Property Lettings
1st November, 2014
If you have a property that you are considering renting out either as a holiday let or a longer term letting, there is much for you to consider. Property Law Solicitor Claire Simmons has some tips.
If you have a property that you are considering renting out and there is a mortgage over the property you will firstly need to obtain the consent of your mortgage lender to rent out the property.
Your mortgage lender may have certain requirements as to whom the property can be rented out and also may have a requirement as to they type of tenancy agreement that can be used.
If your property is leasehold you should ask your solicitor to check if there are any restrictions in the lease which would either prevent you renting out the property or would require you to obtain the consent of your landlord to rent the property out.
If you are renting out your property as a holiday let you should ask your solicitor to check the title to the property to ensure that there are no restrictions on the use of the property for business purposes.
As a landlord there are a number of obligations imposed upon you failure to comply with which would be a criminal offence. Namely, you must provide prospective tenants with a copy of the Energy Performance Certificate (EPC) for the property. This legal requirement applies to all residential lettings including short tem lettings, such as holiday lets.
In addition you are responsible to keep the property safe and free from health hazards. You must make sure the gas equipment to the property is safely installed and maintained by a Gas Safe registered engineer.
You must arrange for a registered Gas Safe engineer to do an annual gas safety check on each appliance and flue. Furthermore, you are under an obligation to give your tenants a copy of the gas safety record for the property before they move into the property, or within 28 days of the check.
You are also under an obligation to make sure the electrical system such as the sockets and light fittings are safe and if you are supplying any appliances such as cookers and kettles etc that they are safe.
If the property you are letting out is furnished you must ensure that all furniture and furnishings comply with current fire safety regulations and to provide fire alarms and extinguishers if the property is a large House in Multiple Occupation (HMO).
If you have requested your tenant to pay a deposit and are letting the property out on an assured shorthold tenancy basis, you must place your tenants’ deposit in a tenancy deposit (TDP) scheme which applies to all assured shorthold tenancies that start after 6th April 2007.
On holiday lets, it is prudent to request guests to pay a security deposit to ensure you are covered should any damage, losses or breakages occur and to encourage guests to treat your property with respect.
Renting out your property can be complicated and you should always speak to your solicitor before renting out your property.
For more information on the issues raised by this article, please get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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