1. Legal issues
Consents to let
Prior to letting your property, it is essential:
- To obtain permission from your mortgage lender
- To obtain permission from your insurance provider
- To check if there are any restrictive covenants in the head lease
Types of tenancy
Under the Housing Act 1988 (as amended by the Housing Act 1996), most residential tenancies will be Assured Shorthold Tenancies (ASTs), provided that the rent falls within certain criteria.
Assured Shorthold Tenancy (AST)
An Assured Shorthold Tenancy (AST) is the most common form of tenancy used by landlords today. It was introduced under the Housing Act 1988. Following the introduction of the Housing Act 1996, all tenancies are automatically ASTs unless they meet certain criteria that exclude them.
Non-Housing Act Tenancies (including company lets)
Where the rent exceeds £100,000 per annum, or the tenant is a company rather than an individual, the Housing Act 1988 typically does not apply. These tenancies are not governed by the same statutory rules as ASTs and do not require a tenancy deposit to be protected in a government-authorised scheme in the same way.
Short-term letting agreement
Short-term letting agreements are used for temporary stays — for example work relocations or holidays — and usually last less than six months. They offer different protections to ASTs and should be drafted carefully to reflect the intended use of the property.
Notices
Common notices include a Section 21 notice (to end a tenancy at the end of a fixed term or during a periodic tenancy) and a Section 8 notice (used where there has been a breach, such as rent arrears). Notices must follow the correct procedure and prescribed form to be valid.
Energy Performance Certificate (EPC)
All rental properties need a valid Energy Performance Certificate rated A to G. Since April 2018, new tenancies have generally needed a minimum rating of E, and landlords must provide a copy of the EPC to prospective tenants.
Property Licences
Some properties require a licence from the local council. This includes mandatory HMO licensing (typically for five or more people forming two or more households), as well as additional or selective licensing schemes that apply in certain boroughs.
Right to rent
Landlords in England must check that prospective adult tenants have a right to rent in the UK before the tenancy begins. Checks should follow Home Office guidance, with copies of documents retained for the required period.
