Rented property focus - November 2011

As the demand for rental property continues to grow, an increasing number of new landlords are entering the market. In this month’s column, Stephanie Robinson provides her top tips for first timers...

I am considering letting out my property. Is there anything I should bear in mind before doing so?

Clients often ask if I have any tips for first time landlords, so I thought I’d share some general advice with you this month.
  
If you are a private landlord, it is most likely that your property will be let on an assured shorthold tenancy. This means the tenant usually has the right to stay in the property for at least six months, although the landlord or agent can agree a longer term.
  
Should you decide to let a property you lived in previously, you have a responsibility as the owner to inform your mortgage company and insurer. There may be some restrictions on your mortgage that will need to be dealt with and some changes that need to be made to your insurance policy.
  
You can instruct a lettings company to find you a tenant or to look after the property on your behalf. If you are unsure of your responsibilities, the fully managed route may be most suitable, but check the agent is a member of a professional body, such as the Royal Institution of Chartered Surveyors, the Association of Residential Letting Agents, the National Approved Letting Scheme or the Property Ombudsman.
  
Members of these industry organisations agree to meet specific minimum standards of practice and have an independent complaints procedure should things go wrong. It is sensible to check your agent protects client money should it go out of business and to ensure you have a written agreement, setting out the firm’s responsibilities to you.
  
Those who feel confident enough to find their own tenant should always attempt to reduce the risk by asking for a reference from a former landlord, if possible. Make sure you use an assured shorthold tenancy agreement that sets out clearly the tenant’s responsibilities, the length of the fixed term and the arrangements for paying rent.
  
It is also advisable to carry out an inventory at the start of the tenancy that both parties sign and to take a photographic schedule of the property’s condition. This should make life easier if there is a dispute about the return of the deposit when the tenant moves out. Make sure your contact details are listed on the lease so you can be reached if there is a problem.
  
A landlord has certain legal duties to uphold when renting out a property. When your tenant moves in, you must provide a copy of the energy performance certificate (EPC) and ensure the bond is lodged with one of three government authorised tenancy deposit protection schemes.
  
An annual gas safety check must be carried out by a Gas Safe registered engineer and a copy of the certificate given to the tenant within 28 days of each visit. It is advisable to have an electrical safety certificate as well, although there is no legal requirement for this to be undertaken. You do, however, have a duty to keep electrical installations in proper working order and ensure that any appliances supplied by you are safe. It is also best practice to install and maintain smoke and carbon monoxide detectors.
  
Landlords have various responsibilities towards the maintenance of a rental property, to ensure it remains in good repair. These duties are set out in the Landlord and Tenant Act 1985 and include the structure and exterior, as well repairs to the heating, hot water and sanitary installations. A landlord is generally accountable for major repairs and if your tenant informs you of a problem, either verbally or in writing, you should investigate it as soon as possible.
  
In summary, my advice to any new landlord is to stay on top of problems. Keep your property in good repair and maintain a good relationship with your tenant. If you uphold your side of the bargain, you have an excellent chance of making the letting work for you and reaping the rewards.
  
If you do find yourself needing to evict a tenant, please visit the T&E Landlord website www.landlorddisputes.co.uk for more information on gaining possession.