A complete compliance checklist for landlords

From ensuring gas, electrical and fire safety to conducting thorough background checks on their tenants, landlords in the UK have many legal responsibilities to fulfil before they start earning a rental income. Stay informed about all these compliance mandates as a landlord.

While there is no doubt about the lucrative nature of renting a London property, the UK’s private rental sector is a highly regulated entity with several laws in place to protect the welfare of both tenants and landlords. While landlords have the right to evict bad tenants legally, they also need to do their part by complying with the rules laid out for successful tenancies. Failure to comply with these rules can lead to hefty legal penalties and difficulty with evictions.

Here’s a detailed landlord compliance checklist if you plan to let your London property. You can also read our property maintenance checklist and how to prepare for a tenant, for more landlord information.

1. Annual gas safety certificate

If your property has any gas appliances, you will need to carry out a Gas Safety Check annually with a Gas Safe registered engineer. You need to share a copy of the CP12 or Landlord Gas Safety Record document with the tenant.

2. Energy performance certificate (EPC)

Every property in the UK is assigned an EPC rating, ranging from A to G bands. The law says that private landlords can only rent out properties with an E rating or higher. Landlords must also give their tenants a copy of a valid EPC.

3. EICR and PAT certificates

An Electrical Installation Condition Report (EICR) assesses the safety of the fixed electrical wiring installations in the property, whereas a Portable Appliance Test (PAT) evaluates the safety of plug-and-play appliances provided by the landlord. Providing a valid EICR report to the tenant is mandatory.

4. HMO and selective landlord licences

For private properties rented out to five or more people from different households, a landlord must first secure a licence permitting a rental House in Multiple Occupation (HMO) from the local council. Some local councils also issue a Selective Licensing Scheme for specific wards along with Additional Licences for certain property types.

5. Fire safety checks for rental homes

There must be at least one working smoke alarm on every floor of a rental property. Carbon monoxide alarms are also compulsory in rooms where solid fuel is burned, such as the boiler room or areas where stoves are used. Landlords must also ensure that proper safety exits are in place and that all furniture provided to tenants is fire-resistant and compliant with relevant regulations.

6. Housing health and safety rating systems (HHSRS)

In the UK, landlords must also ensure that their rental properties are free from health risks, including moisture and mould, inadequate ventilation, and other factors that may lead to diseases and exposure to hazardous substances. These also include proper supply of hot water and smooth drainage systems.

7. Reference checks and due diligence

Unpaid rent can be a significant issue, so landlords should conduct thorough reference checks on tenants, including verifying their identity and financial history. Landlords and their agents may also need to do Anti-Money Laundering (AML) checks on high-value rental properties to follow local rules.

8. Following rules for deposit protection

Landlords must move their tenants’ deposits to a government-approved deposit protection program within 30 days of receiving the deposit. They also need to update their tenant about the deposit protection system so that the transfer goes smoothly when the tenancy ends. Deposit protection only applies to all Assured Shorthold Tenancies (ASTs).

9. Handover of ‘How to Rent’ checklist

The ‘How to Rent’ guide is a government-published document that landlords are required to share with tenants at the start of a new tenancy. This guide covers a comprehensive overview of all the roles and responsibilities of a landlord and the rights of a tenant. If a landlord fails to provide this checklist, eviction notices can be considered invalid.

10. Timely assessments and tax payments

Rental income is taxable in the UK, and landlords are required to file a self-assessment with HMRC at the end of each financial year. Landlords who reside outside the UK can utilise the Non-Resident Landlord Scheme (NRLS). Under this scheme, taxes are deducted at the basic rate before the rent is paid to the landlord.

At Benham and Reeves, we understand how challenging it can be for remote or overseas London landlords to let and manage their properties successfully, especially with changes to legislation like the new Renters’ Rights Bill, which is expected to become law soon.

We offer a variety of landlord and property management services to make the process easy and stress-free. We have 21 branches in London and 14 offices worldwide to assist you with all your property needs. Get in touch with us if you want to know more about buying, selling, managing, or renting a property in London.