With over 150 forms of landlord law, the complexities of drawing up a tenancy agreement and the continuous maintenance of the let, letting a property is getting more and more difficult. As a letting agent, you should elaborate on this when trying to win business from your landlord, convincing them to turn to a managed strategy. Below we’ve outlined key things your landlords and yourself as a letting agent need to consider.
Ensuring you correctly manage your repairs and maintenance will not only allow you to successfully serve a Section 21 but will also keep the property in good condition, reducing the risk of the tenant living in conditions unfit for human habitation. Openview’s Task Manager ensures tenant’s report repairs, instantly, online to yourself, meaning you can consult the contractor immediately, resolving the repairs process.
Knowing your tenant is an important part of letting a property. Before you even begin the let, landlords should consider who their tenant is by correctly referencing them. If this isn’t done, the landlord could be letting to an unreliable tenant who may potentially damage the property or even fail to pay the rent.
3 Capital Gains Tax
Major changes to the sale of UK residential property and Capital Gains Tax will come in from April 6th 2020. The changes mean all UK residential property sales must be reported to HM Revenue Customs within 30 days of their completion. The tax must be paid at the same time of the sale, These changes apply to UK residents and tax payers as well as non-residents.
4 Tenancy Agreement
Writing a tenancy agreement isn’t exactly the easiest thing in the world. Some clauses can’t be placed in the agreement due to law whilst they have to be written in a certain way. It’s just another step in lettings landlords need to consider. Should a landlord choose to let the property themselves, using property software such as Openview allows the agreement to be automatically pre-populated ensuring it’s correct.
5 Tenant Fee Ban
With the fee ban coming in June, agents are looking for new ways to thrive and enhance their income. Landlords will have to become aware of what they can and cannot charge. Should this be their first let, they are likely to struggle to make a profit which could result in them leaving the market.
6 Section 21
With the threat of Section 21 being abolished, landlords could face difficulties evicting tenants in future lets. Wales has recently revealed plans to introduce 12 month tenancy contracts by default, potentially leaving landlords with limited powers.
Letting a property isn’t just letting the tenant live in the property, over time their administration will build up and you need to know how to deal with it. Although automation can reduce your admin by 50%, it’s still an essential part of letting a property. Whether it’s the tenancy agreement, gas safety certificates, EPC’s, legionella checks or referencing documentation, understating the paperwork behind letting a property is something landlord’s should consider.
8 Energy Efficiency
From April 2018, all properties under a new or renewed tenancy must be improved to meet E on the EPC scale. Meanwhile every property must have an EPC issued by a qualified EPC assessor, these can be found by clicking here. Should you be a landlord with a single property, improving a property’s energy efficiency could be costly.
9 Mandatory CMP
From April 1st 2019, mandatory CMP means agents must join a Client Money Protection scheme. Landlords will have to do exactly the same should they opt to let a property solely.
With over 150 landlord laws, letting a property has become an almost impossible task. EPC, Legionella, CPR, Client Money Protection, Blind Regulation and Human habitation are some of many regulations agents need to abide by.
Exclusively for our Openview and VTUK users, we’ve made a list of laws you and your landlords need to consider. This lists acts as a tool you can use to turn your landlords from let only to a fully managed service. Download your list on our Openview Enterprise Facebook Group.