A guide for landlords

A Guide for Landlords


Find a Tenant

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One of the most important parts of being a landlord is finding the right tenants.

When you have a reliable, trustworthy tenant who you have a good relationship

with, being a landlord should be free from hassles and headaches. You also will

avoid the cost of having to find a new tenant or loss of rental income inbetween.

In this guide you will find valuable tips for choosing the right tenant as well as

information that will help you to be a good landlord. It contains practical advice for

finding the right tenant and maintaining a positive relationship with them.


Make a Good

First Impression

When your tenant first sees your property, they will

make a judgement based on their first impression.

This is why it is important to make sure that your

property is clean, welcoming and appealing.

Before your tenants see your property, you should

take the time to make sure that everything looks as

good as it possibly can. If your property looks untidy,

you could have trouble renting it out and it could be

unoccupied for a very long period of time while you

lose out on rental income.

It might seem like obvious advice, but you would be

surprised how many landlords fail to hoover, tidy and

clear out the property before showing it to prospective

tenants. Make sure that you also maintain the

surroundings of the property, such as your garages,

sheds and guttering. Mow the lawn and make sure

that your trees, shrubs and bushes are always neatly

landscaped.


Know Your Rights

When you become a landlord, it is your responsibility to learn about the rights

applicable to yourself and the tenants renting your property. You will need to know

how things work when it comes to eviction and the responsibilities involved in

keeping the property in good shape. It is important to let your tenants know the

rules when they move in, because they can’t follow them if they don’t know them.

Before renting out your property, you need to decide what your target

market/audience is. Are you renting out an entire property or just a room with

shared facilities within your home? Will you rent to couples or students? You will

be subject to different insurance needs and laws depending on the type of tenants

you are renting to.

For example, in a situation where you are letting out one room in your home rather

than a whole property, you will not need to give as much notice when ending the

tenancy.


What is a Resident

Landlord?

If you live with your tenant in the same building, you are a “resident landlord”.

This term also applies when you live in a flat within a house that has been turned

into flats. Unless it is a purpose built block of flats, the arrangement will not be

classified as an assured shorthold or assured tenancy. You don’t have to share

accommodation with your tenant for this term to apply; you only need to live in

the same building as your tenant.

This is important in the eyes of the law because your rental property is also your

primary home. If you are a resident landlord you will fit into one of two categories:

Excluded Occupier – You share facilities with your tenant.

Occupier with basic protection – You don’t share facilities with your

tenant but you live in the same building.

If you are not sure which of these categories you fit into, seek advice before you

decide to enter into a rental agreement.


Sharing Your Home with

a Tenant

If you rent out part of your home and share it with a tenant, it is important to choose your

tenant carefully to ensure that you trust them and get along with them. Make sure that you

outline the house rules clearly so that everyone is on the same page.

You want to choose someone that you will get along with because you will have to interact

with this person a lot. If you don’t find yourself clicking with them at the start, this might be a

bad sign later on. If you lay down the rules and your tenant seems to not understand or to

not agree with any of them this is a red flag that should not be ignored. Be sure to address

all issues right away to ensure everyone knows where they stand.

If you have to sell the property or you need your tenants to leave, it is fair to give them as

much possible advance warning as you can so that they have time to find alternative

accommodation. Try to give at least four weeks’ notice.

Your tenant will have greater protection under the law if they occupy a part of the property

that you live in but don’t share any facilities (such as kitchen or bathroom) with you.

Make sure that both you and your tenant understand your responsibilities and rights, so that

there is no confusion over bills for amenities and services.


What are Your Rights

as a Landlord?

As a landlord, what rights do you have? You should know what to expect from

your tenants.

Charge a rent according to market value.

Ask for a damage deposit, which can offset repair costs if the tenant

leaves the property in bad shape.

Before the tenancy begins, fix the agreement terms.

Be paid rent when it is due.

Be notified when the property needs repairing.

Be given notice from a tenant if they will be leaving.

Have access to inspect the property by making an appointment in

advance with reasonable notice.

Ask for the rent to be paid in advance.

Choose who they let out their property too. (Unless discriminating in

regards to sex, race or religion. Such discrimination is prohibited by

legislation.)

A Court Order if the tenant refuses to leave during the notice period

(applicable when the tenant does not share facilities in the case of a

resident landlord)


What are the

Rights of a Tenant?

Any tenant who stays in your property has the following rights:

Be fully aware of the terms of the agreed upon tenancy.

Know their landlords address and full name.

The property must be safe and at a decent level of repair.

Have an atmosphere of “Quiet Enjoyment” during their stay at the

property.

Be given notice when the landlord would like to inspect the rental

property.

Be given notice when the landlord would like the tenant to move out.


How to Choose the Right

Tenant Demand for rental properties fluctuates, but if you present your property correctly and follow tips

in this guide you are more likely to have many different tenants to choose from. Take your time

and meet with each tenant in person before selecting, as it is important to find the right one.

Don’t ignore your gut instinct, it is important to get a good and trustworthy feeling from your

tenant.

Ask your potential tenants to provide references from previous landlords and follow these up.

Also, run a full credit check so that you can assess whether they have been able to manage their

money and keep up with rent in the past.

We offer a full range of tenant referencing services at affordable rates, so that you can get a

glimpse into the history of your prospective tenant. There are many different background checks

that landlords can make before choosing a tenant, such as checking the tenant’s existence on

the electoral roll and their existing credit agreements. You can also search for any bankruptcy,

IVA data and CCJs. With a full profile you will be able to make an educated decision on any

potential tenant.

Remember, you cannot discriminate on tenants based on factors such as religion or race, as

this is outlawed by the Equality Act of 2010. This act covers 9 protected characteristics, which

are: sexual orientation, sex, religion, race, pregnancy or maternity, marriage or civil partnership,

gender reassignment, disability and age.

If you refuse to rent out your property to a person because they are disabled, you will be violating

the Disability Discrimination Act of 1995. You also cannot charge higher rent based on a

disability. While you are not legally obliged to renovate your property in order to accommodate

someone with a disability, you must not stop them or prevent them from making reasonable

changes or alterations to the property with the intention of improving access.


What is a Tenancy

Agreement?

It is important to have a tenancy agreement that is legally binding and was

created and officially signed by both yourself and the tenant – even if they are a

family member or friend. This contract will protect both of your rights and ensure

that there is no confusion or disagreement later on, so be extra careful when

writing it.

This agreement should include all of the details of what the tenant is allowed to

do, such as whether they can have pets and so on. It should also state when the

rent is due and outline who holds responsibility for the maintenance and on-going

upkeep of the property. There are templates available online you can follow.

It is important to make sure that your tenant signs and dates each page of the

tenancy agreement, that way both parties know everything has been understood

and read. A copy of the agreement should be kept by both parties in a safe place.


All About Deposits

Always take a damage deposit. It is standard practice for a landlord to

take an advance damage deposit, so that they have protection in case

the tenant breaks the agreement. The landlord can then keep the deposit

if the tenant fails to pay rent or causes damage to the property and

furniture.

As of April 2007, all deposits taken by landlords in England and Wales on

an “Assured Shorthold Tenancy” must be protected in a government

deposit scheme. This must be done within 30 days of the tenant giving

the deposit.

If there are multiple tenants living within the same property let the group

of people elect one person among themselves to put their name on the

deposit protection, rather than choosing someone yourself. This will

demonstrate that you have a certain level of respect and trust for them.

It is also a good idea to secure a guarantor for your tenants, this will help

to protect you especially if they are unemployed, not starting work yet or

are students. The guarantor should be background checked as well and

they will be responsible for providing rent if the tenant cannot. You could

even have the guarantor become a joint tenant on the rental agreement,

until the main tenant has the ability to pay the rent on their own.


Create an Inventory It is a good idea to create an inventory of all items on the premises before you let out

your property. This includes all items in outside areas, gardens, sheds and garages

as well as household items including kitchen supplies and furniture. When you make

a full (and honest) inventory of these items and their condition, you will have proof if

there are any disputes later on.

You should also take photographs of the inside and outside of the property right before

your tenants move into the property. These photographs can be date time stamped

so that they offer further proof.


Choose the Right

Insurance Cover

As the landlord, you are responsible for insuring the rental property so make

sure that you get the right landlord insurance appropriate to your situation.

For example, you will need different cover if you are renting to students (or

taking DSS payments) compared to renting to professional singles or

couples. Don’t forget to consider Legal Expenses or Rent Guarantee cover

as well.

For example, a student let with more than five students and more than three

floors is described as an HMO and will have its own insurance requirements.

This will cost you more money to insure and will require you obtain a special

license.

Also, you can advise your tenants to purchase contents insurance. They may

not know about it and they will appreciate your guidance.

For more information and FAQs on Landlord Insurance –

http://www.discountlandlord.co.uk/landlord-insurance-faq.html

http://www.discountlandlord.co.uk/landlord-insurance-faq.html


Tips for Dealing with

Tenants Keeping a good relationship with your tenants requires you to be professional, considerate and

courteous, so make sure that you uphold your side of the tenancy agreement. If your agreement

says that you will replace broken appliances and furniture when the damage is not the fault of

the tenant, you should do so quickly and ensure the replacement is of the same quality.

Also, if the property starts to reveal that it is deteriorating due to age and damage (such as

exhibiting mould, cracks or crumbling brickwork) it is your responsibility to fix these issues. If your

property is in a state of disrepair for the long time, your tenants will move on and you will have to

find new ones, which will be difficult due to the damaged state of the property. Also, this

unrepaired damage will affect the resale value of the property.

About a month after your tenants move in, check with them to see if they have any concerns.

Checking in can also give you a chance to correct any bad habits before they form permanently.

Always deal with any reported repairs and concerns swiftly, which will prevent your tenants from

becoming resentful of you, as well as saving you money in the long term. You should also always

give your tenants at least a 24 hour notice prior to visiting their property, unless it is an

emergency. Even though you own the property, you cannot let yourself into their living space

unannounced.

When you treat your tenants with respect, they will have a positive experience renting from you

and they will be likely to extend their contract at the end of the agreement lease.


Upkeep of the

Property

It is the responsibility of your tenants to keep the property clean and to carry out

a basic level of maintenance. This means they will need to change the light

bulbs and the batteries on the smoke alarm. If your agreement specifies no-

smoking, they should not be smoking in the property.

You are the one who is responsible for most types of home maintenance and

repairs, but you will be able to claim money back for the damage that is caused

by your tenants. It is not rare for renters to cause damage to a property, whether

accidently or on purpose. You can’t charge your tenant for natural “wear and

tear” which applies to carpets and furnishings, but you can charge them for

other serious damage that will cost you money to repair this can also be taken

out of the deposit.

Your tenants must also adhere to the terms of the agreement when it comes to

owning pets such as cats and dogs. If any damage is caused because of this,

you can deduct the cost from the damage deposit. You must be able to prove

that the damage was caused during the time when the property was lived in by

your tenants, which is why taking photographs before they move in is a good

idea. It is also important to have written proof of the repair quotes, in case the

tenant disputes the figure.


Be Careful When

Increasing Your Rent Sometimes landlords will let their greed take over and they will increase their rent

unscrupulously. However, this should only be done when rising costs or inflation

makes it necessary.

When you are setting your rent you can base it on the options available in the local

area and the quality and location of your property that way you can find a good

balance. Be careful not to make your rent too low or too high, compared to other

properties on the market.


Dealing with Tenant

Disputes If your tenant has damaged the property to a point where it is beyond

reasonable ‘wear and tear’ and they are refusing to pay for the repairs, you

have the right to evict them. You can retain the damage deposit that they have

paid in order to pay for the expenses of the repair.

You could also use the legal method to insist that the tenant deal with and fix

the damage themselves, but this can result in expensive legal costs. There are

eviction services out there that can help you with the process.

In your original tenancy agreement, you should have outlined a length of notice

that you will give to your tenants when it is time for them to move out of the

property. After this amount of time, you have the right to make an application to

the court for a possession order. If the tenant still doesn’t comply after this, you

will then be able to get a county court to serve an eviction warrant and the

bailiffs will be sent in.

Unfortunately, over the last year a total of 59% of landlords in the UK have had

tenants who did not pay their rent. Make sure that you have an emergency fund

so that you can continue to make your mortgage payments in the event that this

occurs. It is also a good idea to invest in Rent Guarantee and Legal Expenses

insurance. This is a service that will provide you with coverage for any missed

rent payments up to £2,500 per month. It can also help with the legal expenses

caused by tenant disputes.


Dealing with

Evictions

If you are in a situation when you require the eviction of your tenant, it is

important to understand what your rights are. No one wants the situation of

a messy eviction, which is why you should set up a guarantor who can pay

the rent when your tenant is unable to. If you can set up a positive,

trustworthy, professional and honest relationship with the tenant when you

start, you will be able to avoid a possible eviction in the future.

If your tenants refuse to leave your property even after the agreed upon

time, you have the right to send in a notice of intention to inform them that

you will seek court possession.

However, if the tenants still refuse to leave even after the court order, you

will be able to seek help from the courts. Bailiffs will be sent to evict the

tenants for you. Again, be sure to warn your tenants of what you intend to

do in advance.

If you are renting out a room in your property, you only need to give your

tenant notice equal to the length of the time period for which they pay their

rent. For example, if your tenant pays rent by the week, you only need to

give them one week’s notice. If they do not leave after one week, you have

the right to have the locks changed on the door to the room.

Of course, every situation is different so always check the particular laws

and verify your rights before you proceed.


Safety Tips

Make sure that you have the appropriate safety features at your property such as fire

blankets, smoke alarms, fire extinguishers and a known escape route. This will be

very important in the event of an emergency and will protect not only your tenants but

also the property itself.

It is important also to keep the property well maintained, as the safety of your tenants

depends on it. Make sure that you have a budget set out for these kinds of issues.

The safety of the property is your responsibility as a landlord.


Fire Safety

All of the furniture needs to meet the criteria from the Fire Safety Furniture and Furnishings

Regulations of 1988. This means that any upholstered items need to be made with fire resistant

filling and be able to pass a test proving their resistance to matches and cigarettes. Most of

these household items will have a code on them to prove that they have already been tested

for fire safety. Be cautious with items purchased before the year 1988, as they might need to

be removed and replaced with newer and safer items.

This applies to any sofas, beds, nursery furniture, pillows and chairs but not to antique furniture

that was made before the year 1950. It also does not apply to carpets, duvets or curtains.

Gas Safety

As a landlord, it is your responsibility to check that your gas boiler has been serviced at least

once per year. You must keep a record of the gas safety checks and the condition of the

equipment.

It is also your legal responsibility to provide your tenant with a copy of your official annual gas

safety certificate. This service is performed by a Gas Safe contractor, according to the Gas

Safety Regulations of 1998.

Electrical Safety

It is important to ensure that your smoke alarms are well fitted and are in full working order. If

your wiring was installed more than 15 years ago, it should be inspected carefully. You should

call upon a professional electrician who has been approved by Part “P” of the Competent

Person Scheme. The law that regards electrical safety when it concerns landlords is the Smoke

Detectors Act of 1991 and the 1994 Electrical Equipment Safety Regulations. It is very

important to follow these regulations, because faulty wiring can be very dangerous and can

result in electrocution or fire.

These safety concerns should not be ignored, because they could save your tenant’s life

someday.


Energy Performance

Certificates

Landlords are legally obligated to provide a copy of their Energy

Performance Certificate documents to potential tenants. This will let the

prospective tenant know how ecologically sound and energy efficient your

property is. This will help them to understand the impact that your property

has on the surrounding environment, because the better your rating is the

lower your CO2 emissions will be. As an EPC is valid for 10 years, you don’t

need to apply for a new energy certificate every time you re-let the property.


Have Fun Being a

Landlord! Being a landlord can be a great income earner and an enjoyable and fulfilling side project.

The tips in this guide will help you to be thorough, organised and professional as a landlord,

ensuring that the experience is a positive one. When you treat your tenants with respect,

your relationship with them can be mutually beneficial.

If you are looking to find more advice on landlord issues, be sure to visit this website:

gov.uk/government/publications


Discount Landlord Ltd

The Business Exchange

26/28 Hammersmith Grove

London W6 7BA

Call Us 020 8847 8000

Freephone 0800 294 4522

Fax Us 020 8847 8001

Email Us

Website: http://www.discountlandlord.co.uk

The information contained i n this guide is for genera l information purposes only. The information is provided by Discount Landlord and

whilst we endeavour to keep the information up -to-date and correct, we wil l not be held l iable for any loss or damage to the property

or f inancia l losses you may occur.

http://www.discountlandlord.co.uk/

mailto:[email protected]

A guide for landlords

Economy & Finance

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