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Landlords: Are You Ready For Right to Rent?

On November 16, 2015

Landlords: Are You Ready For Right to Rent?

Since 1 December 2014, Landlords with properties in Birmingham, Walsall, Sandwell, Dudley and Wolverhampton have had a legal obligation to check that someone has the right to rent before letting them a property.

From 1 February 2016 this legislation will apply to all Landlords of properties throughout England

What does the ‘right to rent’ legislation involve?

From spring next year all Landlords will be required to ensure that their Tenants have the right to live in the UK before signing a Tenancy agreement. This legislation also applies to anyone who rents out a room to a lodger or sub-lets a property.

Before Tenancy agreements are completed the Landlords will be required to confirm the following for all adults over 18 who will be living in their property:-

  1. their citizenship
  2. their identity
  3. their right to live in the UK

Landlords must also keep copies of all relevant documentation for one year after the Tenancy agreement has ended.

What happens if Landlords fail to comply with the new requirements?

Landlords who let a property to an illegal immigrant risk incurring a fine of up to £3,000.

What checks should be carried out before completing a Tenancy agreement?

  • Financial background of prospective Tenant: – check bank statements over the last 3 months to establish income, carry out credit checks for fraud, and ask for references from employers and previous landlords.
  • Confirm identity of prospective Tenant:– ask to see tax documents or utility bills for their current address
  • Take a deposit: – any deposit taken must legally be placed in a deposit protection scheme.
  • Complete an inventory: – a full inventory should be completed at the beginning of a rental period but it is good idea to carry out periodic checks on the property to ensure the property meets all safety requirements and there is no damage to the property.

At Peter Robinson & Co. all our current directors are specialists in Property Law.

If you are a Landlord and require help checking out Tenants we have the experience and the expertise to handle all Landlord and Tenant related documentation.

For any concerns about how increasing legislation will affect you as a Landlord Call us on 0161 678 7996.

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