16 March 2010

Since 2001 the number of rental properties in the UK has risen substantially. As increasing numbers of people rent, it is more important than ever for landlords to know and understand what is required when letting their property, according to mydeposits.co.uk, a leading provider of tenancy deposit protection.

“With new landlords entering the property market each week many are choosing to take the DIY route. They are opting to take care of the letting themselves,” said Eddie Hooker, Chief Executive, mydeposits.co.uk.

“This means they are going it alone without the help of an agent, be it to have control over how the property is managed, or to save on fees. Are these novice landlords truly prepared for everything the job entails?” he added.

mydeposits.co.uk has developed a guide tailored to the needs of new landlords. The guide addresses some of the key things they need to bear in mind:

1. Check your mortgage and leasehold agreements to make sure you are permitted by your contract to let the property before going ahead.
2. Be realistic and flexible about the amount of rent you are asking – better to have some money coming in than an empty flat for weeks on end.
3. Interview prospective clients for suitability, taking care not to discriminate on the basis of race, gender, disability, sexuality or religion.
4. If you choose to rent to friends, make sure that you are still covered by a tenancy agreement.
5. Make sure that you know what your legal obligations as a landlord, for example, fire and gas safety standards.
6. By law, a tenancy deposit MUST be protected through a Government-authorised protection scheme, such as mydeposits.co.uk.
7. Clearly specify in the contract the areas of financial responsibility covered by the tenant to avoid any confusion e.g. council tax and utility bills.
8. Just as a tenant cannot terminate their contract early, nor can you.
9. Remember that once the tenant moves in, you will require prior agreement from them to access the property – it is now their home.
10. At the end of the lease, once outstanding bills have been made and repairs accounted for, return the deposit promptly to the tenant.

 "Being a landlord isn’t just about collecting rent every month. There are lots of things to consider before you take the leap as a landlord. For example landlords who fail to comply with the tenancy deposit protection law face considerable risks.

“They could be forced to pay a fine of three times the deposit amount and limits will be placed on their ability to seek possession for as long as the deposit remains unprotected. It’s worth knowing your responsibilities before you set out to avoid any problems in the future. ” concludes Eddie Hooker.

For more helpful tips and to see the full guide visit http://www.mydeposits.co.uk/landlords/landlord.htm

For further information, please contact:

Ellie Irwin
mydeposits.co.uk
E: ellie.irwin@mydeposits.co.uk
T: 020 7840 8925

NOTES TO EDITORS:

About mydeposits.co.uk:

Mydeposits is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance (the Scheme Administrator) to deliver an insurance-backed tenancy deposit protection scheme under contract from Communities & Local Government. Landlords and letting agents wishing to use this scheme are required to register with the Scheme Administrator. They can find out more and register by visiting www.mydeposits.co.uk. Registered members of the Scheme are able to protect and unprotect deposits at the beginning and end of tenancies. Fees are tax-deductible. In the event of a dispute at the end of the tenancy agreement, both parties are offered access to alternative dispute resolution (ADR). This procedure will be evidence-based, relying on documentation and records.