Being a landlord comes with a lot of legal responsibilities – which, unfortunately, also means a lot of paperwork. Fishing out your certificates and putting together your legal landlord documents isn’t exactly a thrilling experience. However, although it may not be the most glamourous part of the job, having the relevant files in place now will seriously help you out when it comes to potential disputes, claims and disagreements.
EPCs and gas safety certificates
Energy performance certificates (EPCs) are a mandatory requirement for all homes on the property market – in most cases, you can’t legally let your home without one. An EPC rates your property– from A to G – on its energy efficiency and carbon dioxide emissions and as of 2018, a property must have a minimum EPC rating of E in order to be let. Unfortunately, only 42% of landlord were aware of this legal requirement.
Every year, landlords must renew their Gas Safety Certificate. An annual gas safety check must be carried out by a Gas Safe engineer and clear records must be kept. Along with an EPC, you can’t legally let your home if you skip this step. Additionally, no EPC or Gas Safety Certificate may put you at risk of penalty charges and leave you vulnerable during deposit disputes or insurance claims.
From April 2020, all rental properties (not just new tenancies and renewals) will require an EPC rating of ‘E’ or above. Read more about it here.
How to Rent guide
All landlords must present their tenant with a copy of the government’s How to Rent guide. This is a legal requirement that is often skipped. In 2018, only 52% of landlords issued the How to Rent guide to their tenants. For whatever reason, this little booklet isn’t always taken seriously by landlords – but it should be. Not only is it the law, but neglecting to give your tenant a copy will prevent you from issuing a Section 21 notice, claiming rent guarantee insurance and solving deposit disputes.
Before you enter into a written agreement, you should carry out a reference check on your tenants. Tenant referencing typically consists of a 6-year credit check, a previous landlord reference and an employment reference. These checks give landlords an insight into their tenant’s history and help to identify any past issues – such as CCJs – that could affect your tenancy.
Legal landlord documents: tenancy agreements
One of the main things you need to get right is your tenancy agreement. This may sound obvious, but you’d be surprised at the number of landlords that don’t get it right – or don’t even have one in place. The most basic tenancy agreement for an AST must include:
- The address of the property
- The tenant’s details
- The landlord’s details – including their service address
- The deposit amount and DPS details
- The rent amount and payment method
- Details of any permitted occupiers
- Required notice periods
- The length of the tenancy
- The rights and obligations of the tenant and landlord
Including this information in a written tenancy agreement in place is beneficial to both landlords and tenants. From the get-go, each party’s expectations are clear and any problems or disputes in the future will be much easier to solve.
Writing a tenancy agreement is not a small task – but we’re happy help. Here at LettingaProperty.com we’ll draft a tenancy agreement for you and ensure its good-to-go.
Legal landlord documents: identification
When looking to advertise your property, landlords will be asked to provide identification. This is usually in the form of:
- Photo ID – such as a driving licence or passport
- Proof of ownership – such as a mortgage statement, title deed, consent to let or land registry certificate
Some landlords are shocked – and sometimes insulted – when they are asked for ID, but we have their best interests in mind. This level of verification protects landlords against illegal subletters and ensures that only legitimate property ads are published.
Legal landlord documents: deposits
When it comes to deposits, there are a few legal landlord documents that you must have in place.
Your Deposit Protection Certificate must be sent to the tenant. They must also receive the prescribed information (containing the details of the DPS) and proof of delivery must be recorded. By law, you must use a government-backed tenancy deposit scheme to store your tenant’s deposit and have the relevant paperwork in check. Without the right documents, you will struggle to solve deposit disputes or make a claim on your rent insurance.
How do legal landlord documents affect rent guarantee insurance?
So, keeping track of all these things may seem like a lot of work. However, you’ll be creating a lot more hassle for yourself without them. If you have Rent Guarantee Insurance, your legal landlord documents are fundamental in making a claim. All the paperwork listed above must be evidenced and updated, along with:
- Evidence of Rent Guarantee Insurance (RGI) cover
- A record of the claim form
- Copies of rent statements sent to the tenant(s)
- A valid Section 21/Section 8 notice and proof of service
The rules are strict, but simple. No paperwork means no claim, and no claim means no pay-out.
Here at LettingaProperty.com, Rent Guarantee Insurance is included in both of our monthly management plans. Not only does it provide our landlords with peace of mind, but it also ensures that any potential rent arrears disputes will be soundly settled.
Mr Patel, one of our Guaranteed Rent customers, was especially thankful of this financial protection when his tenant failed to pay the rent and refused to leave to property.
It’s very much the rent guarantee safety net I wanted, never thought I would have to use, but so glad I opted for it from the word go. Especially as I was able to hand everything over to the professionals and not have to get involved in the matter further.Mr Patel, LettingaProperty.com Landlord
If you would like to keep track of all your legal landlord documents and responsibilities, please download our free 30-Point Landlord Checklist and the latest How to Let guide.