Introduction - in recent years, landlord
property insurance for landlord owned properties (as they have become
known) has increased dramatically. In the early days, the ability to
obtain this type of insurance cover was fairly difficult as most
insurers considered it to be more akin to a commercial insurance
proposal and wanted it insured and rated accordingly. It was
considered that as the property was rented, there was a commercial
element to the risk and therefore the correct liability cover had to
be applied. To meet the demands and needs of the growing rental
market, insurers responded by creating bespoke policy wordings that
were in the main based on a fairly typical home owners insurance
wording. This was seen as a natural development, after all landlords
were borrowing money from lenders on mortgages and they were being
requested to confirm that cover afforded by an insurers was in
accordance with the lenders handbook. It was thus appropriate that a
policy wording was based on a household wording.
Landlord Legislation -
whilst it may be fairly easy now to borrow money to fund a property
purchase and obtain insurance to cover all the usual risks, many
landlords are unaware that renting property in the United Kingdom is
subject to a number of rules and regulations. In fact, there is a
whole
raft of legislation that needs
careful consideration including; The Disability Discrimination Act,
Sex Discrimination Act and Race Relations Act, all of these apply to
people letting property and should be studied prior to attempting to
obtaining a tenant. As well as the above and in preparation for
letting, the landlord will need to make sure that he is able to comply
with the following specific laws. Often if you have decided to employ
the services of a letting agent, they will be able to help you make
the property ready and will be able to suggest someone to carry out
the necessary checks. It is unlikely that you will be able to find a
letting agent that will be prepared to market your property if it does
not meet the requirements of the law...
Gas Safety (installation and use) Regulations
1994 - this is probably the most well known of the laws relating
to landlords but is often overlook. Penalties for non compliance are
high and can include a term of imprisonment. If you effect an
insurance to cover your property, it will often state that this law
must be complied with for a claim to be valid under the policy
wording. The Gas Safety (Installation and Use Regulations) 1998 place
a duty of care on all Landlords to make sure that all gas fittings,
appliances and flues etc that form and or are supplied with the
landlords building are maintained in a safe condition. A
copy of the gas safety certificate should be left with the Tenant at
the property along with instruction books for all appliances. The
certificate will need to be renewed every 12 months or as directed.
Furniture and Furnishings (Fire) (Safety)
(Amendment) Regulations 1993 - any furniture and furnishings
provided by a Landlord for use by the tenant must meet the fire
resistance requirements of the above regulations. If you are
purchasing new furniture for the property that the task of compliance
is made a little easier for you as any item of furniture sold since
1990 will have regulatory display labels, which should not be removed,
This may seem a little unsightly but you should leave them on so as
the tenant can see that the item comply with the regulations.
The current regulations cover all upholstery and upholstered
furniture property. Typical items that need to comply with the law
include settees, armchairs, and sofa beds. The regulations do not
apply to duvets, loose mattress covers and carpets. Obtaining a copy
of the act will give you a more definite list of items that require
attention.
The Electrical Equipment (safety) Regulations
1994 - oddly enough, there is no statutory obligation placed on
Landlords to have professional checks carried out on the electrical
system or appliances at the rented property, however this doesn't
relieve you of your duties as under the Electrical Equipment
(Safety) Regulations 1994 & The Plugs and Sockets etc. (Safety)
Regulations 1994 there is an obligation to ensure that all electrical
equipment is safe for your tenants usage. Of course one of the only
ways to prove compliance with this act is to have appliances tested by
an electrician. One that is
NICEIC approved should be able to
provide you with a safety certificate and find out more about
approved electricians.
The Housing Act - The Housing Act
received royal assent on 15th November 1988 and part I of the new Act signalled
a fresh and market-oriented approach to the legal relationship between landlord
and tenant through the Assured Short hold Tenancy. These agreements form the
bedrock of renting in the United Kingdom and help to set out in a clear concise
manner the responsibilities of both parties. The agreement gives both parties
rights, the landlord can recover the property at the end of the agreement and
the tenant has the right of quiet enjoyment and can simply not be forced out of
the property and the landlords whim . Agreements are usually for a minimum of 6
months but do not apply to lettings to company lets or to Holiday lets. Amongst
some of the more salient points mentioned in the agreement are the Landlords
responsibilities , these include:-
-
Making repairs to the structure and to the
exterior of the property, keeping the heating and hot water installations in
working order basins, and making sure that all sinks, baths and other
sanitary installations are working. If the landlord is advised during the
rental period that there any problems with these items, he must take remedial
steps to have them repaired
-
As mentioned above, the as appliances must be
serviced and checked and a certificate provided to the tenant
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As mentioned above, the fire safety of furniture
and furnishings provided must be checked
-
The landlord must make sure that the property is
fit for habitation.
A recent change to the law has seen the
introduction of the Tenancy deposit law. This law was introduced on 6th April
2007 to give more protection to tenants by preventing landlords and letting
agents from unfairly withholding deposits. There are a number of schemes that
are being run at the present moment and which ever one you choose is a matter of
personal choice. The law was introduced to help prevent disputes at the end of a
tenancy agreement and landlords simply keeping as much of the tenants deposit as
possible. Landlords should be aware that if they do not follow the law and an
unhappy tenant takes them to court, the law is likely to side with the tenant
and the penalty could be fairly onerous
Copyright Assetsure Limited 2007
Same day Issue of Policy Documents for Landlords in a Hurry
