Landlord and Tenant Law in the UK |
Renting your property is an excellent way to
achieve extra income. The demand for rental
properties has increased dramatically in the
past few years. Increasing house prices and
interest rates has meant that renting a
property is more achievable and realistic to
people than attempting to purchase one.
However as a landlord you have certain
responsibilities and legal obligations and
if this is your first attempt at renting
your property the process may appear a
little daunting.
Therefore we have compiled this guide to
assist you and hopefully address some of
your questions and concerns.
Safety Regulations
The landlord is responsible for ensuring
that the following safety regulations are
met.
 Electrical
Appliances and Equipment
Regulations including the Electrical
Equipment (Safety) Regulations 1994 state
that in rented premises all plugs, sockets,
switches and electrical installations and
equipment must be safe. It is highly
recommended that a qualified electrician is
instructed to check all appliances although
no safety certificate is legally required.
You should leave instruction booklets for
all appliances and avoid placing second hand
appliances in the property. Tenants should
also be informed about any safety warnings.
It is also recommended that regular checks
are undertaken on appliances etc and keep a
record of such checks.
Gas
Appliances and Equipment
Under the Gas Safety (Installation and Use)
Regulations 1998, the landlord has a
responsibility to ensure that all gas
appliances, flues and pipework are
maintained to a safe condition at all times.
Only a CORGI registered gas engineer must
undertake these inspections which must be
conducted within 12 months of installation
and at least every 12 months thereafter.
You must keep a record of all checks
including the date of inspection, details of
any defects identified and details of any
remedial action taken. A copy of the latest
record or certificate must be given to a new
tenant prior to them moving in and to an
existing tenant within 28 days of the
inspection.
Again, you should leave instruction booklets
for all appliances and avoid placing second
hand appliances in the property.
Water
Supply and Plumbing
The landlord is responsible for the
maintenance of the water supply and waste
removal pipes. It is recommended that you
check that all pipes, boilers and taps are
working correctly prior to renting your
property and replace or repair any faulty
items.
Furniture
and Furnishings
The Furniture and Furnishings (Fire) (Safety)
Regulations 1988 (amended 1989, 1993 & 1996)
requires that specific items supplied in a
letting property must meet minimum fire
resistant standards:
Upholstered items must have fire resistant
filling material.
Upholstered articles must have past a match
resistance test or, for some items, be used
with a fire resistant inner lining.
Both the cover fabric and the filling
material must have passed a cigarette
resistance test.
The regulations apply to beds, headboards,
mattresses, sofa beds, futons and other
convertibles, garden furniture which is
suitable to use in a dwelling, nursery
furniture, pillows, scatter cushions, loose
and stretch covers for furniture and extra
or replacement furniture purchased for
rented accommodation.
The regulations do not apply to antique
furniture or furniture made before 1950,
loose covers for mattresses, bed clothes
including duvets, pillowcases, curtains,
carpets and sleeping bags.
Therefore dispose of any articles that do
not meet the above requirements. Ensure any
replacement furniture complies with these
regulations (they should have the necessary
labels) and keep all receipts.
General
Safety of the Property
The landlord has a duty of care to the
tenant and any product or appliance supplied
to a tenant by the landlord must be safe.
This also includes obvious dangers such as
uneven paving slabs, cracked windows etc.
The landlord should carry out any obvious
repairs before the tenant moves in and warn
the tenant about any high risk items, such
as hot surfaces. It is advisable to leave
instructions or manuals as to how to use all
appliances.
If you use a letting agency it is imperative
that the contract they use states that you
have conducted all the necessary safety
checks and complied with the necessary
regulations. If they are going to be looking
after your property on your behalf ensure
that it is clear from the start who is
responsible for arranging further
inspections or checks such as the 12 month
gas inspection.
The tenant should also be informed that they
have a responsibility to notify either
yourself or your letting agent, of any
problems associated with the above and they
should allow access to the property for any
problems to be rectified.
Payments relating to the Property
Mortgage
The landlord is still responsible for paying
the mortgage during the duration of the
rental. You must inform your mortgage
provider that you intend to rent your
property as you may be required to have
additional clauses in the tenancy agreement.
Leasehold
If you are a lease holder you must check the
terms of your lease prior to renting the
property and obtain written consent.
Sub-letting
To sub-let all or part of a property which
you are currently renting yourself, you must
obtain written consent from the landlord.
Utility
Bills
As a general rule tenants are responsible
for paying water rates, electric, gas and
telephone. These should be transferred into
the tenants name at the start of the tenancy.
You should also note all meter readings at
the start of the tenancy.
For any other bills such as maintenance
contracts or service charges, it is
recommended that you set up a standing order
or direct debit to ensure prompt payment.
Council
Tax
The occupier is responsible for the payment
of council tax. Therefore the person that is
residing in the property, i.e. the tenant,
is responsible for this cost. Students are
normally exempt from paying council tax and
single persons can receive a reduction.
If the property is empty for a period of
time and unfurnished you may be entitled to
claim an exemption for up to six months.
After six months has lapsed you will be
liable for 50% of the charge on that
property. If the property is furnished you
will be entitled to a 50% discount from the
date you or your tenant vacated until the
property is sold or becomes occupied again.
For further advice we recommend that you
contact your local council.
Insurance
You must inform your insurance company that
you intend to rent your property. Some
policies do not provide adequate cover for
renting a property therefore it is
imperative that you check your policy and if
necessary obtain additional cover. Failure
to inform your insurer could result in
future claims becoming invalid.
Tenants should be advised to take out their
own insurance to cover their own personal
belongings. Many insurers offer specialist
insurance products and if you use the
services of a letting agent they should be
able to recommend a company to you and your
tenant.
Using a letting agency
Many people choose to use the services of a
letting agency either because they do not
have the time to run a rental themselves or
they feel they do not have the expertise to
do so.
There are many letting agencies to choose
from and most offer a comprehensive service
meaning that they will take care of all
aspects of the rental and you just need to
enjoy the extra income you’ll be receiving.
When choosing a letting agency, do a bit of
research. Get recommendations from others
that may have used their services, ask for
references, find out exactly what service
they offer and the costs involved, what
tenant screening checks they undertake and
finally ask to see a copy of the contract
they will use for tenancy.
A good letting agency will be able to give
you a realistic estimate as to how much
income a month you should be able to expect
as well as give you advice on the laws and
rights of both landlords and tenants.
Costs involved
Before you rent out your property you should
calculate the costs involved to establish if
it will be beneficial and cost effective for
you to rent your property. Here are some of
the costs you should expect to pay.
Agency
costs
Agency fees vary from company to company.
Therefore it is a good idea to contact a few
in your area to establish what costs are
involved for the service they offer.
Most agencies will offer a property
management service, usually payable annually.
This fee normally covers advertising costs,
preparation of contracts, collection of rent
payments, transferral of utility bills into
the tenants’ name, inspecting the property
regularly and organising any repairs.
Agencies will normally also take a
commission each month from the rent payment,
such as 10%.
You may also be required to pay additional
charges such as preparation of the inventory
and renewal of the tenants’ contracts.
Income
Tax
If you are resident in the UK, it is your
responsibility to inform the Inland Revenue
of any rental income received and to pay any
tax on this income.
If you are resident outside the UK, the
tenant must deduct UK tax at the basic rate
of 22% from the rental income. If you use a
letting agency they will deduct this tax for
you from the net monthly rent, after they
have deducted any allowable expenses that
they may have paid.
If you rent out a room, and you are
occupying the property, you can earn up to
£4250 a year tax free.
If you provide meals, laundry, domestic help
etc for your tenants you may be able to
claim that you are running a self-employed
business. If so, you can deduct any expenses
against the income tax payable.
For full advice we recommend that you
contact your local Inland Revenue office.
Repairs
and Maintenance
The owner is responsible for maintaining the
property and carrying out any repairs. The
owner is not responsible for any costs
arising due to a tenant’s actions.
It is advisable to have funds readily
available so that should a problem occur you
can arrange for it to be remedied as soon as
possible.
The tenant must notify you (or your letting
agent) in writing of the problem and must
allow you reasonable time to solve the problem.
If the repairs are not carried out within a
reasonable time, and all rent and utilities
are paid up to date, then the tenant can
move out and receive a prorated refund and
any deposits they would normally receive or
the tenant could take the landlord to court
to try and force the landlord to make the
repairs.
Alternatively the tenant can arrange for
someone to carry out the repairs and deduct
the cost from the rent. However the tenant
must submit the estimate to the landlord and
the total cost of the repairs that may be
deducted from the rent cannot exceed the
amount of one month’s rent.
A tenant is not legally allowed to withhold
a rent payment until the repairs are carried
out.
The tenant should tend to normal day to day
minor repairs such as replacing light bulbs
or batteries, fixing loose handles and
checking smoke detectors. The tenant should
also keep the property warm and aired and
leave the property secure whenever they
leave.
Legal
costs
Unfortunately you may experience a bad
tenant. They may not pay the rent or cause
damage to your property. If the problem
cannot be resolved in an amicable manner you
may have to involve the services of a lawyer.
You cannot evict a tenant without a ‘court
order’ therefore you may have to pay legal
costs, which you could try to claim back
from the tenant.
Accessing your property during a tenancy
A landlord, or someone authorised to act on
their behalf, has a right to access the
property to assess the condition of the
property and/or to carry out any repairs or
maintenance.
By law, the tenant must be given at least 24
hours notice in writing of the landlords
intention to do this. The inspection should
be conducted at a reasonable time of the day.
The tenants must not unreasonably refuse the
landlord entry when 24 hours notice has been
provided.
The tenant must also not unreasonably refuse
entry for any repairs to be carried out. If
the tenant does this keep a record of all
correspondence sent to the tenant and
details of any phone calls made to the
tenant. You may require this evidence at a
later date.
In case of an emergency, such as fire or
flood, the landlord can access the property
without notice.
The above information and advice
is for guidance purposes only and
although believed to be accurate it is not a
substitute for personal, professional legal
advice and it cannot be a basis for any
claim against Tenant Check UK, a division of
Tenant Check Worldwide.
 Back to Tenant Check
UK
Or for more information relating to renting a
property in the UK please click on the
following links:
Tenancy Agreements
Landlord
Responsibilities
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