Landlord Checklist for Renting a House in Brighton

Thinking of investing in buy to let in Brighton or Hove? Become an accidental landlord after a house move or inheritance? The first thing you’ll realise is that there’s quite a lot to take in. You’ll need to get up to speed with everything from conducting right to rent checks to ensuring your property has an annual gas safety inspection, and from protecting security deposits in a government-backed scheme to conducting a thorough inventory.

From our experience of working with Brighton landlords, we think the best way of keeping on top of your legal obligations and responsibilities is an extensive landlord checklist for renting out a house.

Wondering what this letting a property checklist should include? Then read on…

1. Permissions

One of the first things to tick off your rental checklist is whether you are actually able to let your property to tenants. If you already own the property, with a normal residential mortgage, it is likely that you’ll need to shift to a buy to let offering, which could cost you more and involve redemption fees.

Double-check your building’s insurance for current validity. Furthermore, scrutinise the terms of your building’s insurance, as there may be clauses that do not allow you to rent out your home to new tenants. Do your homework to avoid headaches at a later stage.

2. Licensing

Next on your renting a home checklist – call your local council. Some landlords will need to be licensed by their local authority before letting a home. National legislation requires a licensing for letting a larger house in multiple occupation (HMO). Other privately rented homes require licenses in some areas, so always check with your council first.

3. Energy Performance Certificates (EPC)

Anyone renting out or selling property in the UK needs an energy performance certificate – so this is one for your landlord checklist too. EPCs measure how energy efficient the property is. In a nutshell, an EPC provides each property with an energy efficiency rating from A (most efficient) right through to a G which is deemed as the least efficient. These ratings are valid for 10 years. To obtain an EPC, you’ll need to recruit an accredited assessor to carry out an inspection. If you use an estate or letting agent, they will need a copy of the EPC report.

By law, most domestic properties must meet the minimum energy efficiency standard of an EPC E rating before they can be rented out. If yours doesn’t, you will need to make energy-efficient improvements. These could be loft insulation, a new boiler or just fitting LED lightbulbs – your EPC report will include recommendations.

4. Home Safety

You must also ensure the property is fit to live in throughout the tenancy and won’t adversely affect the health or cause injury to the tenants.

Gas Safety

As stipulated in 1998, The Gas Safety (Installation and Use) Regulations Act deems that Landlords must ensure that all gas appliances, including pipework, cookers, boilers, fires and heaters plus fittings, chimneys and flues meet gas safety requirements and are working efficiently.

A gas safety engineer is required to conduct a gas safety check. This usually takes around 30 minutes to complete, depending on the property’s size and the number of gas appliances. Upon successful completion of this, you’ll receive a gas safety certificate.

Electrical Safety

Electrical safety is equally important. Electrical checks include maintenance of electrical wiring and plug sockets. It is your responsibility to organise a qualified electrician to assess your property every five years, at least. These checks are in addition to regular basic safety checks. Your electrician should produce an Electrical Installation Condition Report (EICR), which you should give to new tenants before they move in.

You should also organise portable appliance testing (PAT) by a qualified electrician of any appliances which have a plug and can be moved. Checked appliances should be labelled with a PAT sticker showing the date tested and when the next inspection is due.

Fire Safety Regulations

Under fire safety regulations, you must make sure that any upholstered furniture you provide is fire resistant. HMO landlords must also provide fire alarms and extinguishers.

Smoke And Carbon Monoxide Alarms

You will need to provide a smoke alarm on each storey of the house and a carbon monoxide alarm in any room with a solid fuel burning appliance (for example, a coal fire or wood burning stove). The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 just came into force. This stipulates that landlords must ensure at least one smoke alarm is provided on each floor of their homes where a room is used as living accommodation. While not a legal requirement, it is also recommended you have a carbon monoxide detector in any room with a gas fire.

Legionnaire’s Disease

You should check for the presence of legionella in the hot and cold water systems of your rental property. This is the bacteria which causes legionnaire’s disease, a potentially fatal form of pneumonia. You should carry out annual checks for legionnaire’s disease, as well as tests between tenancies and, if necessary, take action. You need to keep records for five years. Find out more on the Health and Safety Executive website.

5. How To Rent Guide

Responsible landlords should give their tenants a copy of the governmental guide How to rent: a checklist for renting in England, either in a printed or digital form. It is essential for the tenant to confirm they have received it.

It contains a rental checklist and more detailed information on each stage of the process, including:

• what to look out for before renting
• living in a rented home
• what happens at the end of a tenancy
• what to do if things go wrong

6. Marketing Your Property

You may decide to use a letting agent to find tenants for you, or go it alone, advertising on local forums and sites such as Gumtree or in workplaces or universities.

However, you start your tenant search, make sure your advertising is well-written and sells the positives of the home, whether that’s facilities, location, transport links or something else. Take photos in good light and once you’ve finished cleaning and styling the place for maximum effect.

Find a great tenant in record time by sprucing up your property to make it as appealing as possible. Make sure that the property is decorated to a good standard in neutral shades. Replace patterned or dingy carpets with light floor coverings too.

7. Paying Tax for Self-Employed Landlords

Landlords who rent out a property have a legal obligation to pay the correct UK taxes. These five categories include:

1. Stamp Duty Land Tax. Stamp duty is a mandatory requirement when buying a property in the UK. The amount is dependent on the property’s value. When it comes to buy-to-let properties, you’ll have to pay an extra 3%.
2. Capital Gains Tax (CGT). You will need to pay CGT when selling a property that is not your primary residence. The tax amount is related to the gain itself, which is the difference between the amount you bought it for and the sale price. Everyone has a tax-free allowance for capital gains of £12,300.
3. Rental income tax. This is the amount you pay on your net rental profit (which is your rental income less any expenses). Your tax rate is dependent on the income tax bracket you fall into. Be aware that when your rental income is added to your other income, you may need to pay at a higher tax band level.
4. National Insurance. You may need to pay Class 2 National Insurance if the HMRC assesses that you are running a ‘property business’ where profits are above £6,725 per year. You have the option to contribute to voluntary Class 2 National Insurance payments to make sure you qualify for your full state pension.

8. Right To Rent Checks

The law says that private landlords in England must check the right of prospective tenants to be in the country. This means landlords are required to check the identity of everyone who is over 18 and expected to occupy the property. The landlord is responsible for the checks but may pass them to a letting agent, as part of a written agreement. To find out more, visit the government website.

9. References

In the same way prospective employers ask for references when hiring new team members, as a landlord ensure you always get references for your tenants. These include those from previous landlords. If your applicant hasn’t rented a home before, seek references from their employer or a college lecturer. Double check with all referees that references are genuine.

You are also well within your legal requirements to ask for proof of income and copies of bank statements. It could also be a worthwhile investment to run credit checks to be really sure of their past payment history. Experian, a credit referencing agency, can oversee these checks for a fee.

Carrying out background checks isn’t just for your peace of mind. Some insurance policies won’t be valid if you haven’t been thorough in this area.

10. Tenancy Agreements

It is advisable to have a written agreement for your assured shorthold tenancy, signed by you and your tenant. The terms of the tenancy must be fair and comply with the law. Your tenancy agreement should include:

1. the names of all parties involved
2. the rental price and how it’s paid
3. information on how and when the rent will be reviewed
4. the deposit amount and how it will be protected
5. details of when the deposit can be fully or partly withheld (for example to repair damage the tenant has caused)
6. the property address
7. the start and end date of the tenancy
8. any tenant or landlord obligations
9. an outline of any bills the tenant is responsible for
10. whether the tenancy can be ended early and how this can be done
11. who is responsible for minor repairs (other than those that the landlord is legally responsible for)
12. whether the property can be sublet.

11. Landlord Insurance

As with any property you must take out buildings insurance. You will need contents insurance too to cover any items you have supplied. It is important to look for policies designed for landlords, and you must make sure that your insurer knows you are renting the place to tenants.

You may also consider other forms of landlord insurance, such as rent guarantee insurance. This will cover you for void periods or if your tenant is unable to pay their rent. Rent guarantee insurance is separate from other policies you will need to take out as a landlord, although it is sometimes included in landlord’s insurance packages – always check yours.

Breakdown insurance for your heating system, plumbing and electrics may also be useful if you don’t live close to the property or have a list of reliable tradespeople to call upon.

12. Tenancy Deposits

You aren’t obliged to take a security deposit from your tenant, but it is advisable. While most tenants are responsible and will look after their home well, the deposit gives you a safety net in case damage is caused to the property or furnishings.

The Tenant Fees Act, which came into force in 2019, limits security deposits to the equivalent of five weeks’ rent.

The law has required landlords in England and Wales to safeguard their tenants’ deposits in one of three government-approved tenancy deposit protection (TDP) schemes.

The schemes which landlords can join are:

• The Deposit Protection Service
• MyDeposits
• The Tenancy Deposit Scheme

You can decide which you choose. But you must inform your tenant, within 30 days of receiving their deposit, which TDP scheme you are using to safeguard their money.

13. Preparing The Property

Make sure you give the rental property a thorough clean before your tenants move in, including carpets, windows and furnishings. Tackle any outstanding DIY jobs too, such as replacing mouldy sealant or fixing dripping taps.

14. The Inventory

Many landlord and tenant disputes centre around damage to the property and its fixtures and fittings. Drawing up a full inventory can help you avoid this issue – make sure you take photos or videos of the home and any items included. Your tenants should sign the inventory to confirm that everything it lists is both present and in the stated condition.

15. Landlord Documents Checklist

To recap, here is a list of the primary documents landlords must have:

• A tenancy agreement or contract setting out the legal terms and conditions of the tenancy.
• The How to Rent guide which contains important advice for tenants in England and Wales. A copy should be given to your tenants.
• An Energy Performance Certificate (EPC). It is a legal requirement for landlords to provide this to incoming tenants.
• An Electrical Installation Condition Report (EICR) showing electrical safety, a copy should give to new tenants before they move in.
• A gas safety certificate, a copy should be provided to your tenants.
• Details of the tenancy deposit scheme.
• A buildings insurance policy document.
• A contents insurance policy if you provide your tenants white goods, furniture or other items.
• Other insurance policy documents, for example, public liability insurance, rent guarantee insurance and landlord emergency cover.
• Large HMOs need a licence from the local council. Depending on the area, other types of rental properties may also require a license.
• An inventory documenting the condition of the property and all items in the house.
• Character and employment references from new tenants.

If you’re a new landlord in Brighton or Hove, we’d be delighted to help you tick off the items on your landlord checklist. Call us today to learn more about our services for landlords.