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Landlord Checklist Everything you Need to Know sourcedfranchise.co
Introduction
Being a landlord is time-consuming and involves a lot of work. The first stages of
letting a property are usually the most stressful for any landlord. Those include:
legal obligations, marketing and property maintenance.
To make your life easier, we have compiled a list with the things you need to know
before renting your property to new tenants.
Landlord Checklist
Safety Checks
Arrange an EPC
Inventory List
How to Rent Guide
Right to Rent Checks
Market the Property
Reference Your Tenants
Tenancy Agreement
Landlord Insurance
Tenant’s Deposit
Inventory List
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01 Safety Checks
It is a landlord’s duty to keep their tenants safe at all times - failure to provide a
safe property could lead to hefty fines or even prison. Every landlord should install
a smoke alarm on every floor where there’s a room being used as a living space
and a carbon monoxide detector in every room where there’s a solid fuel-burning
appliance.
Smoke Alarm Carbon Monoxide
Detector
You should also make sure:
• To provide a valid Gas Safety Certificate, also known as CP12 at the start of their
tenancy
• The electrical system such as sockets and light fittings is safe
• All appliances you supply such as kettles and cookers are safe
+ +
Gas Safety Electrical System Appliances
Certificate
Please bear in mind that HMOs have stricter safety regulations.
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02 Arrange an EPC
It is a requirement to provide tenants with an Energy Performance Certificate
(EPC) on the first day of the tenancy period. This law, that came in force in 2008,
requires all advertisements to include the property’s EPC rating. With this in mind,
please make sure to order an EPC before marketing the property to let.
An EPC shows tenants how energy sufficient the property is and must
be provided every time you let your property to a new tenant. Failing to
provide your tenant with an EPC before they move into the property,
may affect your ability to evict your tenant in the future.
It’s also recommended to take meter readings at the start and end of each
tenancy (make sure to take a photograph for your records) and contact energy
companies so they’re aware of who is responsible for the bills going forward.
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03 How To Rent Guide
The ‘How to Rent Guide’ is another essential document you should give to your
tenants before renting the property.
This guide, helps tenants and landlords to understand their rights and
responsibilities. It provides a checklist and more detailed information on each
stage of the process, including:
• What to look out for before renting
• Living in a rented home
• What happens at the end of a tenancy
• What to do if things go wrong
For the most up to date version of the Guide, check the government website.
Your tenants are also entitled by law to know:
• Who you are and
• Where you live
You must provide your tenants with this information within 21 days of starting the
tenancy or there might be a fine.
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04 Market The Property
Choosing a good advertising strategy is a crucial step . Whether you choose
an agent to help you rent your property or do it on your own, it is a good idea to
consider an agent’s tenant find service.
Such services allow you access to a major property portals such as Zoopla or
Rightmove. These portals provide a wide range of property listings tailored to the
tenants’ needs.
To increase the number of inquiries from prospective tenants, make sure to follow
the simple tips below:
The opening lines of your property listing description should be a
compelling, engaging description of why your prospective tenant
would want to live there.
Start with a short paragraph that gives an insight into not just
the property but also the lifestyle on offer. Talk the property as
though you are walking through it.
Now that your potential tenant is captivated by the idea of liv-
ing in this great area, hit them with all the important details they
need.
This should include the number of bedrooms and bathrooms, as
well as other important details, like what type of heating is availa-
ble, details of any garden or balcony area, bills that are included
in the rent and any other vital details.
Once you’ve written a high-quality advert, it’s time to match it
with great photos that show off your rental property at its best.
Studies have proven that kitchen and reception rooms are the
best main photos. If you have a unique garden or exterior, photos
of it can be equally effective.
Please keep in mind that photos full of clutter and mess are really
off-putting for potential new tenants.
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05 Right To Rent Check
According to a law voted on the 1st of February 2016, the pre-tenancy process has
incorporated the Right to Rent scheme, meaning that landlords are required to
check whether prospective tenants have the legal right to rent in the UK. So, before
a tenant can rent a home in England, you or your letting agent must undertake
passport and immigration checks prior to letting out the property.
To check the immigration status, check and take copies of one of the following
documents:
UK passports
European Economic Area passport or identity cards
Permanent resident cards
Travel documents showing indefinite leave to remain in the country
Certificate of registration or naturalisation as a British citizen
Home Office immigration status
It’s up to you to decide whether to carry out the checks yourselves or through a
letting agent to do them on your behalf. Please keep in mind that if you fail to carry
out the checks, you could be fined up to £3,000 per tenant.
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06 Reference Your Tenants
Landlords are not required by law to obtain references for their tenants, however,
this can significantly minimise the risk of letting the property and help you make an
informed decision on whom you rent the property to.
The tenant reference may include:
All of the tenant’s basic information
Previous or current employment details
Addresses
Bank statements
References from their current landlord
It is wise to have a tenant referencing checklist, which you can use as your
blueprint each time you start looking for a suitable tenant. You can tick off each
job in order, so nothing is inadvertently missed, or if you are busy or stressed,
consider using a letting agent for tenant referencing.
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07 Tenancy Agreement
A tenancy agreement acts as a binding contract between you and your tenant and
sets out the legal terms and conditions of the tenancy and what type of tenancy it
is. The tenancy agreements should be given to all tenants who agree to rent your
property.
Assured Shorthold Tenancy (AST): It is the most common tenancy agreement
that includes:
General information of the tenant, landlord and the property
Proposed dates and duration of the tenancy
A breakdown of payments
Required notice periods in case either party wants to terminate the tenancy
earlier
To make any changes to the terms of a tenancy agreement, you must first get the
written approval of the tenant. If you don’t have your own tenancy agreement,
many letting agents or rental sector firms provide templates for sample
agreements.
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08 Landlord Insurance
Although landlord’s insurance is not a legal requirement, it is a great way to
minimise costly repairs and matters outside of your control such as flooding. It is
also important to note that a normal home insurance policy won’t cover you if you
are renting to tenants.
Landlord insurance may also be a condition of your buy-to-let (BTL) mortgage, so
make sure to check beforehand. Otherwise, you might find yourself breaking the
terms of your mortgage.
When choosing a landlord’s insurance, keep in mind that there is a wide variety
of cover options from Buildings and Contents to Legal Expenses and Rent
Guarantee, so make sure to choose the cover type that suits your needs.
Different policies will have different levels of cover, but a typical policy usually
covers things like:
Loss of rent: Landlord insurance that covers loss of rent lets you claim if the
property becomes uninhabitable after damage. You should always check the
maximum loss of rent pay out to make sure your monthly mortgage costs would
still be covered.
Contents: Whether you are renting a furnished or unfurnished property, you
should still consider contents cover. Contents cover includes, apart from
furniture, curtains, carpets, white goods and other kitchen appliances, so a small
amount of cover would offer significant peace of mind if they were damaged.
Damage: This covers you against any damage to the building and/or its contents,
for example if any windows are smashed or any of your contents are stolen.
Landlord’s liabilities: Covers claims made against you if someone is injured or their
property is damaged. Damage claims can be costly, but most landlord insurance
policies offer high liability cover in case you end up in court.
Vacant properties: Landlord insurance for vacant properties can also offer cover
for rental properties that are left unoccupied for up to 90 days - and sometimes
120 days if you’re letting your home out as a student let property.
Title Splitting - Everything you Need to Know 18 Title Splitting - Everything you Need to Know 1909 Tenant’s Deposit
Many landlords believe it is okay to let a property to a tenant and not take a
deposit. Though in some circumstances it’s okay, it’s not advised. Deposits give
landlords a financial safety net in case a tenant causes damage to the property or
steals/loses any of the landlord’s possessions.
There are three Government-approved schemes:
• The Deposit Protection Service
• MyDeposits
• Tenancy Deposit Scheme
These companies have the authority to govern tenancy deposits and oversee the
process of deposit returns, deductions and disputes. When you receive a deposit
from the tenant, you should put it into a Government-backed tenancy scheme
within 30 days.
Following the Tenant Fees Act coming into force in June 2019 there are strict limits
on what deposits you are legally allowed to charge your tenants. Deposits are
typically equivalent to 4-6 weeks rent, but should be no more than two months’
rent.
Although it may seem that deposit protection is designed with a tenant’s best
interests in mind, the system has potential benefits for landlords too.
One of the major benefits of deposit schemes is the alternative dispute resolution
service (ADR). Each of the government-backed schemes offers free, independent
adjudication at the end of the tenancy. This is particularly advantageous where
landlords and tenants disagree over what deductions should be taken from the
deposit.
Title Splitting - Everything you Need to Know 20 Title Splitting - Everything you Need to Know 2110 Inventory List
The final step, yet one of the most important ones when it comes to letting
property, is to carry out an inventory check before and after a tenancy. In doing so,
you can make sure everything’s accounted for and it also decreases the possibility
of a deposit dispute at the end of the tenancy. Conducting inventory checks is
easy to do yourself, but if you don’t have the time to do it and need help, ask your
letting agent or an independent inventory clerk.
Flag any issues/special notes
Mark any issues upfront on your inventory template, along with the condition of
specific items or features. If the sofa is brand new, make a note. If you’re already
aware of a scratch on the kitchen surface, reassure your tenant. Photo and video
evidence can be very useful here, to help you make direct comparisons.
Agree on wear and tear...
There’s a difference between damage and wear and tear, so make sure your
original inventory gives clear details of the condition your property and contents
were in, before the tenancy started.
Prepare your end-of-tenancy check
This should happen on the day your tenants move out, acting as a final inspection
of your property and contents. Make sure your tenant has their copy of the original
inventory handy, and cross-reference any notes and changes.
Your tenant should be present for the final inspection, and their possessions
should already be moved out of the property.
Once your inventory is complete and your tenant is up-to-speed, it will need to be
signed off by you both. Make sure your tenant has a copy to refer back to.
Title Splitting - Everything you Need to Know 22 Title Splitting - Everything you Need to Know 2311 How We Can Help
If you are looking to create a successful portfolio, we are here for you. At Sourced
Partner, our experienced team has helped many entrepreneurs and individuals to
succeed at investing in property.
Our tried and tested business model, has generated over £280m worth of
property and our network of over 130 franchisees has benefited from our
experience in the most effective HMO strategies.
By becoming part of our expanding team, you will be able to build a profitable
HMO portfolio by gaining access to:
Our bespoke training program and ongoing support
Hand-picked HMO investment opportunities and a bespoke pipeline plan from
our in-house HMO specialists
Up to 100% funding for all the profitable property investment projects across the
country
And much more...
If you would like to find out more or become part of our successful team, then
simply, follow the steps below:
Book a call with Complete an Meet our Directors
the team application form
Title Splitting - Everything you Need to Know 24 Title Splitting - Everything you Need to Know 25Contact Sourced
partner@sourced.co � (+44) 0333 123 1330
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