Legal4Landlords reported in their latest newsletter that ‘According to new research conducted by a leading UK insurer there has been a huge upsurge in the number of landlords in the UK, however the majority of these new landlords have entered the private rental sector accidentally and many have failed to understand the legal requirements that govern the sector.’
Many new landlords found themselves in the position of moving home and then renting out their old property because they couldn’t sell it. This is one of the main driving forces behind the growing new landlord trend, with the research finding that 55% of new landlords ended up renting out their former main residence to tenants because of financial need.
With more people attempting to boost their income by letting out properties there are indications that many people think they can save money by doing it themselves without using the services of a professional letting or property management agent, but many new landlords are unaware of the risks they are taking. What many of these new landlords fail to realise is that they must comply with Government legislation that regulates the private rented sector and applies to all rental properties.
UK legislation states all UK private rental sector landlords must ensure that gas and electrical equipment is installed and checked annually by a registered engineer. Tenant deposits must be held in one of the three Government approved deposit protection schemes and some local authorities require all landlords operating within their borough to be licensed.
Professional letting and property management agents can take the worry out of compliance with current legislation for their landlord clients, charging fees to ensure that all legislation is complied with as well as sourcing and referencing tenants and managing property repairs, the collection of rent and dealing with any number of issues that may arise.