What are a Landlord's legal obligations at the start of a tenancy?

As a private landlord it’s easy to trip into pitfalls at the beginning of a tenancy which can make it difficult to regain possession of your property if things go wrong later on.

In this article, we run through Harrowells’ ‘possession action checklist’, which covers your obligations under the ‘Deregulation Act 2015 and Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015’, ‘The Housing Act 2004’ and ‘The Housing (Tenancy Deposits) (Prescribed Information) Order 2007’. Following our checklist will ensure that you can tick off all your legal requirements at the start of the tenancy and make the process smoother should you need to gain repossession later down the track.

1) Gas Safety Certificate

Firstly, landlords must ensure that the tenants are provided with the up-to-date Gas Safety Certificate before they occupy the property. Landlords are also required to undertake a check every 12 months and each certificate should be served on the tenant immediately.

If the property does not have gas appliances, the landlord should confirm this clearly in writing at the outset of the tenancy.

2) Energy Performance Certificate (or EPC)

Private landlords must also ensure they have provided a valid Energy Performance Certificate. The easiest way to ensure this is done is by providing it to prospective tenants when they are looking around the property.

If you are unsure whether there is a valid EPC for the Property, you can check the EPC register online and download a copy for free.

If the EPC is likely to expire during the tenant’s occupation, it's essential to have a new EPC undertaken and provided or ensure that it is diarised to inspect before the date of expiry. Regulations currently state that a property must have an EPC rating of E or above to be let to a tenant.

3) How to Rent Guide

It is essential to provide the current “How to Rent Guide” to prospective tenants or with the tenancy agreement. This should be done either before they enter into the tenancy agreement or at the time it is being signed. Guides are updated regularly so you should make sure that you have provided the in-date version.

4) The tenancy deposit

The Housing Act 2004 and the Housing (Tenancy Deposits) (Prescribed Information) Order 2007 are the key legislative provisions for deposits. Any non-compliance of deposit requirements can invalidate possession notices and result in a landlord being fined up to 3 times the deposit amount.

The two main elements to consider are that the deposit is registered within the required time frame with one of the specified providers and service of the prescribed information within the required time frame.

The specified time frame for both is 30 days from the date of receipt of the deposit amount. Remember that the 30 days commence from the date it was received by the landlord, regardless of when the tenancy starts.

As soon as the deposit is received, lodge it with a deposit scheme well in advance of the 30-day deadline. As a landlord, ensure you have considered all the prescribed information including any terms and conditions, leaflets, and certificates available by your deposit scheme.

Ensure that both yourself and the tenant have completed the information correctly and provide the tenant with all accompanying documents on the day you have registered the deposit. As always, keep a careful record of serving the documents on the tenant.

One common mistake when using property agents is the inclusion of prescribed information within the tenancy agreement which is either for the wrong scheme or incorrect. You must ensure the information in the agreement matches that of the scheme and that you have still provided the tenant with the tenancy deposit certificate.

If it has already been over 30 days and you have failed to protect the deposit, the regulations require you to return the deposit immediately to the tenant. Failure to do so can result in a fine.

5) Licencing considerations

The Housing Act 2004 imposes scenarios in which private landlords require a licence. The most common issues are Houses of Multiple Occupation (“HMO”). However, some areas are also subject to selective licencing so landlords should always check with the local Council what the current requirements are for the property’s ward.

The government website has useful information for landlords including details of when selective licencing applies, conditions and requirements.

6) Obtaining and keeping records

The most common issue we come across is where a landlord did not serve the relevant documents at all or has no record of them being served and when. To help with this, we would recommend that you include a checklist on the final page of the Assured Shorthold Tenancy Agreement which details a list of the documents which have been provided to the tenant.

Have your tenants sign and date it at the outset so that you have acknowledgement of them having been served. Keep your records up to date and have a file of all certificates and evidence of service where possible, together with the relevant dates.

You should always serve documents via post or hand delivery unless you have an express agreement with the tenant to accept service via email. Service arguments create costly litigation that is an unnecessary expense. If in doubt, always check your tenancy agreement for service clauses.

The UK government website has some interesting resources on other requirements landlords need to fulfil, if you would like some further reading!

For further help and support

Harrowells can help landlords by providing expert guidance on legal compliance, handling essential documents and certifications, and supporting them through tenancy regulations. Should you face any issues with regaining possession of your property, please get in touch as early as possible, so that we can guide you through the steps you need to take.

For more information or advice on residential landlord and tenant matters, please contact Sarah Consterdine on 01904 680165 or via email at sarah.consterdine@harrowells.co.uk.