There have been many changes in property rental legislation in recent years. This has resulted in more pressure than ever for landlords to keep up to date with the legal updates. Here Matthew James Letting Agents Coventry have compiled a list of five key pieces of information that landlords should know.
Inform your mortgage provider
If you are renting your property the mortgage provider needs to be advised. When buying a new property to rent out the mortgage will need to be a buy to let. Failure to have the right mortgage in place can invalidate any tenancy offered and could run the risk of fines from the provider.
Complete a tax return
Any rental income received from a property is taxable. A landlord must complete a self-assessment tax return annually. The tax office is under increasing pressure to catch people who are avoiding tax and finding landlords who avoid paying tax on rental income is an area that has been specifically targetted.
Register the deposit
It is a legal requirement that all deposits taken for shorthold assured tenancies are registered with a government approved scheme. If the deposit is not registered any notice served on a tenant is likely to be invalid. This will make it very difficult to ask a tenant to vacate. The landlord also runs the risk of being fined up to three times the deposit amount.
Make sure the property meets safety legislation
There are many safety checks and responsibilities that a landlord must adhere to. Most notably is the landlords gas safety certificate. This must be provided annually and failure to provide a safety certificate can result in a large fine or even prison for the landlord.
Check that tenants are in the UK legally
Recent changes in legislation mean that landlords now have to check that a tenant has legal right to reside in the UK. If the landlord has any doubts they must inform the home office immediately.
Due to extensive legislation that covers the private rental industry many landlords opt to use a letting agents to manage their property. Matthew James Letting Agents Coventry offer a fully managed service.
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