Fines for landlords: essential tips and guidance to avoid costly penalties
Today, being a landlord or a managing agent is expected to be a highly professional and conscientious business, with severe consequences for ignoring the rules.
Fines for landlords can run into tens of thousands of pounds, but fortunately, with the right preparation and knowledge, they’re easier to avoid than a parking ticket.
Nonetheless, even the most well-meaning landlords can pick up fines because they miss a deadline or forget about something altogether, so in this week’s blog, we’re distilling the details around:
Whether you have a brilliant managing agent to share the liability, or you’re managing everything yourself, our handy guide to landlord fines is here to help you stay penalty-free.
REQUIRED CERTIFICATES
All rental homes need to have several certificates in place at the start of a tenancy that need to be renewed at various intervals.
So it’s a sensible step to make a checklist of all the certificates you need and then schedule their renewal inspections in a calendar for a couple of weeks before the expiry dates so you never forget.
Finally, if a tenant refuses access for a safety check and the certificate lapses, you must be able to show regular attempts at renewals if you want to either avoid a fine or serve notice successfully.
PROPERTY LICENSES
While property licenses are primarily associated with Houses in Multiple Occupation (HMOs), they also apply to single dwellings in some areas, depending on the local authority.
Councils can restrict the number wherever they see fit, and there are three types of licence.
A good letting agent will know the current licensing zones in their area, along with any upcoming changes that may affect your plans to alter a property you already own, or to buy a new one.
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IDENTITY CHECKS
Although it's good practice to check every tenant’s identity, you’re also legally required to confirm a tenant’s right to rent for any rental property you own in England (but not in Scotland or Wales).
This detailed series of checks is to prove that everyone over 18 who will be living in your property has a legal right to do so, and for how long. The procedure includes:
The English government takes this very seriously, with fines up to £20,000 for not carrying out Right to Rent checks, and up to five years in prison for renting to someone with no right to live in the UK.
LATE COMPLIANCE VS NON COMPLIANCE
Sometimes, the first contact we have with a new landlord is when they discover they’re in breach of the law and aren’t sure what to do next.
They’re often too frightened of the consequences to start putting things right, but the problem won’t go away by itself, and there are some benefits to facing things head-on, including:
So, while late compliance may not keep you entirely penalty-free, it certainly beats doing nothing. And beyond the potential to lessen the consequences, it removes a nagging future worry.
THE COST OF FINES
Poorly managed and non-compliant rental homes are no longer just a headache for tenants - they carry severe financial, criminal and custodial penalties for landlords, including:
And if all that wasn’t enough, health & safety failings can lead to personal liability claims from tenants, so the potential repercussions really do make it worth getting your house in order.