As if letting a property wasn’t a daunting enough task, the huge amount of legislation and regulation can be confusing and worrying for landlords. Please find important information below about Inventories, Assured Shorthold and Common Law Tenancies and Tenancy Deposit Schemes and Safety Regulations:

Inventories– what, why and how?

An inventory is an essential part of any tenancy. It is, in effect, a written ‘benchmark’ for comparing the condition and contents of the property at the start and end of the tenancy. Without it, in the case of a dispute over the deposit, it is almost impossible to claim any damages or dilapidations at the end of the tenancy.

The inventory comprises three parts:

(1) The inventory document is a written report detailing the fixtures and fittings in a property. Providing there are no major changes to the property or its contents from one tenancy to another, the inventory may be used for successive tenancies.

(2) The check-in report is a separate report drawn up against the inventory. It details the specific condition of the fixtures, fittings and of the property generally at the very start of the tenancy.

(3) The check-out report – this is the report drawn up at the very end of the tenancy detailing the condition and contents against the original check-in and inventory to assess any damage or dilapidations (aside from fair wear and tear) that may have taken place during the tenancy.

Inventory prices will vary depending on the size of your property and its level of furnishing, however, we are able to advise on approximate costs.

Assured shorthold and common law tenancies and tenancy deposit scheme

It is standard practice for us to hold an amount from the tenant equivalent to one calendar months rent during the tenancy. It is held until the tenant has performed all the various obligations under the tenancy agreement – in particular, those relating to the cleanliness and condition of the property.

Our professional tenancy agreement contains all the relevant clauses in the tenancy agreement setting out who is to hold the deposit, what the deposit can be allocated for and the end of tenancy procedures and timescales for its refund. In general, the best way for a tenancy deposit (bond) to be held during the tenancy is by the ARLA member agent as “stakeholder” between the parties (landlord and tenant). This means that at the end of the tenancy the agent should get the agreement of both sides before making any deductions for damage, cleaning etc.

You may have heard of the Tenancy Deposit Regulations which apply to any Assured Shorthold Tenancies. We are signed up to the Tenancy Deposit Scheme (TDS) (as recommended by ARLA) which means, in the event of an unresolved dispute or stalemate over the allocation of the deposit, it can be referred to the scheme for a prompt, independent, third-party adjudication, providing a resolution which is fair to both landlord and tenant.

Safety regulations

There are several specific legal obligations and responsibilities on a landlord with regard to Fire safety for Furniture & Furnishings; Gas supply and appliances; plus Electrical wiring and appliances. It is essential that landlords take these responsibilities seriously – failure to comply can lead to large fines and even imprisonment. We can advise you further on all these obligations to ensure you have full peace of mind.

The gas safety regulations

It is a landlords legal responsibility to ensure that all the property’s gas appliances and fixed installations are maintained in good order and checked for safety at least every 12 months by a Corgi registered engineer. William Grant & Partners are able to organise gas safety certificates on behalf of our landlords using specialised Gas Safe engineers. Further comprehensive information is provided on www.gassaferegister.co.uk. As your agent, it is essential that we are in possession of a copy of the valid gas safety certificate before we can release keys to a tenant for move-in and a carbon monoxide alarm in any room with which contains a fixed combustion, other than a gas cooker.

Electrical safety regulations

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, were officially brought in on 1st April 2020.In July 2020, all new tenancies required an EICR (Electrical Installation Condition Report).As of 1st April 2021, this requirement applies to all tenancies-new and existing. William Grant & Partners are able to organise electrical installation condition reports on behalf of our landlords using qualified electricians.

Furniture and furnishings safety regulations

The Furniture and Furnishings (Fire Safety) Regulations 1988/1989, 1993 and 2010 set levels of fire resistance for domestic upholstered furniture, furnishings and other products containing upholstery. All furniture and furnishings that are provided in a rental property should comply with these regulations. To ensure that they comply with the Regulation, a landlord must ensure that all of their furniture is “fire resistant”. William Grant & Partners are happy to assist you in this matter.  

Smoke and carbon monoxide detector regulations

The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 and The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 sets requirements for landlords.The regulations require social and private rented sector landlords to have at least one smoke alarm installed on every storey of their rental property which is used as living accommodation, and a carbon monoxide alarm in any room used as living accommodation which contains a fixed combustion, other than a gas cooker.The landlord must make sure the alarms are in working order at the start of each new tenancy and if a tenant or their nominated representative, reports a faulty alarm during the tenancy to the landlord, these reports must be investigated and the alarms be repaired or replaced, if necessary, as reasonably practicable.

EPC's

An EPC (Energy Performance Certificate) provide information on a building’s energy efficiency using a sliding scale – ‘A’ being the most efficient, ‘G’ being the least efficient. In addition to the Energy Efficiency Rating (relating to running costs), the EPC will also show the Environment Impact Rating (relating to the carbon dioxide emissions).It is mandatory to hold an Energy Performance Certificate (EPC) if you intend to sell or rent your property. William Grant & Partners are able to organise an EPC report on behalf of our landlords using a Domestic Energy Assessor. It is a requirement that private rented properties must have a rating of 'E' or above.

Overseas Landlords

The Under current legislation, landlords must apply for an exemption certificate to be issued to us permitting us to pay the rent to you gross. Only the Landlord can make the application which, if granted, will be issued directly to the agent. If the property is jointly owned and both owners are overseas, then exemption certificates are required for both owners. Until an exemption certificate is received we are legally required to withhold a percentage of the net rental income as a provision against tax. Tenants paying rent directly to an overseas landlord should still withhold tax. The landlord has a duty of care to make the tenant aware of this.

For more information on this or advice on marketing your property in Redbridge, Havering, Barking & Dagenham, Newham and surrounding areas please contact us on 020 8550 8888.