The 7% of British landlords who rent out property as a secondary form of income are at great risk of putting themselves in danger of prosecution and hefty fines, as nearly half aren’t using property professionals for advice on compliancy and tenancy management.
According to research data released by insurance provider, LV=, over half of landlords decide to rent out their former residences unexpectedly due to change in circumstances. This is causing a steady rise in the number of so-called “part time” landlords. Conveyancers need to ensure clients of this ilk aren’t putting themselves at risk of non-compliance, which can have some serious consequences.
This £28 billion industry is significant and it’s come to light that not all these landlords are following regulations, say LV=. Nearly half a million landlords have not had their gas safety checks updated by a registered engineer, within the last year. Those that cease to carry out necessary requirements such as this can face prosecution and fines equating to tens of thousands of pounds.
Even if landlords are renting out one or hundreds of properties, all need to ensure they remain compliant with up to date legislation enforced. This can vary from region to region depending on local authority regulations.
One of the latest revisions within the industry include the Council of Mortgage Lenders’ (CML) Handbook amendments brought in on 1st December. This includes changes to leasehold property regulations that landlords are advised to be made aware of.
Conveyancers should also ensure their clients know of all their responsibilities for the upkeep of their rental properties, including possible damage and claims that can be made to near or adjoining properties. Not only can tenants make a claim against the landlord if injury is caused as a result of the condition of the property, neighbours who have had their home damaged could also make a claim against them.
Nearly a third of landlords, according to the LV= data, have experienced rental property damage. This means they are spending on average in the region of £1,200 for repairs. Help your clients reduce costs and emphasise the need for thorough searches to be carried out, in order to avoid long term loss of income.