Protecting your investment. Richard Clarke reminds would-be landlords that effective maintenance is key to success in the buy-to-let market.
At a time when there is massive uncertainty in the housing market and house prices in many areas of the country are stagnating, property owners are seeing the rental market as a viable alternative to selling. Letting out a property should be a sound commercial decision: you retain your own property and can rent it out to make a better return on your investment than is available at present from a bank. Even if the property is mortgaged, with interest rates so low, the rent collected may represent a substantial profit on the money borrowed.
So far so good – but don’t forget that renting property is a two-way street. The landlord cannot just sit back and collect the rent – he or she has certain obligations to the tenants in that property under the Landlord and Tenant Act 1987 and should also be conscious of the need to protect that investment by maintaining the property to a high standard. If landlords choose to ignore those responsibilities, the consequences can be legally and financially disastrous.
Where maintenance is concerned, the biggest problem facing most landlords is the diversity of the work that needs doing; each individual job is often too small to call in a tradesman to deal with the repair. Handling such a wide variety of problems – from leaking taps to broken appliances and from issues with damp to noisy neighbours – as well as collecting rent and service charges can become expensive and time-consuming for small to medium sized landlords with only one or two properties in their portfolio. What starts as a small leak through a ceiling that is ignored can quickly lead to something much bigger and more expensive – such as a new ceiling and other water-damage repairs. Whether it’s a broken window, a problem with the heating, a leaking tap or a lost key, dependent on the nature of the incident, landlords have to accept that it is up to them – not the tenant – to resolve the problem.
As well as the financial implications of ignoring maintenance issues, there are also legal repercussions to consider, which can result in the prosecution of any landlord found to be negligent. Landlords are responsible for having an up-to-date gas safety certificate (CS12) for their property to ensure that any gas cookers, boilers or other appliances are safe. If this is neglected, it could result in carbon monoxide emissions which have led to fatal accidents and prosecutions. Landlords must also have electrical appliances PAT tested to check for faults that might be dangerous to a user. In addition, complaints about mildew, dampness and water ingress that are left unresolved are also likely to bring about a visit from an environmental health officer. As a basic level of maintenance, a landlord must expect to carry out boiler, gas cooker and electrical appliance services annually, as well as plumbing inspections every three months. Cutting corners may prove extremely costly.
Beyond regular checks required by law, it is worth noting that the landlord’s obligations do not arise until he has been alerted to a problem and has had reasonable time to carry out any repairs required. This will be judged according to the extent and nature of the disrepair.
Three steps to success
- Ensure you start off on the right foot and create a cooperative and friendly relationship with your tenants. Make it easy for them to contact you to report a problem, no matter how significant or insignificant it is;
- Provide your tenants with emergency contact information and ensure there will always be someone to attend to a problem;
- Remember that a landlord should never enter a property without the tenant’s permission. Instead arrange property inspections in advance – giving at least 24 hours notice.
Richard Clarke is chairman of London-based plumbing, heating and residential property maintenance specialist 1st Action
Tel: 08001 123 999
Email: [email protected]
Web address: http://1staction.com/
