It is not always realised that tenancies are heavily regulated, that tenants have important rights that landlords need to be aware of, and that failure to comply with the regulatory regime can result in landlords being penalised in various ways. For example:
1. An Energy Performance Certificate (EPC) must be provided to all prospective tenants either when they ask for particulars or when they view the property (or at the very latest when they sign the tenancy agreement).
Failure to comply with this can result in the local authority serving a penalty charge notice which carries a fine of £200. (NB EPCs do not have to be provided to existing tenants, or in most cases where tenants with separate tenancy agreements share facilities).
2. The property must be in a good condition and comply with the landlords repairing covenants as set out in section 11 of the Landlord and Tenant Act 1985.
Failure can result in tenants bringing a claim against the landlord for a court order that the repair works be carried out and an order that the landlord pay the tenant financial compensation. In certain circumstances the tenant may also be entitled to withhold rent and use the money to get the works done himself.
Local Authorities may also be invited by the tenant to inspect the property, and if it is found to have any ‘category 1 hazards’ the Local Authority will serve an improvement order on the landlord requiring him to bring the property up to the proper standard, which if not complied with is punishable by fine in the Magistrates Court.
3. The landlord must have all gas appliances checked annually by a Gas Safety registered installer, and serve a certificate confirming this on the tenants.
Failure to comply with this is a criminal offence punishable by fine in the Magistrates Court.
4. Any deposit paid in respect of an assured shorthold tenancy must be protected under one of the three government authorised tenancy deposit protection schemes.
Failure to comply with this will result in the tenant being entitled to apply to the County Court for the return of the deposit and a ‘fine’ payable to the tenant within 14 days of a sum equal to three times the deposit amount. Any section 21 possession notice served on the tenant will be invalid until the deposit has been properly protected.
5. The landlord must comply with the product safety legislation, for example all furniture and electrical equipment must comply with the relevant furniture fire safety and electrical equipment regulations.
Failure to do so is a criminal offence punishable by fine in the Magistrates Court.
Further information on all these matters can be found online at Landlord Law. This is a legal online information service provided by TJ Shepperson Solicitors. Membership fees start at just £4.70.
Landlords may also find the free online new landlords guide helpful.