A Guide for Landlords: Successfully Letting Your Property

Letting a property in England requires careful planning, legal compliance, and financial considerations. This guide outlines the essential steps landlords must take before letting their property and explains how professional letting agents like Selmans Lettings Ltd can simplify the process. By understanding these responsibilities, landlords can ensure regulatory compliance while fostering positive relationships with tenants.

Legal Responsibilities and Requirements

Before renting your property, you must meet several legal obligations to comply with current regulations.

Assured Shorthold Tenancy (AST)

Most private rentals in England operate under Assured Shorthold Tenancies (ASTs). As a landlord, your key legal responsibilities under an AST include:

• Ensuring the property is fit for human habitation and free from hazards.
• Complying with the Tenant Fees Act 2019, which prohibits unfair fees.
• Protecting tenancy deposits in a government-approved scheme.
• Providing tenants with an up-to-date copy of the “How to Rent” guide.
• Maintaining the property in good repair.
• Conducting annual gas safety checks.
• Obtaining an Energy Performance Certificate (EPC) with a minimum E rating.
• Electrical installations should be inspected at least every five years.
• Installing required smoke and carbon monoxide alarms.
• Verifying tenants’ “right to rent” in the UK.

Property Licensing and HMO Regulations

Depending on your property type and location, specific licenses may be required:

Houses in Multiple Occupations (HMOs)

A property is classified as an HMO if it is given to at least three people from different households who share kitchens or bathrooms. Large HMOs (five or more tenants) must be licensed if:

• Some or all tenants share toilet, bathroom, or kitchen facilities.
• At least one tenant pays rent.

Even smaller HMOs may require licensing under local council regulations. Failure to obtain the necessary licenses can result in unlimited fines, so checking with your local council is essential.

Pre-Letting Considerations

Before letting your property, you must address several important factors:

Leasehold Restrictions

If your property is leasehold, check the lease for any restrictions on subletting. Some leases require freeholder consent, while shared ownership properties often prohibit subletting entirely.

Letting with a Mortgage

If you have a residential mortgage, you must obtain permission from your lender and insurance provider before letting the property. A buy-to-let mortgage is specifically designed for rental properties.

Tax Obligations

Landlords must pay income tax on rental earnings. Understanding allowable expenses and tax implications before letting your property is crucial.

Property Preparation and Safety Requirements

Ensuring your property meets safety regulations and is well-prepared enhances tenant satisfaction and legal compliance.

Safety Regulations

Gas and Electrical Safety

• Gas appliances must undergo an annual gas safety check.
• Electrical installations must be tested at least every five years.
• Certificates must be provided to tenants.

Smoke and Carbon Monoxide Alarms

• Smoke alarms must be installed on each floor.
• Carbon monoxide alarms are required in rooms with fuel-burning appliances.

Energy Efficiency

• All rental properties must have an EPC rating of E or above.
• An EPC must be obtained before marketing the property and provided to prospective tenants.

Product Safety

Furnishings must comply with fire safety regulations, including appropriate safety features for furniture and window blinds.

Setting Up the Tenancy

Creating a proper tenancy agreement and handling deposits correctly is essential.

Tenancy Agreements

While verbal agreements can be legally binding,  written contracts are strongly recommended. The government provides a model tenancy agreement, or landlords can create a custom agreement with legal advice.

Key considerations:

• Tenancy duration (fixed-term or periodic).
• Responsibility for bills (electricity, gas, water, council tax).
• Furnished or unfurnished status.
• Any prohibited activities (e.g., smoking, pets).

Deposits and Fees

The Tenant Fees Act 2019 restricts landlord charges:

• Tenancy deposits must be made through a government-approved scheme.
• Holding deposits are typically limited to one week’s rent.
• Unlawful fees can result in fines of up to £30,000.

Benefits of Using a Professional Letting Agent

Self-management is possible, but working with professional letting agents like Selmans Lettings Ltd provides numerous advantages.

Expertise and Experience

Selmans Lettings Ltd has over 50 years of combined experience in lettings and property management. Their expertise helps landlords navigate complex regulations and market conditions while maximizing rental income.

Comprehensive Services

Selmans offers flexible service packages to meet different landlord needs:

Comprehensive Lettings Service 

This service includes:

• Marketing the property and advising on refurbishment.
• Tenant introduction and suitability assessment.
• Tenancy agreement preparation and negotiation.
• Arranging inventories, EPCs, floor plans, and safety certificates.
• Collecting initial rent and security deposits.
• Managing utility and council tax transfers.
• Deposit registration and legal compliance guidance.

Fully Managed Letting Service

Ideal for landlords who prefer a hands-off approach, this service covers:

• Complete property management throughout the tenancy.
• Handling tenant issues and maintenance requests.
• Rent collection and arrears management.

Quality Tenant Selection

Securing reliable tenants is key to a successful rental. Selmans:

• Conducts comprehensive tenant referencing.
• Screens tenant suitability before finalising agreements.
• Reduces risks associated with problem tenants.

Effective Marketing

Professional marketing minimises vacancy periods:

• Listings on leading property portals.
• High-quality property presentations.
• Efficient viewing management.

Time and Stress Reduction

Using Selmans Lettings Ltd saves landlords time and minimises stress:

• Professionals handle tenant communication and issue resolution.
• Legal requirements and paperwork are expertly managed.
• Regular updates keep landlords informed without direct involvement.

Selmans treats each property as if it were their own.

Conclusion

Letting a property in England involves legal obligations, safety standards, and financial considerations. Landlords can maximise rental income by ensuring compliance and selecting the right tenants while avoiding potential issues.

Professional letting agents like Selmans Lettings Ltd simplify this process, offering expertise, marketing exposure, and comprehensive management services. Whether you’re a first-time landlord or an experienced investor, professional assistance can make property letting more profitable and stress-free

 

This guide is intended for general informational purposes only and does not constitute legal, financial, or professional advice. While every effort has been made to ensure accuracy, laws and regulations may change, and landlords should seek independent legal or professional advice specific to their circumstances. Selmans Lettings Ltd accepts no liability for any loss or damages arising from reliance on the information contained in this guide.