Landlord guide

Buy-to-Let Guide

Welcome to the world of buy-to-let investments in the UK! As your trusted estate agent, we are here to provide guidance on how to make this endeavour a successful and profitable one.

Clarify Your Investment Goals

Before diving in, let's discuss your goals. Are you looking for a steady rental income, long-term capital appreciation, or a combination of both? Your objectives will shape your investment strategy.

Budget and Financing

Determine your budget and how you plan to finance the purchase. We can recommend mortgage brokers to explore financing options. Consider all costs, including ongoing expenses.

Location Insights

We have in-depth knowledge of local markets. We'll guide you to areas with high rental demand, potential for growth, good schools, transportation links, and amenities. Location is key to rental success.

Property Type Selection

Let's discuss the best property type for your investment. Options include flats, houses, HMOs, and student accommodations. We'll weigh the pros and cons of each based on your goals.

Legal Compliance

Familiarize yourself with UK landlord and tenant laws. We'll keep you informed of all regulations, including safety standards, EPCs, and local licensing requirements.

Property Search

We have access to the latest property listings and can help you find suitable investment opportunities. Our expertise can save you time and effort.

Property Inspection

Together, we'll visit properties, assess their condition, and estimate renovation costs if needed. Our insights help you make informed decisions.

Mortgage Assistance

We work closely with mortgage brokers who can help secure competitive financing. Pre-approval will give you a clear understanding of your budget.

Offer Negotiation

We'll handle negotiations on your behalf, ensuring you get the best possible price. We're prepared for counteroffers and can arrange property surveys.

Legal Facilitation

We'll connect you with solicitors or conveyancers to navigate the legal aspects of the purchase, including searches and contracts.

Insurance and Management

Discuss landlord insurance options with us to protect your investment. We can also help you decide between self-management or hiring a property management company.

Tenant Screening

We'll assist in advertising your property and screening potential tenants. Our rigorous checks minimize the risk of unreliable tenants.

Tenancy Agreements

We can provide standard tenancy agreements that include necessary terms and obligations, making it easy to establish clear expectations.

Compliance and Maintenance

Regular property inspections and maintenance are crucial for tenant satisfaction and compliance with regulations. We can help you set up a maintenance schedule.

Tax Planning

We recommend consulting with tax advisors to understand your obligations as a landlord, including income tax and capital gains tax.

Exit Strategy

Keep your long-term goals in mind. We can discuss potential exit strategies, whether it's holding the property, selling it, or converting it for other uses.

Investing in buy-to-let properties in the UK with our guidance can be a rewarding venture. We're committed to helping you make sound investments, ensuring your success in the rental market. Let's get started on your buy-to-let journey today!

Landlord Legislation

Whilst we offer our expert advice and help, it is important for you to be aware of the latest regulations and legislation which sets the framework for residential letting in the UK. This page gives a more in depth look at the current regulations Landlords and letting agents must follow.

Licencing

There are 3 main licences which you may be legally required to apply for including:

1. mandatory House in Multiple Occupation (HMO) licensing
2. additional HMO licensing
3. selective licensing

In mandatory HMO licensing, the property is let to 5 or more people, from 2 or more separate households (1). If your property is not applicable for a mandatory HMO license, local authorities can still require an additional HMO licence (2). This will occur if they consider an additional HMO licence to be of benefit to the local area. Local authorities also have the power to introduce Selective Licensing schemes that apply to all privately rented houses located within a particular area (3). The current areas in Manchester, Liverpool and Preston requiring a selective HMO license include:

• Ben Street: Clayton and Openshaw
• Hyde Road: Gorton and Abbey Hey
• Levenshulme
• Moss Side and Whalley Range
• Rusholme
• The Ladders: Gorton and Abbey Hey
• The Royals, Longsight
• Trinity: Harpurhey ward

If you own a property in Liverpool, click here to check if you require a selective license.

To see further information on the regulations, such as testing for a licence, we would advise that you read Landlord and tenant rights and responsibilities in the private rented sector.

Housing health & safety

Before and during the letting of your property, it is important to maintain its condition in line with the current regulations. As advised by the Government, we would encourage you to take the time to read the Housing health and safety rating system (HHSRS): guidance for landlords and property-related professionals. This will inform you on how to maintain your property to comply to the 2004 Housing Act, and the courses of action if ‘Deficiencies’ and consequent hazards are found.

The table above summarises the HHRS hazards from the linked document. The flowchart below is taken from the document, giving guidance on how to check your property for hazards and how to fix them.

It is also important to be aware of the following health and safety requirements before a tenant enters your property:

• You have had a gas safety check carried out within the last 12 months by a Gas Safe registered engineer – with the certificate provided to your tenant.
• Ensure any furniture provided meets the required safety standards of the Furniture & Furnishings (Fire & Safety) Regulations 1988. Note that furniture without labels are considered non-compliant.
• Per the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, ensure any electrical equipment provided meets the required safety standards (BS7671:2018). This will be required at least every 5 years.
• Smoke & Carbon Monoxide Alarm (Amendment) Regulations (1 October 2022): Ensure a smoke alarm is installed on each floor of your home and that carbon monoxide detectors are present in any room with a fixed combustion appliance (excluding gas cookers). These regulations also require you to repair or replace each alarm that is reported as faulty. Read more here.
• Ensure you have an Energy Performance Certificate (EPC) for your property – with the certificate provided to your tenant. From April 2020, privately rented properties must have a minimum EPC rating of E for new lets and renewal tenancies (unless exempt).
• Legionella obligations stemming from the Substances Hazardous to Health Regulations 1989, and Section 3 (2) of the Health and Safety at Work Act 1974. As a landlord, you must carry out a risk assessment to ensure that tenants are free from the health hazard of legionella. Read more here.

Prior to the tenant moving in:

Listed here are the other requirements placed onto landlords prior to letting a property to your tenants:

• Conduct legal rent checks.
• Per the 2004 Housing Act, you must protect your tenant’s deposit with a government approved deposit protection scheme and provide the tenant with prescribed information about how the deposit is protected. From June 2019, these deposits have been capped at no more than 5 weeks’ rent, unless the annual rent exceeds £50,000, which is capped at 6 weeks' rent.
• Provide the latest edition of the How to Rent Guide.
• Conduct immigration right to rent checks per the Immigration Act 2014.

During the Tenancy

Your legal responsibilities continue over into the Tenancy and the regulations put the following duties on Landlords:

• Utility (water, gas, electricity, and heating) maintenance.
• Ensure the property is free from serious health and safety hazards.
• Maintain structural integrity.
• Complete repairs; ensure you ask your tenant or letting agent to report this to you.
• Maintain appliances and furniture.
• Ensure smoke alarms and carbon monoxide alarms are in order.
• Gas Safety check is completed annually.

Click here to see the responsibilities your tenants are held to by law.

Repairs

As a landlord who is letting a private residential property, it is your responsibility to repair and maintain the following:

The exterior and/or structure of the property;

Sinks, baths, toilets, pipes, and drains;

Heating and hot water;

Chimneys and ventilation;

Gas appliances;

Electrical wiring;

Common parts of a building, such as entrance halls, communal stairways, and shared kitchens

Ending tenancies

The following duties are legally placed on a landlord when terminating a tenancy:

• When terminating before the end of the agreed date, you must provide a notice of 2 months unless otherwise stated in a break clause of your tenancy agreement. (Note that a section 21 notice cannot be given in the first 4 months of a tenancy.)
• So long as the tenant has upheld their terms on the agreement, you must repay the deposit in full. Be aware that reasonable wear and tear is not enough to withhold any part of the deposit.
• Ensure the tenant has paid all rent and bills.

Blinds

Ensure your blinds are adherent to current EU regulations to be safe for use in the presence of children. Read more here.

The Homes (Fitness for Human Habitation) Act 2018

This ensures landlords rectify issues which they are responsible for. The Government Advises: ‘Landlords should therefore rectify any damages that they are responsible for as soon as possible. If a tenant tells you about a problem that is in a common part of a building, then you are strongly advised to bring it to the freeholder’s attention as soon as possible.’ Read more here

Tenant Fees Act 2019

This act was introduced to minimise harsh charges imposed on tenants and misleading advertising. There is now a legal limit on what can be charged to a tenant by landlords and letting agents. The table below summarises this:

Charge	Cap
Rent	-
Refundable tenancy deposit	Capped: No more than 5 weeks' rent where the total annual rent is less than £50,000, or 6 weeks' rent where the total annual rent is £50,000 or above
Refundable holding deposit (to reserve a property)	Capped: No more than 1 week's rent
Payments associated with early termination of the tenancy, when requested by the tenant
for the variation, assignment or novation of a tenancy	Capped: £50 (or reasonably incurred costs, if higher)
Payments in respect of utilities, communication services, TV licence and Council Tax
A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

Money Laundering and Terrorist Financing (Amendment) Regulations 2019

From January 2020 onwards, all letting agents who manage properties at an individual yield of 10,000 euros a month must comply to these regulations.

Whilst this is not a regulation requiring any action from you directly, it demands us to carry out comprehensive customer due diligence on any landlord or tenant involved in a tenancy with a monthly rent of 10,000 Euros or more.

Landlords penalties

Failing to follow the letting laws and regulations can lead to costly fines and even prison time in some cases. Some of these are detailed below:

• Electrical safety breaches: The authority may impose a penalty of up to £30,000.
• Failure to meet 'fitness for habitation' standards: This could result in tenants suing you for compensation, with awards at the discretion of the judge.
• Energy Performance Certificate (EPC) Penalty: Landlords can face fines of up to £5,000 for failing to provide an EPC to tenants when required.
• Gas Safety Certificate Penalty: If a landlord fails to provide a valid Gas Safety Certificate for the property's gas appliances, they can be fined up to £6,000 or even face imprisonment.
• Fire safety and other safety breaches that have the potential to cause harm could result in prosecution and unlimited fines.
• Failure to Repair: If a landlord neglects necessary repairs or maintenance that affect a tenant's health and safety, the local council can issue an Improvement Notice. Failure to comply with this notice can lead to fines.
• Right to Rent Penalty: Landlords who do not conduct Right to Rent checks or rent to individuals with no legal right to live in the UK may face civil penalties of up to £3,000 per tenant.
• Anti-Social Behaviour Orders (ASBOs): If a tenant engages in anti-social behaviour within a rental property, and the landlord does not take action to address it, the landlord can face penalties or legal action.
• Property Licensing Penalties: Renting out an HMO without a license could see you paying unlimited fines, plus repayment of up to 12 months' worth of a tenant's rent under the Rent Repayment Order Act.
• Illegally evicting a tenant: This can lead to their compensation at the court's discretion.
• Deposit Return Penalty: Landlords must return a tenant's deposit within a specific timeframe after the end of the tenancy. Failure to do so can result in the tenant claiming a penalty of up to three times the deposit amount through the courts.

These regulations can become really difficult to keep up with when you have multiple properties you would like to rent out, or if you have other commitments. Luckily, we would be happy to simplify your letting experience with our landlord packages. Our expert team will look after and guide you on the latest regulations for landlords, ensuring the property is let in the correct manner. This way you can enjoy the rewards of residential letting, with much less headache!