66 Things EVERY Landlord MUST know!
IntroductionRenting your property doesn't need to behard work and reading this book will tell youall the things you need to know and also helpyou find new tenants in no time.There are so many laws and regulations that you need toknow and abide by when becoming a landlord and so manyof these can very easily be broken.We believe that by the time you have finished reading thisbook, you will come to know everything there is about yourlegal responsibilities as a landlord, the main regulations andsafety issues that you must keep in mind. 1
TestimonialsWhat our customers are sayingFrom the start we found PMS to be open, honest and what I reallyappreciated was their practical advise. I went for a fully managedservice and that is exactly what I got, a hassle free totallymanaged service - from finding excellent tenants to inventories,property checks and obtaining/managing all certifications. Whenwork was required their recommendation of trades was first classat a reasonable rate - which is very refreshing. For me the wholeexperience has been very easy, with no hassle and the money paidon-time every month. Mr M WilsonI am a Chichester landlord and I asked PMS to advertise myproperty, they were very efficient and lovely people to deal with,they filled the vacancy within one week, I am delighted with mynew tenant. I would highly recommend this company to any thatany landlord looking for a top class agent. Mrs S Salton 22
ContentsIt's all about the rent! 4 7 Research the market A property is only worth what someone is prepared to pay! 11 Occupancy is king 13 20 What does it really cost... 38Presentation 3 De-clutter Décor Maintenance Clean, clean and clean Kitchen BathroomHow to reduce maintenance Maintenance and keeping tenants happy!Key landlord responsibilities Energy Performance Certificate Housing Act 2004 Tenants Deposit Protection 'Right to Rent' Non-Residents Landlord Scheme (NRL)Legal safety regulations The Gas Safety (Installation and Use) Regulations 1989 Electrical Equipment Regulations 1994 Furniture and Furnishings (Fire) (Safety) Regulations 1988 The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 Houses in Multiple Occupation (HMO)Giving your tenant notice The Section 8 Notice The Section 21 Notice Court action and the court paperwork Bailiffs
It's all about the rent!Research the marketGetting the 'right' valuation for your property is key. Ask yourself- Is the property really worth what you think it is?A good way to get an idea of what your property might be worth isby searching the property portals to see what similar properties arebeing advertised for. Property portals such as Rightmove, Zooplaand Mouseprice are a great source of information.Enter your property details into the search requirements and alsoclick 'Include Let Agreed properties', this will show you allproperties that are similar to yours that are either available orrecently have been let and will give you a good idea of what rentyou should be able to achieve.Don't forget to tick this box 44
A property is only worth what someone isprepared to pay!A lot of landlords firmly believe that their property is worth £X,but it is only worth what someone is willing to pay for it.Regardless of who told you what, or what the top price on theproperty portals is, you need to look at what tenants are paying.'What do we mean'?...Lets take an example of a new build flat. You asked us 'what woulda brand new two double bedroom flat, with a town centre locationand allocated parking achieve'? We advise you £1,000pcm and wewould not be wrong (based on the very limited information wehave been given).So, if a landlord was to then go and buy a brand new two doublebedroom flat in the new town centre development just down theroad, where there are 40 coming available next week, then wouldthey get that price? No.Why? Because there are 39 other flats available. This creates it'sown 'sub-market' and survival of the cheapest and best-fitted-outbegins. Desperate landlords who have stretched themselves willdrop the rent to say 895pcm to get their flats let fast, and they willnormally let first, other landlords will recognise the competitionand go to town putting in flat-screen TVs, leather sofas etc., andthey might achieve around the £1,000pcm (if theirs is the best), butthe rest? They will get rented eventually when they become thecheapest or the best available, so be careful of mass'sub-markets' and ensure you are at the top onpresentation or the bottom on price. 45
Occupancy is kingThis is so true. An empty property costs YOU money - you haveno rent coming in and you will end up maintaining the place,paying utility bills and council tax etc., so don't get to precious overachieving the 'market rent', take what someone is prepared to pay.If a property is not having any interest shown in it, then reducingthe asking price just below the market rent will usually get theproperty rented quickly.What does it really cost...Just two empty months in your property could lose you nearly 20%of your years rent!example of a vacant property asking for £850 pcm 64
PresentationFirst impressions count for everything and can even make aperspective tenants mind up whether they are going to like yourproperty before they even enter the property! Spend timemaximising your property's kerb appeal by ensuring that it offersthe very best first impression.Start at the front of the property, weed and sweep paths anddriveways, make sure lawns are mowed, hedges are trimmed andwindows are clean.If you have a flat, sweep and vacuum floors/stairs in the communalhallways and make sure all bulbs are working and consider changingthem for higher wattage bulbs to help give a sense of brightness. 7
De-clutterIf you are currently living in the property that you want to rent, then de-cluttering can create a fantastic first impression.Prospective tenants like to see furniture in properties so they canpicture where their furniture could go, a minimalistic and unclutteredproperty is much easier to let.Remove/box up any unwanted or unused items and store them in acupboard or garage. Remember less is more!DécorWalk around your property and inspect all walls, ceilings, woodworkand doors. Consider if they could do with painting and when the lasttime they were decorated.It is amazing how much better your property will look with a freshcoat of paint and how much value it can add, for little cost.Decorate rooms in a neutral light colour as this will help rooms feelbigger as opposed to darker walls. 8
MaintenanceTake time to carry out repairs. Fill in cracks, fix any leaky taps,mend broken window catches, ensure all light bulbs are working anddoor handles are in good working order.Clear gutters of any debris as this can cause them to over flow andcould possibly contribute to any damp issues.Maintain any double glazed windows by oiling friction stays and ifdone regularly this will save a lot of money having to replace themwhen they seize up.Clean, clean and cleanMake sure your property is thoroughly cleaned and if you don't likecleaning, consider hiring a professional cleaner.Have all carpets professionally cleaned and if you think they mightnot clean up then it would be worth considering having themreplaced.Attention should be given to dusting lamp shades, skirting boardsand any cobwebs removed.Tenants are responsible for leaving the property in the condition itwas found and it also states in our tenancy agreement that they haveto have the carpets professionally cleaned when they vacate. 98
KitchenClean the oven, washing machine, fridge/freezer and any otherappliances including changing the filter to the extractor fan.Make sure all cupboards are clean inside and out and all worksurfaces are free from clutter. Make sure there are no finger printmarks on the cupboard doors.Consider replacing the caulking/sealant around the sink and edges ofthe work tops.Changing handles to doors and drawers is a cheap and effective wayof smartening up older kitchens.BathroomThe bathroom suite should be cleaned, no hair in plug holes of thesink, bath and/or shower tray.Wipe down and remove any lime-scale build up to any glass andpolish taps.Clean tiles and replace caulking/sealant around basin, baths and/orshower tray. Consider using a high pressure steam cleaner to removeany grim and dirt build up on the tile grout. 1100
How to reduce maintenanceMaintenance can be a killer for any landlord's profit margin but itdoesn't need to. We have seen an avoidable pattern happen time andtime again.We've always found that landlords who carry out a refurbishment atthe beginning of their journey to becoming a landlord have mademuch more profit in the long run as well as reducing void periods,and increasing the value of the property.Our advice is to seek advice on works and get them done before atenant sets foot into the property. Ongoing repairs can add up tobeing so much more expensive than a complete refurbishment. They can also lead to tenants moving out due to continuous faults atthe property, therefore leading to a continue turnaround of tenantsand excessive voids.Prevention is better than cure!We also recommend considering putting money aside each month togo into a 'maintenance' account so that when the time comes for newcarpets, redecoration or total refurbishment, the money is alreadythere. 112
Maintenance and keeping tenants happy!Tenants rent your property because they like it, they want it to betheir home and as long as they get what they expected they willgenerally keep quiet and pay the rent.The biggest cause of complaints from tenants nationwide ismaintenance. Properties being sub-standard, landlords notcompleting works on time, poor workmanship etc.We have also found that this is the biggest reason and most commonreason why tenants move out of their property is because they havejust had enough and are prepared to live elsewhere.Next time you think about the cost of a new boiler or fixing thatbroken shower, consider the cost of a two month void with utilitybills and council tax etc. This might make you re-consider your planto invest in getting the job done thoroughly.Tenants at the end of the day are our customers and without them wehave no business, but they are free to go and rent whatever theywant, wherever they want, easily and relatively quickly.As a landlord you have a legal obligation to keep your property ingood repair at all times. 1122
Key landlord responsibilitiesWhen you rent your property you as a landlord have legalresponsibilities. As a landlord you must: Keep your rented properties safe and free from health hazards (see safety regulations) make sure all gas and electrical equipment is safely installed and maintained (see safety regulations) Provide an Energy Performance Certificate for the property Protect your tenant’s deposit in a government-approved scheme Check your tenant has the 'Right to Rent' your property if it’s in England Give your tenant a copy of the 'How to rent' checklist when they start renting (you can email this to them) 1312
Energy Performance CertificateAn Energy Performance Certificate (EPC) is required prior to aproperty being advertised for rent. Landlords must provide an EPCto prospective tenants to view and a copy must be provided to theperson who takes up the tenancy. The certificate will be valid for 10years although you may wish to get a new one should significantalterations be made. Example of EPC graphHousing Act 2004 Tenant Deposit ProtectionIf you take a deposit from your tenants, it is a legal requirement toregister it and supply your tenants with a certificate. You have up to30 days to register it and as a landlord, you must make certaininformation about the Tenancy Deposit Protection schemeavailable to your tenant. You must supply the tenant with thePrescribed Information regarding any tenancy deposit required tobe dealt with under the custodial tenancy deposit scheme. 1412
'Right to Rent'All private landlords in England including those subletting or takingin lodgers, have to check new tenants have the right to be in the UKbefore renting out a property.Landlords can start carrying out \"Right To Rent\" checks 28 daysbefore the start of a tenancy agreement. The process is simple andmany landlords already make similar checks. Make a copy of the documents (These documents MUST be seen in PERSON) Make a copy that can't be changed, eg a photocopy for passports, copy every page with the expiry date or applicant's details (eg Nationality, date of birth and photograph), including endorsements, eg a work visa or Certificate of Entitlement to the right of abode in the UK. Copy both sides of biometric residence permits make a complete copy of all other documents record the date you made the copy keep copies of the tenant's documents for the time they're your tenants and for one year after. (Keep all documents for 6 years) 1512
There are resources available to help landlords comply with the newrules:A checking aid on GOV.UK, which landlords can use to guide thethrough the process and also to request a check on anyone who hasan outstanding case with the Home Office.The Home Office has been working with a panel of industry expertsto produce an updated landlords' code of practice which includeschanges to the acceptable document list to make it even simpler toconduct a check. 1612
Non-Resident Landlord Scheme (NRL)All owners of property in the UK are required to pay tax on anyrental income they receive, unless the income after allowableexpenses is less than the individual's personal allowances.However, special rules apply to the UK rental income of non-resident landlords or landlords who live abroad usually for morethan six months.These rules are outlined in the Non-Resident Landlord Scheme(NRL), which operates for rental income paid on or after 6th April1996.How does it work?If you live overseas and let your property through an agent orproperty manager, they must adhere to the scheme by deductingbasic rate tax from your rental income before it is passed on toyou, unless they receive written notification to the contrary. Youcan offset this tax against your own tax bill at the end of the year.The agent or property manager will either: pay the rental income gross to a non-resident client, if authorised to do so by HM Revenue and Customs (HMRC), or deduct tax at the basic rate on net income subject to certain allowance expenses and deductions 1172
If your tenant pays the rent directly into your bank account theymust operate the NRL Scheme and deduct tax, unless the rent is lessthan £100 per week or they receive written notification from theHMRC's Centre for Non-residents (CNR) informing them that theydon't have to.How is the NRL Scheme administered?The NRL Scheme is operated by the CNR. Non-resident landlordscan apply to the CNR for approval to receive their rentalincome gross, i.e. with no tax deducted (an ‘approval’). If theapplication is successful, the CNR will issue a notice and the agentwill not be required to deduct tax.Landlords with poor tax histories may be refused an approval and,in these cases, agents will be obliged to continue to deduct tax at thecurrent basic rate on their net rental income.How do I obtain an approval to receive rental income gross?An approval will allow you to receive all rental income due withoutdeductions to cover tax liabilities. The forms are available from theCNR by phone or directly from their website at www.hmrc.gov.ukor from your letting agent. If there is more than one owner thenboth need to apply separately e.g. if one or both live abroad.You can apply for approval if:Your UK tax affairs are up-to-date 1812You never have had any UK tax obligationsYou do not expect to be liable for UK tax
Many people are entitled to set personal allowances againsttheir income. If your UK income after allowable expenses is lessthan your personal allowances, then you will not be liable for tax.Landlords and agents will be notified simultaneously of decisionsto grant or withdraw approval.Further information on the NRL Scheme from the HMRCIf you require further information on the scheme, visit the HMRCwebsite at www.hmrc.gov.uk for all booklets and forms:Non-Resident Landlords - guidance notes for letting agents andtenantsA letting agent’s guide to the NRL SchemeNRL1 (if you are an individual)NRL2 (if you are a company)NRL3 & Notes (if you are a trustee)NRL4 - 6Inland Revenue’s CNR officet: 0151 472 6208/6209 (outside the UK t.+44 151 472 6208/6209)f: 0151 472 6149 Landlords must inform HMRC if they return to live in the UK or if their tax situation changes. 1912
Legal Safety RegulationsThere are a number of key safety regulations that landlords need tocomply to when letting out a property. This section introduces someof these responsibilities.The law states you must maintain the property and undertake anymajor repairs that are required. This includes anything that affectsthe structure and exterior as well as the electrical, heating, hot waterand sanitary conditions.In addition, there are special rules that apply to soft furnishings, gasand electrical safety, tenants with disabilities and shared houses.The Gas Safety (Installation & Use) Regulations1998If your property has any gas appliances – boiler, hob, oven, or fireyou must provide your tenant with a valid Gas Safety Certificate.This needs to have been carried out by a Gas Safe registered engineerand must be renewed on an annual basis.Apart from being a legal requirement, it will help keep your tenantsafe and also make sure your appliances are working properly.Boilers can also be serviced at the same time as having the Gas SafetyCertificate issued. The certificate doesn’t need to be issued until theproperty is let but it does need to have been carried out prior to newtenants moving in. 20
The penalties for not doing this are a maximum of six month prisonsentence and / or a £5,000 fine for each offence.Every tenant HAS to receive a copy of the gas certificate BEFOREmoving into the property and it needs to say 'pass' or 'safe'.Any appliance fitted in a bathroom or bedroom must be 'room-sealed'.Both you/your agent and the contractor have a responsibility to keeprecords for two years of any gas works carried out at the propertyand any gas certificates. Always read the certificates when you getthem from the contractor, as they might say 'pass' or 'safe' but theremay be urgent works required to be done within a 28-day timescale.Failing to follow these up will invalidate the certificate.Electrical Equipment Regulations 1994The electrical safety regulations require that any electrical appliancessupplied MUST be safe. Where their safe use requires, appropriateinstruction manuals/booklets must also be provided.Unlike the gas safety regulations, there is no statutory annual testinginterval. Yet, in order to meet the requirements, it is still importantthat the appropriate checks and safeguards are carried out. Theregulations require: GENERAL SAFETY - All electrical equipment supplied must be safe. This will require that the electrical appliances (including their leads), are checked by a competent and suitably qualified engineer. Any unsafe items should be removed. 21
LABELLING - All electrical equipment that is manufactured after the 1st January 1997 must be marked with the appropriate CE symbol. INSTRUCTIONS - It is recommended that the manufacturer's instructions be provided wherever possible for each appliance that is supplied. This will help to ensure that the tenant uses the equipment safely.The maximum penalty for non-compliance with the regulations is afine of £5,000 and / or six month prison sentence.Electrical Safety TestingIt is important that both the fixed electrical installation (i.e. the mainwiring) and any supplied appliances and other equipment are safe.Both are easily tested by a qualified engineer. APPLIANCES - It is recommended that electrical appliances are tested prior to the initial letting of a property and annually thereafter. If an individual appliance is used particularly frequently or in a harsh environment (e.g. wet conditions) then more frequent testing may be required. FIXED INSTALLATION - It is also important that the fixed wiring circuits are checked for safety. It is recommended that this is carried out at least every five years in a domestic environment. RECORDS - You should also keep a record of all appliances tested and checks carried out. 22
You can also carry out your own simple checks. There are someimportant points you should look for: LEADS - Look for frayed or worn leads. These can be dangerous and should be replaced immediately by a registered electrician PLUGS - By law, electrical appliances must not be supplied without a correctly fused plug fitted to it.Appliances covered by RegulationsThe regulations cover all main voltage electrical goods designed witha working voltage of between 50 and 1000 volts AC (or between 75and 1,500 DC) including: Cookers Kettles Toasters Electric blankets Washing machines Immersion heaters 23
Furniture and Furnishings (Fire) (Safety)Regulations 1988The rules and regulations concerning fire safety in rentedaccommodation have tightened in recent years. All landlords whoown property which is let out need to be aware of the implications ofthis safety legislation.Effective from 1st March 1993, landlords letting residential propertyare expected to ensure that all upholstered furniture complies withthe Fire and Furnishings (Fire) (Safety) Regulations 1988. In general,the fire resistance requirements of the 1988 Regulations as amended1989 are: Upholstered articles (i.e. beds, sofas, armchairs etc) MUST have fire resistant filling material. Upholstered articles must have passed a match resistance test or, if of certain kinds (such as cotton or silk) be used with fire resistant interliner. The combination of the cover fabric and the filling material must have passed a cigarette resistance test. 24
When buying new or second-hand furniture for a rental property,you should always check to see that there is an appropriate label.Furniture or furnishings manufactured after the introduction of theregulations in 1989 should have attached labels.The Regulations apply to: Extra furniture purchased after 1 March 1993 Beds, head-boards of beds and mattresses Sofa-beds, futons and other convertibles Nursery furniture Garden furniture which is suitable for use in a dwelling Scatter cushions and seat pads Pillows Loose and stretch covers for furniture 25
The Regulations do not apply to: Antique furniture or any furniture made before 1950 Bed-clothes (including duvets) Loose covers for mattresses Pillowcases Curtains Carpets Sleeping bagsTo summarise Only buy new furniture and keep all the receipts Remove all old furniture or furnishings that do not have the labels Keep a record of all the furniture and its labels DO NOT pass non-compliant furniture to a tenant under any circumstances. The penalties for non-compliance are a £5,000 fine and / or six month prison sentence. 26
The Smoke and Carbon Monoxide Alarm(England) Regulations 2015The legislation introduced in October 2015 has helped to standardiseand clarify the responsibilities of landlords when it comes toinstalling smoke and carbon monoxide (CO) alarms to protect theirresidents. Existing rules meant that owners of property built prior toJune 1992 were not legally obliged to have smoke alarms installed.The updated legislation ensures that ALL rental properties and theirresidents are adequately protected against fire and carbon monoxideWhere exactly should I install the alarms?The new rules make the provision of both smoke and carbonmonoxide detectors compulsory, but don't explicitly state exactlywhere landlords should site them. At present the legislation dictatesthat a landlord must ensure:\"a smoke alarm is equipped on each storey of the premises on which there is aroom used wholly or partly as living accommodation\"\"a carbon monoxide alarm is equipped in any room of the premises which isused wholly or partly as living accommodation and contains a solid fuelburning combustion appliance\" 27
These two directives allow you to accurately calculate the amount ofdetectors required relative to the types of rooms on each floor, butfail to give guidance as to the exact placement or the type of smokedetector. There are, however, a few general pieces of advice we canoffer to help you establish the best locations for your alarms and themost suitable type of detector. It is impossible to offer advice thatcovers all eventualities, but these rules of thumb should give you asolid foundation from which to decide where to install your alarms.Smoke alarm placement tips:- If you only have one alarm per floor, cover any downstairs hallways with optical smoke alarms and any landings on subsequent floors with ionisation smoke alarms. This set-up plays to the strengths of each sensor type to ensure a quick response to any fires without causing unnecessary false alarms. Make sure the alarms are audible from any bedrooms. Site your smoke alarms at least 30cm from any walls. This avoids the ‘dead air’ zone where smoke can take longer to reach sensors. Avoid placing alarms within 30cm of any light fittings or obstructions on the ceiling. Consider installing an additional heat alarm in the kitchen, but never rely on this to protect an entire floor as heat alarms are only effective over a short distance. 28
Carbon Monoxide alarm placement tips:- Site your alarms more than 2 metres, and ideally less than 4 metres away from any appliances. If wall mounting your detector, ensure the device is roughly 1.5m from ground level. Site your alarms at least 30cm from any walls, and avoid placing them near to doors and windows. Make sure the alarms are audible from any bedrooms.Whilst it is ultimately up to you as an individual to consider the bestplacement for any alarms within your properties, we hope theguidance above will help you make those decisions.Who is responsible for maintaining the alarms?In basic terms, landlords must ensure that alarms are provided andworking, but routine maintenance and testing then falls to theoccupants of the property. Should the alarms develop a fault orexpire during a tenancy it remains the responsibility of a landlord toreplace them.The legislation states that a landlord must make certain that:\"checks are made by or on behalf of the landlord to ensure that eachprescribed alarm is in proper working order on the day the tenancy begins ifit is a new tenancy\" 29
Once the alarms have been established as working, whether a newtenancy or a tenancy overlapping the introduction of the legislation,many landlords ask tenants to sign a document confirming thatalarms have been tested in their presence. This can also be used toclarify for the benefit of the tenants that the duty of maintenancefalls to them from that point forwards.What happens if I don’t comply?Local housing authorities across England now have the power toserve remedial notices to any landlord they have “reasonablegrounds to believe” is not in compliance with the regulations. Failureto take appropriate remedial action within the specified timeframe(usually 28 days) will leave you open to a fine of up to £5000 perproperty. 340
Houses in multiple occupation (HMO)Three or more non-related individuals in a property: HMOSeven or more residents: planning required to convert to an HMOFive residents or more over three storeys or more: LicensableHMOWhat is an HMO?Generally a house in multiple occupation will be a propertyoccupied by more than one household and more than two people,and may include bedsits, shared houses, non self-contained flats andsome self-contained flats. A household is defined as being peoplewho are linked by certain family relationships; house sharers e.g.students are typically unrelated individuals who, within housing law,comprise a number of households and occupy as an HMO. Housesfully converted into self-contained flats will generally not be HMOsprovided they were converted in accordance with the ‘appropriate’Building Regulation standards. This will be, as a minimum, fullcompliance with the standards of the 1991 Building Regulations. TheEnvironmental Housing Team is responsible for inspecting andenforcing housing standards in licensed and non-licensed HMOs. 341
Example of HMOs: Houses occupied as individual bedsitting rooms Shared houses and flats Buildings converted into flats where one, or more, of the units is not fully self- contained, this could apply to a flat that is missing amenities, or the occupiers have to cross a common hallway to get from one room to another Hostels Guest houses that only provide for people with no other addressThe following maybe HMOs: Houses arranged as fully self-contained flats where less than two thirds of the flats are owner occupied. Guest houses that provide for the “tourist” trade as well as people with no other address. Any owner occupied building where the owner also lets it to lodgers or tenants.Do I require a license?The Housing Act 2004 requires local authorities to licence certainHMOs. A licensable HMO is one of 3 or more storeys and with atleast 5 occupants. These properties must have a licence to operate.It is an offence to operate such a property without a licence or tofail to comply with any conditions. 342
Before a licence can be issued the local Council will need to carryout an inspection to assess compliance with the PrescribedStandards for HMOs. The Council will also need to determinewhether the proposed licence holder is a fit and proper person. Inaddition a valid application form submitted with the appropriatefee is required.If you think your property will fall within the definition of alicensable HMO, please contact the Councils EnvironmentalHousing Team as soon as possible to discuss the application process.All licensed HMOs are in a public register, which can be obtainedfrom the local Council on request.Housing Act 2004 - Housing, Health and Safety Rating System(HHSRS)The HHSRS is a scoring system used by all local authorities to riskassess the effect of housing hazards on the health, safety and well-being of the occupants. The system allows local authorities to takeaction to remedy these hazards in order to ensure housing is safe tolive in. There are a total of 29 hazards, which include: Damp and mould, excess cold/heat Pollutants e.g. asbestos, biocides, carbon monoxide, lead, radiation, etc. Overcrowding, lack of space, entry by intruders, lighting and noise Poor hygiene e.g. pests, food safety, drainage, water supply, etc. Accidents e.g. falls, electric shocks, burns, fires, etc. Collisions, entrapment, explosions, etc 343
These hazards are scored by the Officer, using the rating system.The score determines whether there are any serious hazards(Category 1) or less serious hazards (Category 2) present. If the localauthority discovers there is a Category 1 hazard present, there is aduty to take appropriate enforcement action. For moreinformation, speak to your local council or search their website.Prescribed Standards for licensable HMOsThese standards must be applied to all properties that fall within thedefinition of a licensable HMO. However as with all residentialproperties, all HMOs are subject to an assessment under theHHSRS. Landlords and managers of non-licensable HMOs aretherefore encouraged to follow the advice given in this booklet tolessen the possibility of any enforcement action being taken underother provisions of the Housing Act 2004. The prescribed standardsare:Washing facilitiesWhere all or some of the units of living accommodation in an HMOdo not contain bathing and toilet facilities for the exclusive use ofeach individual household, points (a) and (b) apply as appropriate.(a) Where there are four or fewer occupiers sharing those facilities there must be at least one bathroom with a fixed bath or shower and a toilet (which may be situated in the bathroom) 344
A wash hand basin must also be provided of minimum dimensions 560mm x 430mm. Each wash hand basin shall be provided with an adequate and constant supply of hot and cold water and connected to the foul water drainage system. Each bathroom shall have either a bath of minimum dimensions 1700mm x 700mm or a shower of minimum dimensions 800mm x 800mm. Each bath or shower shall be provided with an adequate and constant supply of hot and cold water designed to ensure reasonable temperature control and connected to the foul water drainage system. Each toilet shall be properly connected to the foul drainage system. Appropriate splash backs shall be provided to each wash hand basin, bath or shower. WC/Bath/shower rooms must be provided with cleansable floor coverings.(b) Where there are five or more occupiers sharing those facilities there must be: 35
one separate toilet with wash hand basin with appropriate splash back for every five sharing occupiers; and at least one bathroom (which may contain a toilet) with a fixed bath or shower for every five sharing occupiers.All baths, showers and wash hand basins in an HMO must beequipped with adequate supply of cold and constant hot water.All bathrooms in an HMO must be suitably and adequately heated(see heating section). Also adequate mechanical ventilation inaccordance with Approved Document F of the Building Regulations2006 must be provided.All bathrooms & toilets in an HMO must be of an adequate size andlayout. Each bathroom or shower room shall be of an appropriate size to provide adequate changing and drying space for the users. Landlords should ensure the provision of suitable floor covering to WCs, bathrooms and kitchens; floors shall be slip resistant, impervious and easily cleansable.All bathrooms and toilets in an HMO must be fit for purpose.All bathrooms & toilets in an HMO must be suitably located in or inrelation to the living accommodation in the HMO Personal washing or WC facilities should not normally be more than one floor distance away. 346
KitchenWhere all or some of the units of accommodation within the HMOdo not contain any facilities for the cooking of food the followingmust be provided:(a) a kitchen, normally not more than one floor distant, suitably located in relation to the living accommodation, and of such layout and size and equipped with such facilities so as to adequately enable those sharing the facilities to store, prepare and cook food;(b) the kitchen must be equipped with the following equipment, which must be fit for the purpose and supplied in a sufficient quantity for the number of those sharing the facilities:-sinks with draining boards;an adequate supply of cold and constant hot water to each sinksupplied;installations or equipment for the cooking of food;electrical sockets;worktops for the preparation of foodcupboards for the storage of food or kitchen and cookingutensils;refrigerators with an adequate freezer compartment (or, wherethe freezer compartment is not adequate, an adequate separatefreezer(s));appropriate refuse disposal facilities; andappropriate extractor fans, fire blankets and fire doors. 347
(c) Kitchen floors should have cleansable floor coverings(d) Kitchen walls adjacent to cookers, sinks and food preparation areas shall be provided with impervious splash backs(e) Kitchen ceilings to be in good repairHeatingEach unit of living accommodation in an HMO shall be equippedwith adequate means of space heating capable of reaching andmaintaining 21°C when the external temperature is -1°C. Adequate fixed space heating to be provided in every room including bathrooms and kitchens. The heating should be provided with time and temperature controls to allow the occupants to regulate the temperature within each individual letting room. Adequate structural thermal insulation should be provided to the building. This would include a minimum of 270mm of loft insulation and where appropriate cavity walls should be insulated. Landlords should be aware of the costs to tenants of using the heating system and consider appropriate energy efficiency measures. 38
Room SizesA child will be included as an occupant in terms of these standards.The minimum room sizes are also subject to each room being of ashape offering adequate useable living space. A 10% flexibility maybe applied to the standards should additional storage facilities exist: for a one room unit with kitchen facilities the minimum size should be 13m² where a kitchen is shared without a shared lounge then the minimum bedroom size should be 10m² where a lounge or dining room and kitchen is shared or a large kitchen-diner is shared then the minimum bedroom size should be 6.5m² a double bedroom for couples i.e. married/co-habit/civil partnership must be a minimum size of 15m² the floor to ceiling height should normally be no less than 2.4m 389
Fire SafetyFire safety within the home is an extremely important issue. Thisarea of law is covered by both the Housing Act 2004 and theRegulatory Reform (Fire Safety) Order 2005.Local Housing Environmental Health departments are the PrimaryAuthority for fire safety within houses in multiple occupation withlocal Fire and Rescue Service also having some enforcement powers.The Regulatory Reform (Fire Safety) Order 2005 places a duty on theresponsible person (usually the landlord or managing agent) to carryout a fire risk assessment for the purpose of identifying the generalfire precautions and other measures needed to comply with theOrder.The Order relates to the common areas of HMOs only andis enforced by local Fire and Rescue Authority. The Housing Act2004 is enforced by the Local Authority who may require firesafety works within the accommodation. The Local Authority willdeal with all the fire safety issues relating to licensable HMOsand may require the owner to provide fire safety solutions assuggested in the LACORS (Housing - Fire Safety) Guidance.The guidance identifies what is needed in terms of; escape routes,fire separation, fire detection and alarm systems, lighting of escaperoutes, fire fighting equipment, fire safety signs, surface finishes andfloor coverings and management and maintenance matters. 4100
The LACORS guidance also includes notes about how to undertake arisk assessment required by the (Fire Safety) Order. Please note thatthe (Fire Safety) Order does not apply in certain situations to sharedhouses (see paragraph 35 in the LACORS guide).A copy of the Fire Safety Risk Assessment:Sleeping Accommodation Guide relating to the Fire Safety Order canbe downloaded at www.gov.ukA copy of the LACORS (Housing-Fire Safety) Guidance can bedownloaded at www.lacors.gov.uk 4112
HOW TO SERVE NOTICE ON YOUR TENANTSIF YOU WANT THEM TO LEAVEThere are two types of notice to serve on your tenant if you wantthem to leave under an assured shorthold tenancy agreement: theSection 8 notice and the Section 21 notice.These two notices serve different purposes and are to be used indifferent situations. The Section 8 notice is used when you want tocite one of the 17 grounds prescribed for use by a landlord to regainpossession of a property, under the Housing Act 1988 & 1996. Theother is used when you just want to get your property back at the endof the tenancy.The Section 8 NoticeThe Section 8 notice is basically a notice that says you as the landlordare seeking possession of the property under one of the prescribedgrounds for possession. You must be fully aware of the ground orgrounds you want to use, along with the full wording of the ground,before you issue the Section 8 notice.All the grounds are numbered in the Housing Act and they fall intothree different classifications. All of them allow you to seek possessionfrom a tenant, however, some of them will only apply in certaincircumstances and there are different notice periods' for all of them. 4122
Which is the best ground to use?There are various grounds you can use to gain possession. Whichever ground you use you must word in full on the Section 8notice, in order for the notice to be valid. The wordings used beloware not the full wordings.Grounds are broken down into three types: Prior notice: 1-5 (notice has to be served before commencement of tenancy) Mandatory: 1-8 (judge has to award possession if ground is proven) Discretionary: 9-17 (judge may use their discretion in deciding whether to grant possession)Prior notice (1-5)To use a prior notice ground, a landlord has to serve a notice on thetenant stating that they may wish to use a prior notice ground atsome point during the tenancy to seek possession. If this notice isnot served before the tenancy begins, the landlord will not be ableto use these grounds later on.Common prior notice grounds used in cases where the landlord isrenting out their former own home are the 'mortgagee clause'(Ground 2) and the 'landlord's main home clause' (Ground 1). Bothallow notice to be served to gain possession if so required. Manymortgage companies will insist on these grounds being includedwith a residential mortgage (not buy-to-let). 4132
Below is the full list of mandatory prior notice grounds, however thefollowing are summaries, not the actual full wordings that you willneed to use on the notice.1. Landlord used to live in the property.2. The mortgagee is claiming possession.3. The property was let for a holiday at some point in the year before the tenancy started.4. The property was let by an educational body at some point in the year before the tenancy started.5. The property is held for use by a minister of religion.Mandatory grounds (1-8)These are the grounds on which the court MUST award youpossession, as long as your paperwork is in order, if you can provein court that the circumstances are as stated in one of these grounds.The most common 'mandatory' ground is the rent arrears groundor Ground 8, which can be used when one of the following applies(on a tenancy that begun after the 15th January 1989): On a weekly tenancy: the tenant is eight weeks in arrears. On a monthly tenancy: the tenant is two months in arrears. On a quarterly tenancy: the tenant is three months in arrears. 4142
If you can prove with your ledger statement that the tenant was thisamount in arrears at the time of serving the notice and at the time ofappearing at court, then the judge, subject to all other paperworkbeing correct, must award in your favour for possession.Below is the full list of mandatory grounds, however the followingare summaries, not the actual full wordings. Note: Grounds 1 -5 arealso prior notice grounds.1. Landlord used to live in the property.2. The mortgagee is claiming possession.3. The property was let for a holiday at some point in the year before the tenancy started.4. The property was let by an educational body at some point in the year before the tenancy started.5. The property is held for use by a minister of religion.6. The landlords wish to-redevelop the property.7. The tenant has died (unless someone has a right to succeed).8. The tenant owed two months' rent (assuming it being a monthly tenancy) both at the time of serving the notice and at the time of appearing at court. 4152
Discretionary grounds (9-17)These are the 'possible' grounds. You may get possession but it isnot guaranteed. Grounds 10 and 11, 'an amount of rent in arrears'and 'persistently in arrears', are the most commonly relied upon ofthese, these are usually served alongside Ground 8 ('more than twomonths in arrears') in case the tenant decides to pay a little rent justbefore court day, to keep their arrears just below the two monthsand prevent you from being awarded possession under Ground 8.There are many other grounds available to use. In practice, due tothe expense of attending court and the potential upset it can cause,most landlords would not attempt court on a discretionary groundalone, unless they had lots of evidence to back themselves up andthe situation was really intolerable. But discretionary grounds canbe tagged onto the Section 8 notice alongside a mandatory groundto add a little more weight.Below is the full list of discretionary grounds, however, they areonly summaries and not the actual full wordings.9. Suitable alternative accommodation is available.10. The tenant was behind with their rent at the point of serving the notice and when the landlord started court proceedings.11. The tenant has been persistently behind with their rent.12. The tenant has broken one or more of their obligations under their tenancy agreement.13. The condition of the premises or the common parts of the property has deteriorated due to the actions of the tenant. 4162
14. The tenant, or someone visiting the tenant, is guilty of causing a nuisance or annoying the neighbours. Alternatively the tenant has been convicted of using the property for illegal or immoral purposes (or of allowing someone else to use the property for such purposes), or has been convicted of an arrestable offence.15. The condition of the furniture has deteriorated due to the actions of the tenant.16. The property was granted for the tenant to carry out their duties and the tenant is no longer employed by the landlord.17. The landlord was induced to grant a tenancy by false statements given by the tenant.How to serveDifferent grounds have different notice periods that you have towait for, once you have served the Section 8 citing the relevantgrounds, before you can commence court action. For example,with Grounds 8, 10 and 11, you have to give the tenant 14 days'notice that you are going to take the matter to court. With Ground14, there is no notice period - you can start court actionimmediately - and with Ground 1, the notice period is two months.Just make sure you have the correct notice period before you servethe Section 8 notice.You can serve the Section 8 notice on your tenant by hand or bypost. When serving by post, you will need an additional twoworking days for service. 4172
If serving the notice by post. Ask the post office for a certificate ofpostage. Once you have served the notice, go to thewww.courtservice.gov.uk website, download the 'certificate ofservice' form, complete it and keep it in your file for later use. Thisis just a notice stating that you have served the Section 8 Notice andhow and when you did it.The Section 21 NoticeThe Section 21 notice is the notice you use when you just want yourproperty back. The tenant does not have to have defaulted in anyway for this to be used. You will, however, have to be at the end ofyour contract, and it cannot be used before six months have passed.A Section 21 has to give two full months' notice to a tenant, so makesure that you are really careful with your issuing dates. Allow twodays for service if delivering by post, one if by hand. More than twomonths can be given if you wish, but the minimum is two months.If a contract is coming to an end, use a 21(1) b notice, if it hasexpired, then use the 21(4)a notice.Court action and the court paperworkIf you have issued your Section 21 or your Section 8 (or maybe evenboth) the end date has come and gone, now it's time to proceed totaking the tenant to court.You cannot start court action until you have served your Section 8or 21 and the time for this has expired. When the notice period isfinished the next step is to visit www.courtservice.gov.uk anddownload the forms you need to start proceedings. 4182
For a possession with rent arrears you will need to follow thestandard eviction procedure and prepare the following paperwork: Particulars of claim. Certificate of service (to prove service) Ledger statement (from your system, showing all the rental payments made and due). A copy of the Assured Shorthold Tenancy Agreement signed by the tenant. A copy of the notice served (Section 21 or 8 or both). N5 claim form for possession of property (see court service website). Court fee.When you have all of the above documentation ready andcompleted (there are guidance notes on the court service website tohelp you with completion if you need help), you need to make acopy for each of the tenants (and guarantors if applicable) and a copyfor the courts and then go to the court office to lodge the claim.Once you have lodged your claim, you will get a hearing date,usually in 4 - 6 weeks. On the day of the hearing, arrive in plenty oftime and remember to have all your papers with you. The judge willnormally advise of the judgement in the hearing and notification willbe sent in the post. 49
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