This guide is intended to provide a general overview of the legal rights and responsibilities of both landlords and tenants, together with an outline of the legislation currently affecting the private rented sector following the introduction of the Renters’ Rights Act.
The legislation surrounding residential lettings continues to evolve and this guide should not be treated as a complete statement of the law. If you require advice on any aspect of letting your property, our team will be happy to assist.
By granting a tenancy you are entering into legal responsibilities towards your tenant, who has the right to quiet enjoyment of the property. This means access to the property should only take place with the tenant's permission and appropriate notice, except in genuine emergencies.
As a landlord you remain responsible for maintaining the structure and exterior of the property, together with heating, hot water, sanitation and any appliances or items supplied as part of the tenancy. You are also responsible for ensuring the property complies with all current safety legislation and minimum housing standards.
Buildings insurance, service charges and ground rent remain the landlord's responsibility where applicable.
Tenants are legally responsible for paying the rent in full and on time, keeping the property in a clean and tenant like manner and reporting maintenance issues promptly.
Tenants must not cause damage beyond fair wear and tear or make alterations to the property without permission.
The most common type of residential tenancy agreement is now an Assured Periodic Tenancy (APT).
Under the Renters' Rights Act, fixed term assured shorthold tenancies have largely been replaced by periodic tenancies which continue on a rolling basis from the outset of the tenancy. The tenancy will continue until ended either by the tenant or through the appropriate legal grounds available to a landlord under current legislation.
Tenants are able to end the tenancy by providing the required notice in line with the tenancy agreement and statutory requirements.
Landlords are no longer able to regain possession using a Section 21 "no fault" notice. Possession can only be sought where a valid statutory ground applies under Section 8 of the Housing Act, as amended by the Renters' Rights Act.
Where possession is required, the correct notice and legal process must be followed and we are able to guide landlords through this process where necessary.
Company lets continue to operate under separate contractual arrangements and are not generally governed by the same rules as Assured Periodic Tenancies.
If your property is subject to a mortgage you must obtain consent from your lender before letting.
Leasehold properties may also require consent from the Freeholder or Management Company and landlords should ensure the terms of the lease permit subletting.
You must notify your insurers that the property is being rented, as standard owner occupier policies may not provide suitable cover.
All rental properties must have a valid Energy Performance Certificate with a minimum rating compliant with current legislation unless exempt.
An EPC must be available to prospective tenants before marketing begins.
A detailed inventory and schedule of condition is an essential part of the tenancy process and provides important evidence should any dispute arise at the end of the tenancy.
We strongly recommend a professional inventory together with regular periodic inspections throughout the tenancy.
Where a deposit is taken it will usually be capped in line with current legislation.
Deposits may be used to cover damage, cleaning, unpaid rent or breaches of the tenancy agreement, subject to fair wear and tear.
Under current legislation landlords are no longer permitted to charge additional pet deposits, although pet insurance or pet related rent adjustments may be considered where appropriate and legally permitted.
Any tenancy deposit taken for an Assured Tenancy must be protected within a Government approved tenancy deposit scheme within the required legal timeframe.
Prescribed information must also be served correctly on the tenant.
Failure to comply with deposit protection legislation can result in financial penalties and restrictions on possession proceedings.
Rent is normally paid monthly in advance by standing order unless otherwise agreed.
Tenants are generally responsible for council tax and utility charges during their occupation unless otherwise agreed. We notify the relevant utility providers and local authority when tenants move in and out where we manage the property.
Tenancies can only be ended in accordance with the Renters' Rights Act and the relevant statutory procedures. If possession is required, landlords must rely on an appropriate legal ground and follow the correct notice and court process where necessary.
Should court proceedings become necessary, associated legal costs remain the landlord's responsibility unless recoverable by the Court.
Compliance with safety legislation is a fundamental landlord responsibility and failure to comply can result in substantial penalties or criminal prosecution.
Where gas appliances are present, landlords must obtain an annual Gas Safety Certificate from a Gas Safe registered engineer and provide copies to tenants as required.
All rented properties must comply with current electrical safety regulations, including obtaining an Electrical Installation Condition Report (EICR) at the required intervals.
Any upholstered furniture supplied must comply with current fire safety regulations.
Smoke alarms must be installed on every storey used as living accommodation and carbon monoxide alarms fitted where legally required. Alarms must be tested and operational at the start of each tenancy.
Landlords are expected to respond to maintenance issues within a reasonable timeframe and keep the property in good repair throughout the tenancy.
Proactive maintenance helps protect both the property and the tenant relationship.
Landlords and agents must comply with the Equality Act 2010 and must not unlawfully discriminate against applicants or tenants based on protected characteristics.
The Renters' Rights Act also introduces additional protections for tenants, including strengthened rights relating to pets and challenges to blanket bans.
Rental income is taxable and landlords are responsible for declaring income and expenses to HMRC.
We recommend seeking advice from a qualified accountant regarding allowable expenses and tax obligations.