Gas Safety and the Landlord. Simply.

What are my duties as a landlord in relation to gas safety ?

You have a duty under the Gas Safety Regulations 1998  to have all gas appliances, whether fixed or mobile, pipework and ventilation (such as flues) checked every 12 months to make sure they are safe. If you employ a managing agent to manage your property for you and they have said they will organise this, make sure they do, because you are still legally responsible for making sure these checks are carried out. Ensure either you or the agent carries a record of the safety check for 2 years. You should also ensure that tenants have all the information they need: for example, instruction manuals for appliances.

Do I have to use a Gas Safe Registered Engineer ?

The work must be carried out by a Gas Safe registered engineer. You can check they are registered by going to the Gas Safe Register website or calling the Gas Safe Register on 0800 408 5500 and they should be able to show you a current id card, which includes information on the work they are authorised to undertake. The engineer should give you a landlord’s annual safety certificate, and you need to give a copy to the tenant within 28 days after the check is carried out, and to any new tenants before they move in.

Can a room containing a gas appliance still be used as a bedroom ?

You should also be aware that there are restrictions on the use of gas appliances, such as heaters, in any room used as a bedroom. If there are gas appliances in any bedroom, you should consider replacing them, or take advice to check that they are allowed. Since 31st October 1998, any room converted to use as sleeping accommodation should NOT contain the following types of gas appliances:

• A gas fire, gas space heater or a gas water heater (including a gas boiler) over 14 kilowatts gross input, unless it is room sealed.
• A gas fire, gas space heater, or a gas water heater (including a gas boiler) of 14 kW gross input or less or any instantaneous water heater unless it is room sealed or has an an atmosphere sensing device.

If a room contains one or more of the above appliances and was used as a bedroom prior to 1998 then you will need to assess whether it can still be used as a bedroom. If you are unsure of the safety of any gas appliance you should get a Gas Safe Registered engineer to check it for you.

How much will a landlord's gas safety check cost ? 

The cost will vary and depend on the number of appliances checked, but typically as a Chichester Letting Agent we find that with the people we use, prices will start at £45 and may range up to £100. 

At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.

Do I have to have a Buy-To-Let Mortgage ?

Many residential mortgage lenders will grant you what is known as 'consent to let' if you make them aware of your scenario and generally they will allow you to keep your current mortgage rate.

My advice would be to speak with your existing lender and see how they feel about your proposition. You will need to make them aware that you will no longer be living in the property anyhow, as if you let it out without telling them you could be contravening your existing mortgage conditions, which is a very serious matter.


In the event that they will not grant you 'consent to let' or will not allow you to keep your existing terms, speak with an independent mortgage broker whom will be able to check what else is available on the market for you and assess whether you should remain with your existing lender or not.

As explained above, you must, at the very least, approach your mortgage company if you intend to let the mortgaged property out. A typical ‘ordinary residential’ mortgage will include clauses which prohibit you from letting out the property (or require you to get the lender’s permission before doing so). If you let the property without informing the lender, then you are in breach of the terms of the mortgage.

In these circumstances, the lender could take action against you. For example, the lender might demand immediate repayment of the mortgage. If you cannot repay the mortgage, the lender will normally be entitled to take possession of the property and sell it.

So investigate available ‘buy to let’ mortgages, designed specifically for buy to let investments. But be prepared to comply with some rigorous conditions, imposed because of the credit crunch. For example, that you can only apply for a 75% mortgage if you are over 25, your annual income (apart from your rental income) is at least £35,000 and this is not your first mortgage. As with any mortgage you should shop around and, if in doubt, take advice from a trusted adviser.

Agreeing Rent Increases on Residential Property

At the outset of a tenancy, the landlord should agree with the tenant the rent and arrangements for paying it, and if the landlord wishes, arrangements for reviewing it before the tenancy begins and the details should be included in the tenancy agreement.

If the tenancy is for a fixed term Assured Shorthold Tenancy (AST), the agreement should say either that the rent will be fixed for the length of the term or that it will be reviewed at regular intervals and how it will be reviewed.

If the tenancy is a fixed term AST and the agreement does NOT say when the rent will go up, the landlord can only put the rent up if the tenant agrees. If the tenant does not agree, the landlord has to wait until the end of the fixed term before he can raise the rent.

When the fixed term AST ends and the tenancy lapses into a Statutory Periodic Tenancy (SPT), the landlord can agree a rent increase with the tenant, or formally propose a rent increase as soon as the SPT starts under a procedure in the Housing Act 1988.

The formal procedure for proposing a rent increase is for the landlord to notify the tenant of the proposed rent increase using a special form called "Landlord's Notice Proposing a New Rent under an Assured Periodic Tenancy of Premises".

If the tenant agrees with the rent increase (formally proposed or informally), he or she should simply pay it from the date given in the notice.

If the tenant does NOT agree with the proposed increase, he or she must apply to the Residential Property Tribunal (RPT). The RPT will then consider the information at it's rent assessment committee and determine what the rent should be. The tenant must do so before the date on which the new rent would be due. Details of the RPT are at http://www.justice.gov.uk/tribunals/residential-property

There is no appeal against a committee's decision except on a point of law, and there is no ability to award costs.

At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.

Six Vital Steps To Property Letting Peace Of Mind

Tenancy Agreement 

It is vital to create a binding tenancy agreement. If you have not invested in the services of a Lettings Agent to manage this, you may wish to pay a solicitor to draw one up. Even if you have had a Tenancy Agreement from a previous letting, you may need to up-date it. There have been numerous legal changes in the buy-to-let industry, such as the Tenancy Deposit Protection Scheme, which need to be reflected in the agreement.

In addition, the majority of mortgage lenders require landlords to have an Assured Short-hold Tenancy (AST) agreement in order to take out a buy-to-let mortgage. Contracts with tenants usually run for 12 months, although break clauses are commonly inserted into the agreement to allow earlier termination of the contract.

References

References from your tenant's employer and/or previous landlord can help you to assure that the tenant is the sort of person you want to live in your property. It is recommended that you instruct a Lettings Agency to do this for you, but if you would rather gather the references yourself, make sure you allow plenty of time for chasing the potential tenant and following up on their references. A Letting Agency will generally conduct much more rigorous referencing, so much so that some will guarantee the rent and remove the tenant if as result, you still have problems 

Deposits

A deposit from a tenant covers you against both damage to the property and unpaid rent. However, landlords are legally obliged to place the deposit in a Government-approved tenancy deposit scheme. Failure to do so could result in a fine of up to three times the original deposit, plus the deposit itself. In addition, should you wish to evict a tenant at a later date, this will be much harder if the deposit has not been properly protected. Letting Agents will be registered with a government approved scheme, and it is important that you use such a scheme.

Inventory

A robust inventory at the start and end of tenancy are important in avoiding any disputes over the return of deposits. Many prolonged disputes are as a result of a failure to properly assess the property at check in. Taking the time to conduct a thorough inventory using either an inventory company or a letting agent using proprietary software, can save time and hassle later.

Building and Contents Insurance

Most mortgage lenders insist on buildings insurance - so remember to calculate this into your costs! Contents insurance should also be seriously considered. Carpets, appliances, fixtures and fittings can all be insured against tenant damage. It is also possible to insure against payment default from tenants, which may be prudent in the current economic climate. 

Regular Property Checks 

In our experience, many private landlords can be lax when it comes to regularly checking their buy-to-let property. Checks can reveal problems that could become more costly if left to fester. Remember, you are legally obliged to give tenants 48 hours notice before your visit. A letting Agent will usually offer comprehensive visual inspections (at agreed intervals).

At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.

Squatting Becomes Illegal This Weekend

Squatting in a residential property becomes a criminal offence from Saturday in England and Wales.

The maximum penalty will be six months’ prison and/or a £5,000 fine.

Trespassing will be where someone knowingly enters a residential building as a trespasser, and is either living there or planning to live there without the owner’s consent.

There will no longer be a requirement for the property owner to ask the trespassers to leave before being able to involve the police.

Police will have a specific duty to enter the property to arrest anyone suspected of squatting, and can ignore ‘squatters’ rights’ notices.

The new offence will make it harder for trespassers to claim trespassers’ rights, because their occupation will be a criminal act.

Squatting as a criminal offence will not apply to residential tenants who continue to stay in a property, despite paying no rent. They will still be subject to the normal eviction proceedings.

Nor will it apply to people who think they had permission to live in a residential property. Government guidance specifically gives as an example a situation whereby a bogus letting agent encourages an unsuspecting tenant to occupy someone else’s property.

The offence will not apply retrospectively, so people already squatting in a residential property by September 1 will escape prosecution.

The offence is part of the Legal Aid, Sentencing and Punishment of Offenders Act 2012.

At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.

Henry VIII archaic property law could affect thousands

Thousands of families are set to receive warnings from the Land Registry that they could face large bills to repair their local church, after parishes were ordered to enforce a land law passed after the dissolution of the monasteries under Henry VIII.

Because of the way land was carved after the dissolution of the monasteries, the owners of many houses sited near historic churches have a legal obligation to contribute to repairs, even if they have never attended it, reported The Telegraph.

The archaic rights will see people living in more than 5,000 parishes in England subject to the historical “Chancel Repair Liabilities”, which affect properties built on former monastic land.

Most take out a form of insurance against the liability but many so-called “lay rectors” are entirely unaware of the obligation as it is rarely enforced.

The Telegraph described how the issue has reached a head in the 12th Century Cotswolds parish of St Eadburgha, Glos, where 30 villagers, many of them elderly, have now received letters from the Land Registry warning them of their unexpected legal obligations and giving them just two weeks to lodge a legal objection.

The local vicar, the Revd Michelle Massey, who is trying to secure a legal exemption for her parishioners through the Charity Commission, has described the letter as “vicious” and the law as “unchristian”. She warned that many other parishes are set to follow suit.

Tory MP Peter Luff has described that the row is “the tip of the iceberg” and is likely to be just the first act in a drama set to affect villages across England. He added that he was aware of other parishes already moving in a similar direction and warned, “This could be replicated across the country, that’s an awful lot of people whose lives are about to be blighted and their homes unsaleable.”

After an attempt by the last Government to tidy up the 500-year-old law in the wake of a high profile court case in 2003, parishes have been ordered to trawl through land records dating back hundreds of years to clarify exactly who is liable.

The decision of the House of Lords in PCC of Aston Cantlow -v- Wallbank in 2003 sent shockwaves through the property world and the legal profession, and had the effect of highlighting the need for the law to be clarified. When Aston Cantlow church billed Andrew and Gail Wallbank at Glebe Farm, Warwickshire, for almost £100,000 in repairs, the case dragged through the courts for years, racking up considerable costs.

As a result the last Government ordered parishes to register all houses liable for the ancient charge by late 2013. The Land Registration Act 2002 (Transitional Provisions) (No 2) Order 2003 covering (inter alia) was made, a right in respect of the repair of a church chancel.

The ten-year legal deadline imposed by the last Government will meet its watershed at midnight on Saturday 12th October 2013 and local parish bodies have been warned they could be legally responsible if they fail to comply.

At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.

Rental homes set to be subject to council tax as soon as they fall empty

New plans to give local authorities power to charge council tax on homes as soon as they become empty could hit sellers and landlords hard – and give letting agents a mammoth administrative headache.

At the moment, when a domestic property falls vacant, the owner is granted a mandatory period of six months before council tax becomes payable. Ministers want to abolish this mandatory requirement.

Under the Localism Act, the Government is proposing to replace it with a clause that would let local authorities charge whatever they wanted on empty homes for the first six months.

They could if they wished charge nothing, or the full 100% council tax, or anything in between. The carrot for local councils is undeniable – they would be able to hang on to every penny.

After the first six months, full council tax would be payable, as now.

The actual proposal is to abolish the Class C exemption for council tax purposes.

Class C dwellings are empty homes that are largely unfurnished. Other classes, which would appear to remain untouched by the latest moves, include homes left empty after someone has become ill or because the property is subject to probate.

Of the Class C category, the Government says ‘there is no compelling reason why the first six months should be treated so generously’.

The proposal could clearly hit landlords, as well as sellers needing to relocate quickly– for example, to new jobs or, in the case of older people, to be closer to family.

It comes at much the same time that a much higher-profile move has grabbed the headlines. The Local Government Finance Bill, currently going through Parliament, will allow local councils to charge higher amounts for homes empty for two years or more, as well as to double rates for second homes.

While that too could also affect sellers of some homes which fail to sell quickly, and private landlords with voids – a spokesman for the Local Government Association told LAT yesterday that the proposals could have ‘unintended consequences’ – it would be nothing like as complicated as the proposal to abolish Class C.

However, cash-strapped local authorities clearly like the idea of being able to charge whatever they like on newly-empty properties.

In the official consultation this spring, they overwhelming voted in favour (169 councils for, 25 councils against) to the Class C exemption being abolished. They were not only by far the most enthusiastic, but also the group which responded most to the proposal.

Only five property-related businesses responded (three against the proposal, two for it), and just 70 members of the public, thought to be landlords. Of these, i 11 were for the idea and 59 against it. Just one MP responded, favouring the abolition of the exemption.

However, even the most eager of local authorities would have to face up to the logistics of having to collect small amounts of council tax on properties vacant for only a few days.

Ian Sanford, of Pennington Homes, in Huntingdon, said: “With local authority finances under pressure in the present recession it is more than likely that authorities will choose not to grant council tax-free periods, which will have major financial implications for landlords and vendors alike.

“In addition, it will provide an additional administrative burden for letting agents in that they will have to advise local authorities of all vacant periods, most of which are often only of a duration of a few days. It is also likely that, in these cases, it will cost the local authority more to collect the small amounts than the additional revenue achieved.”


At Affirmed Choice Letting, the Chichester Letting Agent, we are passionate about the principles of personal customer care, and our guarantee is to provide a unique 'Peace Of Mind' property management service to tenants and landlords. Click here to find out how we help landlords to protect their investment.