We are aware that being a Landlord is never easy but there are 5 key points which all Landlords should be aware of that, if ignored, may result in future problems which will be both time consuming and ultimately costly.

1. Deposits

Since 6th April 2007, where a Landlord takes a deposit from a Tenant at the start of a tenancy, or when a tenancy is renewed after the 6th April 2007 and the deposit is carried forward, the deposit must be protected in one of the government authorised schemes. There are currently 3 authorised tenancy deposit scheme available: the DPS Custodial Scheme, the Dispute Service and the Tenancy Deposit Solutions Limited. The deposit sum must be paid into the relevant scheme, or where appropriate the insurance premium paid, within 14 days of receiving the deposit from the Tenant. Landlords are also under a duty to notify and provide prescribed information to the Tenant as to which of the schemes they have chosen within this same 14 day period. Failure to do so may result in the Landlord being subject to a claim from the Tenant under the Housing Act for damages; that can be anything up to three times the deposit sum plus the return of the original deposit.

2. Security-if at all possible

A Landlord should ensure they have a guarantor for each of the Tenants in their property. When seeking a guarantor, a Landlord should ensure that a full copy of the tenancy agreement is provided to the proposed guarantor and that they are required to sign the same along with their relevant Tenant. It is always a good idea to ensure that both the tenant and guarantor are given a copy of the tenancy agreement once it has been completed, as well as retaining a copy for your file. Ensuring that you have this paper trail is vital when looking to recover unpaid monies from guarantors at a later date.

3. HMOs

If you own a property that is let to a number of occupants, it may be considered to be a House of Multiple Occupation (HMO). If your property is of three storeys or more and occupied by five or more persons, who form more than one household, you will require a licence to continue to act as the Landlord. A licence application must be made to your local council in the event that you have a property that qualifies as a HMO. The penalties for failing to make an application or indeed, once licensed, failing to comply with the terms of the tenancy can be significant depending upon the breach in question. Despite the regulations being in place for some time, there are still Landlords who are not fully aware of them and as such fall foul of them.

4. Possession Notices

One of the biggest mistakes made by Landlords occurs when seeking possession of their premises. Depending on the reasons why possession is being sought, you may either serve what is known as a Section 8 or a Section 21 Notice. These notices are relatively easy to get wrong and many Landlords progress their claim through the Courts, only to find them either adjourned or even worse dismissed entirely because the original notice served was invalid. Common mistakes include failing to refer to all grounds when using a Section 8 Notice, using the wrong Section 21 Notice or even selecting the wrong date on which the tenancy is said to come to an end.

5. Possession Claims

The final mistake many Landlords make relates to dealing with their possession claims. Claims can now be issued online relatively easily at www.possessionclaim.gov.uk and, whilst this ensures that there are now fewer mistakes with the actual claim form itself, many Landlords find their hearings being adjourned as they have failed to provide the Court with sufficient evidence in support for the Court to grant the possession order. Such delays can cost valuable time and money in further unpaid rent, making what can already be a lengthy process even longer. As a Landlord at a possession hearing, you will need to provide the following: a copy of the original notice, a copy of any rent arrears schedule (if applicable), a signed copy of the tenancy agreement, evidence that the notices were served on the Tenant and evidence that the rent remains outstanding as at the day of the hearing. This is often done by way of a short witness statement.

All of the mistakes listed above can easily be avoided by Landlords with the right advice resulting in both significant time and money being saved. We offer practical legal advice to Landlord’s at fixed fee rates giving our clients certainty and peace of mind.
For further advice and information on the various services offered by our Commercial Team use the contact form or call 01244 354667 and ask for John Loney or 01244 354 762 for Victoria Jackson.