Letting property to tenants on an Assured Shorthold Tenancy (AST) is something thousands of landlords across the country do. However, despite granting an AST appearing straightforward there are many pitfalls the unwary landlord or agent can fall into! Below is a brief outline of what the sensible landlord should do at the outset of the AST to ensure that, as best they can, they won’t run into problems when it comes to recovering possession at the end of the term.
Note of caution: this only applies to ASTs that are entered into in England after 1 October 2015, Wales is operating under a slightly different regime and you should seek specific advice on what applies in Wales.
On entering into the AST the tenant should be given:
- A copy of the ‘How to Rent’ guidance note produced by the government. This can be downloaded here: https://www.gov.uk/government/publications/how-to-rent
- A gas safety certificate (if there is gas serving the property).
- The EPC (Energy Performance Certificate) for the property (free of charge).
- The deposit paperwork (see below).
It is vital that the tenant is provided with this information. If they do not it could be a bar to recovering possession in the future.
In addition the landlord should:
- Check the tenant’s right to rent: https://www.gov.uk/private-renting/document-checks. Failure to do so can result in a hefty fine.
- Provide the tenant with a record of any electrical inspections.
- If rent is paid weekly, provide the tenant with a rent book.
- Fit smoke alarms and carbon monoxide alarms in the property and ensure they are in good working order.
If the landlord takes a deposit, they need to check the scheme rules very carefully and ensure they comply with them. However, broadly speaking, within 30 days of receipt the landlord should:
- Protect the deposit in an authorised scheme.
- Comply with any ‘initial requirements’ of the scheme.
- Provide the tenant with the relevant ‘prescribed information’. Each deposit scheme provider should have details of what the ‘prescribed information’ is on their website.
- Certify the Prescribed Information.
Failure to comply with these requirements can lead to difficulties in the future when a landlord wants to recover possession. It can also lead to the landlord being fined in the sum of 1-3x the value of the deposit.
Although the above list looks onerous, it is easy to navigate if you are familiar with it. The message to take away is that it is vital to get this right as it means the landlord is less likely to suffer financial penalties or fines, and should make recovering possession at the end of the term easier.
We regularly advise landlords and tenants on entering into ASTs, and on how to terminate them, so please do get in touch if you have any queries.