If you've bought a buy-to-let property there are things you need to arrange before you can rent it out. There are tenant checks and the tenancy agreement to organise, legal obligations to meet and the property management side of things to sort out too.
Tenant background checks
To reduce the possibility of you choosing bad tenants, you can do some background checks. These should include checks on:
- proof of identity
- previous address history and current address
- credit history and income; and
- references from previous landlords and employers.
If a letting agent's sorting this out for you, it's worth asking them what checks they're doing. If you're organising it yourself you could pay for online tenant checks through the
National Landlords Association.
Gas & energy efficiency certificates
You're responsible for ensuring your property has a:
Safety checks
You have a legal duty to ensure your property is safe. Any electrical equipment you provide has to be safe along with electrical fittings, such as light fittings, plugs and switches.
By law you're also required to install smoke and carbon monoxide detector alarms.
If you're providing soft furnishings these must be compliant with
UK fire safety standards .
Tenancy agreement
When you find tenants you need to get them to sign a tenancy agreement. It is known as an Assured Shorthold Tenancy (AST) in England, an Occupation Contract in Wales and a Private Residential Tenancy (PRT) in Scotland. The agreement usually states:
- the names of the tenants and the landlord
- the property address
- the deposit required
- the rent price and date of payment
- the length of the tenancy
- the tenant and landlord's obligations
You can find guidance for creating a tenancy agreement with the relevant jurisdiction at:
Tenancy deposit or bond
When you receive a deposit from your tenants, you have to place it into one of the government-backed deposit schemes within 30 days and tell the tenants where it's held. If there's a dispute at the end of the tenancy the deposit will remain in the scheme until it's resolved.
Information on tenancy
tenancy deposit protection is available on gov.uk .
Instead of a tenancy deposit, some tenants may have a bond guarantee. This is a written agreement provided by the tenant's local council stating that they'll cover the cost of damage or unpaid rent up to a specified amount.
Property management
Your property needs to be kept in good working order throughout a tenancy. If anything goes wrong it's your responsibility to get it fixed within a reasonable amount of time.
Insurance to cover the breakdown of appliances which commonly go wrong, such as the boiler or fridge is a good idea. And, if the property you're letting out is freehold, landlord building insurance to cover the structure of the building gives you added protection - it's often required by buy-to-let lenders. You should also get landlord contents insurance too, if your property is furnished.
If you're looking for finance for a rental property, take a look at the
buy-to-let products we offer.
Existing Residential Mortgage Customers
If you decide to let your property, you'll need to talk to us first by calling the Consent to Let team on 0345 835 3381 . They will guide you through the application process.
