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Buy
to Let Regulatory Issues for UK Landlords
The Tenancy Agreement - the renting of
Accommodation and Tenants rights are dealt with my numerous Acts of Parliament
and other statutory Instruments.. The Housing Act 1988 in England & Wales
(amended 1996) and The Housing Act (Scotland) Act 1988 state that most tenancies
granted are Assured Tenancies. To make sure that you has a Landlord afford
yourself the ability to obtain repossession of your property at the end of the
contract term then an Assured Short hold Tenancy agreement (England & Wales) or
Short Assured Tenancy agreement (Scotland) will be used. In practice this is
much easier since 1997, unless specified to the contrary, all tenancies are
deemed to be short holds.
Under these agreements, you as landlord will be entitled to recover possession
of the property as a right, at the end of the agreed term provided of course you
have served the correct notices to the tenant. It is against the law to evict a
tenant unless you have a court order, however if you have served the necessary
notice papers, a possession order can normally be obtained within two months.
Safety Regulations - there are various rules and regulations that relate
to the letting of property, under the Landlord and Tenant Act 1985 a landlord
must keep in repair the structure of the property and the installations for the
supply of services such as Gas, Electricity, Water etc and Heating etc. It must
be noted that an Assured Short hold Tenancy Agreement states that a Landlord is
not responsible to reinstate the property following damage caused by the tenant
that the insurers of the building refuse to pay, or to reinstate the building
following a peril that is not insured by the Landlords
Building Insurance
policy. Although not specified in the agreement, you must pay attention to
the various laws relating to Letting property, these checks should be carried
out prior to letting the property:-
Gas Safety (installation and use)
Regulations - the Gas Safety (Installation and Use Regulations) place a
requirement on all Landlords to make sure that all gas fittings, appliances and
flues supplied with accommodation are maintained in a safe condition. As well as
the Gas certificate that must be given to the tenant, you should provide
instruction booklets with each appliance supplied. The regulations require
that a Council for Registered Installers (CORGI) gas installer carry out an
annual safety check. A record of safety checks including details of any problems
found and rectified must be kept and the tenant issued with a copy of the Gas
certificate within 28 days of the service. The penalties for non
compliance are quite severe; you could receive a fine of up to £6,000 and 6
month's imprisonment per item not complying with the regulations.
Furniture and Furnishings (Fire)
(Safety) (Amendment) Regulation - any furniture and furnishings provided by
you must meet the fire resistance requirements of the above regulations. . Not
all furniture is covered by the requirements; The regulations do cover all
upholstery and upholstered furniture supplied in a rented property. Items
included would be settees, armchairs, loose cushions, futons sofa beds,
mattresses, headboards, pillows etc, garden furniture if it can be used indoors
is also included .However, the following items are not included , duvets, loose
mattress covers and carpets.
This law is fairly easier to comply with if you are purchasing new furniture,
anything manufactured after 1990 should have a label stating that bit meets the
requirements, you should leave these labels attached to the furniture. If you
are in any doubt as to wether an items needs to complay, you should contact the
Department of Trade and Industry who will be able to furnish you with a guide
book. Again The penalties for non compliance are quite severe, in line with
those mentioned above.
The Electrical Equipment (safety)
Regulations - there is no statutory requirement on Landlords to have
professional checks made on electrical equipment within the rented property.
However you do have a responsibility to make sure that all items are safe.The
Health & Safety executive enforces these regulations as laid out in Electrical
Equipment (Safety) Regulations 1994 & The Plugs and Sockets etc. (Safety)
Regulations 1994. These come under the Consumer Protection Act. Although there
is no requirement to furnish a certificate of inspection to a tenant, having a
qualified electrician test each item will help demonstrate that you have ensured
items are safe. A leaflet providing further information can be obtained from the
Health & Safety Executive. As per the above, failure to ensure safety in
the rented property my result in a fine or imprisonment
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