New and updated legislation is something we have to deal with regularly as an experienced rental agency. The recent changes to the Housing & Planning Act 2016 has been put in place by the government in their ongoing attempt to professionalise the industry.
The legislation requires all property agents to hold their client monies in a client money account, which is separated from their business accounts. Here at Tortoise we are SAFE agent accredited which means we hold a separate client credit account and in addition to this, our accounts are professionally audited on an annual basis, this is in addition to the new legislation.
Right to Rent was introduced in February 2016 and means that before renting out a private property either the landlord or the property agents (depending on your contract) have the responsibility of checking a tenants right to rent in this country.
This process was put in place to target illegal immigrants from being housed by unscrupulous landlords and means the correct identity documents have to be produced by each tenant with copies taken. Failure to comply with this legislation could result in fines of £3000 per tenant so as a landlord make sure your contract with your property agents specifies who holds this responsibility.
All tenants aged 18 and over need to be checked as part of the process even if they are not named on the tenancy agreement. ALL tenants must be checked not just those you consider not to be British. If tenants have a fixed time of stay, you must make further checks just before the expiry date of the tenants right to stay in UK or 12 months after your previous check. You can be subject to a fine if this check isn’t completed.
The legislation now provides quicker eviction processes for tenants that have no right to stay in the country. There is a Landlord Checking Service that allows a landlord to conduct a check whether a potential tenant has an outstanding immigration application or appeal.
Another part of the new act is to provide starter homes to first time buyers. In this instance first time buyers are accepted under the legislation by being below the age of 40.
If you would like more information about this act and the specifics it entails as well as how this may affect you please follow this link.
http://www.legislation.gov.uk/ukpga/2016/22/contents/enacted/data.htm
Here at Tortoise we can take care of this on your behalf so as a Landlord you know your property is compliant with this legislation. This enables us to be a member of NALS (National Approved Lettings Scheme)and a registered SAFE agent. More information about these organisations can be found at the links below:
NALS:http://www.nalscheme.co.uk/
SAFE Agent:http://www.safeagents.co.uk
Renting a property can be complicated unless you work with a professional agency that knows what they are doing. Always read your contract clearly to ensure you know your personal responsibilities and don’t just trust that because you are with a property agent you are covered. Just because an agent is an agent don’t be fooled into thinking they are compliant with all legislation – ask questions and check out certifications.
Here’s some information on our fully managed service:
If you would like more information on Housing & Planning Act, becoming a landlord or renting your property out give us a call on 01733 592020.