A large number of landlords, who carried out Portable Appliance Test (PAT) when first letting their properties, have never renewed it! 

Out of almost 500 landlords contacted over a four week period by INEX, more than 50% have since signed up for a re-test.

Whilst Gas Safety Regulations places a legal burden upon landlords (see Blog 04/05/12, Landlord Receives Community Service), there is no equivalent to check out electrical items, yet!

Appliances offered as part of the tenancy places a duty of care upon a Landlord and include fridge, freezer, microwave, washing-machine, vacuum cleaner, even plug-in lamps as any of these appliances could develop a fault causing shock or fire.

Renewal of tenancy agreement is an opportunity to carry out inspection of property and electrical appliances however, they should be checked at least annually to place the landlord in a strong position to argue duty of care was maintained.

As the UK rental market continues to outgrow home-ownership, it is increasingly important that all landlords, new and experienced, are reminded to treat tenancy as a business. Costs for undertaking regular and certified safety checks are a deductable business expence for tax purposes. 

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A landlord was ordered to serve community service after failing to keep gas appliances in her rental properties safe.

Investigations by the Health and Safety Executive (HSE) found that Onyemauche ‘Fidelia’ Peel, 49, of Thamesmead in London, had not ensured that proper gas safety checks were carried out in at least four of her properties in Basildon, Essex, between 2003 and 2010.

Two boilers had to be turned off because they were in such a dangerous condition that tenants lives were at risk and some safety checks had been carried out by unregistered engineers. The landlord even used an unregistered gas engineer to install one boiler.

At Basildon Crown Court, Peel admitted 7-breaches relating to the Gas Safety (Installation and Use) Regulations 1998 and was sentenced to 150 hours of community service and, ordered to pay £2,000 costs.

Judge Owen Davis QC described the incidents as a time bomb waiting to go off  saying it was just chance that no one was killed.

After the hearing, HSE inspector Sue Matthews said, Owning properties and renting them out can be very profitable. But it also comes with responsibilities. Landlords must ensure that gas appliances are maintained in a safe condition. This means having annual gas safety checks, repairs and installation work carried out by Gas Safe registered engineers ... 

Fumes given off by poorly serviced gas appliances are colourless, odourless and tasteless. Without an annual gas safety check, tenants cannot tell whether their appliances are safe. These essential safety checks cost only £70-£100 per year.

The offence is committed when using unregistered engineers and HSE will prosecute those who abuse the regulations. Landlords can easily check whether gas engineers are registered by telephoning Gas Safe or checking on the Gas Safe website.

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Too many landlords use digital evidence as a substitute to an essential, written description of property inventory at tenant check-in/check-out, leaving themselves exposed to potential costly disputes over wear and tear, and loss or damage, warns the Association of Independent Inventory Clerks (AIIC).

The trade body says an increasing number of landlords/property professionals rely only on photographic and video evidence in place of thorough, detailed written reports, in deposit dispute cases.

The association says that well taken photographs and video offer good illustration, but should not replace a detailed, written report. 

 

Pat Barber, Chair of AIIC says, We have seen some excellent inventories with the right balance of detail, supported by photography and video. But, more often than not, the photographs submitted in inventories are little larger than thumbnails and hence make it extremely difficult to see detail ... To back up a damage issue, along with a detailed description, any photographs need to be of a reasonable size, so that the damage can be actually seen clearly. A glossy inventory that relies heavily on photographs will be of little use in a dispute.

 

All pictures should be digitally date stamped, clear and of a size to appreciate fully what is being photographed. There is no point in producing an undated picture album as inventory without proper description, as it cannot be proved when it was valid.

Photographs and/or videos are great for a general appreciation of the property or for large areas of damage, such as carpet burns, serious damage to worktops or interior décor etc, but need to be supported by still photographs of the finer detail, such as chips and scratches in sinks or baths, knife marks to worktops, and scratches in halogen hobs etc. 

This is not a short job and might take an hour or two! It is worth investing in a high definition digital camera with digital dating (rather than using a mobile phone camera). Remember, you will only have to do this once as a full album at the beginning of the letting of a property so, take wide-angle and close up pictures of everything, as individual items, and then write it up.

 

1. doors (both sides with close-ups of door furniture) halls, landings, bannisters & stairs, ceilings, walls, floors, light switches and light fittings

2. every room including sides, top and bottom of each piece of furniture, floors, ceilings, walls, skirting boards, sockets, wall fittings, curtains and hangers, doors and door furniture

3. every machine in the kitchen/utility room including tops, front, sides and insides e.g. cookers, fridges, washing-machines, tumble-dryers including waste pipes to drains

4. the bath/shower including the splash doors/curtains and runners, taps, hoses, plug holes and plugs, ceilings, floors and doors

5. the WC including flush handle and the ball-valve, down the pan, floor surrounding the bowl

1. every external door

 

2. paths, lawns, gardens, tools, outside furniture, dustbins and lockers

3. each aspect of the building, roof-line, guttering, downpipes, windows, storage areas, fences

 

4. inside garage and doors (opened and closed), close up of locks and handles 

1. describe everything photographed in detail, giving an ID Number cross-refererence for each picture

2. obtain signature of each tenant named within the tenancy agreement (and Guarantor if applicable)

3. sign and date it yourself

4. provide copy of written inventory to the tenant(s)

This sounds like a lot of work, but with typical rent deposits of 6-8 weeks, you could be talking about several thousands of pounds to off-set any loss or damage. If you don't want to do this, a reputable lettings agent is paid to do for you.

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The private rented sector is booming in the UK, as more and more people are forced to look for leased accommodation as they are not in a position to buy their own property.  There is also a growing culture amongst the younger generations that renting allows greater mobility.

As current tenant demand firmly outstrips supply, landlords are in a position to raise rents in many parts of the country. Savvy landlords of course, will keep a keen eye on the market to see how far they can go without losing demand. 

ARLA recently reported that more than half of their registered landlords say they have more tenants than available property. It is therefore, a landlords market as they can afford to be selective when it comes to approving an applicant.

 

Ian Potter, Ops Mgr at ARLA says, Renting is often seen as a low-hassle, lower risk option when compared to purchasing a home, yet many people find the prospect of renting a home daunting, whatever their age or experience.

 

1. Location ~ It is essential you keep your emotions out of the decision to own a Buy-to-Let Property. You may not choose to live their yourself however, when the math works, the location is right! 

2. Rental Demand ~ Whilst landlords may engage a builder/decorator to add value/improve the condition of their properties, the one thing they cannot change is where it is located. Checking out the neighbourhood for rental demand with at least three SAFEagent registered lettings agents before buying, just makes sense.

3. Capital Growth ~ For most landlord/investors, rental income is probably the highest priority (especially in the current market) but having a portfolio that increases in value is also a good idea. Choose neighbourhoods where property has a history of growth. It is unsurprising that Government stat's recently released by the Department for Communities and Local Government shows London and the south-east having the greatest rises in values in the year to January. But then again, you can buy three similar properties in the north of the country for the cost of just one in London/south east. And, three properties drastically reduces your risk of total void periods.

4. Tenant Deposit ~ Serious misunderstanding can arise when agents don't get right at outset the security of tenant deposit and/or the correct version of tenancy agreement with comprehensive inventory. Interview at least three SAFEagent registered lettings firms who manage at least 10-properties in/around your chosen neighbourhood.

5. Tradesmen ~ Where there is a lot of work to be carried out, which may include changing locks, updating electrics and plumbing, plastering and decorating, you need to create a document accurately describing the condition and content of the property prior to commencement of the work. Taking pictures is a good idea too, for comparison when work is completed.

There is undoubtedly plenty of money to be made by becoming a landlord, but it pays in the long run to do things properly at outset and avoid any short cuts that may lead to tenants witholding payments or demanding compensation in the future.

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