How to Be a Successful Landlord

Residential Tenancies and the Hazards of being a landlord

We have all seen the horror stories in the news about tenants who have been the victims of carbon monoxide poisoning after their landlord has failed to carry out the required safety checks to gas appliances. 

 The tragic consequences are well documented and yet many landlords still fail to comply with their legal obligations in relation to the safety of gas appliances in the homes they rent to tenants. The HSE on its website sets out the legal obligations of landlords and letting agents in this regard and landlords would be well advised to check that they are complying with the law.

Failing to comply with the laws on gas safety is just one of the pitfalls of being a landlord.  Whilst not exhaustive, the list below details a number of other considerations for landlords.

 The Tenancy Agreement

It is a good idea to have a written tenancy agreement signed by both landlord and tenant. As with any contract, putting the terms of the agreement in writing avoids any doubt as to what has been agreed in the event of a dispute, especially if the tenancy agreement is clearly drafted and sets out in plain language what is expected of both the tenant and the landlord.  If you have to go to court to get possession of the property it will be more difficult to prove your case without a tenancy agreement. Both you and your tenant should have a copy of the agreement.  Broadly speaking, a standard basic agreement should set out what type of tenancy it is in law, i.e. Assured Shorthold, the names of the landlord and of the tenant, the amount of rent that is due and when it is payable, the date the tenancy commenced, and what is expected of the tenant and of the landlord in relation to things such as repair and use of the property.  If the landlord’s name and address changes at any point the tenant should be made aware of the change in writing, otherwise there may be difficulties proving who the rent is owed to in the event of a possession claim.

Rent

It is essential to keep a written record of rent due and received.  If rent arrears arise and a landlord wants to start possession proceedings at court it is necessary to prove to the court exactly what the rent arrears were both at the time of serving the notice and at the time of commencing the court proceedings.

Getting Possession of the Property

The vast majority of tenants are well protected in law so landlords have to be very careful when trying to obtain possession of their property not to fall foul of the Housing Act 1988 and the other housing legislation.  For the overwhelming majority of tenants it is necessary to obtain a court order to take possession of the property. If landlords take matters into their own hands they will almost certainly be illegally evicting their tenant: a criminal offence. 

Serving the appropriate notice on the tenant is the first step in getting possession and many landlords prepare and serve their own notices.  The trouble is that the law on the timing of service of notices and the information the notice must contain is strict, and common mistakes are to give the wrong period of notice, for the notice to contain the wrong information, or for the notice to be served when there were not sufficient rent arrears. If the notice is defective it is ineffective, and could mean that any subsequent possession proceedings could fail as a result.  Of course by that time the landlord has invested time and money in commencing court proceedings. If in any doubt as to the validity of a notice landlords should take advice to make sure in advance that the notice will have the desired effect in law.

Deposit

It is common for a deposit to be paid by the tenant at the commencement of the property as security for the landlord in the event of damage to the property.  Disputes can commonly arise about exactly what damage has been caused by the tenant.  For this reason it is advisable to make an inventory of items in the property if it is furnished, and also to take photographs, for example of the condition of the decoration at the commencement of the tenancy. 

Landlords should be aware of the recent changes in the law on deposits.  From 6^th April 2007 deposits paid by tenants for assured shorthold tenancies commencing after that date must be protected by a government backed tenancy deposit scheme.  The scheme was introduced to provide a fairer system for settling disputes about the return of a deposit at the end of a tenancy.  If the landlord does not protect the deposit under the scheme and provide the tenant with certain information the tenant can now apply to the county court for an order that the landlord should pay the deposit back plus compensation. More information is available on the Directgov website and the Shelter website. 

It is clear from the above that where landlords and tenants are concerned the law  tends to come down strongly in favour of the tenant, and legislation offers tenants a high level of protection.  That is not to say that landlords cannot have successful and profitable tenancies, and many do.  Most of the pitfalls highlighted above can be avoided by being fully informed about the legal obligations, by taking precautions at the start of the tenancy and by seeking expert legal advice in the event of a dispute.

Please contact Sarah Coates-Madden

Sandersons, Solicitors

17-19 Parliament Street

Hull

HU1 2BH

Tel:       01482 324662

Fax:      01482 223110

e-mail:  scoatesmadden@sandersonssolicitors.co.uk

 Source: Yorkshire Today, October 2007