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A landlord is someone who rents out property or lodging. When one refers to a landlord, most people are referring to a person who owns a house or flat that is being rented out as a dwelling. For the purposes of this article, the rented space is a residential house.
The main responsibility of a landlord is to make sure that the property is safe and habitable. This means that the house is not growing mold, the roof is not leaking, the gas is not leaking and all safety alarms are properly installed and working.
Additionally, the landlord is responsible for making sure that all light fixtures and electronic appliances provided by him or her are property installed and working. The landlord is also responsible for filing the Energy Performance Certificate and protecting the tenant’s deposit as instructed by the government.
In United Kingdom, The Housing Health and Safety Rating System (HHSRS) is set in place to provide guidelines for landlords to maintain the house in livable conditions. The HHSRS was established by the local council. The local counsel may be asked to inspect a house and check for such things as uneven stairs, lose floorboards and other hazardous conditions. Tenants in a rented house may ask the council to perform an inspection on the home. The council may also come into inspect the house if they have noticed that is looks run down from the outside. The council has a list of 29 different hazards that they rate as either a 1 or 2. Items rated a 1 must be fixed. Items rated a 2 are less serious but sometimes a landlord will be required to fix those as well.
The 29 Hazards include mold growth, too much heat or cold, lead, asbestos, lighting issues, ease of entrance by intruders, Pests, water supply, electrical hazards and explosions. Landlords should be familiar and conscious of the items on this list as they will be expected to keep the items on the list from becoming a problem.
In addition to maintaining the house, the landlord has some financial responsibilities. First, the landlord must pay income taxes on the income received from the rent money. The costs of maintaining the property can be deducted before the income tax is calculated. Second, if the property still has a mortgage on it, the landlord must get permission from the lender before renting the property out. The lender will want to change the lending agreement to suit the new situation of the property. If the mortgage company is not notified, they are in their rights to take the owner to court.
Getting permission to rent out a property when it is still under a mortgage is vital. Some agreements may not require that the mortgage owner get permission before renting the house out. Read over the agreement before making any calls to the lender. However, most agreements require that the mortgage lender has to allow the property to be lent out to tenants. Call the mortgage company and talk you a mortgage agent. Sometimes the company will change the mortgage so that the interest rates are higher before allowing the property to be rented out. Such agreement changes will likely raise the monthly mortgage payments on the property.
The landlord is also responsible for certain repairs in the house. The landlord must fix damage to the structure of the house. He or she is also responsible for sanitary fittings such as basins, sinks, tubs and etcetera. The landlord must also fix problem with the heating or hot water heating. If any electric wiring is in need of repair, that is also the landlord’s job. If any damages are made to the house while repairs are being executed, the landlord is responsible for those repairs. The landlord is not responsible for any repairs to items purchased by the tenants as a general rule. However, if items belonging to the tenants are damaged due to poor repair of the house, replacing those items is the responsibility of the landlord. The tenants are responsible for keeping the house reasonably clean, replacing batteries in smoke detectors and replacing light bulbs. Always include a detailed list of renter and landlord responsibilities in the tenancy agreement.
Most people know that the landlord is responsible for repairs to the house. However, some people are unsure as to who is responsible in the case of a natural disaster. Fires, floods and other natural disasters are always a possibility. The landlord is responsible for any damage done by a natural disaster except damage done to the tenant’s personal property. Unlike with standard repairs, insurance can be a huge money saver in this situation. Never rent out a house without housing insurance. How much out of pocket expense the landlord will pay depends on the type of insurance policy. Some policies will give full coverage and others will only offer partial coverage. The cost and types of housing insurance available varies in different areas of the country and from house owner to house owner. Pass on information to tenants concerning renter’s insurance that will cover their personal items. While the landlord cannot require tenants to have renters insurance, letting renters know that option is available is a wise decision and a kind act toward tenants.
All of the information about who is responsible for repairs should be listed in the tenancy agreement. A tenancy agreement is the agreement drawn up between the landlord and tenant. A written tenancy agreement is not required; however the absence of one is moronic. The agreement explains the rules and responsibilities of both the landlord and tenant. Both parties can refer to the agreement if any questions arise.
To write a tenancy agreement, follow these steps:
Make sure to follow all of these procedures. If the procedures are not followed, particularly using full and legal names and using a notary, the document may not be valid.
Rent is monies paid to an owner for use of an item or property. When a landlord rents his or her house to a tenant, a preset amount of money is collected on agreed upon dates. Usually rent is paid monthly. However, rent can be paid weekly, annually or any other intervals of time. If rent is not paid on the due date, a late fee may be charged.
In order to raise rent, a landlord must follow certain procedures. Rent can be raised during a lease period. However, the tenant has to agree upon the rise in rent. The tenant is under no obligation to agree to the increase. The best time to raise rent is when a lease agreement period has ended. If the landlord wishes to raise the rent in the middle of a lease and the tenant does not agree, the landlord can file a section 21 notice to end the lease agreement thus forcing the tenant to either vacate or agree to the higher rent. That action is rather slimy yet legal.
If the lease has been terminated or has run out and the tenant is under a month to month rental agreement, the rent can be raised yearly. The rent can be raised either 12 months from the move in date or 12 months from the last time the rent was increased. The rent cannot be raised before 12 months has passed or the tenant can peruse legal action. The landlord must give at least 30 days warning before rent is increased. However, as finding new tenants is fairly expensive, the landlord would do well to give his or her tenants as much warning as possible. Tenants may understand the need to raise rent but tenants appreciate a warning that will allow them to adjust their budget for the increase.
A House in Multiple Occupation (also known as a HMO) is a house that is shared by different renters and has an area commonly used by all occupants. Sometimes they may share a restroom or a kitchen. Sometimes those living in an HMO are only sharing a staircase. Flats that are individual homes do not count as HMOs and HMOs are unique to houses. Typically, HMOs are used as student housing. HMOs must be licensed. A license can be obtained from the local authorities. The local authorities are authorized to revoke the license if requirements are not met. Different local authority organizations will have different regulations on the licensing of HMOs. For information on the requirements of an HMO, be sure to call the local authority to avoid refusal or loss of the license.
Income tax is the most dreaded of all rental property issues. Nobody likes to pay tax. However, legally most people who rent out personal property will pay tax on the property. For those who are not math geniuses, paying a profession tax preparer to help with the accounting of taxes is advisable. However, even if a professional accountant is used, one should know a little about taxes. Remember that different locations in UK may have different tax rules. Also, different types of properties may have slightly different tax rules. Always check anything that is unclear with either an expert or a government worker who knows the small details of income tax.
When a property owner decides to rent out his or her house, he or she should immediately contact the HM Revenue and Customs (HMRC). The HMRC will confirm that income taxes must be paid for properties that produce a rental income of £2,500 or more. Despite the unpleasantness of paying taxes, the penalties for not paying taxes are far worse. If for any reason the owner has been renting out the property and has undeclared rental income that he or she has not reported, contact the HMRC and they may be able to work out a way to reduce the costs of the back taxes and penalties. If a rental property makes less than £2,500 a year call the Self Assessment Helpline and ask for a P810 form.
While taxes can be expensive, there are ways of reducing how much taxes will cost. The rules for residential properties, furnished holiday properties and commercial properties of course vary. This article focuses on residential properties. Check with the HMRC for info on holiday properties and commercial properties. Allowable expenses may be deducted from the property tax. Allowable expenses include letting agent fees, legal fees accountant fees, insurances on the property, maintenance and repairs, any utilities that are paid by the landlord, services such as cleaning and gardening that the landlord may pay for and other items directly connected to renting out a property. Buying and improving properties are not expenses that can be deducted. However, improving a property or adding another property to rent out can increase rental income and produce higher percentages of tax deductions. If the property is furnished, 10% of the net rent can be deducted for normal wear and tear.
As much as renting out property can bring extra income, sometimes tenants do not pay rent. Studies have shown that more and more renters are struggling to pay bills and falling behind on rent. The economy is not at its greatest point right now and it happens. However, for some landlords, dealing with the constant failure of tenants to pay rent can be too difficult. Luckily, the law has steps in place to help landlords deal with tenant who will not pay rent. Also, if renting a property becomes too difficult, landlords have options available to help them get out from the responsibility of owning a rental property.
The first step to dealing with tenants who are behind on rent is to give them a written notice. A rent arrear reminder form is the best way to inform tenants that they owe rent money. Always do this in writing and always keep a copy filed. If for some reason the problem advances to court, written documentation will become incredibly important. One thing to keep in mind is that working out a deal with a current tenant who is struggling to pay rent is always cheaper than finding a new tenant. Unless the plan is to sell the property after evicting the current tenant, try to find a payment plan before eviction. The process of finding a new tenant and getting the property ready for new occupants can be very expensive.
If no deal can be struck and the tenant continues to fall behind on rent, eviction is an option. The Housing Act of 1988 offers two solutions to removing tenants. The first is section 8 and the second is section 21. Section 8 is to be used when a lease is still in effect. If there is a lease agreement, the landlord must issue a section 8 notice. With a section 8 notice, the tenant could be required to leave in as little as 2 weeks.
The second option is section 21. Section 21 is used when the lease agreement is no longer in effect. Most landlords prefer this procedure as theoretically it is easier. The landlord does not need a reason to remove the tenant. However, the tenant must be given 2 months notice. This method can also be used if the landlord just wants to stop renting out the house regardless of the rent being paid on time. While this is not required, helping a good tenant find a new rental is a kind thing to do.
While the 1988 Housing Act is in place to protect the rights of a landlord, not all tenants heed the law. Even if a judge orders the tenants to leave, the house’s occupants may not leave. When the tenants do not leave when they are supposed to, the landlord must give them a notice stating his or her intention of repossession. The case must be taken to court and brought before a judge. Sometimes the judge will allow the tenants to say in the house is they meet certain criteria. However, if the judge rules in the landlord’s favor, the tenants may be removed via law enforcement.
When the landlord decides that he or she no longer wishes to maintain the property, the house can be sold for a profit. Sometimes the property is just not making any money. If a reasonable rent amount is not bringing a profit, the best option is to sell the property. If the landlord is tired of dealing with troublesome tenants or otherwise can no longer care for the property there is no logical reason to keep it.
Genuine Property Buyers can help landlords get out from under the obligation of a rental. Even if the house has little to no equity, we can help. The house can be sold in as little as 30 days. Either fill out our easy to use online form or give one of our customer service agents a call. We will be in contact within 48 hours and can have a legally binding purchase agreement signed and ready. If the property has become a burden rather than a source of extra income, the best thing is to sell it and be free. To find out more visit: www.genuinepropertybuyers.co.uk/landlords-problem-with-tenants/
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Danko is IT professional with big passion about properties from young age. He is based in Manchester where he actively investing in properties and helping others to sell their houses. 
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