A Guide to Legal Requirements for Landlords
From taxes to deposit handling and gas safety to eviction laws, this article offers useful insights into the legal obligations of landlords across England, Scotland, Wales, and Northern Ireland. Whether you’re a seasoned landlord or just starting, understanding these aspects is key to a successful rental venture.
Landlords’ legal obligations – the basics
Here are some of the most important legislations you must follow if you rent a property in England, Scotland, Wales and Northern Ireland:
Complete Right to Rent checks (England only)
In England, you cannot legally offer a tenancy to someone unless you have evidence that they are legally allowed to live in the country. Prospective tenants must supply identity documents and/or provide a Home Office ‘share code’. This is called a Right to Rent check.
Obtain the correct license
Before renting your property, you must gain permission from your mortgage lender and switch your residential mortgage to a buy-to-let mortgage. If your property is a leasehold rather than a freehold, you will also need to gain permission from the freeholder.
If your property is let to five or more tenants from two or more households, this is known as a house share, and you will need a House in Multiple Occupation (HMO) licence. However, the associated terms and conditions will vary, depending on whether your property is in England/Wales, Scotland or Northern Ireland.
Pay your taxes
When you become a landlord, you must report your rental income to HMRC and complete a self-assessment tax return each year. You must continue to file taxes even if you move abroad unless you have obtained an exemption certificate.
If you don’t declare your income, you risk legal proceedings, which may result in fines or even imprisonment.
Secure your tenant’s deposit
All landlords and letting agents in the UK must place tenant security deposits in a government-approved tenancy deposit scheme (TDS) within 30 days (28 days in Northern Ireland).
Once the deposit is registered, you must provide the following information to your tenant:
- The deposit amount and who supplied it (tenant or third party)
- The date you paid into the deposit protection scheme
- The company name and contact details of your tenancy deposit protection scheme
- Your contact details and the address of your rental property
- How the deposit will be returned at the end of the tenancy
- Reasons you may withhold all or part of the deposit at the end of a tenancy
- The details of the deposit protection scheme’s resolution service.
You may also choose to offer a deposit replacement scheme, in which your tenant pays a smaller but non-refundable deposit.
H3 Provide a tenancy agreement
A tenancy agreement outlines the role and responsibilities of you and your tenants. You should provide a written document stating the tenancy terms and conditions when the tenant moves in. Once both you and your tenant have signed, you cannot change anything stated in the agreement until the end of a fixed term or without the proper notice.
If you start a tenancy without a written contract, you still have one – it is simply a verbal contract. A hard copy of a tenancy agreement simply makes it easier to resolve any disputes that arise.
Promptly conduct repairs
You are responsible for repairs to structural damage, replacing old pipework or faulty wiring, making sure electrical and gas appliances are safe to use and fixing any issues relating to plumbing, heating, ventilation and hot water.
If your tenant contacts you regarding a concern with the property, you should arrange a suitable time to visit – you are not allowed to turn up without warning as your tenant has a right to privacy. You must provide notice at least 24 hours in advance. You must also keep your tenant updated about the repairs.
The Deregulation Act (2015) makes it illegal for you to evict tenants due to them complaining about the condition of the property.
Tenants are responsible for general maintenance and upkeep of the property during their tenancy.
H3 Get an Energy Performance Certificate
Landlords in England, Scotland and Wales are legally required to provide tenants with a valid energy performance certificate (EPC) rated E and above. If you do not provide this, you risk being fined.
An EPC lasts for 10 years. However, if you make any improvements to your property’s energy efficiency, you can apply for a new EPC.
The government has suggested – in proposals such as Powering Up Britain: Net Zero Growth Plan and the Minimum Energy Performance of Buildings Bill – that the allowed EPC rating should be raised to Band C or above by 2033.
EPCs are not mandatory in Northern Ireland.
H3 Follow correct eviction procedures
If you wish to evict your tenant, you must be careful to follow procedures carefully. The process can be long and stressful – you don’t want to face claims from your tenant that you haven’t acted legally or fairly on top of this. It is best to consult a legal expert for guidance specific to your needs.
Keep in mind that Scotland and Wales have rulings that effectively ban ‘no-fault’ evictions, meaning you cannot simply choose to repossess your property. Similar legislation has been proposed in England as part of the Renters (Reform) Bill.
If your tenant falls into rent arrears, you must provide ample opportunity for them or their guarantor, to pay back what they owe. You are not allowed to start eviction proceedings without evidence of this.
In Northern Ireland, you must also serve a ‘Notice to quit’ before starting the eviction process. And in Scotland, you must follow all pre-action protocols before starting a repossession.
If arrears are not paid after two months and you allowed time for the tenant to resolve the situation, you can start the eviction process by completing the relevant paperwork:
- Northern Ireland: Order for Delivery of Possession of Land
H2 Health and safety requirements
Before tenants move into your property, you must make it fit for human habitation. It should be wind-proof and watertight, have no danger of injury due to the state of the property and have suitable heating and somewhere to wash.
Landlords must follow the relevant legislation:
- Scotland: Housing (Scotland) Act 2006
- Northern Ireland: Article 46 of The Housing (Northern Ireland) Order 1981.
H3 Gas safety
Under the Gas Safety (Installation and Use) Regulations (1998), landlords in England, Scotland and Wales are legally responsible for carrying out gas safety checks. Landlords in Northern Ireland are bound by similar legislation: Gas Safety (Installation and Use) Regulations (Northern Ireland) 2004.
Gas safety checks should be completed annually by a registered gas engineer to ensure the property remains safe. Common appliances that will be checked include gas hobs and cookers, gas fires and wood burners.
You must supply your gas safety record to your tenant when they move into your property and within 28 days of a check being completed during their tenancy.
H3 Electrical safety
Landlords across the UK are responsible for ensuring that all electrical appliances at their rental property are safely installed, fitted and maintained and that all plugs and sockets meet current safety guidelines.
In England, Scotland and Wales, you must get an Electrical Installation Condition Report (EICR) every five years. During an EICR, a qualified electrical engineer will test your electrical installations and wiring and let you know if any urgent actions need to be taken to improve the safety of your property.
EICRs are not legally required in Northern Ireland but are common.
H3 Fire safety
Landlords in England must meet fire safety rules and regulations set out in the Housing Act (2004), the Fire Safety Act (2021), the Building Safety Act (2022) and the changes under The Smoke and Carbon Monoxide Alarm (Amendment) Regulations (2022). Similar rulings apply in Wales, Scotland and Northern Ireland.
Here are some of the legally required and recommended fire standards you should meet:
- Complete an annual fire assessment of escape routes at your property to ensure they remain accessible
- Place a smoke alarm on each story of the property – it is your responsibility to keep these in working order
- Place a carbon monoxide alarm in all rooms with a fixed combustion appliance, such as a fireplace or wood burner
- Ensure all supplied furnishings at your property are fire-resistant
- Provide a fire blanket or extinguishers –particularly recommended if your rental property is a House in Multiple Occupation (HMO).
If you do not take appropriate action to ensure your property is fire-safe, you could be fined.
H3 Water safety
As a landlord, you must regularly check that your water supply is fit for purpose and that your tenants remain safe from water-borne bacteria, notably Legionella, which can cause Legionnaire’s disease.
You should carry out a legionella risk assessment before your tenant moves in.
H2 Legalities of rent increases
If you want to increase rent, it must be reasonable and in line with market rates and you should clearly explain to your tenants why you are proposing a change. There are legal restrictions in place, which differ across the UK.
You must meet the relevant legislation as a minimum standard. But it is also best practice to detail the process for increasing rental payments within your tenancy agreement.
H3 In England
If your tenant has a fixed-term contract, you can only increase their rent if you have included a relevant clause in your tenancy agreement. If you don’t have a rent clause, or if your tenant does not agree to the increase, the amount should stay the same until the end of their fixed-term contract.
For periodic contracts, you should complete a Section 13 form to propose a rent increase.
H3 In Northern Ireland
If your tenancy agreement started on or after 1 April 2007, you must provide a fixed-term tenancy of at least six months. To propose a rent payment increase, you should provide a Notice of Variation with at least 28 days’ notice.
H3 In Scotland
If your tenant is within the first 12 months of their fixed-term tenancy, you must provide at least three months’ notice of a rent increase. If they have a short-assured tenancy, you cannot raise the monthly rent unless both you and your tenant agree to the change.
If your tenant has signed an assured tenancy or regulated tenancy, you cannot increase their rental payments during the fixed term unless both parties agree, or you have a rent clause in the tenancy agreement.
H3 In Wales
If you have a standard contract with your tenant, you can only increase rent at the end of the fixed term. You can then either propose a new fixed-term contract that includes the rent increase or move to a periodic tenancy agreement.
For periodic contracts, you must complete a Notice of Variation and give two months’ notice of any rent increases.
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