
Landlord Checklist: Things To Do Before Letting Your HMO In Kent
If you’re a new landlord, it can be easy to get overwhelmed by the enormity of the situation. What, at face value, seems to be a relatively straightforward transaction between two parties – you and your tenant – quickly morphs into a mammoth to-do list full to the brim with essential tasks. Things can quickly spiral out of control if a good plan is not in place. Wouldn’t it be great to have a landlord checklist at your disposal? We felt the same way!
Before we get started
Before we get into everything you need to do to have a smooth and successful tenancy, there is one essential item we must address first. Many new landlords, whether they are accidental landlords or first-time investors, are unaware that they must have either a particular buy-to-let mortgage or an arrangement in place with their lender before they let.
There are significant variations between buy-to-let mortgages and those used by homeowners, and having the wrong one in place could result in increased rates and extra costs at best. On the opposite end of the scale, you could be found to have wilfully violated your agreement and be required to pay your remaining mortgage sum immediately, which is obviously not ideal!
Oh, and because you violated your agreement with your lender, your credit rating will suffer as well, making it difficult to obtain another mortgage elsewhere. Essentially, we’re recommending get a dedicated buy-to-let mortgage or a Consent To Let arrangement for a short-term fix at the very least.
With that out of the way, let’s get down to business.
The tenants
The first section of the landlord checklist is all about the individuals who are most crucial to your business: your tenants. This is a time-consuming component of the process, but the effort you put in now could pay you financially later on in the tenancy.
What you must do is as follows:
Tenant referencing
Tenant referencing allows landlords to take a closer look at persons who want to rent their property, providing them with a more thorough picture of who they are and what they might be like as tenants. Of course, this is not a foolproof method, but it will provide you with information on your new tenants that you would not have otherwise.
The following items may be examined during tenant referencing:
- Proof of identity
- Financial status
- Employment status
- Credit history
- Previous addresses
- Right to Rent (see below)
- Guarantor information (if applicable)
- Previous landlord references (if applicable)
As you can undoubtedly tell from the list above, even though it is not a legal obligation, this type of background check is crucial. Furthermore, you are not limited to the above checkpoints and may ask additional questions if they are relevant to the tenancy, such as “do you have pets?” or “will you have family members or friends staying frequently?”
While tenant referencing is an important part of the process, many landlords dislike it. As one might anticipate, some referencing agencies will do this for you, or you may ask your rental agent to do it as part of their property management service.
Right-to-Rent checks
Conducting Right-to-Rent checks has been a legal necessity for some years now, and failing to do so might result in a £3,000 fine for each illegal tenant who slips between the cracks. These can be fairly detailed, so you should read our comprehensive guide to right-to-rent to prevent any unwanted penalties.
Tenancy agreement
A tenancy agreement, despite being an official document, is not needed by law. However, very few landlords choose not to, despite the fact that having a sound tenancy agreement in place is critical, especially if the worst happens and you end up in a disagreement with your renter.
A decent tenancy agreement will cover everything from the type of lease (typically an Assured Shorthold Tenancy (AST)) and the amount of rent the tenant will pay to who is responsible for what and the notice period required to terminate the tenancy.
If things go wrong, you may need to produce the tenancy agreement in court; therefore, it’s always a good idea to seek legal counsel when creating a new one.
The property
The property itself is the focus of the following section of our landlord’s checklist. Consider the following questions:
Structurally sound?
This is a simple but important one: Is the property you want to rent out structurally sound and in good condition? Anything that deserves attention should be given it. Remember that relatively small tasks completed early will prevent larger issues later on.
Clean and tidy?
Before a tenancy begins, make sure everything is clean and tidy. This is not only the appropriate thing to do for your prospective tenants, but it will also help you with your inventory and marketing photos.
Free from damp?
As a landlord, you have a duty of care to your renters, therefore check for any symptoms of damp before letting your house out.
To keep your rental in good shape for the duration of the tenancy, make sure your tenants understand how to prevent condensation from causing difficulties for you and them while they are living in your house.
Does everything work?
And we do mean everything! Examine every window, light fixture, electrical appliance, radiator, phone plug, and so on. If it doesn’t function, your renter will want it fixed (and rightly so), so it’s far preferable to start the tenancy with everything in working condition.
The financial side
Let’s get to the subject that everyone hates discussing: money.
Who pays what?
Do you know how much you want your tenants to pay and how much you’re willing to spend as the landlord? Will you include utility costs in your rental fee? How about the Council Tax? It is absolutely up to you what you include and exclude, but you must be explicit about it. Now is the moment to do so.
What are you going to charge for rent?
Have you got your property valued for rental purposes? Do you know how much you’ll need to charge to make renting out the house financially viable?
What deposit do you need?
The laws regarding what you can ask for in terms of a deposit have changed dramatically in recent years, but you must still be specific about your needs. Most landlords will now simply choose the full five weeks, although it is entirely up to you. You should, however, have a minimum of one month’s rent as a buffer in case a tenant fails to make their final payment.
Will you require tenants to have a guarantor?
Some landlords do, while others do not. Again, this is entirely up to you. Are you unsure? Check out this article: What Is A Guarantor?
How will you keep track of payments?
Back on the day, keeping rent books used to be your only option, but in today’s world of spreadsheets and apps, things are much different. If you’re going to self-manage your rental, you need to get this correct if you don’t want to deal with late payments later.
Will you purchase landlord insurance?
Another instance of ‘you are not legally compelled to, but you should’. Landlord insurance might provide a useful safety net in the event of an unforeseen event.You will, however, require landlord insurance rather than a conventional home insurance policy, as the latter would not provide you with the appropriate coverage.
The Management
As a HMO specialist letting agency, we strongly advise leaving property management to the pros. However, if you have the time, patience, legal knowledge, and willingness to deal with housemates, the following management considerations should be added to our pre-tenancy checklist:
Who will conduct your inventory?
You can do your own inventory, have your letting agent do it, or hire a third-party inventory company. It is totally up to you how you conduct your inventory, but you should do so.
Do you have a visual record of the property in its current condition?
Some inventory providers will include images with their report if you ask them to complete your inventory for you, but not all. Whether or not they do, having your own photographs will undoubtedly help, so take as many as you need and preserve them carefully.
Are you saving all documentation securely?
Failure to securely keep documents relevant to the tenancy may come back to haunt you if something goes wrong. Everything, including correspondence between you and the renter, payment data, work done on the property, and anything else related to the tenancy, should be documented.
If you’re not sure, save it.
The legal stuff
The final component of our new landlord checklist is possibly the most significant, as it will assist you in remaining on the right side of the law. It’s also the most challenging area for landlords to stay on top of, owing to its ever-changing nature.
Have you got a HMO License?
You will require a licence from your local authorities if you are renting out a property that is classified as a large HMO. A large HMO, as stated in our HMO Blog, is roughly defined as:
- A building at least 3 storeys high
- Housing at least 5 tenants, forming more than 1 household
- Facilities (bathroom, toilet, or kitchen) are shared with other occupants
Is the property’s Energy Performance Certificate (EPC) up to date?
All properties that enter the market, whether rented or sold, must have an EPC. You won’t need to do this very often because they are valid for ten years, but you will need one to be compliant at an E rating or above.
Is the property’s gas safety certificate current?
Similarly, before any tenancy begins, you must get a gas safety certificate for the home. These, unlike the EPC, are only valid for 12 months and must be performed by a Gas Safe licenced engineer.
Have you performed a Legionella risk assessment?
Although Legionella risk assessments are not legally required, providing a house that is free of risks and safe to live in is, so doing one makes sense. These can be performed by the landlord, if they are comfortable doing so, and should be done on a periodic basis.
Are there working smoke alarms on every floor & room of the property?
As per above, it is a landlord’s responsibility to ensure the home is safe to live in, so smoke alarms on every floor and room is now a legal requirement.
Is there a working carbon monoxide alarm?
The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 came into force on 1 October 2022. From that date, all landlords must ensure a carbon monoxide alarm is equipped in any room used as living accommodation which contains a fixed combustion appliance (excluding gas cookers).
Have you checked the Right to Rent?
As previously said, verifying a tenant’s legal ability to rent is an important element of the process…and a costly one to ignore.
Have you made certain that your tenant’s deposit is properly protected?
Tenancy deposit protection became mandatory in 2007, adding another legal need for landlords to follow.
Have you provided your tenant with all necessary documentation?
In addition to all of the behind-the-scenes work, you must also provide certain paperwork to your tenants when they move in, some of which can be included in your leasing agreement. Other paperwork, such as the government’s “How to Rent” brochure, must be presented to the tenant in person.
The legal implications of being a landlord may be a real pain, which is why so many people prefer to delegate authority to a property management company. We are continually upgrading and retraining our property management team at Rooms in Kent to guarantee that all of our clients remain compliant.
Give us a call if you need assistance managing your Kent based HMO. We provide fully managed HMO specialised property management services customised to your needs, so please contact us to explore how we may assist you reduce the unavoidable difficulties of being a landlord.