About this handbook - ANUK

1 2 1 Pre-tenancyThis manual is a guide for landlords and agents with some experience. Although it will also be useful for the inexperienced, every reader should be aware that the laws and procedures applicable to housing are complex and this guide is not a substitute for taking professional advice from a suitably experienced person before making important manual is designed to assist all landlords, but particularly the typical smaller landlord . More than three quarters (78%) of all landlords own a single dwelling for rent, with only 8% of landlords being full time landlords. (Footnote: according to The Private landlord Survey 2010 (published in October 2011 by the Department for Communities & Local Government)This document may be reproduced for training purposes in whole or in part. However, the source of the material should be acknowledged in the document or webpage and ANUK and LGA logo should be displayed on the front and/or back page.)

2 This second revision is based on the earlier landlord Development Manual undertaken jointly by IDeA, LACORS and ANUK and the new landlord handbook , undertaken by ANUK, Unipol Student Homes and the Local Government Association (LGA) .The revision itself has involved work by:Hilary Crook of Hatch Legal, solicitors , David d Orton Gibson, Training for Professionals, Victoria Loverseed, Unipol, Neil Marsden, Jim McLaughlin, Settled Housing Solutions, Bob Mayho, Chartered Institute of Environmental Health, Dave Princep, ANUK/RLA, Anne Rowland, landlord Accreditation Wales, Martin Rushall, editorial consultant, and Tom Toumazou,. This second revision was co-ordinated and edited by Martin Blakey - ISBN 978-0-9573053-0-4 Unipol 2012 About this handbookUse of this handbookAcknowledgementsPublished byThe landlord handbook - revised 2012 Liability and disclaimerWhilst prepared carefully and in good faith, neither the authors, ANUK, nor Unipol Student Homes accepts any liability (in negligence or otherwise) for decisions taken in reliance on the information given in this guide.

3 In any given situation, what lies in a landlord s best interests may vary, and it would not be possible for those involved in producing this work to cover every combination of circumstances in a manual such as Manual contains guidance and notes on certain aspects of law as they might affect the average person. They are intended as general information only and do not constitute legal or other professional advice. It should not be relied on as the basis for any decision or legal action. The law is constantly changing so expert advice should always be the extent permitted by applicable laws, no liability is accepted for any direct, indirect, incidental, special or consequential loss or damage to any user (whether arising in contract, tort including negligence or otherwise) arising out of or in connection with the use of the landlord manual except for personal injury or death of any person caused by negligence or for is administered by Leeds Student Homes, a wholly owned subsidiary company of the national student housing charity Unipol Student Homes.

4 Leeds Student Homes has a registered office at 155-157 Woodhouse Lane, Leeds LS2 3ED, registered company number 4006445, VAT registration no. 680552325. Unipol Student Homes is a company limited by guarantee, registered Office: 155/157 Woodhouse Lane, Leeds LS2 3ED. Registered in England and Wales No. 3401440. Registered Charity No. 1063492. VAT Registration No. 698 8456 49. 3 1 Pre-tenancyTable of ContentsTable of Conents1. Pre-tenancy Investing in a Property Private Rented Sector Markets and the Relevant Standards Accreditation Schemes How Schemes operate Membership Benefits ANUK/Unipol Codes of Standards or Larger Student Developments UUK Code of Practice Letting Options - Means of Managing Property Self-managing Landlords Use of Letting and Managing Agents The Relationship between the landlord and Agent Guaranteed Rent Agents The Liability of the landlord where an Agent is used The Liability of the Agent in Agency Agreements Defining Responsibilities in the Contract Permissions to let Property Energy Performance Certificates Green Deal Insurance Tax Income Tax Structure Capital Gains Tax Inheritance Tax Stamp Duty Value Added Tax Council Tax Sources

5 Of Advice Membership of a landlord Association Useful Contacts for Landlords 242. The Responsibilities and Liabilities of the landlord /Letting Agent Landlords Responsibilities for Repair and Maintenance Implied Terms in Tenancy Agreements Common Law Implied Terms The Right of a Tenant to Quiet Enjoyment of a Rented Property without Intrusion or Disturbance by a landlord Tenant must use the Property in a Tenant-like Manner The Tenant shall not permit Waste Fair Wear and Tear 264 1 The Tenant must not use the Rent to pay for Repairs, except in very Limited Circumstances Statutory Implied Terms landlord and Tenant Act 1985 Access to Property Breach of Repair Obligations Defective Premises Act 1972 Occupiers Duty of Care Housing Health and Safety Rating System Hazards Risk Assessment Vulnerable Groups Property Inspection Form HHSRS Enforcement Decent Homes Standard (applicable to England only) Gas Safety Gas Safety (Installation and Use) Regulations 1998 Exceptions to the Regulations Room-sealed Appliances Indications that an Appliance is Faulty or Dangerous Tenants Duties Electrical Safety and Electrical Goods Landlords Duties and Responsibilities Building Regulations Part P Further Guidance Safety of Furniture The Furniture and Furnishings (Fire) (Safety) Regulations 1988 Houses in Multiple Occupation (HMO)

6 Definition of an HMO Duties on the Manager of an HMO Duties of Occupiers of HMOs Duty to carry out a Fire Risk Assessment LGA (formerly LACORS) National Fire Safety Guidance Licensing of Private Rented Properties Purpose of Licensing Mandatory Licensing of HMOs Additional Licensing of HMOs Selective Licensing of Other Residential Accommodation Applying for a Licence Fit and Proper Person Test Licence Conditions Renewing a Licence Properties where a Licence may be refused Temporary Exemption from Licensing Right of Appeal Against a Local Authority s Decision Offences Rent Repayment Orders Obtaining Planning Approval Certificate of Lawful Use 45 5 1 Building Regulations Approval Obtaining Building Regulations Approval 453. Setting up a Tenancy Types of Tenancies Assured and Assured Shorthold Tenancies The Main Differences between an Assured and an Assured Shorthold Tenancy Choosing an Assured or an Assured Shorthold Tenancy Setting up an Assured Tenancy Tenancies which cannot be Assured or Assured Shorthold Tenancies Tenancies which can be Assured, but not Assured Shorthold.

7 Tenancies Fixed-term Tenancies Periodic Tenancies Initial Period of an Assured Shorthold Tenancy Regulated Tenancies Licences Sub-letting/Assigning Tenancies Joint and Several Tenancies Succession Rights and Rights of Survivorship Tenancy Agreements Written Tenancy Agreements Benefits of Written Tenancy Agreements Tenant s Right to a Written Statement Implications of Oral Agreements Preparing a Written Agreement Unfair Terms in Tenancy Agreements Making an Inventory/Schedule of Condition Deposits and Tenancy Deposit Schemes Requiring a Deposit Withholding Part of the Deposit Protecting a Deposit Authorised Tenancy Deposit Protection Scheme Providers Relevant Person Lead Tenant Bond Guarantee Schemes Rent Setting Setting the Rent Rent Book Raising the Rent Rent Act (Regulated) Tenancies Housing Benefit Tenants have to provide Information and Proof of: Conditions for Rent Allowance and Local Housing Allowance Setting the Rent April 2011 Changes Extension of the Shared Accommodation LHA rate Non-dependants Revised Guidance on Direct Payment of LHA to Landlords Rent Allowance Tenant References 676 1 Unlawful Discrimination 674.

8 During the Tenancy Periodic and Other Visits 69 Tenant Obligations Entry and Refusal Emergencies Changing the Terms of an Assured or an Assured Shorthold Tenancy and Tenancy Renewal When and if the Tenant can leave during the Tenancy Preventing, Controlling and Recovering Rent Arrears Nuisance and Anti-social Behaviour 725. Ending a Tenancy Practical Tips For a Pain-free End of Tenancy Handover What to do if the Tenancy is to continue Agreeing a Replacement Fixed-term AST Agreeing a Contractual Periodic AST Statutory Periodic Tenancy What to do if the Tenant wants to leave Tenant Termination of a Periodic Tenancy Tenant Termination of a Fixed-term Tenancy when it expires Tenant Termination of a Fixed-term Tenancy before it expires What Landlords can do if they want a Tenant to leave At the End of a Fixed-term Assured Shorthold Tenancy At the End of a Fixed-term Assured Tenancy To end a Periodic Tenancy To end a Fixed-term Tenancy before it is due to expire Powers and Duties of District Judges Absolute Orders or Suspended (Postponed)

9 Orders Applying to Court for Possession Standard Procedure Applying to Court for Possession Accelerated Procedure After the Court Order and Eviction Applying to the Court for Rent Arrears Only Rent Act Tenancies Contractual or Common Law Tenancies Unlawful Eviction 88 7 1 Unlawful Harassment 886. Smoking and the Health Act 2006 90 Appendix 1 - Practical checklist for landlords: obligations and considerations 91 Appendix 2 - Property Inspection Form 93 Summary of Property Inspection Summary of checks of most common hazards 100 Appendix 3 - Rent assessment committees 102 Appendix 4 - Where to get help 1038 Pre-tenancy1 Pre-tenancyInvesting in a private rented property can be achieved in a variety of ways. Sometimes landlords inherit a property that they then turn over to renting.

10 Sometimes owners of properties become unintentional landlords because they are unable or unwilling to sell a property at the value the market currently dictates. This guide is not a financial guide to housing investment but there are a few key points worth is important that an investor (and all landlords must see themselves as investors), before investing in a property, undertakes a proper business plan that takes into account: the value of the property and the loan to asset ratio of any loan finance obtained the cost of any loan finance and over what period that loan finance has to be repaid the level of interest being paid on the loan, taking into account that interest rates are likely to fluctuate over the duration of the loan the level of investment needed to renovate the property and meet with statutory standards the cost of any management or specialist services to get the property up to standard and into the lettings market, letting expenses, advertising and professional fees the level of rent to be charged the cost of ongoing services to keep the property in good condition.