Landlords Guide

 

This Tenants guide and the other pages on this website are intended to give you a high level understanding of some of the important points to consider when you take that first step into the world of let properties.  Within our company we have extensive personal experience of managing residential let properties and we have tried to pass on the benefit of our experience through this website.  This information is provided free of charge.

 

We have broken down the information into the following categories:

 

Tenant Deposit Protection   Houses of Multiple Occupation (HMO's)

 

Tenancy Deposit Protection

 

From 6 April 2007, new rules will apply to all new assured shorthold tenancies (ASTs). They place a duty on landlords and letting agents to belong to a statutory Tenancy Deposit Scheme (TDS) if they take a deposit from tenants for an AST.

 

A landlord you must provide the tenant with the contact details of the scheme protecting their deposit.

 

A landlord can choose between two types of scheme: a single custodial scheme and two insurance-based schemes.

 

Custodial scheme

·         The tenant pays the deposit to the landlord;

·         The landlord then pays the deposit into the scheme;

·         Within 14 days of receiving a deposit, the landlord must give the tenant the prescribed information (to be set out in secondary legislation) about the scheme being used and the tenancy;

·         At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, they will tell the scheme which returns the deposit, divided in the way agreed by both parties;

·         If there is a dispute, the scheme will hold the amount until the dispute resolution service or courts decide what is fair;

·         The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.

 

Insurance-based schemes

·         The tenant pays the deposit to the landlord;

·         The landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme;

·         Within 14 days of receiving a deposit, the landlord must give the tenant prescribed information (to be set out in secondary legislation) about the scheme being used and the tenancy;

·         At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, the landlord returns all or some of the deposit;

·         If there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved.

·         If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.

 

Example:

A tenant pays a deposit of £1000. At the end of the tenancy, the landlord says he wishes to keep £200 to pay for replacing damaged furniture. The remaining £800 will be returned to the tenant.

 

The tenant disagrees, claiming the furniture was damaged when they moved in. Both agree to go to Alternative Dispute Resolution (ADR), so the disputed £200 will be transferred to the scheme administrator until the dispute is settled.

 

In each scheme, the deposit must be returned within ten days of the landlord and tenant agreeing how the deposit should be divided, or within ten days following notification of an ADR/court decision.

 

Who will run the schemes?

 

There are three government authorised Tenancy Deposit Scheme providers.

 

There is one Custodial Scheme provider:

The Deposit Protection Service (The DPS)
Web: www.depositprotection.com
Phone: 0870 707 1 707

 

There are two Insurance Backed Scheme providers:

 

Tenancy Deposit Solutions Ltd (TDSL)
3rd Floor, Kingmaker House
Station Road, New Barnet
Hertfordshire EN5 1NZ
Web: www.mydeposits.co.uk
E-mail: info@mydeposits.co.uk

 

The Tenancy Deposit Scheme (TDS)
Web: www.tds.gb.com
E-mail: deposits@tds.gb.com
Phone: 0845 226 7837

 

 

 

House in Multiple Occupation (HMO's)

 

If you live in a House in Multiple Occupation, the owner of the property should have a licence from the local authority. This guarantees that the accommodation is safe, well-managed and of good quality.

 

What is a House in Multiple Occupation?

Your home may be a House in Multiple Occupation (an HMO) if:

1.      at least three people live there; and

2.      the people who live there belong to three or more families (If the owner lives there, they and their family are not counted); and

3.      you share a kitchen, bathroom or toilet.

 

The most common types of HMO are shared flats and houses, but they also include:

·         Hostels, for homeless people or temporary workers

·         Staff accommodation in hotels, hospitals, etc.

·         Bedsits

·         Student halls of residence

·         Some types of supported accommodation.

 

What does HMO licensing mean?

The owner of an HMO is required by law to have a licence from the local authority. Before granting a licence the local authority will check that the property meets required standards in three areas. A licence can be suspended if the standards are not maintained throughout the period of the licence.

 

1. The owner and any manager of the property must be "fit and proper persons" to hold a licence.

The main requirement is that they do not have any convictions that would make them unsuitable to rent out property, such as for fraud. Other information may also be taken into account.

 

2. The property must be well managed.

·         You should have a clear statement of what is expected of you and what you can expect of the landlord. This will cover things like how much rent you have to pay and who is responsible for cleaning and maintenance.

·         The landlord must ensure the property and fittings are kept in good condition, and any furniture provided is suitable for its purpose.

·         The landlord must comply with the law in dealing with your rent and other payments.

·         Tenants must not be evicted illegally.

·         Tenants should make sure their behaviour does not cause nuisance or distress to other people in or around the HMO. If there are any complaints the landlord must take action to address the problem.

 

3. The property must meet required physical standards.

·         Rooms must meet minimum size standards.

·         There must be adequate kitchen and bathroom facilities, and hot and cold water supplies.

·         Adequate heating, lighting and ventilation must be provided.

·         There must be appropriate fire safety measures. This includes providing smoke alarms, making sure doors are suitable to stop fire spreading, and making sure escape routes are safe.

·         Gas and electrical appliances supplied by the landlord must be safe.

·         There should be secure locks to prevent intruders and theft.

 

How can I find out if a landlord is licensed?

Contact your local authority. They are required to keep a register of all the licensed landlords in their area. It is in your interest only to rent from a licensed landlord.

 

What if I think the standards are not being met?

Contact your local authority. They will be able to give you more advice on the standards. If there is a possible problem they will take it up with the landlord. They will not tell your landlord who made the complaint.

 

What happens when my landlord applies for a licence, or to renew it?

When a landlord applies for a licence, or applies to renew a licence, a notice must be displayed outside the property to inform people living in the area.

Officers from the local authority, and possibly the fire brigade, will probably need to inspect the property to make sure the physical standards are met. Your landlord should give you 24 hours' notice before the inspection. (This may not be necessary if cleaners or other staff routinely have access to your rooms.) If you have any concerns about this you should discuss them with your landlord, or contact the local authority.

Local authority officers may also contact you, usually in writing, to ask about the management of the HMO. If you raise any concerns they will be taken up with the landlord as part of the licensing process.

Anyone may submit an objection to the local authority against a licence application. The authority will not automatically refuse an application just because there is an objection to it. They will consider whether the objection is reasonable, and take into account all the information they have about the HMO and the landlord.

The local authority has up to 12 months to consider an application for an HMO licence.

 

If my landlord's application is refused, will I be evicted?

If a landlord is refused a licence, he must stop using the property as an HMO. This may mean some tenants are asked to leave. But the landlord must act legally and give you the period of notice set down in your tenancy or occupancy agreement. If you have difficulty finding other accommodation in time, contact the local authority housing department.

 

You can also get advice about any problems with your housing from the following organisations:

Shelter can give you immediate advice or direct you to a local advice centre.

Call free on 0808 800 4444, or visit www.shelter.org.uk

 

Your local Citizens Advice Bureau can also help. You can find their details in the phone book or through local libraries, or visit www.cas.org.uk

 

 

 

 

 

 Disclaimer

 

The information contained in this website is for general information purposes only. The information is provided by Orchard Green and whilst we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose.

 

Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

 

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It is important that you carefully research the market where you want to buy your let property.

 

Websites:

Insurance for Let Properties

Residential Landlords Insurance

Tenants Contents Insurance

Insurance for Homes