Keeping Birmingham Landlords Up To Date With Legislation
Commencing duties as a landlord can be a daunting task. There is a bewildering amount of legislation and best practices to keep up with. While you are busy ensuring things are going smoothly, it’s easy to overlook things coming your way and keep up to speed with the latest changes in landlord legislation.
A Landlord has several different responsibilities when it comes to their tenants. A number of these responsibilities are put on a formal basis thanks to an ever-changing raft of legislation. Not only do landlords need to be aware of the changes in the laws that govern their relationships with their tenants, but they also need to know of any significant cases that are taken to court as this may well change how they have to react to their tenants. Below, we have listed different ways that landlords can be in the loop about their legal responsibilities.
Checking the government websites 🌐
One of the best places to start is the official government websites. These .gov.UK sites provide authoritative information about changes in the law and new laws that come into effect. Whilst major changes to the laws are likely to hit the headlines on news outlets, the minor changes are the ones that are likely to catch you out. Therefore, you should have a look at what the latest laws are and when they take effect in the UK. These will be presented in their raw form without commentary, so it may take a bit of reading to understand and interpret.
Talk to your estate agent 📞
Unless you exclusively rent directly with your tenant, most landlords have an estate agent that helps them manage their properties and paperwork. You should make sure that you regularly ask your estate agents for advice about the law and if they know about any changes that are upcoming. It is in their interest to be on top of these things as well, and they will be more familiar with changes to legislation. You don’t want to wait until you are caught out by a new law, or new charges that you may be liable for. Make sure you are on top of what is happening.
Register with a regulated landlord association 📛
One of the other great things that you can do is join a regulated landlord association. These organisations will allow you to network and mingle with other landlords and allow you to get knowledge from them. The organisation itself will also be able to furnish you with the latest information about changes in the law, and these are likely to be in a more digestible format than the raw laws. They may even produce helpful guides in friendly formats to help you through the changes.
No doubt they will have websites and newsletters that provide curated targeted information, which means that you don’t have to go searching around for the latest changes to the news but can keep on top of things in one place. These organisations may also be able to provide you with backing when it comes to facing difficult tenants or other legal challenges whilst letting out your properties, so they are well worth a join.
Tenant fees bill 💵
This is the new legislation that aims to make renting fairer for tenants and was effective from 1st June 2019. The law prevents landlords and letting agents from charging a fee for services such as tenant referencing and inventories, contract changes, termination, utilities and council tax, renewal fees and check-out fees. However, landlords can still charge a fee because of the tenant’s actions when they have incurred costs. Landlords can also make deductions if there is a breach of the tenancy agreement.
Compulsory client money protection schemes (CMPS) 🛡️
All letting agents need to register under a client money protection scheme. Whether it is a tenancy deposit, rent, or funds to cover property maintenance, this scheme gives landlords added protection on rental income. Letting agents who don’t have CMPS in place will face a penalty of up to £30,000 for non-compliance.
Mortgage interest tax relief 💸
As of April 2020, you can no longer deduct any amount of your finance costs from your income. Instead, everyone now receives a tax credit of 20% of the amount of interest and finance charges incurred (restricted to the amount of profit taxable).
Landlord’s minimum energy efficiency standard (MEES) 🔋
This standard means that all the newly rented homes and those with renewed tenancies must have an energy performance certificate (EPC) rating of E or above. However, from 1st April 2020, this rule was extended to existing residences too. However, the government made changes to the Minimum Energy Efficiency Standards (MEES) for England and Wales that will come into effect by the end of 2024. The new standard means that rental properties must have an EPC rating of C or above. You can no longer rent out homes with an EPC rating below C and failure to comply with this will result in a fine of £5,000.
With that in mind, you as a landlord should act now to ensure your property is compliant. These are just some of the new legislation laws to add to obligatory electrical safety checks, the homes act and the minimum space requirements for bedroom sizes and join redress schemes. Finding time to stay compliant with the latest changes to landlord legislation can be tricky. That is why having comprehensive insurance coverage is essential. It will keep you protected from incurring penalties.
Final Thoughts 💭
Whether you are a professional landlord or a homeowner considering a 12-month let, keeping up with all the current regulations can be a time-consuming and draining task. That's why at MECS, your investment is our priority. Our award-winning service gives you comprehensive guidance, support and up-to-date knowledge of the changing laws and regulations from our experienced and friendly team of experts. It's no stress being a landlord in Harborne when you have the right team of people. Let's keep you compliant and worry-free so you can be a top-notch landlord. ✨
