What documents does a landlord need?

When you first let out a rental property, it can be a daunting prospect to get the paperwork right. You’ll soon discover there are certain documents that you are legally obliged to give to tenants, as well as others that you need for yourself (such as a landlord insurance certificate). Getting to grips with landlord documentation gets easier as you get more familiar with managing your portfolio. That said, even if you are an experienced landlord, the documents you need to give to a tenant do change from time to time. In this article, we’ve created an up-to-date landlord documents checklist to help you make sure you’ve got all of your paperwork covered. Landlord documents checklist Tenancy agreement Tenant references Right to Rent check How to Rent guide Energy and safety certificates Deposit protection documents Inventory Data protection Written complaints Landlord insurance Other documents

Surprisingly, you’re not legally required to provide tenants with a written tenancy agreement. However, it’s wise to use a written Assured Shorthold Tenancy (AST) Agreement as it sets out the rights and responsibilities of both parties. While it is possible to have a verbal tenancy agreement, this is a bad idea as misunderstandings can easily arise and you wouldn’t have much legal recourse if a dispute emerged. It’s also worth noting that a written tenancy agreement is often a requirement of a landlord insurance policy, without it you risk invalidating your insurance and your insurer may decline a claim. There are many template tenancy agreements available online, including a model agreement for tenancies in England, Scotland and Northern Ireland, plus model written statements for Wales. Both landlord and tenant should sign the tenancy agreement and both parties should retain copies.

Referencing your tenants is a wise idea. By performing the right checks, you have a much better chance of weeding out tenants who might cause problems. A thorough referencing check could include asking for the following documents and making copies of them: Photo ID, to verify a person’s identity. Proof of current address, such as utility bills. Proof of income, to ensure the tenant can afford rent. Employer’s reference, to check the tenant is in employment. Previous landlord’s reference, to make sure the tenant has not caused problems in the past. It’s also a good idea to run a credit check. This will back up the identity checks you have made and flag up any history of the tenant not paying bills. If you have rent guarantee insurance, it is a requirement that all tenants pass reference checks. In the event of making a claim, your insurer is likely to decline to pay out if they find that you have not completed adequate tenant referencing.

In England, you are legally required to check that anyone renting your property has the legal right to do so. The Gov.uk website has an online questionnaire that helps you determine which documents you have to ask for.

In England and Wales, you must provide new tenants with the latest copy of the government’s How to Rent Guide. This helps them understand their rights and responsibilities as tenants, as well as your obligations as a landlord. You can download the latest edition of the guide here.

Energy and safety certificates

You need to provide your tenants with a number of different energy and safety certificates. These are: Energy Performance Certificate (EPC). This gives your property an energy rating from A to G. Currently, you can only let a property with an energy rating of E or above. From 2025, newly rented properties will need a minimum energy rating of C. Existing tenancies will have until 2028 to comply with this rule change. You need to give a copy of the EPC to your tenants at the beginning of their tenancy. Gas Safety Certificate. If you let a property with gas appliances such as a boiler or cooker, a registered gas engineer must inspect the appliances every year and issue a gas safety certificate. You must give a copy of this to your tenants. Electrical Installation Condition Report (EICR). Commonly known as an Electrical Safety Certificate, you need a qualified electrician to renew this document every five years. You must give the EICR to your tenants within 20 days of the inspection or test. Smoke and carbon monoxide alarms. You need to fit smoke alarms on every floor of your property and carbon monoxide alarms in rooms that contain ‘a solid fuel burning appliance’ or (from 1st October 2022) a ‘a fixed combustion appliance (excluding gas cookers)’. You do not need to provide tenants with a certificate, but it’s worth noting that from October 2022, you are legally obliged to repair or replace these alarms once you are informed that they are faulty. Legionella risk assessment. As a landlord, you are required to carry out a legionella risk assessment. You should ideally confirm to tenants that you have either done this yourself or provide them with a copy of any professional report you’ve commissioned. Further information: see our article on Landlord Certificate Requirements.

Deposit protection documents

Any deposit you receive from a tenant must be placed in a deposit protection scheme within 30 days. You must then provide your tenant with written information that tells them where their deposit is being held, plus the terms of the scheme. You can find out more in our Landlord’s guide to government deposit schemes.

You are not legally required to provide tenants with a written inventory, but it makes good sense to do so. If items are damaged or taken during a tenancy, an inventory is vital evidence in determining how much deposit can be used to cover the loss. Inventories are also helpful when conducting mid-term inspections. (Note, you have to give tenants at least 24 hours’ notice if you intend to visit the property for any reason).

To comply with UK GDPR legislation (The Data Protection Act 2018), you need to provide your tenants with a privacy statement on all documents like tenancy agreements and application forms. This should tell them what information is collected and why it’s needed, how the information is used and who it is shared with, plus how long the information is retained. You also need to get written confirmation from a tenant to confirm they are happy to receive lettings documents by email.

landlord complaints (receiving written complaints)

If a tenant complains to you in writing, you need to respond within 14 days.

If you want to protect your investment, it’s essential to make sure you have appropriate landlord insurance. There are many different types of landlord insurance out there, and you can combine different covers to meet your particular requirements. As a quick guide, you might consider these key insurances: Landlord buildings insurance – to cover the structure of your property and key fixtures such as the kitchen or bathroom. Landlord contents insurance – to cover fixtures, fittings and furnishing that belongs to you, rather than the tenant. Rent guarantee insurance – to protect you against missed rental payments and any associated legal fees. Home emergency cover – to protect your property in the event of an emergency. Legal expenses insurance – to provide cover for legal expenses and provides legal advice on all aspects of operating a buy-to-let. For an in-depth look at the insurance options open to you, see our article Do I need landlord insurance?

While we have covered the main documents needed by landlords and tenants, you will encounter situations where other paperwork is required. For example, if you use a lettings agent, you will need to agree a contract with them. Similarly, if you are just starting out as a landlord, you’ll need to register with HMRC to let them know you need to complete a Self-Assessment Tax Return (if you haven’t already). The key to getting your paperwork right is to stay informed of your rights and responsibilities as a landlord and make note of any changes. There are plenty of landlords’ associations out there who can help you stay up to date, along with many online resources such as our blog articles on landlord-relevant topics. Legislation and guidance included in this article is correct as of August 2022. Please note that legislation does change, it is always best to check the most up to date guidance on gov.uk. Many landlord insurance policies arranged by Alan Boswell Group also have access to a legal advice helpline where policyholders can seek further advice.

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Landlord questions to ask potential tenants

20/09/2022 Company News Alan Boswell Group

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Renting a property can be rewarding when you have tenants who pay their rent on time, take care of your property, and are a pleasure to deal with. On the other hand, if you end up with tenants who struggle to pay rent, cause damage, or behave antisocially, you’re facing hassle and expense. That’s why tenant screening is one of the most important things to get right: it’s your chance to weed out potentially problematic tenants.

When it comes to selecting the right tenants for your property it’s sensible to put a robust process in place. Once you have shortlisted possible tenants, it’s a good idea to meet them face-to-face. This gives you the opportunity to ask questions and get a feel for whether you’d be happy letting your property to them. After you have done this there are various background checks you need to complete to make sure applicants can afford to pay your rent, are able to manage their finances, and have a positive track record with other landlords.

Questions to ask potential tenants

Background checks you should make

Don’t forget insurance

Questions to ask potential tenants

By asking the right questions you can often get a feel for whether potential tenants are right for your property. Not only will you get an insight into whether they are in a stable financial position, but you can also decide whether you are likely to have a good landlord / tenant relationship. Ideally, you should ask these questions when showing prospective tenants around the property as doing so face-to-face also helps you to pick up on their body language.

1. When do you want to move in?

If your property is currently vacant you will want to let it as soon as you can. On the other hand, you may still have tenants who are staying for a month or two. Either way, you want to choose replacement tenants who want to move at a time that’s convenient for both you and them.

That said, if candidates are keen to move in as soon as possible, be a little wary. There are plenty of good reasons why people need to move quickly, but you’ll need to conduct background checks to make sure they haven’t recently broken a rental agreement or been evicted.

2. Why are you moving home?

You want tenants who have legitimate reasons for moving to your property, so ask why they are moving. Good reasons for moving might include wanting more space, having to relocate for work or wanting a property with a garden. Of course, you can verify their answer with their previous landlord when you request a reference.

3. How long have you lived in your previous homes?

By asking this you’re looking for evidence of stability. If tenants appear to move on a very regular basis it could be a sign that they won’t stay in your property for very long.

4. Who will be living in the property?

You need to ask this for several reasons. Generally, all adults over the age of 18 living in the property will need to be on the tenancy agreement and are responsible for a share of the rent. This means you will need to conduct background checks on all adult tenants. Secondly, there are laws against overcrowding in rental properties, so you need to make sure you comply with these.

5. What is your monthly income?

As a rule of thumb, you should be looking for tenants with an income of at least 2.5 times the proposed rent. However, this ratio tends to vary regionally. According to these statistics, average London rents in 2021 were 34.7% of income. At the other end of the scale, the average tenant in the North East paid 23.5% of their income in rent. However, be aware that if you have rent guarantee insurance then it is likely to stipulate that your tenant has a minimum income to rent ratio of 2.5. It’s also essential that you complete full checks on all tenants’ incomes.

It’s also wise to ask what employment tenants have and whether they work from home. It can give you an insight into their financial stability and whether you feel their lifestyle is compatible with living in your property.

6. Can you pay the deposit and a month’s rent in advance?

A simple question, but essential. If a prospective tenant is having trouble putting together a deposit and rent in advance it may suggest to you that they’ll have difficulties paying rent in the future.

7. Do you have pets?

While landlords can currently refuse to let their properties to tenants with pets there are proposed changes to this law. A recent government White Paper has proposed that landlords will not be able to ‘unreasonably’ refuse a tenant’s request to keep a pet in the future. While this won’t have an effect unless it becomes law, it may be a good idea to find out more about the proposed changes and how they might affect your rental.

If a prospective tenant does want to keep a pet and you accept, it may be wise to insist that your tenant takes out pet damage insurance to cover unexpected losses. Landlords can also take out pet damage themselves to cover the rental property.

8. Do you smoke?

It’s always worth asking whether tenants smoke. Most landlords prefer to keep their properties smoke free and will include a ‘no smoking’ clause in a tenancy agreement. By asking the question it gives you a chance to tell your tenants about your smoking policy, such as only allowing smoking outdoors.

9. Can you provide a reference from a previous landlord?

Asking this question can save you time in the long run. Ideally, you will get a landlord’s reference for each tenant. If they won’t be able to supply one this gives you a chance to find out why. Some reasons are perfectly legitimate. For example, someone who has undergone a relationship breakdown may have had to move out of the home they co-own with their spouse or partner. Similarly, a younger person may be looking for a first tenancy. However, if someone is reluctant to let you ask for a landlord reference it may indicate they have been a troublesome tenant.

10. Have you broken a rental agreement?

If a prospective tenant has broken a rental agreement – or even been evicted – they may be reluctant to answer this question. It’s worth telling them you ask this question so that if anything has gone wrong in the past they can tell you their side of the story.

11. Do you have anything you want to ask me?

Always ask this question – it can be very revealing and gives you an insight into what’s important to prospective tenants. For example, they might ask whether they will be allowed to decorate the property, what the neighbours are like, or check what broadband speeds they can expect. It’s also quite possible that a tenant’s questions reveal a reason why your property may not suit them.

Background checks you should make

Once you have interviewed a number of people and selected your preferred tenants, it’s vital that you run thorough background checks on them. You should do the following:

A right to rent check. When you let a property in England, you are obliged to conduct a right to rent check to confirm a person’s immigration status. Failing to carry this out can land you with a fine of £3,000 or more. Right to rent checks are not legally required in Wales, Scotland, or Northern Ireland.
Income and employment checks. You can ask for bank statements and payslips to prove a tenant has sufficient income to pay the rent. It’s also wise to ask permission to contact employers directly for a reference.
Credit checks. You need to ask a tenant’s permission to conduct a credit check, which will show you whether they have had problems paying bills over the past six years.
Landlord references. If a tenant has any previous landlords ask the most recent for a reference. You should ask them to confirm that the tenants paid their rent on time, kept the property in good condition, and didn’t break the terms of their lease.

Many landlords outsource background checks to professionals which can save a lot of time and hassle. They can also be very thorough and cost effective. For example, Alan Boswell Group can provide you with a full referencing check that includes employment history, history of residency with a previous landlord reference (where applicable), confirmation of ID and bank account, a credit check and affordability calculation and a full written report. Learn more about this service on our tenant referencing page.

Don’t forget insurance

Sometimes, despite the most thorough tenant screening, things can go wrong. A tenant might lose their job or develop health issues that make it difficult – or impossible – to pay rent. That’s why it’s a wise idea to invest in rent guarantee insurance. Provided you have run affordability, credit and right to rent checks on your tenants, rent guarantee insurance can offer you:

Up to £2,500 rental cover per month, for up to 15 months
Up to 3 months’ cover following eviction (at 75% of monthly rent)
Landlord legal expenses up to £100,000 which includes the process of evicting the tenant

To learn more about rent guarantee insurance from Alan Boswell Group contact us on 01603 216399.