New rules for let properties

Gareth Lay, office manager at Bruton Knowles writes; one of the most important items to prepare is an Energy Performance Certificate (EPC). This is needed whenever a property is being built, sold or rented. It is compulsory to order an EPC for potential tenants to view before you market your property to rent.

An EPC contains information about a property’s energy use and typical energy costs, but also gives recommendations about how to reduce energy use and save money. It gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.

The Energy Act 2011 made provisions for the introduction of further regulations to improve energy efficiency requiring landlords;

• Not to unreasonably refuse a tenants request to carry out energy efficiency works

• Not to let property which does not meet an EPC band of E or above.

These regulations will come into force on April 1 and landlords need to act now to meet these changes. This is particularly relevant when dealing with older properties where considerable expenditure needs to be made to meet band E or above.

There are a number of other changes in case law concerning the holding of deposits which should be carefully addressed. Running full credit checks on potential tenants and a full inventory of the property is essential to avoid problems during the tenancy.

If the cottage is to be let to a farm worker, ensure that the correct pre-tenancy notices are served to avoid the property becoming a protected tenancy which could restrict the ability to regain possession in the future.

Whilst the house is empty, remember to keep the property insured, and Council Tax may be due. Local authorities now have the power to increase the council tax for empty properties.