I am sure you will have seen reports that one of the most prominent UK Estate Agents has left its landlords open to fines of somewhere between £9million and £30million.
This is because they allegedly failed to comply with the legislation regarding deposits when the tenancies started – the financial fine for this breach is 3 times the amount of the deposit taken!
This has had many Southampton landlords picking up the phone to me to ensure they are compliant with their rental property. So, what should every landlord do to ensure they are compliant and won’t be fined or face criminal action?
Well to start with, there are over 170 pieces of legislation and regulations that must be followed, below are some key ones that every Southampton landlord should consider.
Registering your tenant’s deposit
Every Southampton landlord (or their agent) needs to register the tenant’s deposit. It is believed that one in six tenants’ deposits are not registered, leaving the landlord (not the agent) liable to a fine of three times the amount of the deposit plus they can’t serve a section 21 notice which makes it very difficult to remove the tenant.
When your tenant pays their deposit, it must be protected in one of the government-approved schemes within 30 days.
Yet even if you do register the deposit, you must also serve the prescribed information. This must include information on which of the three schemes you use (The Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme) to protect their deposit and how your tenant can get their deposit back at the end of the tenancy.
Gas Safety Certificates
Every landlord must provide a safe rental home for your tenants. Every rental property must have an annual Gas Safety Certificate if gas is supplied to the property. The certificate, issued by a qualified and registered Gas Safe engineer, is valid for 12 months. All certificates must be retained for 24 months and you must give your tenant a copy of the current certificate.
EPC for your Southampton rental property
The Energy Performance Certificate (EPC) is just like the colour coded energy rating diagrams you see on fridges and washing machines, except it’s for your rental property. If you don’t have an EPC, you can’t rent out your property. Also, since this Summer, rental properties have had to achieve a minimum energy efficiency rating of ‘E’. If your property doesn’t meet this requirement, you’ll be unable to rent it out (although there are a handful of exemptions). The EPC certificate must be provided to the tenant at the start of the tenancy.
Right to Rent checks
Every Southampton landlord can only let their property to a tenant who has the legal right to rent in the UK. You have the legal responsibility of checking the prospective tenant’s identification and confirming that the tenant is legally in the UK, both at the start and during the tenancy. If you let your property to someone in the UK illegally, you can face a substantial fine and/or a prison sentence.
Anything else Southampton landlords should be aware of?
Well are you sitting down, How about ..
Smoke alarms
Licencing
Health and Safety
Client Money Protection
Homes (Fitness for Human Habitation) Act 2018
Fire safety risk assessment
Legionella risk appraisal
Electrical Safety checks
That’s just the tip of the iceberg
The list goes on …
As you can see, there are many things a Southampton landlord must consider when it comes to being legal and compliant. Yet, apart from a logistical nuisance there are actual financial and criminal penalties involved if you do not comply with all your landlord obligations. And let’s not forget these 170 regulations and legislation are there to keep your tenants safe in their homes which is a massive responsibility for all landlords.
A Final Thought for all Southampton Landlords
You can make sure you are fully compliant by having a Southampton Landlord Compliance Health Check with ourselves at Belvoir. The cost of the compliance check is £96, it will last for approximately an hour and is conducted over zoom. We can give you peace of mind that you are compliant, be you a landlord that manages your own Southampton property or even if you use another agent (because being with the one of the most prominent Estate Agents in the UK was no guarantee those landlords would be safe from prosecution).
Call me on 02380018222 or email brian.linehan@belvoir.co.uk and let’s have a no-obligation chat before you commit to anything. What have you got to lose versus you potentially losing thousands of pounds.. the choice is yours?
Brian Linehan
Belvoir Southampton
