You are already aware of the compulsory conditions of the Selective License under the PRPL Scheme; you will also be aware of the effect on non-compliance, where the local authority is in a position to serve fines for breach, resulting in potential a fine of £20,000.00 for each property.

To ensure compliance for each and every relevant Property, there has been a substantial increase in continuous administration required to update the relevant authorities of your compliance.

You should be aware of the importance of having a valid License under the PRPL Scheme, and that the failure to do so, where necessary, will result in voided s.21/ 6a Notices (further details under point3).

There has been additional onus on all managing agents since the introduction of the PRPL Scheme where we, as the rent receiver, are now also obligated to meet the requirements of the Scheme conditions and we have had to increase our insurance premium to cover any potential claim against us for a Landlord's failure to comply with the conditions.

As you may be aware, there was a proposal as part of the Queen’s Speech to ban fees charged to Tenants, this is now effective from 01 June 2019.

Part of the overall costs for managing your Property is derived from fees charged to the Tenant, such as Credit checks / Referencing/ Admin charges; as these charges will be banned, such contributions to these costs will now need to be derived from Landlords.

If you are found to be charging non-permitted fees, a financial penalty with a fine of £5,000 for an initial breach of the ban, with a criminal offence where a person has been fined or convicted of the same offence within the last 5 years. Financial penalties of up to £30,000 can be issued as an alternative to prosecution.

You may already be aware of the changes that were introduced as part of this Act; essentially the Act will protect a Tenant from eviction if a Tenant can prove that, instead of undertaking works to effect repairs, the Landlord has served a notice seeking Possession.

Furthermore, the Act has now introduced a time limitation in responding to Tenant complaints, being 14 days, informing the Tenant of the action that will be taken and a reasonable time frame to address the complaint.

Further to the above, the following conditions were introduced:

o     A valid Energy Performance Certificate (EPC), which contains information about how much it will costs to heat the property.

o     A valid annual Gas Safety Certificate, which is proof that the gas appliance(s)have been checked by a Gas Safe registered engineer.

o     A copy of the Department for Communities and Local Government's How to rent: the checklist for renting in England” guide, which gives tenants key details about their rights, and what they should expect from private renting.

o     Provide mandatory information required by other legislation [e.g. PRPL], including relevant tenancy deposit protection information.

As these conditions that have been drafted into a standard form, each and every Tenancy is now required to comply with the above conditions to ensure validity of the Notice of possession.

This means that, from April 2018, landlords of privately rented domestic and non-domestic property in England or Wales must ensure that their properties reach at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants. From the 1st April 2020, landlords must not continue letting a relevant domestic property which is already let if that property has an EPC rating of band F or G (as shown on a valid Energy Performance Certificate for the property). As your agent we have had to administer the compliance of this change. Where a local authority is satisfied that a property has been let in breach of the Regulations it may serve a notice on the landlord imposing financial penalties up to £5000.00.

Right to Rent, which also applies to people who are subletting their property or taking in lodgers, was introduced in the Immigration Act 2014. Landlords who fail to carry out checks risk a potential penalty of up to £3,000 per tenant. As a landlord, you have a responsibility to restrict illegal immigrants accessing the private rented sector.

Landlords should not let property for use by an adult who cannot satisfy a right to rent check. Some documents will allow for an unlimited right to rent, while others will allow for a time-limited right to rent.

Landlords have the option to appoint an agent to act on their behalf. Where an agent has accepted responsibility for compliance with the scheme, the agent will be the liable party in place of the landlord.

Involvement in money laundering offences may result in unlimited fines and/or a prison terms of up to 14 years. Estate agency businesses must comply with the Regulations. They must not carry out estate agency work if they are not registered with HMRC.

HMRC can take various measures from warning letters to criminal prosecution and financial penalties, if your business does not comply with the regulations.

As a processor of data, the GDPR places specific legal obligations on us; for example, we are required to maintain records of personal data and processing activities. We will have legal liability if we are responsible for a breach of administrative fines of up to 4% of annual global turnover or €20 million – whichever is greater. The ICO can also impose a temporary or permanent ban on data processing which in turn could stop us trading.

All properties must have:

Landlords must make sure that alarms are working on the first day of the tenancy. After that, tenants should take responsibility for their own safety and test alarms regularly to make sure they are working and replace the batteries where needed. Landlords must pay for the cost of a broken or faulty alarm.

Houses in Multiple Occupation usually require additional fire safety measures such as heat alarms, fire extinguishers and fire blankets.

Use form 6a if the tenancy was started or renewed after 30 September 2015. You can also write your own Section 21 notice.

How much notice you need to give

A Section 21 notice must give your tenants at least 2 months’ notice to leave your property.

You may need to give a longer notice period if you have a ‘contractual’ periodic tenancy. This is a fixed term tenancy that has ended, but included a clause to continue as a periodic tenancy. The amount of notice must be the same as the rental period, if this is more than 2 months. For example, if your tenant pays rent every 3 months, you must give 3 months’ notice.

Section 11 of The Landlord and Tenant Act 1985 requires Landlords to: Keep in repair the structure and exterior of the premises including drains, gutters and external pipes keep in repair and proper working order the installation for the supply of water, gas, electricity and for sanitation. Keep in repair and proper working order the installations for space heating and water heating.

We are happy to provide you with a free, no obligation valuation. We will collect as much information about your property, surrounding area and location as possible in order to be able to give you the most accurate valuation of your property. We will also advise you of any suggested improvements which could be made to the property to encourage its sale ability.

EVERYTHING A FIRST-TIME LANDLORD NEEDS TO THINK ABOUT BEFORE LETTING THEIR PROPERTY

If you don’t know what to do with a property which has suddenly come into your possession, letting it via an agency can be a good extra source of income. However, becoming a landlord unexpectedly can be a daunting prospect.

There’s a lot to consider when becoming a first-time landlord - if you neglect to complete certain tasks, you could fall foul of legislation and face fines or, worse, prosecution. It’s a good idea then, to review our comprehensive checklist to ensure you haven’t missed anything out.

Clean the property
Carry out improvements and decorate if needed
Ensure the Energy Performance Certificate is valid and get a new one done if not
Ensure the Gas Safety Certificate is valid and get a new one done if not
Have an Electric Installation Condition Report (EICR) compiled
Ensure working smoke detectors are installed on each floor
Ensure a working carbon monoxide detector is installed in any room using solid fuel
Have risk assessments for fire, legionella and asbestos completed
Ensure that building and/or landlord insurance is valid and get new insurance if not
Set up a self-assessment tax account with HMRC as a business owner
Compile inventory of contents
Take photographs to advertise the property
Decide whether smokers and/or pets are acceptable
Prepare an Assured Shorthold Tenancy agreement and other documents to be signed

London is full of agents which can lead to a difficult decision for you: “Which agent should I use?”
Every applicant that walks through our doors is put through a thorough interview process before we consider accepting them as a prospective tenant for our landlords. This process not only clarifies the status of the applicant but also highlights their character.
Once we are satisfied that the applicants are financially viable and are of good character, we will agree to carry out viewings for them.
This may seem like a simple process but a lot of agents do not do this and will be only thinking about their commission from you today and not the long term relationship, as a result they will put forward the first applicants that show any interest in renting your property whether they are good or bad.

Our reputation for providing quality tenants is a proof to our long term commitment to our clients.

ENSURE THE TENANT PROVIDES THE FOLLOWING:

References

The full specified deposit amount

Evidence that they have the legal right to rent in the UK

WHEN ALL PARTIES HAVE CONFIRMED THEY WOULD LIKE TO MOVE FORWARD:

Create and jointly sign Assured Shorthold Tenancy (AST)

Jointly sign guarantor’s form with guarantor if needed

Get written confirmation from tenant they are happy to receive letting documents by email

Jointly sign inventory

Get tenant’s contact details

Take deposit from tenant

Take first month’s rent from tenant

Tenant to set up direct debit with you for rent

Take meter readings

Notify local council Council Tax Department of new tenants

Notify utilities companies

Protect deposit within 30 days of receiving it

PROVIDE THE TENANT WITH THE FOLLOWING:

Signed hard copy of the Assured Shorthold Tenancy agreement

Signed hard copy of the Guarantors Agreement (if needed)

Signed hard copy of the contents inventory

Your contact details

Your bank details for direct debit

Signed hard copy of current Energy Performance Certificate

Signed hard copy of current Gas Safety Certificate

Up-to-date copy of the “How to Rent – The Checklist for Renting in England” guide

Copy of current Electrical Safety Certificate if carried out

Copy of instructions for electrical and gas appliances

Certificate of Deposit Protection

Signed hard copy of Deposit Protection Prescribed Information and Clauses

Electrical Installation Certificate for any new or modified electrics

Minor Electrical Installation Work Certificate for any new or modified electrics that do not include a new electrical circuit

Deposit Protection Scheme information leaflet

Guarantors Agreement (if needed)

Copied evidence to prove tenant has a right to rent in the UK

Keys for all doors

Window keys

Keys to outside structures such as garages or garden sheds

Meter box key if applicable

Re-serve the most up-to-date copy of “How to Rent – The Checklist for Renting in England” between renewed tenancies if applicable

Re-protect deposit if you create a new tenancy agreement

Log all communications with tenant and create and maintain a letter/email trail

Respond to written complaints in writing within 14 days

Address anything that falls under your responsibilities

Inform tenants at least 48 hours ahead of time

Note the condition of the property, jobs that need doing and any tenant concerns

Feed back your property inspection findings along with follow-up actions if required

Serve the correct form of notice depending on the circumstances of the tenancy coming to an end

Ensure current tenants give access to prospective new tenants to view the property

Collect keys and any other items given to tenant

Take meter readings

Check inventory and list deductions

Tenant to sign list of deductions from deposits and amounts

Return while/part of deposit

The Security Deposit

This is held as a security deposit against damages and any other breach of the tenancy agreement. Smart Link Estates is a member of the Deposit Protection Scheme, which is administered by:

www.depositprotection.com

The Deposit Protection Service:
The Pavilions, Bridgewater Road, Bristol, BS99 6AA
T: 08444 727000
F: 0870 7036206
E: enquiries@depositprotection.com
W: www.depositprotection.com

• If we are / the Agent is instructed by you / the Legal Owner to hold the Deposit, we / the Agent shall do so under the terms of the Deposit Protection Scheme.

• If you, the Legal Owner, decide to hold the Deposit yourself, we will transfer it to you within 5 days of receiving it. You / the Legal Owner must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the Tenancy is an Assured Shorthold Tenancy. 

• If you fail to do so the Tenant can take legal action against you / the Legal Owner in the County Court.  The Court will make an order stating that you/ the Legal Owner must pay the Deposit back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. 

• In addition a further order will be made requiring you/ the Legal Owner to pay compensation to the Tenant of an amount equal to three times the Deposit. You the Legal Owner will be unable to serve a Section 21 Notice on your Tenant until compliance with the above conditions and the Court will not grant you / the Legal Owner a possession order. The Agent has no liability for any loss suffered if you / the Legal Owner fail to comply.

or

• If you / the Legal Owner decide to hold the Deposit and the Tenancy is an Assured Shorthold Tenancy you / the Legal Owner must specify to us / the Agent prior to the start of the Tenancy under which other Deposit Protection Scheme the Deposit will be covered. 

• If the Deposit is covered by Deposit Protection Scheme, you / the Legal Owner must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Scheme, we / the Agent will forward the Deposit to the DPS and register the details of the Tenancy.

• The Agent holds tenancy deposits as a Stakeholder.

• At the end of the tenancy covered by the Deposit Protection Scheme

• If there is no dispute we/the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Legal Owner, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Legal Owner and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.

• If, after 10 working days following notification of adispute to the Agent / Member and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Legal Owner and the Tenant over the allocation of the Deposit it will be submitted to the ICE for adjudication. All parties agree to co-operate with any adjudication.

• When the amount in dispute is over £5,000 the Legal Owner and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may athis discretion accept the dispute for adjudication.

• The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service from time to time, shared equally between the Legal Owner and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.

• The statutory rights of neither, you / the Legal Owner or the Tenant(s) to take legal action against the other party remain unaffected.

• It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so, seek the decision of the Court. However, this process may take longer and may incur further costs. 

• Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.

• If there is a dispute, I / we must remit to The deposit protection scheme disputes section for the full deposit, less any amounts already agreed to by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or I / we want to contest it. 

• Failure to do so will not delay the adjudication but The Dispute team will take appropriate action to recover the deposit and discipline me / us. The Agent must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.

Refund of Deposits

The Deposit must be refunded directly to the tenant unless there is a dispute; see deposit section as detailed above.

The landlord must advise their insurers if their property is rented as failure to do so may invalidate the policy. As well as insuring the property, landlords may also wish to consider insuring their own contents and to take out public liability cover in case of injury to a tenant in the property. Information regarding Buildings and or Contents insurance can be provided.

The landlord is responsible for the payment of ground rent and service charges (but not utilities) throughout the tenancy. Where we are instructed to manage the property, arrangements may be made for such payments to be de-ducted from rents received.