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Nuneaton & Bedworth Borough Council
Tel: 024 7637 6376
Monday to Friday 9:00am to 5:00pm

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Coton Road, Nuneaton,
Warwickshire, CV11 5AA

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High Street, Bedworth,
Warwickshire, CV12 8NF

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Reluctant/New Landlords

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024 7637 6406
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024 7637 6551
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Reluctant/New Landlords

The economic downturn is having a major impact on the housing market, with many owner occupiers unable to sell. When combined with increasing unemployment, many owners are thinking about renting out their home to help pay the bills. Whilst owners will consider the potential rental income, they are often ignorant of their legal responsibilities and don’t know where to turn for advice. 
 
Please view the following 10 point guide:
 
1) Speak to your mortgage lender:
You could be in breach of your mortgage agreement if you rent out your property without getting consent from your mortgage lender.
 
2) Get references from potential tenants:
This will help minimise the risk of your property being damaged and the rent not being paid.
 
3) Prepare a formal tenancy agreement:
Having a signed tenancy agreement will make it easier to deal with any disputes, should they arise. Assured shorthold tenancies are the most common type. You can get tenancy agreements from most stationery suppliers or online.
 
4) If you take a deposit, it must be properly protected:
Any deposit you take from a tenant must be protected through one of the three government approved tenancy deposit protection schemes:
 
 
If you do not follow the rules, you may be ordered by the Courts to pay the tenant three times their original deposit, plus the deposit itself in compensation. You would also lose the right to regain possession of the property using a Notice of Possession under section 21 Housing Act 1988.
 
5) Obtain an Energy Performance Certificate:
You must get an energy performance certificate (EPC) and show it to prospective tenants. You must give a copy of the certificate to whoever takes up the tenancy. EPCs usually cost about £100, but can be cheaper. If you let your property without an EPC, your council’s Trading Standards Officers
might give you a £200 fine.
 
6) Find out whether your property needs a licence:
If your property has three or more storeys and houses five or more people who are not all related, you must get a licence from your local council so that your property can be used for multiple occupation. In some areas, licensing applies to other types of properties as well. This is called an HMO
(House in Multiple Occupation) licence. If you do not get a licence you could be taken to court and, upon conviction, fined up to £20,000. If you are unsure if you need a licence, you should contact your council’s private sector housing team for advice.
 
7) Get all your Gas and Electrical appliances tested:
All gas appliances must be checked annually by a registered Gas Engineer and you must give your tenants a copy of the landlord gas safety certificate before they move into the property. From 1 April 2009, all gas engineers must be registered with the Gas Safe register.
 
You must ensure that the electrical installation and any electrical appliances you provide are safe, to reduce the risk of electrocution or fire. Electrical installations should be inspected and tested at least every five years and appliances more frequently dependent on their type. For details on how
to find a registered electrician visit the Electrical Safety Council.
 
8) Minimise the risk from fire:
You must ensure that there is a safe means of escape from the property in the event of a fire and that a suitable fire alarm system has been fitted. Each property will be different and you may need to carry out a fire risk assessment. To get further information, you should contact your council’s private sector housing team. LACORS’ national guidance on fire safety in residential accommodation can also be downloaded free of charge.
 
9) Ensure that the property presents no risk to your tenant’s Health & Safety:
Before the start of the tenancy, carry out an inspection of your property and look for any obvious hazards. The accommodation must be in good repair, well-maintained, and capable of being effectively heated. You can download the guidance booklet for the Housing Health & Safety Rating System.
 
10) Don’t find yourself in court if something goes wrong:
Being a landlord is a huge responsibility and you will need expert advice. A wealth of information is available through landlord associations such as the National Landlords Association, the Residential Landlords Association and the British Property Federation, or through council-run landlord accreditation schemes.
 
Some local councils also run short training courses. If you don’t want to take on the management of the property yourself, you may want to consider using a reputable letting or managing agent. Details
of local agents can be obtained from the Association of Residential Letting Agents, the National Approved Letting Scheme and the UK Association of Letting Agents. Be aware conditions vary, so please check the small print before signing any agreement.
 
You can also view the document in full using the attachment below.
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Tuesday 22 May 2012