Property Checks for Landlords

When you make a property investment for a buy-to-let or HMO property, you become a landlord and need to be aware that there are many different legal checks that a letting agent must carry out on behalf of the landlord. This month for example it was announced by the Government that landlords will be required by law to make sure that inspectors they hire to carry out electrical safety inspections have the necessary competence and qualifications to do so.

The Government also said that it will press ahead with plans first announced last year to introduce regulations requiring landlords to undertake five yearly safety checks of electrical installations in their properties. The new law doesn’t have a date set yet for introduction and will be phased in when it does begin, but good practice would be to start these checks now so there is no issue in the future.

When you hire a letting agent to look after your investment portfolio you need to ensure that they are covering these legally required checks for you as you will also be held responsible if something goes wrong. Here are some other key safety regulations you need to be aware of:

Gas Safety Checks

An annual gas safety check must be performed by a Gas Safe Registered engineer at no longer than 12 months intervals and copies of the certificate given to the tenant.

Fire Safety Order

There must be a risk assessment in place to comply with the Fire Safety Order. It should be in writing.#

Electrical Appliances

If your property is furnished with electrical appliances it is the landlords responsibility to ensure that they are safe when you start a new let. It is also advisable to perform regular tests of any portable appliances to ensure they are safe.

Fire alarms and fire safety

The landlord is responsible for ensuring any fire alarm systems are checked regularly. It also a requirement that you make sure that the means of escape from the property ,such as the hallways ,stairs and landings, are unobstructed.

Carbon Monoxide and Smoke Alarms

Landlords (in England) are required to provide smoke alarms on every floor of their property and a carbon monoxide alarm in every room which has a solid fuel source.

This is not a full list of all of your paperwork and certification requirements but an illustration of the considerable amount of work needed to keep yourself compliant.

Mistoria Group celebrates 1o years this year of working on behalf of investors who become landlords through their HMO investment portfolio and during this time has built up an expert team at Mistoria Estate agents who have many hundreds of properties under management.

If you are thinking of making an HMO investment you also need to consider who will be your agent once you have purchased the property. We would love to talk to you about our services. Please give us a call on 0800 500 3015 or email info@mistoria.co.uk to drop us a line.

Security was recently revealed as one of tenants’ top three concerns, so it’s worth spending some time and a little money on ensuing they feel safe in your property. Many landlords don’t realise they have a level of responsibility to make sure a property offers security for tenants.

Locks

It is a legal requirement for a landlord to provide a secure lock to external entrances. For wooden front doors should be made of solid timber and fitted with a five-lever mortice deadlock that can be locked on either side. External uPVC doors should have a three-point multi-locking system.

Patio doors are a target for intruders so they too should have solid locks and be fitted with double-glazed casement windows.

All windows on the property should have lockable handles.

Other ways to make your property safer include fitting window locks to non-escape windows and installing door chains.

Lights

Motion-activated external security lights will help tenants feel safer when leaving or entering a property during hours of darkness, whilst also deterring would-be burglars.

Another good deterrent are timer switches inside the property, which can be used by tenants to set lights to come on even when they’re not home.

The garden

If your property has a garden, ensuring your tenants keep the bushes and hedges trimmed will mean one less place for burglars to hide, a clearer escape route in the event of a fire and less potential for a trip or fall due to overgrown shrubbery.

A clause about simple garden maintenance in your tenancy agreement should suffice.

Fire hazards

Landlords are required, by law, to install working smoke alarms in all rental property.

Any electrical appliances you provide; fridges, washing machines, ovens, microwaves, vacuum cleaners, etc, must undergo annual electrical safety testing by a qualified electrician and a certificate of proof provided to the tenant.

Gas safety checks must also be carried out every year, again by a registered gas safety engineer and a certificate issued. This includes your boiler and cooker or hob if they are run by gas.

You might consider asking tenants to carry out weekly or monthly checks of the smoke alarms in the property by including this in their tenancy agreement. Similarly, a ban on smoking and the use of candles in the property will also reduce the risk of fire.

Intruder alarm

An intruder alarm can help keep your property and your tenant safe. Devices that emit sound and light when motion is detected, as well as when a connection is lost, say on a door or window, are most effective.

Insurance cover

Landlord insurance is vital, and you must make sure you have valid cover in place before you rent out your property. Tailored landlord cover may include loss of rent, property owners’ liability, alternative accommodation and landlord home emergency cover.

For tenants, we strongly recommend they have appropriate contents insurance to cover their own belongings as well as accidental damage they may cause to their rental property, furniture or fixtures or fittings.

Tenant security packs

Tenant packs are a great way of providing your tenants with all the necessary information they need about the property. Include codes for alarms and emergency contact numbers. Instructions on where everything is kept and how to keep the property safe.

At Mistoria Estate Agents we issue all tenants with a Welcome Pack detailing everything from security measures to deposits, dos and don’t to inventories and inspections.

If you’re a landlord with Mistoria Estate Agents we can offer you a variety of highly professional and tailored property management solutions, including full property servicing and management, and tenant finding services. If you choose, we can ensure all aspects of home security are taken care of as part of our landlord management service. This means peace of mind for you that your property and your tenants are well looked after, and that you are compliant with all legal aspects of landlord safety responsibilities.

For more information on how Mistoria Estate Agents can help manage your investment property please call the team on 0800 500 3015 or email info@mistoria.co.uk.

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It’s very important to carryout periodic inspections throughout each tenancy to ensure your property is in a reasonable state and your tenants are complying with the tenancy agreement.

You should evaluate the overall condition of the property, including both the interior and exterior.

Periodic inspections are typically conducted on a quarterly basis, but can be reduced to bi-yearly after frequent, positive inspections to the same tenants.

At Mistoria Estate Agents, we conduct these regular inspections on your behalf as part of our standard landlord service. We supply all our landlords with a report afterwards detailing the condition of the property and any problems uncovered.

To ensure piece of mind that your property is being taken care of, here are some of the things we check for:

Repairs and maintenance issues
The primary objective of a periodic inspection is to spot any obvious maintenance issues. However, it is the perfect opportunity to uncover and repair any minor problems, before they spiral out of control and become major issues. Remember that it’s always easier and cheaper to repair problems at their early stages. Something simple, such as a small leak, can transform into a terrible disaster if it’s neglected for too long. Relying on tenants to report issues isn’t enough to ensure that everything is in working order. While most tenants will report serious issues, many won’t report the small ones until it’s too late. Moreover, some tenants – through no fault of their own – will be completely unaware of potential problems. For example, they may have become accustomed to the smell of damp, but you will notice it as soon as you walk through the door. It is always wise to have a fresh pair of eyes (and a nose) to look over the property.

Tenants’ living conditions
While the property may be in a generally good condition, this doesn’t necessarily mean that your tenants are looking after your investment. Although you may not be able to evict them based on their living conditions, you may decide that you do not wish to renew the contract at the end of the tenancy agreement. As a landlord, you cannot tell your tenant how to live if they are untidy, but if we find that they are unclean, we can inform them that this will resort in damage to the property. For instance, if they leave clothes hanging around, that is their lifestyle choice, but if they do not clean the bathrooms, this could result in staining of the fixtures and fittings.

Some more specific areas of inspection will include:

Damp and mould
Damp and mould are some of the most important issues to look out for, as the tenant often overlooks them. Many tenants simply don’t realise how dangerous and serious mould infestations can be, but you must be aware of them. We will look around windows and sinks, and pay special attention to rooms prone to moisture, such as the bathroom and kitchen, as well as pipework hidden away in kitchen units, and ensure that all extractor fans work – this will help to prevent mould infestations in the future.

Leaks
We run all of the taps in your property to check for any leaks. Leaks can be one of the main causes of mould and rot, which can have devastating effects on the health of your tenants and condition of the property. We will also check the drains outside for blockages to ensure that water is not overflowing, as this can lead to much bigger problems.

Fixtures and fittings
We give all of the fixtures and fittings – and any other items you have provided – within the property a once over to check that they are in a good condition and suitable working order.

The garden
If a clause in your tenancy agreement specifies that the tenant must maintain the garden(s), we will check that it is neat and not overgrown. We will make sure also there are no piles of rubbish in the outside areas, as these can attract pests and other unwanted wildlife.

The loft
It is very unlikely that your tenants will pay attention to the loft, so we will have a quick look around with a torch to check for any leaks, holes or rodents.

Fair wear and tear
A common dilemma with periodic inspections is that there is often a fine line between fair wear and tear and actual damage. You must remember that you can only make your tenants liable for damage, not fair wear and tear. As we look around the property, we will consider which issues were caused by reasonable use of the property on a daily basis (such as scuff marks on the walls).

We understand your property is your investment. As such, part of our service to you as valued landlord, is to ensure your property is fit for purpose, in good working order and is being looked after by your tenants. If you are a landlord and would like to discuss in more detail the service Mistoria Estate Agents can offer you, please contact us on 0800 500 3015.

Some parts of this article were taken from an article first published by Just Landlords in November 2016.

Being a landlord in 2018 isn’t the same as it was ten years ago, or even two years ago! With ever- changing buy-to-let legislation, whether you are an existing or first-time landlord, there are many recent changes that you need to be aware of.

2016 – Stamp Duty Land Tax (SDLT)

The raise in stamp duty implemented in April 2016 on buy-to-let properties and second homes is by far the biggest change to landlord regulation in recent years, and one you are no doubt already aware of. The rules on this are straightforward; if you are already a property owner (i.e. are currently paying or have finished paying a mortgage of a residential property in the UK), and you purchase an additional property, whether it be a second home or a buy-to-let investment, you are subject to a higher rate of stamp duty.

Property Value	Property Value Standard rate SDLT	New additional property rate SDLT
£0* – £125k	0%	3%
£125k – £250k	2%	5%
£250k – £925k	5%	8%
£925k – £1.5m	10%	13%
£1.5m+	12%	15%

2017 – Tax changes

In addition to higher stamp duty, landlords should also be aware of changes to tax relief. The change only affects those paying a higher rate of tax, who will see a substantial drop in income from their investment property.

Previously, interest on your mortgage and other costs associated with buy-to-let property have been deducted from rental income before any tax is due. However, effective April 2017, landlords are only able to claim tax relief at the basic tax rate of 20%, meaning basic rate tax payers will be unaffected.

This is the one to look out for as the impact won’t be felt until you receive your 2019 tax bill, however it’s vital you evaluate your portfolio now to ensure your investment(s) remains profitable.

It’s also worth noting that this a reduction in tax liability as opposed to a reduction to taxable income. The new rates will be introduced gradually at 25% per year from April 2017, meaning it will be the 2020/21 tax year before they come into full effect.

Tax Year	Percentage of finance costs deductible from rental income	Percentage of basic rate tax reduction
2017/18	75%	25%
2018/19	50%	50%
2019/20	25%	75%
2020/21	0%	100%

2018 – Minimum Energy Efficiency Standards (MEES)

As of 1st April 2018 the MEES makes it unlawful to let out a property in the private rented sector with an Energy Performance Certificate (EPC) rating of F or G (unless exemptions apply). From this date landlords cannot renew or grant new tenancies on a residential property if it does not meet the MEES regulations.

Beyond April 2020, the continued private rental of all buildings failing to meet the minimum standard will be outlawed entirely.

Local councils will have the power to enforce compliance of the MEES, with penalties of up to £5,000, so it’s important landlords carry out the necessary remedial and maintenance work on their buy-to-let properties now to avoid prosecution.

For clarity, this information should be treated as a guide, and is in no way financial or legal advice. Should you require financial or tax assistance in relation to your buy-to-let property or position as a landlord, please speak to our partner company MMC Accountants Ltd.