Have you thought about renting out your home?

Have you thought about renting out
your home?
There is a shortage of affordable housing in Wigan and nationally the housing
market has stalled and mortgages can be difficult to come by. This has made
selling property very difficult and many homeowners have considered renting out
their property to help with their own financial commitments.

Empty Homes not only restrict the supply of properties to the market but they can
also cause problems for the owner, the neighbours, the local area and local
residents.

The first thing people tend to think about when looking to rent out their property is
how much rent they can charge and whether that amount covers any mortgage or
loans secured on the property. Many do not consider the other responsibilities that
they automatically take on when they decide to become a private landlord.

This fact sheet will help you to avoid some of the common mistakes that come
from private renting.

 1. Speak to your mortgage lender
You could breach your mortgage agreement and suffer financial penalties if you
choose to rent out your property without having the proper consent from your
mortgage lender.

 2. Get an Energy Performance Certificate (EPC)
Since the 1st October 2008 it is a legal requirement that an EPC is required for
properties that are built, sold or let. The certificate provides information on the
energy performance of the property and how, if need be, it can be improved.
Failure to provide an EPC can result in a fine. For more information please visit
www.gov.uk and choose housing and local services.

 3. Do you need a property licence?

If the property has three or more storeys and houses five or more people who are
not all related, you must apply for a House in Multiple Occupation (HMO) licence
from the council. Failure to obtain a licence means that if taken to court and
convicted you could be liable for a fine of up to £20,000. For further information
visit www.wigan.gov.uk, select the housing service page and then choose private
sector housing or visit www.gov.uk and choose housing and local services or
telephone 01942 489220.

 4. Have your gas and electrical appliances checked
As at the 1st April 2009, all gas engineers must be registered on the gas safe
register – www.gassaferegister.co.uk. All gas appliances must be checked
annually and you should provide your tenants with a copy of the certificate issued
by a Gas Safe registered engineer before they move into your property.

It is your responsibility to make sure that any electrical installation and all electrical
appliances are safe to use to reduce the risk of fire and electrocution. Installations
should be tested at least every five years and appliances more frequently
dependant upon their type. For further advice please visit www.esc.org.uk.

 5. Reduce the risk of fire
You should ensure that there is a safe means of escape from the property in the
event of a fire and that a suitable fire detection/alarm systems has been fitted.
Every property will be different and so you should carry out a fire safety risk
assessment for each one. You should also ensure that there are working batteries
in each detector and remind your tenants to maintain them whilst they are living in
your property.

Greater Manchester Fire and Rescue Service will provide a free home fire safety
check once your tenant has moved in. You can contact them on 0800 555 815 or
you can visit www.manchesterfire.gov.uk.

 6. Ensure that your property presents no risk to your tenant’s
    health and safety
Before every tenancy starts, you should carry out an inspection of your property
and look out for any potential or obvious hazards. Your property should be in a
good state of repair; you should keep it well maintained and ensure it is heated
effectively.

Any safety hazards should be dealt with quickly to remove the hazard completely
or reduce the risk that would arise from it. Further information can be found at
www.gov.uk by searching for HHSRS (Housing Health & Safety Rating System).

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7. Get references from any potential tenants
References can provide valuable information regarding an applicant’s ability to
successfully manage a tenancy. They can help minimise any risks relating to rent
not paid or malicious damage being caused at your property.

    8. Prepare a formal tenancy agreement
Tenancy agreements are highly recommended to safeguard the interests of both
landlord and tenant. They should be signed by both parties. The most common is
the assured shorthold tenancy and they are available either online or at most
stationery suppliers. If a dispute should arise, it is much easier to deal with when
there is an agreement in place. There are national landlord organisations and
local ones who may supply these free to members. Visit www.landlords.org.uk or
www.rla.org.uk or www.northwestlandlords.com

    9. If you take a deposit make sure it is protected
By law, any deposit taken by a private landlord must be protected through one of
the following government approved tenancy deposit schemes:

     •   My deposits – www.mydeposits.co.uk
     •   The Deposit Protection Service – www.depositprotection.com
     •   The Tenancy Deposit Scheme – www.tds.gb.com
     •   Capita Tenancy Deposit Protection – www.capita-tdp.co.uk (scheme closes
         13/09/2014)

Within 30 days of receiving the deposit you need to ensure that you provide your
tenant with written information confirming:

•   the address of the rented property
•   how much deposit they’ve paid
•   how the deposit is protected
•   the name and contact details of the tenancy deposit protection (TDP) scheme
    and its dispute resolution service
•   your (or your letting agency’s) name and contact details
•   the name and contact details of any third party who paid the deposit
•   why you would keep some or all of the deposit – e.g. because your tenants
    damaged the property and you need to fix it
•   how to apply to get the deposit back at the end of the tenancy

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•   what to do if they can’t get hold of you at the end of the tenancy
•   what to do if there’s a dispute over the amount of deposit to be returned at the
    end of the tenancy

If you choose not to follow the rules of the scheme and the court finds you haven’t
protected a deposit, you can be ordered to:

    • repay it to your tenants
    • pay it into a custodial TDP scheme’s bank account within 14 days
    • repay your tenants up to 3 times their original deposit within 14 days of
      making the order

Failure to protect a deposit can also make any possession action you may wish to
take using a Notice of Seeking Possession under section 21 of Housing Act 1988
invalid.

Please visit www.gov.uk and choose housing and local services for additional
information

10. Don’t find yourself in court when something goes wrong
Becoming a landlord carries a huge responsibility and you should always keep up
to date with current advice available either from your local authority, landlord
associations or online.

Managing a property
Managing a property is not for everyone and some people prefer to use local or
national letting and managing agents.

Wigan Council in conjunction with the Citizens Advice Bureau have set up a not
for profit company called Wigan Housing Solutions who offer a tiered approach to
property management including:

    •   finding a tenant
    •   collecting the rent
    •   pre tenancy workshops
    •   completion of documents including housing benefit applications
    •   regular visits to the property
    •   liaising with the landlord over repairs and maintenance

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You can contact Wigan Housing Solutions on 01942 216843 or at
www.wiganhs.org

Can I hand my property over to the Council?
In some cases, the Council will lease the property from you for a period of around
3 years, employing Wigan Housing Solutions to manage the property on their
behalf. In return for leasing the property to the Council, you will receive a
guaranteed monthly rent.

For more information on our private sector leasing scheme contact Wigan
Housing Solutions on 01942 216843 or Wigan Council, Housing Services on
01942 489205. Alternatively please visit www.wigan.gov.uk and select the
Business tab then choose Property and Land followed by Private Landlords.

Wigan Council Landlord Accreditation
Wigan Council in conjunction with other local authorities across the Greater
Manchester region have a landlord accreditation scheme. The aims of the scheme
are to raise standards in the private rented sector whilst offering support and
guidance to those landlords who require it. Whilst we recognise that the majority
of landlords provide decent accommodation alongside a good quality
management service but we want to raise awareness with new or inexperienced
landlords by drawing on the experience of those who have worked in the private
sector for a long time.

The scheme requires landlords to abide by our Code of Standards and
Management Practice which focuses on 4 areas:

  •   standards of accommodation
  •   standards of management
  •   energy efficiency
  •   fraud

For further information please contact Wigan Council’s Housing Services team on
01942 489205 or visit www.wigan.gov.uk and select the Business tab then choose
Property and Land followed by Private Landlords. Alternatively you can contact us
via email at housingservices@wigan.gov.uk.

Private Landlords Forum
Wigan Council set up its own private landlords forum and we meet twice a year
usually in March and September. At the event we provide information and advice
in a range of formats. The forum allows landlords and agents to share their

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experiences and officers from the Council and other agencies are available to
offer support to all those involved in the private rented sector.

If you are interested in attending future events please contact the Housing
Services team on the details below.

How to contact us:

    Wigan Life Centre (South), Housing Services, PO Box 100,
    Wigan WN1 3DS

    Phone: 01942 489205
    E-mail: housingservices@wigan.gov.uk

    We can make the information in this factsheet available in other formats
    and languages on request.

Date produced (July 2014)

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