property or a general disrespect, it’s a horrible feeling. You feel cheated by the people you trusted.
Deposits and tenant referencing companies are great ways of combating bad tenants, but there’s another step you should be taking. Regular landlord inspections are vital for ensuring your tenant is actually maintaining your property as agreed in the tenancy agreement.
Many landlords avoid checking their investment purely because there are clear regulations to follow. Don’t be one of those landlords! Here’s what you need to know about property inspections.
Why You Should Carry Out a Rental House Inspection
Not convinced about the need to inspect your property? Here are a few advantages of inspections:
- You can assess how your tenant treats the property
- You can check on any maintenance issues that need your attention, such as health and safety requirements
- You boost your reputation as a landlord and become more approachable
- You can create an open pathway of communication with your tenants
- You can take a look at the living conditions of your tenant
- You can keep an eye out for any illegal activities
- You can check that you’re still offering a safe and legal letting to the tenant
- You may not have a duty of care to neighbours, but it may avoid disputes to check in with them. They may be able to tell you information about how your tenants are behaving that you might otherwise miss
Can a Landlord Enter Without Permission?
When it comes to entering the property, there are rules.
You can’t just turn up and inspect the condition of the property. The landlord or agent doesn’t necessarily need permission before entering. However, there are laws you need to follow when it comes to regular inspections.
Legally, there are three main rights of entry:
The Right of Reasonable Access
As a landlord, you need to be aware of your Landlord access rights. ‘Reasonable access’ sounds like a very general term but it is simply defined. This ultimately refers to the need to access the property immediately to carry out emergency/necessary repairs.
The Right to Enter to Inspect the State of Repair of the Property
As owner of the property you can also enter to inspect the ‘state of repair’. For inspections, you aren’t granted immediate access.
You must also carry out all inspections at reasonable times of day. If someone other than yourself (or a previously agreed agent) is inspecting the property, you must give notice of inspection in writing.
The Right to Enter to Provide Room Cleaning Services
If you offer room-cleaning services to your tenant and this is stated clearly in the contract, you can access the property without permission. This is a relatively uncommon situation.
Can a Landlord Enter the Property Without the Tenant Present?
If the reason for access is one of the ones mentioned above, such as an emergency, the tenant does not need to be present during inspection.
However, tenants should still be informed. This is their home also, so it’s a good idea to let them know if you’ve entered, and for what reason.
A landlord entering the property without permission or reason is against the law.
How Much Notice Does a Landlord Have to Give?
Usually, you must provide at least 24 hours notice before entry. This can differ in an emergency.
Landlord Right of Entry – Try Not to Scare the Tenant
Inspections can be scary for your tenants, as they’re obligated to look after your property. As soon as you notify them of your intention to check your property, they’ll begin to sweat. Be as casual and relaxed about it as you can. Explain there’s no reason for them to be worried, it’s just a mandatory walk through.
If you’re able to, give your tenant more than the required 24 hours’ notice – a week is usually best. This gives them time to present the rental in a clean and tidy state. Be flexible about the time of your visit and offer to rearrange if it isn’t convenient.
Landlord House Inspection Checklist
So, what should you be looking for?
There are plenty of issues you might come across, some more serious than others. Your inspection can be as thorough or casual as you’d like. Having said this, keep your eyes peeled for these common problems:
- Damage beyond wear and tear (broken windows, stained carpets, etc.)
- Damp and mould
- Leaks
- Condition of furniture and white goods
- Excessive rubbish
- Poorly maintained garden
- Faulty smoke alarms/carbon monoxide detectors
- State of the loft/attic
- Signs or rodents/infestations
Periodic Inspection Report
It’s recommended to carry out a house inspection every 3 months or less. This depends on the length of the tenancy.
To help you monitor your property effectively and keep track of any recurring issues, you may want to fill out a house inspection form of some kind.
This can be particularly useful if you spot a problem on a particular visit, and find it has not been corrected next time. With all the obligations landlords have, having a record can help you stay informed about the condition of your rental property.
Can Tenants Refuse Access to a Property?
If you turn up unannounced, for example without written notice, the tenant can refuse to grant entry.
To avoid this, give plenty of warning.
What Happens If the Tenant Refuses Entry?
If a tenant refuses to grant permission for entry, you can’t go ahead without their blessing. As a landlord, you have to respect the tenant’s privacy. This can create a difficult situation where a harmonious relationship between landlord and tenant can be jeopardised.
Tenants only tend to refuse entry if they’re hiding something unsavoury from you. Unfortunately, you can’t take the issue any further.
How to End the House Inspection
Communication is key here. If there are issues you’re not happy with, explain why and discuss whose responsibility it is. If you’re coming back to complete any repairs, give full details of when this will be. Don’t forget to ask your tenant whether they know of any issues or damages that require your attention. Ultimately, thank them for their time – remember, they weren’t obliged to let you in.
How Can an Inventory for a Rental Property Help?
Want to lower the possibility of deposit disputes and damage to your investment? No Letting Go will manage the entire inventory process in a professional and open manner. This includes check ins and check outs. We’ll help you comply with your obligations, while improving the lives of tenants. Find out more about our inventory services here.
For landlords, there are seemingly endless responsibilities to keep track of. Every self-respecting landlord wants to provide safe and comfortable homes for their tenants, but it can be difficult to stay on top of changing developments.
One such responsibility that’s vital to stick to is getting an EPC for your property. The EPC is a certificate to ensure the sufficiency of a buildings energy performance and is required for all properties being put on the market to sell or rent.
We know it can be tricky navigating complex requirements and laws. That’s why we’ve put together this information on landlord EPC obligations.
So, without further ado, here’s everything you need to know about EPC for landlords, all in one place.
What is an Energy Performance Certificate?
Put simply, an Energy Performance Certificate (EPC) tells you how energy efficient a property is. Factors such as carbon dioxide emissions and heating costs are taken into consideration to give the property an EPC rating.
An EPC is required every time a property is put up for sale or rent.
Introduced in 2008 as part of the Home Information Packs (HIPs), the EPC aims to give potential buyers and tenants clearer information on the energy efficiency of their building.
As well as rating the building for its current efficiency, the EPC also gives suggestions for improving energy use and will provide a predicted rating for when these are implemented.
Energy Efficiency Rating
The energy efficiency of your property is given a rating between A and G, with A being very efficient and G being inefficient. An older property without double glazing or proper insulation is more likely to get a lower rating than a new build.
The property will also be given a number between 1-100. The higher the number, the more efficient the building is and the more cost-effective energy bills are.
The EPC will also provide estimated energy costs for heating, lighting and water bills. As well as advice on how to improve the energy efficiency of your property. From installing better quality wall insulation to something as simple as switching to energy efficient light bulbs, there are many ways to make your property greener.
What’s the Minimum Energy Efficiency Standard for Landlords?
As from April 2018, landlords in the private rented sector need a minimum rating of E for their rental properties. Failure to meet this standard could result in fines so must be avoided at all costs!
Tenants have the right to make improvements to the energy efficiency of the property, with the permission of the landlord.
From April 2020, these regulations will also apply to all ongoing assured tenancies in existence.
For more information on landlord requirements consult the government web page.
Which Properties Need an EPC?
Every domestic and commercial building in England and Wales must have an EPC. If you are leasing a property, you must have ordered the EPC before the property goes on the market.
The only types of buildings that are exempt include some listed buildings and residential buildings or rented holiday accommodation which are in use for less than four months a year. A room rented out by a residential landlord is also let off the hook.
The EPC must be shown to potential tenants and a copy supplied free of cost. Make sure you don’t get caught out!
How Long is the Energy Performance Certificate Valid for?
An EPC is valid for 10 years from when it’s completed. If the property holds an EPC from an existing tenancy, it’s fine as long as it’s within this period.
How to Get an EPC
As a responsible landlord, you must only use an accredited Domestic Energy Assessor when acquiring the EPC for your property.
To find a list of approved EPC organisations in the UK, check the energy performance certificate register.
What does the Energy Performance Certificate Cost?
An important question for landlords! Unfortunately, there is no fixed rate for EPC’s currently, however prices usually start at £35. Factors such as the size of the property, the type of property, how many bedrooms it has and its location are all taken into consideration.
Therefore EPC’s for larger homes in desirable locations are likely to cost more.
EPC’s and Feed in Tariffs
If your property has solar PV and you want to receive payments from the government’s feed in tariff (FIT) you will have to provide evidence of an acceptable EPC rating.
The Benefits of Having an EPC
It may sound like a bit of a hassle, but there are actually some benefits to getting a CPE for your property.
For one thing, having an EPC means you can feel safe in the knowledge that your property is within the required energy efficiency standards. That’s one less thing to worry about.
Another advantage, is that by periodically checking your property’s energy efficiency, it will be easier to save money on energy bills for your tenants. The EPC will also help you to plan for future costs with its breakdown of energy expenditures. For landlords managing multiple properties this will be particularly helpful.
Recent Changes to the EPC
From 1st April, 2019, the ‘no cost to the landlord’ exemption will no longer apply and landlords will be required to pay up to £3,500 on works to increase their property’s rating up to an E. If costs exceed this figure, landlords will be allowed to register for a ‘high cost’ exemption on the PRS Exemptions Register provided they give significant evidence.
This is a significant change that landlords in the private rental sector need to stay on top of.
Let us Lend a Hand
With all these obligations to wrap your head around, it’s worth delegating some tasks to make the process of organising a new tenancy that bit simpler.
No Letting go provide professional, unbiased inventory services to make the process as fuss-free and efficient as possible and help you stay on top of your responsibilities.
As a landlord, it’s your responsibility to provide a secure property for your tenants. No one wants to receive a call from a distressed renter who’s just been broken into. Safe and secure properties equal happy tenants.
Insufficient security against intruders is one of the most common hazards impacting well-being in the home. Burglaries and forced entry are not only alarming, but also result in a lot of hassle sorting out insurance claims.
So, how safe and secure is your property?
If you think there could be room for improvement, then read on.
Are the Locks Up to Scratch?
The first thing to think about when assessing the security of your property should be the standard of door locks in place.
Changing Locks Between Tenancies
It should be common practice to change all the locks on doors and windows for every change in occupancy. You never know who’s hands the keys of previous tenants can end up in, especially when getting new keys cut is so easy.
What Type of Lock to Choose?
The Residential Landlords Association advise using five lever mortice locks for external timber doors or a multi-point locking system for PVC doors.
It’s also worth fitting door chains onto front doors for added security.
Don’t Forget About Windows
Window locks are just as important as they are a common point of entry for intruders.
Ensure that all windows easily accessible from the outside have good quality locks. But note that locks should not be used for designated escape windows.
Are the Doors a Good Fit?
It’s all well and good having top-quality locks, but if external doors don’t fit the door frame properly your property is vulnerable to break ins.
Make sure that all exterior doors and garage doors are correctly fitted and are free from damage.
What About an Alarm System?
Fitting a security alarm is another way of keeping your property safe for your tenants. Raising the alarm is especially important if the occupants are away from the property for extended periods of time.
The security system doesn’t have to be state-of-the-art. A simple home security system is all you need to protect your property. There is a huge array of burglar alarms and defender alarms out there:
- The simplest option is a ‘bells-only’ alarm which, when triggered, sets off an audible alarm to alert tenants or neighbours
- A speed dialler alarm allows you to choose up to three contact numbers to be immediately contacted by text message when the alarm is set off
- The most expensive alarm is a monitored system. When the alarm is sounded, a signal is sent to a remote monitoring centre. This means the centre can confirm whether there is a security issue, and if so, inform the police, freeing up more of your time
Is Your Property Visible?
If your property is located slightly off the beaten track or in an area without many neighbours around, it might be worth investing in a security camera.
CCTV systems are more affordable than they used to be, but make sure you comply with laws on the handling of digital images.
Is Your Property Well Lit?
A simple, yet effective security measure is to fit security lights. Outdoor lighting is essential for making your tenants feel safe when they return to the property late at night.
Important places to illuminate with sensor activated lights include the property entrance, gates, driveways and anywhere that could be a potential entry point for intruders.
It’s also worth fitting wall switch controlled lights near garden outbuildings, side and rear doors. Anywhere not overlooked by neighbours could benefit from additional lighting.
How Safe is the Area?
The location of your property can have a big impact on the risk of break ins. Ensure you research the area thoroughly before making the decision to buy new properties.
This type of research can take time. Time that busy landlords with multiple properties might not have to spare. Luckily, there are several property report services available to do the hard work for you. These reports look at factors such as historical crime data in the area as well as comparing local and national crime rates. They can also give you information on the nearest police stations to make property management simpler.
Do you Have a Vacant Property?
It’s important to keep tabs on any vacant properties you might have. Most insurance companies require vacant properties to be visited regularly to check the property is secure and manage any issues.
If you’re juggling multiple properties, why not delegate this task to a professional service? No Letting Go offers reliable vacant tenancy inspections so you don’t have to worry about any attempted break-ins.
Are Your Tenants Safety Aware?
It could be worth sending your tenants a quick email with advice to ensure they’re up to date with the latest safety information. If you’re renting to students or younger people this could be particularly beneficial.
It’s a nice way to show you care and are serious about your responsibilities as a landlord. Simple home security ideas and tips such as hiding valuables and leaving a light on in the bathroom when out could make all the difference.
Direct your tenants to the Met Police website for further home security information.
Secure Property Management
Hopefully, these security ideas will help you to provide the safest and securest properties for your tenants.
If you’ve already got a lot on your plate, let us help with our professional, unbiased inventory services and property reports. With No Letting Go’s assistance, you can rest assured your property meets all the safety standards.
Looking to invest in rental property? There are many things to consider before getting involved in buy-to-lets.
Whether you’re trying to increase your portfolio or you are just getting on the ladder, it’s worth keeping these key principles in mind when choosing a rental property to invest in.
Here’s a comprehensive guide to rental property investment.
Is Investing in a Rental Property a Good Idea?
In short, yes. Rental properties are very attractive to landlords as mortgage rates and interest rates are low and rental return is high. The current housing market means that there is a great demand in tenants looking to rent.
As a landlord, you need to have a business plan for rental property investment. It’s worth familiarising yourself with how much mortgage interest you will be able to claim and what income tax you will need to pay. By 2020, landlords will get a 20% tax credit on their mortgage payments which may push some property owners up a tax bracket.
Before investing in property, you will also need to consider stamp duty, how much maintenance costs will be and whether you need landlord insurance.
Once you’ve decided you will buy a property, there are some significant factors you need to take into account.
Choosing the Right Area
This is the most important thing to consider in real estate. You need to perform market research to work out whether you will get a good return on your investment.
It may sound simple but choose an area that renters would like to live in. There will be a price growth for properties bought in up and coming areas. You will get a higher return by investing in a developing area. Consider:
- Transportation links
- What are the local schools like? (if renting to families)
- Are there enough shops, restaurants and businesses?
- Is there a university?
- What are the other properties in the area like? Do the neighbours correlate to your desired tenants?
This needs to be an area that your tenant will be able to afford.
Carefully consider how much rent to charge. Ideally this will be competitive for the area.
If you’re renting to students or younger tenants, they will be unlikely to afford high rent prices. You need to calculate the percentage of rent return compared to your mortgage rate.
What is the neighbourhood like for insurance premiums? Is the house likely to be broken into? Will you need to pay excess? These are all questions you must ask regarding your property.
Do you want to buy a rental property that is close to where you live or work? Being close to your property will allow you to monitor it if your tenants need assistance. However, there may be better areas further afield. If your property is not in a convenient location, you can hire a property manager to look after it.
Decide which cities to invest in by researching average rental yields. Invest in Manchester or areas surrounding London. Colchester, Essex had the second best rental yield after Manchester.
Choosing The Right Tenant
Deciding who you will rent your property to will inform what kind of property you will invest in.
It is important to choose the right tenant. These are some factors you need to consider about your tenant:
- Their age
- Is it a family? (E.g. single family or two income family)
- What is their financial situation?
- What do they want out of a rental?
The type of tenant you rent to will affect decisions you make about decorating your property, where the property will be located and the type of property you choose. To secure the best tenants, perform a tenant reference check.
Is it worth renting to students? If you decide to rent in a student area, you need to be aware of the benefits and pitfalls of this. There will be a consistent turnover of tenants who will keep your property from sitting empty and generate cash flow. However, students can be unreliable and do not always treat the property well. Maintenance of the home may cost you more in the long term.
The Type of Property
The type of property you choose will dictate what kind of tenant you will have. If you invest in a HMO (house in multiple occupation) property, it will likely be occupied by tenants aged between 22 and 30. A four bed house will be well suited to families or, you can convert a house into several flats and have multiple tenants.
This depends on what kind of landlord you want to be. Do you want to be hands on or would you prefer to outsource to a letting agency? Consider your schedule and your expertise.
What is the Condition of the Property?
You need to think about how much upkeep your property will need. If you want to invest in a property that needs renovating, you need to take into account the amount of time and money a renovation will take. In the long term, you may be able to charge a higher rent which will be a better investment.
Choosing to buy a home that needs little upkeep will be better for landlords who wish to receive a passive income. Tenants will not require as much assistance and you will not need to be too hands on with your property.
The Tenancy Agreement
Creating a good tenancy agreement is fundamental to your investment. Seek legal advice before choosing a rental property. This contract will set out what is expected from your tenants and how you will be expected to act as a landlord so it’s important to get it right.
For a standard tenancy, ensure your agreement covers the following:
- A full inventory of the home
- Clauses regarding the deposit and when it can be withheld
- How you expect the tenants to treat the property
- When the tenancy can be terminated
If it is a HMO property then you may need a license from the council. Your property may fall under the general definition of a HMO but might be exempt from licensing laws. Seek legal advice if you are unsure if this applies to you.
Seek out a tenancy template that will help you draw up your contract and familiarise yourself with the relevant bylaws.
It is important to prevent void periods. Choose trustworthy tenants who will occupy the home for long periods and try to be an organised and efficient landlord. If a tenancy is coming to an end then be sure to advertise your property as soon as possible.
How to Market Your Property
Once you have bought a rental property, you need to be able to market it successfully. You will find the best tenants by thinking about how to market to them.
- Advertise the area your property is in and the benefits of that location according to what your desired tenant would be interested in. For example, a group of professionals are likely to be drawn to somewhere with good transport links for commuting
- How is your property decorated? Is it furnished? What kind of facilities are there?
- What is the length of the tenancy and how much will the rent be?
- Describe the property as accurately as you can
The easiest way to market a property is by using a letting agency. They will be able to do the work for you, such as arranging newspaper advertisements and showing prospective tenants round the property. Agents will also be in charge of collecting deposits and rent payments and drawing up tenancy agreements.
Using a letting agency does not mean you won’t be involved with the management of your property. You can choose how much work you want to delegate to an agency and how much you want to do yourself.
It is important to look after your investment. For help with your property, use No Letting Go inventory services. We can conduct full reports on your properties so you can be confident that your investment is secure. Browse our full list of services to find out more about how we can help.
Making the choice to buy a property is probably the biggest financial decision you’ll ever make. Definitely not one to be taken lightly.
You’ve probably been told that buying a property is the way forward in terms of financial stability and you may feel under pressure to buy your own home to make that first step onto the property ladder. But is it really the best option for everyone?
We believe there are pros and cons to buying a house and that renting a property can be a smarter option for some.
That’s why we’ve put together this guide, so you can decide, once and for all; is it better to rent or buy?
The Benefits of Renting
Despite what older generations might tell you, there are many advantages to renting in today’s world.
Consider these before you dismiss renting as an option:
It Pays to Rent
The costs of buying a house can seem never ending. Hidden extra charges like paying for surveys, stamp duty and removal costs are enough to induce a panic attack. For rental properties, the upfront costs are pretty standard; a secure deposit, a month’s rent and any Letting Agency fees are all you’ll need to pay.
Once you’re in, the costs don’t stop when you own your own home. Recurring expenses like homeowners insurance and property taxes are just the start. Maintenance and repairs can really add up too. A dodgy boiler giving up in the middle of the night mid-November or a leaky pipe creating a downpour in your bedroom is all down to you to fix. If you’ve ever had to track down a tradesperson out of hours you’ll understand the pain.
With renting, these responsibilities lie in the hands of your landlord. Landlords have a legal responsibility to provide a safe, liveable home that is well maintained. This means the landlord foots the bill for any essential repairs.
Skip the Hefty Deposit
For first-time buyers, it’s becoming increasingly difficult to buy.
Soaring house prices have resulted in eye watering deposits that seem unattainable for lots of us. Finding somewhere to buy within a reasonable commute to work is almost out of the question, with people being forced to live in less desirable areas.
Although rent prices increase in sought-after locations, it’s far less drastic.
Flexible Housing for Flexible Living
In today’s world of employment, people switch jobs every few years and no one is quite sure what’s around the corner. If work decides to transfer you to the opposite end of the country or, worst case scenario, you lose your job, you could be left with mounting mortgage repayments. Selling is stressful, costly and always takes longer than you expect.
The pros of renting a house mean it’s easier to move quickly. Usually, tenancy agreements have a break cause and you could move somewhere new within a month with minimal fuss.
Scared of Commitment?
If you’re a commitment-phobe in your relationships, you might not want to be tied down by a property. Renting a home is the more flexible option, allowing you to jump ship if things get boring.
Renting could also be the intelligent choice if you’re moving in with a new partner. There’s nothing like a few months of living together to test a relationship. Discovering your partner’s unsavoury living habits could swiftly make you think twice about your happily-ever-after home. Toenail clippings behind the sofa or late night video game sessions could be the final straw.
The advantages of renting a house mean you can test each other out short-term, without the added pressure of mortgage repayments.
Stay Safe and Secure
As we mentioned earlier, landlords have obligations to fulfil when it comes to property maintenance. These responsibilities stretch further than fixing the odd appliance.
Safety standards have to be adhered to, such as gas, electrical and fire safety checks. These regulations are all designed to protect tenants.
Avoid Rising Interest Rates
Rising interest rates mean your mortgage repayments go up. If the budget is already tight, this could have grave consequences on your finances and living situation.
Equally, property values are famously volatile, and if the value of your property goes down it will be more difficult to sell later down the line.
Renting sidesteps these stresses.
The Cons of Renting a House
As with everything, there are some negative aspects to renting. It really depends on the stage of your life you’re at and what will benefit you now as well as in the long run.
Think about these issues before making your final decision:
Sacrifice the Freedom to Decorate
One downside with renting is that you’re more restricted when it comes to redecorating and making structural changes to your home. Alterations need to be ok’d by the landlord before they go ahead, sometimes even down to hanging a picture frame!
This isn’t a problem if DIY isn’t really your thing, and most landlords are reasonable when it comes to home improvements. You are enhancing their property after all.
If you have a pet you’ll need to make this clear at the beginning as living with pets isn’t allowed in all rental properties. It is possible to rent with pets, just make it a priority for your search.
Be at the Mercy of Your Landlord
One thing that can put people off renting is the idea of being at the mercy of their landlord. If they choose, landlords can raise the rent and even decide to kick you out.
Although this is a possibility, it’s a rare one. Landlords have to compete with the rest of the property market and if they charge extortionate prices they risk not filling properties. You also have a tenancy contract which will stipulate how much notice a landlord can give you if they decide to make changes.
Save Money in the Long Run?
Many people claim there is a long-term, financial benefit to buying. Once you’ve finally paid off your mortgage, they say, you will be able to live rent free.
But, how long will that take?
Mortgages that take up to 35 years to repay are not uncommon. That’s a long time to commit to.
In the short-term at least, it’s cheaper to rent. Rent is usually less than the monthly mortgage repayments and the original deposit is just a fraction of the cost of buying a house.
The Final Say
To sum up, it really depends on your specific situation as to whether it’s best to buy or rent.
Some things to think about before you buy are;
- Before making an offer on a house – can you afford the mortgage?
- Can you afford the monthly repayments (taking possible rises into consideration)?
- Are you planning to stay in the property for a significant length of time?
If it’s flexibility, minimal upfront costs and the security of knowing your landlord is there to cover maintenance you’re after, renting is the best option.
On team rent? If you let out your home, make the process as smooth as possible by taking advantage of No Letting Go’s inventory services. This way, you won’t get caught out with unexpected charges as all the information about the property’s condition is independently evaluated and stored securely. Whether you’re a landlord or letting agent, find out how we can help with our professional, unbiased property reports.
Letting out your property can be a daunting thought for many. How can you ensure your next tenant will be a good tenant?
Answer: with a tenant reference check.
But, many landlords are still in the dark about what the vetting process involves. So, what is it and why is it worth doing? Time to take a closer look.
What is a Tenant Check?
A tenant reference check is simply a way of determining whether a prospective tenant is reliable, and able to keep up with monthly rent payments.
Of course, there’s no way of guaranteeing how someone will behave in the future. However, tenant checks can give you an insight into who you’re letting your property out to.
Tenant Referencing – What Do They Check?
So, what do landlords check for?
Remember – this is about safeguarding both you and your property. You’ll want to ensure a potential tenant is who they say they are, and that they can keep up with their contractual obligations.
For this reason, the vetting process looks at a number of different areas, which can include:
Proof of Identity
Photo ID is usually preferable, such as a driver’s license or passport.
If this isn’t available, other forms of identification are sometimes accepted, such as a signed bank card. It’s up to you what to accept during the rent check.
Financial Situation
Most landlords’ primary concern is whether a potential tenant will be able to keep up with their monthly rental obligations.
Checking their background allows you to see proof of this. Usually, this part of the referencing process includes:
- Proof of employment – such as a contract, a letter from an employer and/or recent payslips
- Bank statements (particularly if someone is self-employed)
- Proof of benefits claims (if applicable)
Credit Score
For a landlord, a tenant credit check is often seen as essential. However, when it comes to poor credit history, only CCJs and bankruptcy are public.
For this reason, their current financial situation is much more telling than a tenant credit check. Just because someone has fallen into rent arrears in the past doesn’t mean they will do now!
Unless, of course, their recent circumstances prove otherwise.
Right to Rent
It’s essential that your future tenant has a right to rent in the UK.
There are fines issued for private landlords who let to those not legally allowed to rent.
Guarantor Information
If you’re concerned that a certain tenant may not be able to afford their rent, you can ask for a guarantor. This is particularly prevalent in student properties, for example.
Sometimes, you can ask the guarantor to agree to a credit check. It’s also common to ask for recent payslips to ensure the rent can be paid should the tenant fail to do so.
If no guarantor is available, you can ask for a higher deposit upfront to cover any potential problems that may arise.
A Previous Landlord Reference
Ideally, you’re hoping for a reference that demonstrates that the tenant is reliable and trustworthy. This not only includes paying rent on time, but also respecting both the property and the landlord.
Questions to ask the landlord include:
- Did the tenant have any outstanding rent?
- Did the tenant cause any damage to the rental property?
- Did the tenant have any problems with the neighbours?
- Did the tenant receive their deposit back? If not, why?
- Would they rent to this tenant again?
If a prospective tenant is unwilling to provide the necessary contact details, this may send alarm bells ringing.
Details of Previous Address
You may also want to see proof of previous addresses, to ensure the tenant is who they say they are.
You may also like: Landlord Deposit Rules: What You Need to Know
How to Run a Background Check on a Tenant
Some landlords are happy to ask for the necessary information themselves.
This can be a time-consuming process, as you’ll need to gather a number of relevant details, such as guarantor information. You’ll also need to reach out to the employer, establish whether the potential tenant has any current debt and interview them.
Questions you may want to ask the tenant include:
- Will they be renting with pets?
- Will they have any family or friends staying with them regularly?
- What’s their working schedule like? Do they work night shifts?
- Have they read the tenancy agreement?
If you’re using a letting agent, they should arrange the vetting process on your behalf.
Should You Use a Tenant Referencing Service?
To ensure the background check is as thorough as possible, it’s recommended to use a professional tenant referencing company. For example, the National Landlords Association can run a check for you.
While these won’t be free, they will help minimise the risk of rent arrears or other potential issues that may arise.
For many, the extra cost is worth the peace of mind.
How Long Does Tenant Referencing Take?
The length of the process depends entirely on each individual situation.
Sometimes, if everything runs smoothly, your referencing company can complete the check in around 48 hours.
But, this isn’t always the case. The process can be delayed by a number of factors, such as:
- If a previous landlord drags their feet about giving a reference
- If a potential tenant takes a long time gathering necessary financial details
- If a potential tenant is unemployed, or a freelancer
- If a potential tenant cannot get a guarantor
A tenant reference check gives many landlords peace of mind. We can also help remove the stress of letting your property, with our professional inventory management services. We’ll ensure you’re compliant with all regulations, protecting both you and your property. Find out more about our services here.
HMO properties continue to be an appealing choice for landlords as they offer lots of advantages.
For one, they are often more profitable than other types of rentals.
However, these benefits come with added demands put in place to protect renters. How can you understand and deal with these requirements as a HMO landlord?
This guide covers everything you need to know.
What is a HMO Property?
Let’s start with the basics. HMO stands for houses in multiple occupation. Put simply, a rented house shared by multiple people or ‘households’ which can consist of a single person, families or cohabiting couples. In order to work out if your property is HMO you will need to know about the different types of HMO housing.
There are several types of HMO properties:
- A house or flat shared by three or more people from at least two households with shared communal areas.
- A home lived in by the landlord as the owner-occupier that has more than two tenants and in which some areas are shared.
- Since The Housing Act 2004, some student accommodation comes under HMO. Privately owned property shared by students, who are each treated as a separate household and have exclusive use of the accommodation is HMO.
- Here’s where it gets really complicated: A building or part of a building made solely of converted self-contained units which do not meet the conversion requirements of the Building Regulations 1991, and in which more than a third of the units are occupied by short tenancies. This is also referred to as Section 257 HMO.
To be considered HMO a property must…
- Be shared by more than two people.
- Be the main residence of the tenants.
- Have rent paid by the tenants.
The key thing to remember is that properties tend to be HMO if the people living there are not related and share toilet, bathroom or kitchen facilities. Separate tenancy agreements are also a good clue.
What are the Legal Responsibilities Involved in HMO Properties?
As the landlord of a multiple occupancy home, you are subject to additional legal responsibilities. It is important to understand these legal obligations as failure to do so can result in some hefty fines of up to £5000.
Here’s a list of the legal requirements as a HMO landlord:
- Display a notice in a prominent position within the property detailing the name, address, and contact number of yourself or the property manager.
- Ensure the property is well maintained and professional health and safety inspections in line with safety rating systems are performed. Remember to keep good records of all inspections and work done.
- Make sure the property is not overcrowded.
- Adhere to fire safety standards by providing working smoke alarms and heat detectors in kitchens as well as keeping fire escapes clear. A fire risk assessment needs to be carried out in accordance with The Regulatory Reform (Fire Safety) Order 2005. If the assessment is not performed to standard and copies are not kept, the landlord is liable to face criminal charges in the case of harm or death to tenants from fire.
- Maintain a clean water supply and proper drainage, which includes protecting pipes from frost.
- Issue inspections of electrical equipment at least once every five years and keep a record of the report.
- Supply a gas/electrical safety record within a week if requested by the council. If you rent bedsits you also need to comply with the Heat Network Regulations.
- Maintain cleanliness and safety in all communal areas
- Ensure the exterior and interior of the property is kept in good order.
- Provide the minimum number and location of shared bathrooms and kitchens. Advice on the local requirements can be found at your local council’s Environmental Health Department.
- Facilitate regular refuse disposal.
- Have an up-to-date legionella risk assessment.
- Ensure you have the correct landlord insurance. A HMO property requires a specific policy. You also need to be wary of tenants who wish to sublet as most insurers won’t cover this.
It’s not just landlords who have to follow the rules. Tenants are also under obligation to:
- Allow the landlord reasonable access and information so you can complete your duties.
- Act in a manner so as not to damage items it is the landlord’s duty to provide.
- Follow refuse and fire-safety guidelines implemented by the landlord.
What is a HMO Licence?
Another thing to consider as an HMO landlord, is whether your HMO property needs a license. Some multiple occupancy HMO’s legally require a license to make sure the property is being managed correctly.
You will need a license if:
- Your property is higher than three stories and has five or more occupants from two or more households. This is called mandatory licencing.
- The council believes a significant number of HMOs are not being managed properly. This is additional licencing and the conditions depend on the local council.
If you’re still not sure if your HMO property needs a licence, you can check with your local authorities. Some councils require all private landlords to apply for a license so it’s worth a check to avoid any unwanted fines.
How to Apply for a HMO Licence
A HMO license application form can be requested from your local council and the application can be made by a landlord or property manager. Unfortunately, there is normally a fee, the amount is set by individual local authorities and it is non-refundable regardless of the success of the application. Once issued, the licence will last up to five years.
You will need to inform several ‘relevant persons’ about your application and provide their details to the council.
Here are some of the things councils look at when making a decision whether to grant a HMO license:
- If the HMO property accommodates for the number of people living there and the shared facilities are suitable.
- If the landlord or managing agent are ‘fit and proper’ to take on the role. This can include looking at criminal convictions and previous unlawful discriminations as a landlord.
- Since 1st October 2018, councils also check that bedrooms meet the minimum size requirements.
HMO License Refusals
If the council decides not to grant you a HMO license, it may be possible to use a different license holder such as the property manager. You will usually be granted a month if you decide to try and persuade the council to change their decision. The council will always give you the reasons behind their ruling.
The council also has the power to revoke a license of they believe the conditions are being violated. You will have two weeks to respond and a month to appeal to a Residential Property Tribunal.
Breaking the terms of the licence also risks fines of up to £5000. If the conditions of your license have been broken and your tenant gets Housing Benefits, the council can apply for a Rent Repayment Order and reclaim rent paid for the time the HMO was unlicensed.
As a landlord, you are also able to revoke your license if you wish to change license holders or cease to run the property as a HMO.
Remember it is a criminal offence to disobey licencing laws and without a required license you are at risk of repaying up to twelve months rent and fines of up to £20,000! Without proper licensing, a Section 21 Notice will not be valid and you may be unable to evict tenants.
Hopefully, with the help of this guide, you now have all the information you need to be a responsible, capable HMO landlord and you won’t get caught out by any hidden legal requirements. That being said, managing a HMO property isn’t always a walk in the park. With so many tenants under one roof, vital tasks like managing inventories can prove an arduous task. Luckily, No Letting Go provides fuss-free inventory services via cutting-edge technology, along with a whole host of assistance plans to avoid disputes and make the process as simple as possible.
For any budding landlords out there, you’ll be excited to know that No Letting Go will be attending this year’s National Landlord Investment Show!
Taking place in Manchester on the 9th October 2018, the show will be running for its 5th consecutive year, with industry experts giving seminars on a wide range of topics.
Here you’ll find an overview of the event and what you can expect to gain from it:
What is the Event?
The event is effectively a hub of valuable information for any upcoming or established landlords.
Running from 9am to 3.30pm, there will be a range of seminars covering several different topics, as well as a morning networking event being held prior (between 9am to 10am).
Here’s what you can expect:
- Hear from leading industry experts across 15+ seminars held throughout the day
- An opportunity to meet the team to help guide you through the process
- The ability to meet other prospective, alongside already established (and successful), landlords
- Gain valuable guidance and insight into the current industry trends
- A tour of the stadium (if you stay after 3.30pm!)
How the Event Can Help You
There will be many complimentary seminars taking place, being led by experts in the industry. This is the perfect place to keep up to date on industry trends in a face-to-face setting with those at the forefront of their field.
The structure of the event has been proven to help landlords maximise their property investments after networking with both professionals and peers. The morning preceding the event is a fantastic opportunity to share experiences and discuss local issues.
You’ll be privy to a lot of in-depth information which can only serve to improve your acumen as you move further forward in your career!
5 Top Tips for Landlord Investments
Keeping in the spirit of the event, here are 5 top tips for landlord investments which you may find useful:
Research the Market
Keep yourself informed on both the risks and benefits involved with each investment you go into. Make sure it’s an investment you’re absolutely sure of.
Use Some Outside Guidance
It never hurts to employ some outside guidance – an agent who’s an expert in property management will be able to give you advice on best practice regarding rent, maintenance costs and other areas of property management.
Find Good Tenants
It may seem obvious but finding the right tenants can make your life a whole lot easier. Finding tenants who are responsible and unlikely to cause problems means less money and time being spent on maintenance or chasing unpaid rent.
The next step is securing long-term tenancies!
Know Your Rights
Knowing your rights as a landlord is extremely important. Being well informed on both your rights AND those of your tenants puts you in a better position to avoid any potential legal issues (which can set you back significantly).
Make Sure You’re Covered
Make sure you’re thoroughly insured to avoid any surprise issues. Landlord insurance will cover you for a wide range of unprecedented problems, so don’t make any assumptions – make sure you’re covered!
There are a lot of challenges you’ll face as a prospective landlord – events like this can be extremely helpful. Our services can also help you face these challenges – you can find out more about these services here.
Historically, landlords and animals don’t have the best relationship.
The fear of damage, infestations and related costs sometimes seem too much hassle than they’re worth.
But, people love their pets!
So, landlords who ban them run the risk of putting off many potential tenants. It can feel like a catch-22!
To try and help, here’s a landlord’s guide to renting with pets.
Pros of Being a Pet Friendly Landlord
When you think of animals and rental properties, you might only conjure up negative images.
But, there are some pros!
Unconvinced?
Here’s a closer look:
Expands Your Options
By allowing pets in your property, you open the door to a far greater number of potential tenants.
To some landlords, this makes clear business sense!
Longevity
Tenants with pets know it’s not easy to find a landlord accommodating to their situation. This means they’re likely to stick around and settle in your house.
Encouraging a long term tenancy has many perks. From no rental void periods to the lack of hassle of constantly changing contracts, there are advantages to allowing tenants to lay their roots in your property!
But, this does come with its own compromises. Pets are one of these!
Higher Rent
It’s fair to up the rent of any property that accommodates pets. We recommend adding a small amount that will help to account for wear and tear later on.
Don’t forget, you can’t claim back any money from the security deposit for fair wear and tear.
Increasing the rent on a property from £600 to £650 per month, for example, is a reasonable decision. It’s not a drastic inflation that will put tenants off. But, it can help to cover any additional work needed when the property is vacated.
Higher Deposit
A pet brings a greater risk of damage to your property, especially, if it’s furnished.
We recommend adding a fair amount onto the deposit to cover any additional costs that could be caused by the animal. Your top priority should always be to protect your investment! Peace of mind should never be underrated.
Some landlords choose to do things separately, and ask for a pet deposit. This is in addition to the standard security deposit. It’s up to you!
Helps Build a Positive Relationship
The best tenancies are happy tenancies! Establishing a good relationship between landlord and tenant is key to this.
As renting a pet friendly house is so rare, you seem like a reasonable and positive landlord for allowing it. While there are no promises, this may give your tenant more respect for you.
Plus, since most tenants will be aware that landlords like you are rare, they’re more likely to respect your home in hopes of staying there.
Attracts Responsible Tenants
Tenants with pets are generally more settled in their lives. This is due to the responsibility that comes with owning an animal.
The more stable and responsible the tenant is, the more likely they are to respect your property. This is a general rule, of course, as we can’t speak for everyone.
Reduced Void Periods
A pet friendly property is likely to let out quicker than one which isn’t.
With the abundance of tenants with pets out there and lack of rental properties who allow them, demand will be high.
This means facing the prospect of a void period is far less of a concern!
Cons of Being a Pet Friendly Landlord
Of course, with the positives come some inevitable consequences.
Some of these you might already be aware of, but, let’s dig a little deeper.
Risk of Damage
Pets are renowned for causing damage to properties.
From chewing through furniture to lack of house training, there can be a number of potential causes of damage by pets.
Of course, you can claim this back through the deposit. However, for some landlords, it’s not worth the risk.
Pet Smells
Pets are notoriously smelly – even when they’re cared for properly. These smells can be difficult to shift.
The tenants often don’t notice it themselves, which makes it more frustrating.
This can also cause financial complications! Other than cleaning costs, pets can give the property a dirty feel which can lead to difficulty bringing in new tenants.
Animal Hair
Animal hair is difficult to remove from upholstery and carpets.
If you’re in the unfortunate situation of letting to a tenant who isn’t too fond of cleaning, this can be an arduous or costly process for you.
Extra Cleaning
A property which houses a pet requires an extremely thorough clean once it’s been vacated. This isn’t only costly, but time consuming too.
Allergies
There’s the potential that future tenants may have a pet allergy!
Alternatively, if you, as the landlord, have an allergy, this can cause complications when you inspect your property.
Aggressive Behaviour
If you let to an unsavoury tenant with an aggressive pet, you’re likely to face some serious difficulties.
This could be the welfare of your neighbours, the difficulty of communicating with your tenant, threatening behaviour or even being unable to inspect the property.
Of course, these are worst-case scenarios. But, it’s important to consider every possibility.
Slippery Slope
Some landlords feel that if they allow one pet into their property, tenants will take advantage of this.
Is there a danger of your investment becoming overrun with pets?
Problems With Neighbours
Will the neighbours be as accepting of the new houseguests as you?
Pets cause noise, wonder into nearby gardens or cause general annoyance.
If your tenants aren’t receptive to complaints, you’ll receive the brunt of the anger. Are you prepared for this?
Pest Infestations
How can you be sure that the pets you accept into your property won’t have fleas?
Infestations can cause lasting problems that can be costly to repair.
You may also like: How Much Rent Should I Charge My Tenants?
What Animals Will You Accept?
Now you know the pros and cons, have you decided to go ahead with allowing pets into your property?
If the answer is yes, you need to work out what you will accept.
Obviously, there’s a big difference between a dog and a fish tank. Also, just how many pets will you accept – only one, or multiple?
It’s important to be clear on this very early on.
Let’s examine what you might be up against…
Renting With a Dog
Renting a house with a dog is a big deal. For most landlords, these are the animals they’re most wary of.
Here are just some of the problems they can cause:
- Noise, such as barking, causing complaints from the neighbours
- Damage, such as chewing up furniture (particularly puppies!)
- Bringing in fleas
You’ll need to be very clear on the rules you lay down before the tenant and their four-legged friend move in. For example, explain clearly that the animal isn’t to be left alone in the house for prolonged periods of time.
If your property is a flat, you might want to think carefully about with tenants keeping a dog is appropriate. They need lots of time outside, so access to a garden is often necessary.
Also, more often than not, the older the dog – the better! They’re more likely to be well trained, quieter and well behaved.
Assistance Dogs
Whether you want to accept pets into your home or not, assistance dogs must be allowed. This is due to anti-discriminatory laws against disabled tenants.
In these circumstances, the choice of renting with pets is out of your hands.
Birds and Rental Properties
Birds might seem harmless on the surface. However, if kept in cages inside, this could lead to mess.
Also, think of noise. One bird might be manageable, but dozens of them could cause your neighbours serious disturbances.
Renting with Cats
Cats are one of Britain’s most popular pets!
Luckily for landlords, cats are relatively trouble-free. Many of them spend most of their time outside!
However, this doesn’t mean there’s nothing to think about. For example, will you allow a litter tray in your property? If not, be clear on this before tenants move in.
Also, there are problems concerning cat fur. Some breeds of cat shed more than others! If you say you allow cats in your rental property, will this be breed-dependent?
Small Popular Pets
Particularly if you rent to a family with children, small furry animals might be a request.
These animals could include:
- Rabbits
- Gerbils
- Guinea pigs
- Hamsters
- Pet rats
You might consider laying down rules that they must remain in cages outside, or live in rooms without carpet. Of course, the choice is entirely up to you!
Can You Let to Pet Owners?
Before you get carried away, though, you need to work out if it’s possible. Can you allow pets into your rental property?
Leasehold Properties
If your property is leasehold, you might find it tricky to rent with pets. As many leases ban pets, you’ll need to change yours.
But, this can be easier said than done.
For example, if you own a flat in a large block, other leaseholders will need to be consulted. The more property owners, the trickier this will be.
Tips for Landlords Letting to Pet Owners
Allowing pets in rentals is a big consideration.
So, if you’re going ahead with it, here are some tips to help you along the way:
Meet the Pet
It might sound strange, but meeting the pet before agreeing to let to its tenants is essential.
You’ll be able to get a feel for its temperament, noise levels, how it reacts to new people and whether it’s house trained.
Of course, you can only get so much from one meeting. But, if the pet is badly behaved, that’s all you need!
If you feel it’s necessary, ask to meet the pet more than once.
Think of this as a bit like a ‘tenancy screening’, but for an animal!
Get a Previous Landlord Reference
Asking for a pet reference may sound a bit extreme. But, when it comes to looking after your property, nothing is too far!
If the potential tenant has let with their pet before, ask for contact details for their previous landlord. Find out information such as:
- How well behaved the pet was
- Whether any damage to their property was caused
- Was the tenant responsible?
- Did the neighbours complain?
- Were there any problems relating to the pet at all throughout the tenancy?
Set Up Open Communication from the Start
All tenancies require good communication from both parties.
However, when it comes to pets, this is even more important. It’s vital to speak with the potential tenant about their pet at the very beginning.
After that, clearly explain what it is you expect and lay down the rules. Make sure these are included in the tenancy agreement.
Consider Property and Pet
Your property and the pet itself… Are they compatible?
Cats and dogs might not enjoy living in a top floor flat, for example, as outdoor access is key.
Accept pets within reason. Think about the space and neighbours – not every pet will be able to live in your property!
If you’ve decided to rent with pets, your property’s inventory will be more important than ever. You’ll want to ensure there’s no room for miscommunication. No Letting Go can help you look after your investment. Find out more about our services here.
It’s time to talk deposits…
These are a source of protection for landlords, ensuring they have a safety net should anything happen to their property.
But, this doesn’t mean they’re without their own complications!
Deposit disputes are common. If a landlord withholds money for any reason, this is an obvious conflict of interest between both parties.
Let’s ensure that doesn’t happen. Here are some important landlord deposit rules to remember.
The Government Approved Tenancy Deposit Scheme
All landlords must put deposits in a government-backed Tenancy Deposit Scheme. SafeDeposits is Scotland’s leading tenancy deposit scheme.
These ensure a deposit is protected, and that tenants receive the full amount back if they meet the terms of their tenancy agreement and maintain the property as agreed.
TDS disputes are very uncommon, as the deposit is looked after by an unbiased, regulated third party.
Some landlords can be confused by these schemes, as in England and Wales there are two options. So, let’s straighten it out:
Insured Scheme
The Insured Scheme is where the landlord or letting agent keeps hold of the deposit throughout the tenancy, while paying a fee to the TDS.
This fee operates on a ‘pay as you go’ basis, meaning you don’t pay after the tenancy has finished!
Custodial Scheme
With the Custodial Scheme, the landlord or letting agent doesn’t have to pay a fee, as the TDS looks after the deposit.
The TDS will then release the deposit at the end of the tenancy.
Both tenancy deposit protection schemes have their benefits, so it’s important to work out what works for you.
When are Tenancy Deposit Deductions Allowed?
There’s no hard and fast rule when tenants ask, ‘what can my landlord deduct from my deposit?’ as this varies depending on the individual circumstance.
However, there are some common reasons why deposits aren’t returned.
Reasons for these deductions must be stipulated in the tenancy agreement, for example cleaning deposits. If you require the property to be returned in a certain way, for example the carpets cleaned, ensure this is clearly communicated.
After the tenant leaves, landlords are allowed to make deposit deductions for the following reasons:
Unpaid Rent
There are numerous reasons why tenants may not be able to afford rent.
However, while some circumstances are out of their control, missed or withheld rent is a justifiable reason not to pay back some, or all, of their deposit.
Many landlords prefer to deduct money from the deposit rather than serve their tenant with a Section 21 eviction notice.
If your tenant owes more than the deposit amount, you can take legal action, and a court can order them to pay the full amount back. This will incur it’s own legal fees, so you’ll need to work out if it makes sense financially.
Serious Damage to the Property
Whether it’s to the property itself, such as smashed windows, or broken furniture, damaging the property contradicts the terms of the tenancy agreement.
Therefore, landlords are allowed to deduct the appropriate amount from the deposit.
Recklessness is something you can take seriously!
However, it’s important to remember that this mustn’t count as fair wear and tear.
For more information about Landlord Insurance.
Lost or Broken Items
One main reason for landlords not returning deposits is missing items. The cost of these can be deducted at the end of the tenancy!
The inventory will have set out what items were included with the property, and their condition. So, in the interest of reassurance for the landlord, a detailed inventory is essential.
Cleaning
In the world of tenancy deposit disputes, cleaning can be a huge source of disagreement between landlords and tenants, largely because we all have different definitions of what is ‘clean’.
However, it’s a common cause of deposit deductions. For example, if it was negotiated in the tenancy agreement that the tenant would pay for a professional carpet clean after keeping pets in the property, they must uphold this.
If they fail to do so, landlords can pay for the cost of the clean from the deposit. For a landlord, cleaning is the tenant’s responsibility!
General Maintenance
General maintenance can be difficult because it’s a vague term.
But, misuse can result in a deposit deduction. For example, if any appliances have been deliberately neglected, the landlord will have to pay to repair these before the start of the next tenancy.
Damage Caused By Pets
Landlords and pets have a strained relationship. However, with half the UK’s population owning a pet, and nearly 1 in 5 of us renting our home, landlords have had to make compromises.
Before the tenancy starts, those with pets often agree to pay a higher deposit or the cost of a professional clean. But, this doesn’t make any damage caused by pets acceptable!
Many tenants find it difficult to understand why their landlord has kept their deposit. But, when you consider the cost of repairing damage, it doesn’t seem so unreasonable.
Poor Redecoration
If a tenant takes it upon themselves to redecorate the property without asking you first, this may be in breach of their tenancy agreement. As a result, you might be able to deduct money from their deposit to get the room back to its prior condition.
Alternatively, if you allow a tenant to redecorate, but they do a poor job, you can claim for redecoration costs also.
When Can Tenants Dispute Deposit Deductions?
But, it’s important landlords understand what they can’t claim for. When can landlords keep deposits, and when can’t they?
Tenants have many responsibilities, such as keeping up with rent payments and taking care of the property. But, for landlords, unfair deposit deductions are simply unacceptable.
Tenants are always asking ‘can my landlord withhold my deposit?’ The answer is yes, but, within reason.
Let’s put the issue to rest. Landlords cannot refuse to return the deposit for:
General Wear and Tear
As mentioned previously, reasonable wear and tear isn’t a reason to withhold tenants’ money.
The definition of normal wear and tear is a difficult one, so it’s essential to consider the tenancy itself, such as the amount of tenants and the time of occupation.
For landlords, what is considered normal wear and tear can be a grey area. So, you’ll need to justify any deposit claims you make. Your property will have been lived in for a certain amount of time, so, while there are no rules for what is ‘reasonably acceptable’, you can’t expect it to be completely fresh at the end of the tenancy.
Redecorating the Property
You can’t charge outgoing tenants for the price of redecorating the property simply because you feel it needs a facelift.
If you’re only trying to give the place a freshen up in the hopes of charging higher rent, this must come out of your own pocket.
Preparation of the Dispute
If a deposit dispute has arisen, you can’t claim for the cost of any evidence gathered or legal paperwork drawn up.
Even if the dispute goes in the favour of the landlord, the tenant’s deposit doesn’t pay for it.
Cost of Re-Letting the Property
Costs involved with re-letting the property cannot be claimed for.
The end of an old tenancy and the start of a new one are completely separate!
Anything that Contradicts the Contract
If your property has failed to live up to the standards tenants expect and deserve, you can’t claim the cost of fixing this before the next tenancy.
For example, deposit deductions aren’t allowed for repairing appliances that have failed to work throughout the tenancy.
Just as the tenant has to keep to their contract, so do landlords!
Repair to the Structure of the Property
Structural damage, such as roof repairs, cannot be deducted from the deposit.
The tenant has a right to live in a structurally safe and well-built property, therefore any repairs are the responsibility of the landlord!
Claiming for More than the Deposit
You will have set the deposit amount at the start of the tenancy. At the end of this tenancy, it cannot be changed.
If you have grounds to ask for more money, you’ll need to go through the appropriate legal proceedings.
Giving Notice About a Tenancy Deposit Dispute
Feel you have grounds for a claim? You’ll need to provide notice of this.
So, when should a landlord return a deposit? A tenant cannot expect to receive their deposit back before the end of the tenancy. However, under normal circumstances, the landlord pays it back within 10 days.
When you need to make a claim, you must write to your tenant and explain why you’re not returning the full amount. Resolved deposit disputes don’t occur without your reasons in writing.
Previously, they’ll have needed evidence that you placed their deposit in a Tenancy Deposit Scheme within 30 days of the start of the tenancy. If you’ve failed to provide this, you may find it difficult to make a claim.
How to Make a Deposit Claim
If you’re making a claim, ensure you write to the tenant and explain exactly why. They’ll need to understand your reasons behind it. Tenancy disputes need to be clearly communicated between both parties.
If they agree with your reasoning, you won’t have to go through a dispute service. However, it’s likely that they’ll disagree.
A dispute service will be provided free of charge by the Tenancy Deposit Scheme you’ve used. It can often be difficult to find a dispute resolution, however, using a professional service ensures it will be fair.
Required Evidence for Deposit Claims
Feel you have the right to make a claim?
Evidence is key. Here’s a closer look at exactly what you’ll need:
Photographs
If you have evidence of any serious damage, ensure you have photographs to prove this.
Photos are also useful to back-up any points made in the inventory, showing the before and after state of the property and any particular items.
Inventory and Schedule of Condition
However, photographs aren’t the only piece of evidence you’ll need.
A detailed, comprehensive inventory will be invaluable when make a deposit claim against a tenant. Within this report should be photos, used to support the written details within.
Naturally, this will have needed to be compiled at the start of the tenancy. The more evidence, the better!
While many landlords choose to carry these out themselves, a professional inventory will provide more clarity than a DIY one. This is thanks to the independent, unbiased third party who compiles the report!
Tenancy Agreement
What was laid out in the tenancy agreement? How was it stated the property must be maintained?
One important landlord deposit rule to follow is to use the tenancy agreement as a piece of armour. It will protect you from any untrue claims made by the tenant, as they will have signed it.
Email Correspondence
Have you kept hold of any important emails between you and your tenant?
If you’ve visited the property during the tenancy and found it’s not being maintained as you’ve agreed, ensure you’ve followed this up in writing.
This will be valuable evidence when it comes to making your claim!
You’ll need to show you’ve communicated any issues you’ve had with your tenants, as this will prove whether or not they took action to fix them.
Original Invoices
Need to repair something, such as an appliance?
Ensure you’ve kept a receipt or invoice of its original cost, as you can use this when working out how much to deduct from the deposit.
Landlords withholding deposits isn’t a decision made lightly. But, if you feel you have grounds to make a claim, ensure you can support it with evidence.
How to Win a Dispute Between Landlord and Tenant
How can you ensure you’ll be granted your deposit deduction?
Don’t Be Unreasonable
A property will never be returned to you in a completely shiny and new condition. This needs to be allowed for.
It’s likely that, if you make an unreasonable claim, you’ll end up wasting the time and effort on the claim for no reward.
Don’t negate your claim by making unfair or ridiculous statements!
Keep Communication Open
Communication with your tenant is key.
When you inspect your rental property, keep an eye out for any damage and follow up with your tenant. This might be able to be fixed before the end of the tenancy.
However, if you do feel you need to make a claim, communication will be essential here also. Sitting down with your tenant and clearly explaining where the claim has come from will make it less likely that they’ll dispute it.
Here’s where your evidence will be vital. If you present all the facts in front of them, it will be difficult for them to dispute it.
Have a Detailed Inventory
When it comes to landlord disputes, a detailed inventory will be the most useful piece of evidence. Better still, it may even be able to prevent them completely!
Just as the tenancy protection scheme is in place to protect both parties, so are inventories. When landlords lose disputes, this often is down to a poorly put together, insufficient inventory.
The inventory should be used as comparative evidence, showing every detail of the condition of the property at the start of the tenancy. This is where detail will become so important, as it will provide clarity.
Claims from tenants such as ‘my landlord won’t return my deposit’ or accusations of unfair treatment will be stamped out with the help of an inventory.
Want to protect your investment? No Letting Go provide professionally compiled, unbiased inventories that will help to provide clarity throughout the tenancy. Interested in finding out how we can help you? Browse our full range of services here.