What Are A Landlords Legal Obligations?
Many people think that being a landlord is easy. Rent out a property, move some people in, sit back and rake in the cash… if only it was that simple.
Any experienced landlord knows that owning rental property is hard, and it can be a 24/7 job in the event of any issues. Preparing a property for rent is just the first hurdle; ensuring your tenants are safe and the property is maintained are ongoing requirements.
In this quick read, we bust some common myths about landlords and their obligations.
Landlords don’t care about safety
Wrong! It’s at the top of the list. Tenants deserve to live in homes that are safe, and a landlord has legal (and moral) duties to ensure this.
Gas safety is hugely important, and landlords throughout the UK must ensure that any gas appliances within the property are safe to use.
Tenants should be provided with a Gas Safety Certificate as soon as a tenancy starts.
Fire and carbon monoxide safety is also a legal priority for all landlords, and rental properties must be fitted with smoke alarms and carbon monoxide detectors.
Electrical Installation Condition Report, this should also be provided to the tenants alongside a PAT Portable Appliance Test Certificate and LRA Legionella Risk Assessment.
Landlords pocket deposits
Historically, deposits have always been a point of contention between tenants and landlords. But these days, there are strict laws regarding tenant deposits (and landlords can wind up seriously out of pocket if they flout them). Landlords must lodge all deposits with a government-approved deposit scheme. This ensures that a deposit will be returned if the terms of the tenancy are met, if no damage is caused (beyond fair wear and tear) and if all rent and bills are paid.
Landlords disappear once tenants move in
This is a big one, especially for tenants who experience problems after they have moved into a property. That’s why it’s always important to find a rental property through an experienced letting agent.
A good landlord will ensure the property is well maintained – after all, it is their source of income. Landlords should maintain any furniture or appliances that are in the property when a tenant moves in. An inventory should be carried out at the start and end of a tenancy to ensure that both parties have information about the general condition of the property and such items. The same applies to repairs if something stops working during a tenancy.
If you’re a tenant looking for a rental or a landlord looking for a new agent, please contact us on 01292 442888
A Guide to Tenant Responsibilities for Renters in Ayr
Moving into a new home can be exciting, but renting a property comes with responsibilities. To avoid disputes – or paying for things that don’t fall within your remit – it’s helpful to know your obligations as a tenant.
Read on for a general guide to a tenant’s responsibilities (but please note that for specific detail, refer to your rental agreement).
It’s a two-way street
The most important thing to remember about the tenant/landlord relationship is that both parties have an important role to play. The landlord has a duty to ensure that the property they’re letting is safe and habitable, and the tenant should treat the property respectfully.
Your rental agreement
As with most relationships, things work best when everyone understands what’s expected of them. And that’s why your rental agreement is so important – it’s a legal contract that spells out the responsibilities of the landlord and the tenant. It should cover everything from rent and repairs to how to end a tenancy.
Always read, and make sure you understand the terms of a rental agreement before you sign on the dotted line.
While your contract will cover most eventualities, here are some common causes of confusion regarding tenant/landlord responsibilities.
Repairs and maintenance
Generally, landlords are responsible for the property’s structure (walls, chimneys and the roof), sanitation (toilets, sinks and pipework), boiler and electrical wiring.
Landlords are also responsible for the furniture and electrical appliances that are in the property when the tenant moves in.
Any items or goods brought into the property by the tenant are the tenant’s responsibility.
Damage
If a tenant (or their guest) causes damage to the property, then the tenant is obliged to handle the repairs. So if, for example, you invite a friend around and they spill red wine on the carpet, it’s your job as the tenant to get rid of the stain.
Reporting issues
While the landlord needs to take care of structural and external features, it’s a tenant’s responsibility to report problems. It’s best to do this when you first notice an issue so that it’s resolved promptly.
Access
If you’ve reported an issue to your landlord, a tradesperson will need access to the property to do the repairs. This work should be conducted at a reasonable time, and you should be given 24 hours’ notice before they arrive. A tenant can refuse access on ‘reasonable grounds’. But to get the problem resolved as soon as possible, it’s best to be accommodating.
Gardens
Landlords are typically responsible for fences, guttering and lopping trees. The tenant is obliged to carry out tasks such as weeding, watering and disposing of waste.
Cleanliness
Cleanliness can be a thorny issue – half of all end-of-tenancy disputes are about cleaning*. Before moving out, a tenant should ensure the property is cleaned to the same standard as it was at the start of the tenancy (although allowances are made for general wear and tear).
Talk to your landlord – or their agent
While it’s essential to adhere to the terms of your rental agreement, if you have a question, raise it with your landlord or their agent. Sometimes disputes are caused by simple misunderstandings that can be sorted by having a quick chat.
To find out about rental properties in the local area, get in touch with us here at Parkview Property
Landlords! How to Carry Out a Property MOT on Your Ayrshire Buy-to-Let
It pays to sit down once a year and review how your buy-to-let is performing and flag up any potential issues looming on the horizon. A two-minute read.
We’re all familiar with an MOT, an annual check-up to ensure your car is safe and good to go for the year ahead. Well, let’s apply the same concept to a buy-to-let investment.
Even if your current tenancy is ticking along nicely, a property MOT can be a helpful exercise to ensure that you:
- Are up to date with government regulations and maintenance
- Have the right rental strategy
- Are not spending more than you need to on your mortgage and repairs.
So, let’s go!
Do the maths
Go through your records and calculate your return on investment and rental yield (there are online calculators to help you do this). See if you can identify any possible savings (consider everything from landlord insurance, mortgage deal, accountancy fees, etc.). Even if these gains are small, they all add up.
Repairs and maintenance
Often tenants are reluctant to raise minor concerns for fear they’ll look petty or get the blame, so don’t wait for them to call you. Be proactive and get on top of any leaks, mould or drainage problems. Ensure you’re up to date with mandatory gas and electrical safety checks.
Energy efficiency
We all know energy prices are soaring. Ensure your property is well insulated and draught-proof. Don’t wait until the winter to get this job done. And think longer term, as new energy property rules are on the horizon.
Décor review
Times change, but has your property?If your property looks tired and dated, you could be missing a trick. In some areas, the pandemic brought about a huge demographic shift that is being reflected in the rental market. Consider a cosmetic makeover or garden spruce-up so that you can target groups such as professionals, relocators or young families.
Property management
A property MOT isn’t just about money; it’s about time, too. If you self-manage, analyse the true cost of this task on your quality of life. If you’re finding the admin and legal requirements increasingly onerous, get a letting agent to take the burden off you. An agent’s expertise and market know-how may also save you money in the long run.
If you already have a letting agent, consider the quality of service you’re getting. Are your calls answered promptly? Is your agent meticulous when it comes to maintenance deadlines and routine checks? If you’re not happy, it’s time to shop around.
To learn more about the property management services we offer here at Parkview Property, get in touch. 01292 442888
WFH and Ayr Landlords: What You Need to Know
In our post-pandemic world, working from home (WFH) has become the new norm for many people. But as a landlord, you need to make sure your tenants are working in a way that doesn’t impact you negatively.
Most of us think of WFH as sitting in front of a laptop or doing Zoom meetings wearing a shirt and tie with pyjama bottoms. However, there’s been a boom of small businesses cropping up, many of them based in flats and houses all over the country.
Could tenants WFH affect your tenancy agreement?
Broadly, the answer to this question is ‘no’. However, there’s a difference between working from home for a job and running a business from a rented property. The latter used to be frowned upon as it could be seen as a ‘business tenancy’ rather than a residential one. However, changes to the law back in 2015 gave permission for certain ‘home businesses’ that could ‘reasonably’ be run from home.
Currently, the most common tenancy type is a Private Residential Tenancy (PRT) which stipulates that a property should only be used as a residence. This stops tenants from using the property as a business address, so you need to let your renters know that this is the case.
Should you ask tenants if they plan to work from your property?
There’s no reason why not. It’s always best to know what’s going on in your rental accommodation. You could get your letting agent to ask prospective tenants their intentions so you can make an informed decision.
Should you always allow tenants to WFH?
Most landlords would argue that their rent won’t be paid if their tenant doesn’t work, so the simple answer to this is ‘yes’. WFH for a couple of days a week shouldn’t pose a problem for most properties.
Difficulties arise when the form of work could cause damage to your property, or impact upon other residents. For example, if your tenant is a mechanic and plans to fix cars in the front garden, this could be a point of contention for neighbours. Similarly, if they’re running an internet sales business and using your property to store goods, you’ll want to make sure they don’t damage the interior.
Red flags to watch out for:
- Is your tenant using the property more for commercial purposes than residential?
- Are neighbours being affected by noise, traffic or anything else caused by the tenant’s business?
- Are customers attending the premises?
If you come across any of the above, you should seek further advice or speak to your tenants.
To find out more about the do’s and don’ts of tenants WFH, speak to our lettings team at Parkview Property 01292 442888
Landlords Top Tips for Successful Property Inspections
Here are seven top tips to ensure landlords don’t miss a thing when it comes to property inspections.
- By law, a landlord can’t just turn up unannounced – you must give at least 24 hours’ notice. Be reasonable and remember there are legal procedures to follow when booking an inspection.
- Have a systematic approach. Use a standardised form, and go from room to room, taking photos and notes.
- Don’t just look inside; ensure the tenant is maintaining the garden according to the rules set out in the rental agreement. Also, check pipework (inside and out), drains and electrical sockets.
- Test alarms and extraction fans.
- Ask the tenant if there is anything they want to discuss.
- Once you’ve completed your inspection, sign it and share it with the tenant (ask them to sign it, too).
- File the inspection so that you have a paper trail in case of a future dispute.
If you don’t have the time or expertise to conduct regular inspections, call us today. Our inspections are carried out using an online digital platform. It’s environmentally friendly and easily accessible to tenants and landlords.
For more info call: 01292 442888
Landlords Guide to Letting Legislation
There’s one rookie mistake that many first-time landlords make when they invest in property – and it can cost them dearly further down the track.
While most newbie landlords mull over the obvious financial stuff – like rental income, repairs, mortgage costs and tax – they overlook one other crucial factor in the buy-to-let (BTL) equation: legal responsibilities.
As landlords today must comply with more than 175 rules and regulations (many of which are constantly being tinkered with), it’s risky to ignore or gloss over the legal side.
We’re not saying it’s all too hard and not to bother with BTL – savvy landlords can most definitely make a solid return on their investment. But it’s best to invest with a clear understanding of what’s involved and have a strategy to meet your obligations.
This is because messing up, whether through negligence or ignorance, can have serious consequences – we’re talking huge fines, jail time and/or a lengthy court case.
Here’s a list of just some of the regulations landlords need to know inside out:
- Gas safety checks
- Electrical safety checks
- Smoke alarms (installation and upkeep)
- Carbon monoxide alarms (installation and upkeep)
- Deposits
- Energy performance ratings.
As we said earlier, get some of these rules wrong, and you could face a hefty fine. But on an even more serious note, think of the implications if a tenant is injured or killed because you were late with a safety check or forgot to install an alarm.
It’s not enough to get things right most of the time – you need to get them right all the time. Most landlords have good intentions. But they also tend to have busy lives, which makes juggling all their commitments tricky.
Use a professional
A good letting agent understands the rules and regulations and knows when changes are coming and how to prepare for them.
They’ll handle routine maintenance and safety checks and be on call 24/7. So, you can go on holiday, spend time with family or focus on work and know that a pro has got it covered for you.
Get in touch with us here at Parkview Property 01292 442888 to learn about our property management services.
Landlords Guide to HMOs in Ayrshire
As a landlord, you might be thinking about how to get more value from your property. While the rental market for single tenancies is booming, have you considered a House in Multiple Occupation (HMO)? Here's a short Guide to HMOs
These days, HMOs are big business. In simple terms, it’s where a single property is made into multiple dwellings. And currently, the rental market is crying out for more.
HMOs are no longer dingy bedsits of the past, they’re more like high-quality studio apartments under one roof.
In this three-minute read, we take you through the basics of an HMO, what you need to know about them, and how they can make you more money.
The legal definition of an HMO
A property is an HMO if at least three tenants are in residence, they form separate households (i.e. not a family or flat sharers), and they share bathroom, kitchen, and/or toilet facilities. A large HMO is where at least five tenants share the property and facilities.
Do I need permission to convert a property into an HMO?
Before you even consider turning your property into an HMO, get on your local council’s website and do some research. Many areas are subject to Article 4 directions. This basically means you can’t convert a property into an HMO without applying for planning permission.
You also need a licence to run/own an HMO, which is why it’s so important to speak to your council about their requirements.
Why are they so popular?
It’s simple: supply and demand. As the demand for rentals grows, so does the cost of renting. Add in increased costs of living, and many young professionals might not be able to afford the rent on their own. HMOs are a great way to bridge this gap, especially in larger cities.
What are the benefits of an HMO for a landlord?
It’s all about the money. Many investors have found that renting out rooms individually gives them a greater rental yield than a single tenancy.
Also, short-term occupation means even if one room is vacant for a period, the landlord still gets an income from the other tenants.
What should I know if I’m considering starting an HMO?
As with any property investment, an HMO has its ups and downs. If you’re a part-time landlord with a busy job, an HMO might not be the right move. There is a lot of work involved and you’ll need time to go through the process of planning applications, licensing, property conversions, tenant-finding, and so on.
Also, not every large house can be easily converted into an HMO, so it’s worth getting an expert in.
The initial expense of an HMO can be high as there are a lot of legal requirements you’ll need to meet to make it suitable for tenants as set out here. Also, HMOs are normally furnished, so there’s that cost on top of the building work.
If you’re a landlord looking to find a property to convert into an HMO, or if you have rooms to rent in an HMO, get in touch with our lettings team at Parkview Property
Are You A Landlord?
Why Renting Your Ayr Property to Family Could Be Problematic
If you are a Landlord, here are some questions you should ask yourself before you rent your property to family or friends.
Do they need to sign a tenancy agreement?
Yes, yes, and yes again! They might be family, but they’re also your tenants and both parties need to know what is expected of them. For example, a financial transaction will take place each month, and you need to make the rules clear from the start. Otherwise, you may be putting your income at risk.
Should I take a deposit?
This is a personal decision that you need to make, as there’s no legal requirement for a landlord to take a deposit. However, it is a good way to protect your property and any contents from damage.
Similarly, by having a professional inventory carried out before they move in, both parties know the exact condition of the property and how it should be left.
Should I do a tenant reference check?
Asking family for personal finance details? It might make you feel awkward just thinking about it, but it’s an essential step of the rental process.
While you may think you know your family/friends’ financial background, it’s still worth making extra checks. Referencing will ensure that your potential tenant can pay the rent and highlight any issues with previous landlords.
Are there any legal issues I should be aware of if I rent to family/friends?
Not exactly, but renting to family/friends could cause problems if you have a mortgage. In fact, a lot of lenders are quite strict about this issue, and you may need to ask their permission before you move family in.
This is because the lender could be concerned that you’d charge family members less rent, or be more lenient if they didn’t pay – both of which could impact loan repayments.
Renting to friends or family can often be a great option, but it’s one you need to consider carefully and go into with your eyes wide open.
Good relationships with family and friends is priceless! My advice would be to avoid renting to them. Unless you use the services of a good letting agent, we can act as a ‘go-between’ if things get awkward.
For more advice on anything and everything related to rental property in Ayr, call our lettings team today.
Changes to Eviction Notice Periods
Landlords have been hit hard by the emergency legislation known as the Coronavirus (Scotland) Act 2020, which came into force on 6th April 2020.
The 2020 Act, amongst other things, increased the notice period to 6 months for a number of grounds for eviction, regardless of how long the tenant had been resident in the property or how high the arrears were for example. The changes were initially to remain in force until 30th September 2020, it was then extended to 31st March 2021 and frustratingly, again until the end of March 2022. I’m sure I am not alone and have been waiting with bated breath to see what would happen next.
I’m pleased to report that on 29th March 2022, the Coronavirus (Scotland) Acts (Early Expiry of Provisions) Regulations 2022 comes into force, bringing an end to what many landlords and Letting Agents feel have been excessive notice periods before tenants require to vacate their rented properties.
What this all means going forward;
The Regulations stipulate that some of the changes made by the Coronavirus (Scotland) Act 2020 will expire on 30th March 2022.
The extended notice periods, including the 6 month notice period which has been used in most cases, will no longer apply. The original 28 day and 84 day notice periods will be reinstated, meaning that landlords can seek an order for eviction far quicker than they have been able to since April 2020.
Warning - Take Note
Although this is great news for many Landlords, the 2022 Regulations stipulate that if a Notice was served on a tenant prior to 30th March 2022 the extended notice periods will still apply. In addition, you cannot simply send out a new Notice using the same terms. If you try, the notice period cannot expire earlier than the notice period applicable to the existing notice.
Furthermore, regarding Rent Arrears, the Regulations don’t go as far as to reinstate the mandatory grounds for eviction, nor do they get rid of the obligations placed upon landlords to issue pre-action information and take reasonable efforts to agree suitable payment plans.
The Coronavirus (Recovery and Reform) (Scotland) Bill is currently before the Scottish Parliament and seeks (amongst other things) to make the temporary changes noted above permanent. If the Bill comes into force, the Tribunal will have to consider, whether it is reasonable to grant the eviction order, regardless of the ground used and landlords will have to continue to comply with the pre-action obligations introduced by the Rent Arrears Pre-Action Requirements (Coronavirus) Scotland Regulations 2020, or a version of them.
Here at Parkview Property, we have been keeping a close eye on the changes to eviction notice periods. Whilst we are pleased to report this most recent change, when it comes to Lettings Legislation, we urge all self-managing landlords to seek advice from a good letting agent, or a solicitor.
For more clear and understandable advice, please feel free to contact us. We are always here to help, and our advice is always free.
What Tax Expenses Can Ayr Landlords claim against?
A guide for Ayr landlords to declaring their rental income in the best way possible and what you can claim against.
If you rent out a property and receive a rental income from that, you must declare it. You have to pay tax on any profit. It doesn’t change your employment status to ‘self-employed’ though, as it’s considered an investment.
Of course, HMRC can be more complicated than a day at Hogwarts. The best advice will be to seek professional advice from an accountant but we’ve picked out some key points to start you off.
Start hoarding
HMRC unimaginatively call this ‘record keeping’. Be disciplined and keep receipts, bank statements, invoices, rent books, even mileage logs, so you (or your accountant) can easily make the deductions against your tax bill. This means you get to keep more of the profit away from ‘the tax man’ in a legal and ethical way, of course.
Expenses claims
There are a range of other allowable expenses. They are deductible only if they’re exclusively for renting out a property and if you pay for them yourself. This could include:
- Water, council tax, electricity, and gas
- Insurances
- Services of, for example, cleaners or gardeners
- Accountancy fees
- Ground rents
- Service charges
Maintenance and repairs
The definition from the gov.uk website is: ‘A repair restores an asset to its original condition, sometimes by replacing parts of it’.
If the property requires new guttering after a storm, this would be considered a repair and therefore, a deductible expense.
However, if you wanted to improve the guttering for another reason, like changing the colour, this would not be allowable.
Improvements are not an allowable expense, like replacing a laminate kitchen work surface for granite. The exception to this is updating things to their ‘nearest modern equivalent’. This could be things like changing single-glazing to modern, double-glazed windows.
If you replace an item with an upgrade, then you can claim the cost as if you had replaced like-for-like. Take the work surface example: a 2m length of laminate would be £150. The same size granite work surface could be £600. You could claim the £150, not the £600.
Domestic item replacement
Furnishings like carpets and curtains are likely to be able to be deducted, as long as you’re replacing like-for-like. Beds and free-standing wardrobes, or other items that can be considered ‘movable furniture’ are also deductible. Appliances, such as TVs or fridge/freezers, and even smaller items, like cutlery and crockery can be offset against your income.
Partial expenses
If you’re letting a property that you have a mortgage on, you can’t deduct the full amount of the mortgage payment. You can only offset the interest element of the mortgage repayment against the income. Similarly, if you use your car for a purpose related to the rental property, you can only deduct the vehicle running costs for that particular purpose. This includes mileage rate deductions.
For rental opportunities in Ayrshire, get in touch with us on 01292 442888. I specialise in Lettings and Lettings Legislation and can help you consider the market and the best options out there for you.
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