Newbie landlord... what legal documents do I need? (& other q's)

Jowo_2

20 steps to being a successful landlordlord - landlordzone

http://www.landlordzone.co.uk/successful_landlording.htm

G_M

If you pick through the posts above you'll get the beginnings of a good list of things you need to consider.

But PLEASE consider this a start only. This is a serious undertaking, whether to family or not (personally I consider that an additional risk, not a reduction in risk).

Read a good book on the subject. Free at the library or cheap from Amazon. THAT will give you a better list.

Has anyone mentioned tax yet? Tax!

Who is responsible for things like the appliances, like the oven, if the oven breaks, is it up to me or the tenant to fix such items? Is that something that will be set out in the AST?

You are asking such basic questions that you really should not proceed till you know what you are doing! We could answer these questions here but there are 101 others to consider.

Book, Landlordzone, landlords association. DO ALL THREE!

<sebb>

marking_bad wrote: »

I don't think inventory is a problem, I am letting unfurnished, but it's to a family member anyway.

Inventory doesn't just cover furniture. It covers the state of the walls, the carpets, the doors, everything.

Say you don't get an inventory and your T returns your property to you with badly painted black walls, carpets badly stained and worn, holes in the walls, piles of rubbish left behind etc, how do you expect to claim anything from the deposit if you can't prove the condition when the T moved in.

There are plenty of threads on here by people who let their properties to close family members on a trust basis only to regret not doing things by the book at a later date.

I was thinking freecycle but I don't have much time to advertise stuff.

If you're struggling that much for time to stick a few emails on freecycle, then how are you going to find the time to be a LL? Have you considered getting a LA involved?

Wings

marking_bad wrote: »

Cheers for the replies so far, so the EPC and gas certificate are different things, I've just had an EPC check I think.

Couple more questions... tenant wants to move in unfurnished, stuff that I don't keep or sell, should I give it to charity or take it to the tip? Ie, will charities want a sofa and a bed frame (I assume they definitely wouldn't want the matress). I was thinking freecycle but I don't have much time to advertise stuff.

Who is responsible for things like the appliances, like the oven, if the oven breaks, is it up to me or the tenant to fix such items? Is that something that will be set out in the AST?

The less in the property, then the less the LL is responsible for repair, health & safety etc. etc.

Be sure the assured Shorthold Tenancy Agreement you use, is drafted in a way to protect you under the Housing Act 2004, also noteany Deposit you take under the tenancy will have to be protected under the same Act.

marking_bad

If I take a security deposit, what do I do with that money? Reading some stuff on shelter, it seems I either give it to a TDS or I take out insurance. If I take out insurance, I am free to spend that money any way I like, shopping trips, holidays, expensive jewellery (j/k), as long as I give that money back at the end of the tenancy?

theartfullodger

marking_bad wrote: »

If I take a security deposit, what do I do with that money? Reading some stuff on shelter, it seems I either give it to a TDS or I take out insurance. If I take out insurance, I am free to spend that money any way I like, shopping trips, holidays, expensive jewellery (j/k), as long as I give that money back at the end of the tenancy?

Stone me, have you read the above helpful posts??

Join a LL asssoc: Get on a course...
http://www.rla.org.uk/landlord/courses/course1.shtml

Lettings is a minefield and legal understanding of the main issues is important. This course deals with the main areas that affect Landlords.

Read posts here & at Landlordzone..

Buy a book..
http://www.amazon.co.uk/Complete-Guide-Residential-Letting/dp/1907765298
You are going into a business where you can lose an awful lot of money (And the property of you get defrauded big-time): For your own sake, please take it seriously!!

Sigh!

Artful (LL since 2000 who made a load of mistakes before getting educated....)

marking_bad

Thanks for the book plug, but I would really like a simple answer to my question if that's possible?

theartfullodger

marking_bad wrote: »

Thanks for the book plug, but I would really like a simple answer to my question if that's possible?

The deposit is the tenant's money, not yours.
http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Tenancies/index.htm

If you want simple answers then, sorry, letting is not the right business to chose....

(PS Assuming E&W...
http://www.legislation.gov.uk/ukpga/2004/34/part/6/chapter/4

Chapter 4 E+WTenancy deposit schemes

212Tenancy deposit schemes E+W

(1)The appropriate national authority must make arrangements for securing that one or more tenancy deposit schemes are available for the purpose of safeguarding tenancy deposits paid in connection with shorthold tenancies.
(2)For the purposes of this Chapter a “tenancy deposit scheme” is a scheme which—
(a)is made for the purpose of safeguarding tenancy deposits paid in connection with shorthold tenancies and facilitating the resolution of disputes arising in connection with such deposits, and
(b)complies with the requirements of Schedule 10.
(3)Arrangements under subsection (1) must be arrangements made with any body or person under which the body or person (“the scheme administrator”) undertakes to establish and maintain a tenancy deposit scheme of a description specified in the arrangements.
(4)The appropriate national authority may—
(a)give financial assistance to the scheme administrator;
(b)make payments to the scheme administrator (otherwise than as financial assistance) in pursuance of arrangements under subsection (1).
(5)The appropriate national authority may, in such manner and on such terms as it thinks fit, guarantee the discharge of any financial obligation incurred by the scheme administrator in connection with arrangements under subsection (1).
(6)Arrangements under subsection (1) must require the scheme administrator to give the appropriate national authority, in such manner and at such times as it may specify, such information and facilities for obtaining information as it may specify.
(7)The appropriate national authority may make regulations conferring or imposing—
(a)on scheme administrators, or
(b)on scheme administrators of any description specified in the regulations,
such powers or duties in connection with arrangements under subsection (1) as are so specified.
(8)In this Chapter—

• “authorised”, in relation to a tenancy deposit scheme, means that the scheme is in force in accordance with arrangements under subsection (1);
• “custodial scheme” and “insurance scheme” have the meaning given by paragraph 1(2) and (3) of Schedule 10);
• “money” means money in the form of cash or otherwise;
• “shorthold tenancy” means an assured shorthold tenancy within the meaning of Chapter 2 of Part 1 of the Housing Act 1988 (c. 50);
• “tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
  (a)
  the performance of any obligations of the tenant, or
  
  (b)
  the discharge of any liability of his,
  
  
  
  arising under or in connection with the tenancy.

(9)In this Chapter—
(a)references to a landlord or landlords in relation to any shorthold tenancy or tenancies include references to a person or persons acting on his or their behalf in relation to the tenancy or tenancies, and
(b)references to a tenancy deposit being held in accordance with a scheme include, in the case of a custodial scheme, references to an amount representing the deposit being held in accordance with the scheme.
Annotations:
Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.


Commencement Information
I1S. 212 partly in force; s. 212 in force at Royal Assent for specified purposes see s. 270


213Requirements relating to tenancy deposits E+W

(1)Any tenancy deposit paid to a person in connection with a shorthold tenancy must, as from the time when it is received, be dealt with in accordance with an authorised scheme.
(2)No person may require the payment of a tenancy deposit in connection with a shorthold tenancy which is not to be subject to the requirement in subsection (1).
(3)Where a landlord receives a tenancy deposit in connection with a shorthold tenancy, the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 14 days beginning with the date on which it is received.
(4)For the purposes of this section “the initial requirements” of an authorised scheme are such requirements imposed by the scheme as fall to be complied with by a landlord on receiving such a tenancy deposit.
(5)A landlord who has received such a tenancy deposit must give the tenant and any relevant person such information relating to—
(a)the authorised scheme applying to the deposit,
(b)compliance by the landlord with the initial requirements of the scheme in relation to the deposit, and
(c)the operation of provisions of this Chapter in relation to the deposit,
as may be prescribed.
(6)The information required by subsection (5) must be given to the tenant and any relevant person—
(a)in the prescribed form or in a form substantially to the same effect, and
(b)within the period of 14 days beginning with the date on which the deposit is received by the landlord.
(7)No person may, in connection with a shorthold tenancy, require a deposit which consists of property other than money.
(8)In subsection (7) “deposit” means a transfer of property intended to be held (by the landlord or otherwise) as security for—
(a)the performance of any obligations of the tenant, or
(b)the discharge of any liability of his,
arising under or in connection with the tenancy.
(9)The provisions of this section apply despite any agreement to the contrary.
(10)In this section—

• “prescribed” means prescribed by an order made by the appropriate national authority;
• “property” means moveable property;
• “relevant person” means any person who, in accordance with arrangements made with the tenant, paid the deposit on behalf of the tenant.

Annotations:
Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.


Commencement Information
I2S. 213 partly in force; s. 213 in force at Royal Assent for specified purposes see s. 270


214Proceedings relating to tenancy deposits E+W

(1)Where a tenancy deposit has been paid in connection with a shorthold tenancy, the tenant or any relevant person (as defined by section 213(10)) may make an application to a county court on the grounds—
(a)that the initial requirements of an authorised scheme (see section 213(4)) have not, or section 213(6)(a) has not, been complied with in relation to the deposit; or
(b)that he has been notified by the landlord that a particular authorised scheme applies to the deposit but has been unable to obtain confirmation from the scheme administrator that the deposit is being held in accordance with the scheme.
(2)Subsections (3) and (4) apply if on such an application the court—
(a)is satisfied that those requirements have not, or section 213(6)(a) has not, been complied with in relation to the deposit, or
(b)is not satisfied that the deposit is being held in accordance with an authorised scheme,
as the case may be.
(3)The court must, as it thinks fit, either—
(a)order the person who appears to the court to be holding the deposit to repay it to the applicant, or
(b)order that person to pay the deposit into the designated account held by the scheme administrator under an authorised custodial scheme,
within the period of 14 days beginning with the date of the making of the order.
(4)The court must also order the landlord to pay to the applicant a sum of money equal to three times the amount of the deposit within the period of 14 days beginning with the date of the making of the order.
(5)Where any deposit given in connection with a shorthold tenancy could not be lawfully required as a result of section 213(7), the property in question is recoverable from the person holding it by the person by whom it was given as a deposit.
(6)In subsection (5) “deposit” has the meaning given by section 213(8).
215Sanctions for non-compliance E+W

(1)If a tenancy deposit has been paid in connection with a shorthold tenancy, no section 21 notice may be given in relation to the tenancy at a time when—
(a)the deposit is not being held in accordance with an authorised scheme, or
(b)the initial requirements of such a scheme (see section 213(4)) have not been complied with in relation to the deposit.
(2)If section 213(6) is not complied with in relation to a deposit given in connection with a shorthold tenancy, no section 21 notice may be given in relation to the tenancy until such time as section 213(6)(a) is complied with.
(3)If any deposit given in connection with a shorthold tenancy could not be lawfully required as a result of section 213(7), no section 21 notice may be given in relation to the tenancy until such time as the property in question is returned to the person by whom it was given as a deposit.
(4)In subsection (3) “deposit” has the meaning given by section 213(8).
(5)In this section a “section 21 notice” means a notice under section 21(1)(b) or (4)(a) of the Housing Act 1988 (recovery of possession on termination of shorthold tenancy).

)

G_M

marking_bad wrote: »

Thanks for the book plug, but I would really like a simple answer to my question if that's possible?

It's possible, but inadvisable.

There are very experienced people here who are telling you how best to proceed. Answering one, or two, specific questions does you no favours and would actually likely encourage you to proceed before you really know what you are doing. So as I and others have said before:

Read a good book on the subject. Free at the library or cheap from Amazon.

Join a LL asssoc: Get on a course...
http://www.rla.org.uk/landlord/courses/course1.shtml

Read posts here & at Landlordzone..

By doing all these you will find the answer to your single question, but more importantly you'll get the answers to 101 other questions you did not even know you needed to ask.

The extreme naivity of your questions, which display a level of ignorance that is staggering for someone apparantly determined to enter this business come-what-may, leads me to expect posts here shortly from a tenant who has the landlord fom hell.

Geenie

marking_bad wrote: »

What safety checks do I need to do before I can legally rent my house out?

Is there a good beginners guide to being a landlord? Very much a newbie here so be gentle. I had a quick look at landlord zone but couldn't see a check list of some sort.

Aside from what others have said on here and I agree with, there is this site http://www.communities.gov.uk/publications/housing/assuredassuredlandlords which has a PDF on the page Assured and assured shorthold tenancies: A guide for landlords .

I suggest you read it carefully, and do not let out until you are fully aware of your obligations as a LL, and those of the tenant. The cost of joining a LL Association can be put against tax and provides great back up and updating information on changes in law.

Think of the value of your home, and if you would start a business with that amount of money without doing some hefty research and fact finding before handing it to others?!!

Good luck OP.