CALL US
02039278585
CALL US
02039278585Being a landlord is not an easy task. If you are taking your first steps, the process can seem somewhat daunting. There are more than 150 Acts that need to be considered to navigate residential real estate properties and commercial real estate properties.
Although you can always hire an estate agency to help you with the landlord’s registration and related tasks, it is important that you learn more about the process. To help you find your way through renting real estate in the UK, this ultimate guide to being a landlord covers everything. It is especially useful if you have recently become a landlord, such as through inheritance.
Before we take a look at the responsibilities and privileges of a landlord, it is important that you determine if you are even a landlord. It will help you save the cost of consulting with estate agents in London.
There are various reasons why you would want to let the property. It could be because you are looking for real estate properties near you to find the perfect property to move. Now, if you want to rent out the apartment that you are living in, you might not consider yourself a landlord. However, according to law, you will be classified as such.
When renting out a property, it is important to keep in mind that your responsibilities depend on whether you live with the tenants or not. If you are renting a property in London which is also your place of residence, it would mean that you are a resident landlord. In addition to ensuring that the property is in good condition and safe, you enjoy the following benefits:
As per law, landlords have an obligation to ensure that their rental properties are safe.
When renting a property through an estate agency or on your own, you have a responsibility to make sure that all of electricity and gas equipment is safe for use and in working order. Learn more about landlord electrical safety standards and get a gas safety certificate.
In addition to the above, landlords also have a responsibility to fit smoke detects and alarms at their property before renting it out to tenants.
When you register as a landlord, you should be prepared for an inspection by the Housing Health and Safety Rating System (HHSRS). Generally, the inspection is done if tenants ask them to or a survey revealed that the property is hazardous.
Besides making sure that the property meets the health and safety regulations, the property has to be kept in good condition. As a landlord, you will be responsible for the following repairs.
An important tip that you should follow is doing research on the cost of maintenance of a rental property. Moreover, landlords also have to obtain an Energy Performance Certificate to rent out a property.
When you have rented out the property and need to perform necessary repairs, you have to give them a notice at least 24 hours before visiting. However, if there is an emergency, you can deal with the repairs immediately.
Tenants can also claim rent reduce if disruptive repairs are done. It is commonly referred to as rent abatement. If you fail to carry out regular repairs, tenants have a right to take you to small claims court. Similarly, they may also perform the repairs on their own and deduct the cost before paying rent. As mentioned earlier, tenants can request the Housing Health and Safety Rating System to perform an inspection.
If you decide to become a landlord, money management is a skill you need to master as you will be legally responsible to secure the deposit from tenants and making tax payments to the HMRC. Besides, if you have taken up a mortgage, you will need to ensure that you receive rent on time to make mortgage payments.
Similar to how it is important to know whether you have to the right to rent out a property, you also need to make sure that your tenants have a right to rent a property in the UK. Tenants have to be at least 18 years old and have a right to rent.
Until the tenancy ends, landlords have to put the deposit received from tenants into a government-approved scheme. Learn more about tenancy deposit schemes to choose the right one.
When you rent out a property, you will need to pay tax on rental income. Money earned through rent is treated the same as any other income. It means that you would have to pay tax minus related expenses.
Landlords do not need to pay any tax on their first £1,000 earned through rent from their personally owned property. If annual rental income exceeds £2.500, you have to declare it in your tax return. Make sure to read up on Self Assessment for Landlords.
Now, if the rental income is anywhere between £1,000 and £2,500 per annum, you need to contact HMRC. Landlords have to pay Class 2 National Insurance in the following cases.
To avoid hassle and the complicated process of renting a property in the UK, it might be best to hire a real estate agency UK. They will let you know the going rate for real estate properties near you. In addition to this, the agent will also perform tenancy checks, manage viewings, assist with the lease setup, handle inventories, and ensure that you meet the regulations.
A reputable real estate agent will fully manage the rental property and take care of the repairs along with the inspections. However, you should be prepared to pay for realtor fees. But, going at it on your own might not be suitable, especially if you do not have the time to do some research.
To find out how much you should charge as rent, it is important that you search for rental properties in UK on sites like Zoopla, On the Market, and Right Move. Landlords should get property in areas which offer the highest yield.
A common mistake that first-time landlords make is thinking that a standard home insurance poly is sufficient. Although landlord insurance is not a legal requirement, it helps protect your best interests and provides you with much-needed peace of mind. Thus, you would not need to worry about something going wrong during the tenancy. Besides a standard landlord insurance policy, you also have an option to cover yourself for the following.
Landlords might be able to take back possession of the property before the lease term expires in the following situations.
Landlords have a responsibility to inform tenants how and when rent should be paid as well as the amount. If rent is paid monthly, landlords should provide a rent book to tenants or something similar.
Before landlords decide to increase rent, tenants have to agree to such an increase. The landlord can increase the rent by doing the following.
Renting a property in the UK requires research and effort. It is not as straightforward as it seems. This is why most landlords prefer to hire a real estate agency UK to help them out with the entire process.
