LANDLORD GUIDE & FAQ
LANDLORD CHECKLIST - WHAT YOU NEED TO RENT A PROPERTY
Before letting your property you need to ensure your mortgage provider is aware of your intention to let and you have either a Buy To Let mortgage or Consent to Let agreement with your lender.
Buy to Let is a mortgage agreement where your lender gives you permission to let out the property. The difference is that fees and interest rates tend to be higher and the minimum deposit if often around £25,000. What you are able to borrow will depend on your expected rental income and typically lenders would rental income to be 25% more than your mortgage payment. When buying Buy to Let its a good idea to talk to a broker who can help you get the best deal. HMO letting offers huge rental potential offers sometimes three times the rental yield than you would receive with a single tenant.
Consent to Let is an agreement with your mortgage provider for permission to rent out your home. Usually for a period of 6-12 months. If you do choose to let your property without consent you may face penalties for being in breach of your mortgage contract. Some banks may insist you change to a Buy to Let mortgage which may be more costly.
Insuring is a must must when letting out your property. Sherratt Lettings offers a bespoke range of insurance services tailored specifically for Landlords via Let Alliance.
Buildings and Contents comprehensive policy benefits:
- Up to £2million sum insured available
- Accidental Damage included as standard for buildings – no additional charge!
- Up to 90 days un-occupancy
- Legal Liability Cover up to £5million
- Up to 20% Loss of Rent
- Trace and Access up to £5,000
- Malicious Damage by Tenant extension available
- Comprehensive contents cover up to £50,000 sum insured
- Replacement locks
- Variable excess discounts available
- Pay monthly policies
- Underwritten by AGEAS (formerly Fortis)
Let Alliance also provide a ‘Buildings Only’ cover option as well as Emergency Assistance (also with NIL EXCESS).
The Let Alliance policy comes with some fantastic cover benefits & options, including NIL EXCESS and Malicious Damage cover and as well as 90 days un-occupancy cover.
You can receive a quote from the Let Alliance website and apply within minutes. There are no paper application forms and you will receive confirmation directly from Let Alliance of your new policy.
Landlords have needed an EPC to rent since 1st October 2008 and since 2018 all rented property needs to have an EPC of at least E.
EPCs are used to estimate the energy use and energy cost of the property of once complete is valid for 10 years.
It is the responsibility of the landlord to organise an EPC and you can be fined if it is not done.
Sherratt lettings can organise this service for you just get in touch.
A landlord gas safety certificate or CP12 is a certificate that proves proof that all gas appliances have been checked by a qualified gas engineer in the last 12 months.
It is a legal requirement and ensure the property being let out is safe for their tenants.
Sherratt lettings can organise this for you for a fee of £70.
Landlords of residential accommodation have responsibilities for combating Legionnaires’ Disease. Health and safety legislation require that landlords carry out risk assessments for the Legionella bacteria which cause Legionnaires’ Disease and thereafter maintain control measures to minimise the risk. Most rented premises will be low risk, but it is important that risk assessments are carried out and control measures introduced.
From 1 October 2015, regulations require landlords, to have:
At least one smoke alarm on every floor of the rental property which is used as living accommodation.
Carbon monoxide alarms must be fitted in any room that uses solid fuel.
It is the responsibility of the landlord to ensure the alarms are in working at the start of each new tenancy.
After the initial landlord’s test on the first day of the tenancy, tenants should then take responsibility for their own safety and test all alarms regularly to make sure they are in working order.
Monthly testing is generally advised.
Heat detectors are not a replacement for smoke alarms.
YOU MAY ALSO NEED;
PAT or Portable Appliance Testing is compulsory in HMO rented properties for all electrical appliances.
PAT testing is not a legal requirement for non HMO rented properties.
HMO Landlords are required to have an electrical installation condition report performed every 5 years.
Any tenancies signed on or after July 1st 2020 will require an EICR performed by a qualified person.
We carry out regular property inspections.
The HMO license regulations vary depending on your local authority. We have an expert advisor on this subject and can offer free advice on mandatory, additional, or selective HMO licenses.
Rent is paid on the same date each month, via bank transfer. A full statement is also sent explaining all income and expenditure.
We usually take care of the deposit lodgement with the Deposit Protection Scheme. However, landlords do have the option to do this themselves.
It is the contract that you sign between you and the landlord which outlines the terms and conditions of your tenancy. It is a legally binding document that describes the landlords and tenants obligations in full.
HMOs are usually fully furnished by the landlord, the cost of which can be incorporated in to the rent and is tax deductible.
Yes! It is the landlord’s obligation to fix most repairs.
Sherratt Properties provide all associated services including inventory and health and safety checks.