Legal Requirements

1. The Gas Safety (Installation and Use) Regulations 1998.

The regulations state that all gas appliances, pipework and flues must be checked annually by a GAS SAFE registered engineer to ensure they are safe. At the commencement of any tenancy, a copy of a current Gas Safety Record must be provided to the tenant or left in the property for inspection. Annual checks are required. Failure to comply with the Gas Safety Regulations could result in imprisonment and/or a fine.

2. The Furniture and Furnishings (Fire) (Safety) Regulations 1988 as amended 1993

A legal obligation on residential landlords to ensure that upholstered articles meet fire resistance regulations. Regulations apply to beds, mattresses, sofas and other soft furniture. All affected furniture must carry the resistant label. Non-compliant furniture must be removed from a property prior to letting. An easy way to check is to look at the label on your furniture and if it reads “carelessness causes fire” this item of furniture is of the current standard. Should you have any doubt please ask and we will be happy to check it for you. If a property is found not to comply, the landlord could face up to six months’ imprisonment and/or a fine of up to £5.000

3.The Electrical Equipment (Safety) Regulations 1994.

The regulations state that ‘persons who, in the course of business, let accommodation which contains electrical equipment’ must comply. The regulations make it very clear that equipment must be ‘safe’ and not cause ‘danger’.In order to meet these requirements the electrical supply and all electrical appliances should be tested by a ‘competent person’ such as an NlCElC qualified electrician. A check annually, or when a new tenant takes possession of the property, is recommended. Instruction booklets or written instructions for all electrical equipment should be left in the property. A note of these together with the date of the safety check should be recorded in the inventory. If the electrical equipment does not comply with the regulations and an accident occurs, it could result in up to six months’ imprisonment and/or a fine of up to £5.000.

4. Energy Performance Certificates

When are Energy Performance Certificates required? Since 1 October 2008 all homes have needed an Energy Performance Certificate when built or sold. For rented properties an EPC will need to be provided whenever a self-contained property is let to a new tenant. It is the responsibility of the person selling or renting a building to have a valid EPC to show to prospective buyers and tenants. The EPC must be given to the eventual buyer or tenant. An EPC is valid for ten years, except for sales of homes which are subject to the Home Information Pack Regulations 2007, where a Home Information Pack (HIP) is required. In these cases an EPC must be no more than three years old when the property is first marketed.

5. Smoke Detectors

The Department of Environment (DOE) brought out regulations governing the installation of smoke detectors in new homes, which are incorporated in the Building Regulations 1991. Since June 1992 all new homes must be fitted with mains operated smoke detectors. Although there are no such regulations governing older properties, it is advisable to install at least battery operated devices on each floor, if not mains operated ones. It is important that all devices are checked regularly, especially if battery operated.

5. Do I need to tell anyone I am renting my property out? Yes most building societies & banks need to give you permission to rent your property out, in some cases they will change the mortgage to a ‘buy to let’ mortgage which can incur more costs, please get permission from your bank or building society beforeputting the property on the market. In some cases the Freeholder or the Management Company (in the case of leasehold properties) may need to give permission too please check your lease. If you are unsure about any of these points we will be pleased to help.

6.Lettings and Tax

Whether you have to pay tax on your letting income depends on your financial circumstances. The rent you receive is treated as income and tax will apply in most circumstances. You will need to complete your tax returns each year keeping records of income and receipts, so as to be able to file returns.

7.Overseas Landlords and Tax

If you let your property through an agent then the agent must operate the Scheme and deduct tax from your rental income (currently 20%), unless they receive written notification to the contrary. In simple terms, the Agent will either:- • If authorised by the Revenue, pay the rental income to their non-resident client GROSS, or • Deduct tax at the basic rate on the net income subject to certain allowable expenses and deductions. An approval will allow you to receive all rental income due without deductions to cover tax liabilities. The forms are available directly from their web site at www.hmrc.gov.uk Where a non-resident landlord qualifies for approval to receive rental income gross, the landlord should apply for approval as soon as possible. Only tax deductions made in a particular quarter can be refunded by the agent

8. The Tenancy Deposit Scheme

Compulsory for all landlords All new tenancy deposits must be protected in a government-authorised scheme. This new rule applies if the tenancy is an assured shorthold tenancy. The Government wants to make sure tenants’ deposits are protected so that: • Tenants get all or part of their deposit back, when they are entitled to it. • Any disputes between tenants and landlords or agents will be easier to resolve through the arbitration service through the scheme . • Tenants are encouraged to look after the property they are renting. Landlords must inform the tenant within 10 days of the start of the tenancy which scheme they have chosen and contact details. A landlord or agent will lose their automatic right to regain possession of the property at the end of the tenancy unless they have protected the deposit in a scheme and given the tenant information about how it is protected.

9.Inventories & check in/check outs

A professionally produced inventory should be provided on every property so a check in can be done at the start of a tenancy and a check out at the end, this will document any changes/damage during the tenancy. We can arrange for this to be carried out for you. Please note it is compulsory for every managed property to have a professionally produced inventory if there is not one at the start of a tenancy we will have one made at a cost to the landlord.