When you are new to renting property, the sheer amount of information that hits you from all angles can be overwhelming. Even if you’ve already gained some experience as a landlord, the changing regulatory landscape of the PRS often makes life complicated. This short guide aims to condense the sea of information into a simple 9-point checklist for getting started, highlighting your most important tasks and responsibilities. In part 1 we'll consider the first 3 steps: background paperwork, safety regulations for landlords, and licensing regimes.
STEP 1: Get your background paperwork in place
Mortgage
Most landlords will have a mortgage of some kind and it’s crucial to ensure that you have the correct type before renting, to avoid breaching its conditions and running the risk of mortgage fraud. If your property has been owned with a residential mortgage, you will need the bank’s “consent to let”. Better still, especially if you anticipate renting the property long-term, switch product to a buy-to-let mortgage. If you plan on renting the house in a less conventional way, for example as an HMO or furnished holiday let, ensure your have the appropriate mortgage for this use.
Lease conditions
If your property is leasehold, which usually applies to flats, then you will need to check that your plans are compliant with the lease conditions. This is not as routine as you might think, as many leasehold properties are explicitly prohibited from sub-letting by the terms of their lease. Renting counts as sub-letting, because even with a long lease (100+ years) you are technically another tenant or leaseholder. Other leases will require the freeholder’s consent prior to renting, or impose conditions like only renting the whole property, or not renting it as a holiday let.
Landlord's insurance
Finally, make sure you have the proper landlord’s insurance in place. Speak to your insurance broker about obtaining a landlord insurance policy, which provides cover beyond conventional home insurance and may also be a condition of your mortgage. This will protect you against major repair costs, but also specific risks borne by landlords, including: liability for injuries to the tenant caused by a defect in the property, theft of items by the tenant, loss of rental income and alternative accommodation for the tenant when the property is uninhabitable.
STEP 2: Compliance with safety regulations
Gas and electric safety checks
Safety is the number one priority when renting a property, and there’s more to it than just gas and electricity checks. You will, of course, need a valid gas safety certificate, which must be renewed annually by a Gas Safe registered engineer. There needs to be an electrical safety certificate, known as an Electrical Installation Condition Report (EICR), completed by a qualified electrician. This has been a legal requirement for all rental properties since the rules were change in 2021. The EICR will be valid for 5 years unless otherwise specified on the document.
Legionella and portable appliances safety
Beyond these two certificates, you should ensure the water system is free of legionella risks, and check that portable electrical appliances supplied are in safe working order. There are no prescribed forms of certification for these assessments, but the legal responsibility for landlords is very clear (further information can be found on the Health and Safety Executive website). The NRLA provide a useful template for legionella risk assessments, and PAT tests on appliances can be cheaply obtained from a qualified electrician. Even where there is no standard certificate of safety, keeping adequate documentation of compliance with these regulations is important.
Smoke and carbon monoxide alarms
Another important safety requirement is set out by the Smoke and Carbon Monoxide Alarm (England) Regulations, 2015. You will need a smoke alarm on every floor of the property, used wholly or partly as living accommodation. These can be battery powered (unless the house is an HMO) but it’s advisable to use mains connected, interlinked alarms with back-up battery supply. Carbon monoxide alarms are required in all rooms with fuel burning appliances, like boilers or wood burners. It’s a legal requirement for landlords to test that alarms are working, specifically on the first day of a new tenancy. Be sure to keep a record as evidence of completing this test.
Fire resistant furniture and HHSRS hazards
If you are supplying furniture with your rental property, it’s your responsibility to check that it complies with the Furniture and Furnishings (Fire) (Safety) Regulations, 1988, with the permanent fire safety label attached. You should also carry out a risk assessment, looking out for the 29 hazards identified in the Housing Health and Safety Rating System (HHSRS).
HMO fire safety
Finally, when you are renting out an HMO there are specific fire safety standards to adhere to, which exceed the level expected of normal single-let properties. The local authority will provide specific guidance on the safety features required, which typically include: 30-minute resistant fire doors with self-closers and intumescent seals to kitchen doors, thumb-turn locks on exit doors, "solid doors" on bedrooms (in practice this means 30 minute fire resistant doors), mains powered interlinked alarms in the circulation spaces, emergency lighting, and adequate fire-fighting equipment. There are also additional servicing procedures needed for some of these features, as part of your ongoing HMO management activities.
We could go on discussing the subject of HMO fire safety and management regulations in granular detail, as it's one of our specialisms as a management company, but that is not the purpose of this guide. Suffice to say that regulations vary according to type and size of HMO, in addition to room location and internal layouts. The local authority can also request extra safety features, beyond the published minimum standards, following an inspection of a licensed property.
STEP 3: does your rental property need a license?
Certain categories of rental property will fall under the local authority’s licensing regime. Most commonly this applies to HMO’s, with 5 or more tenants from 2 or more different families. If this applies to your property, make sure you have applied for a license and satisfied its conditions before starting a tenancy. It's important to note that, even if your HMO property does not meet the criteria for a license, it will still be subject to HMO fire safety and management regulations. We often speak to new clients who have become confused about this, thinking that their shared 3 or 4 bedroom house is not an HMO because it doesn't qualify for a license. This is not true and conflates two completely different things: the definition of an HMO is not governed by licensing. There are 2 other kinds of licensing regimes: additional and selective licensing. Additional licensing extends an HMO licensing scheme to include all HMO’s in a local area, even those with fewer than 5 occupants. Selective licensing is only introduced in certain locations, and relates to all properties within the area that do not already fall under HMO licensing schemes. It is usually introduced to tackle issues of deprivation and poor-quality housing in certain trouble spots, setting out standards of safety and condition for landlords to meet. There are selective licensing schemes in some of the locations we cover here in Norfolk, for example central Great Yarmouth. Be sure to obtain a license and meet the conditions before renting your property, to avoid penalties and fines.
Final thoughts
That brings us to the end of the first part of this getting-started guide. We're passionate about property and understand how exciting it can be to get started, but the best advice we can offer is to slow down, prepare carefully, and avoid mistakes that could turn into administrative or legal headaches in future. Give us a call if you would like any advice on getting started as a landlord in Norfolk. In the Part 2, we will look at tips for referencing, deposits, and tenancy agreements.
If you have questions about this article or renting out your property, please get in touch with us. We're an independent letting agency in Norwich, serving the whole of Norfolk. We manage all property types, including HMO's, and specialise in Guaranteed Rent.
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