First time landlord- documents & responsibilities – does the list ever end?
I am close to completing the purchase of an investment property that has been mortgaged on a buy to let mortgage. As a first time landlord I am seeking some guidance on the responsibilities of the landlord for self managed Assured Shorthold tenancies. Here is how I see the workflow…
1. Advertise on property renting sites such as zoopla, rightmove,… Any other?
2. Collect a non refundable deposit and the following documents from prospective tenants in order to do a background check,
a. UK photo id card or passport and resident permit
b. Last three years address
c. Guarantor name, address and id
e. Employment details and last three months salary slip
f. Bank details & last three months bank statements
g. Resident permit to check whether prospect has right to live in the uk.
Would you recommend collecting any other documents that would further help in doing the background checks?
3. Agree the rent & deposit.
How much deposit would you recommend collecting for a 6 month tenancy?
4. Binding tenancy agreement. I have found the following websites that provide quite comprehensive binding tenancy agreement for England,
a. https://www.lawdepot.co.uk/contracts/tenancy-agreement/preview.aspx?loc=GBENG&
b. http://www.propertyhawk.co.uk/
Would you recommend using a different source for creating a binding tenancy agreement. Any special terms that are worth adding to the agreement?
5. Inventory check (sign in check), planning to use the following service
a. https://www.openrent.co.uk/landlord-inventory-and-check-in-services
Would you recommend using a different source?
6. Ask tenant to set up a direct debit for the rent.
7. Pay the deposit into a TDS scheme.
What is the difference between the different schemes? Is there one better than the other, what would you recommend & why?
8. Perform a Gas safety check and give the tenant a gas safety check certificate.
The property I am renting out does not have Gas pipes, do I still need to get this check done?
9. Electrical appliances check.
Is the electrical appliances check mandatory?
10. Provide the tenant with the EPC rating certificate.
11. Email the tenant the uk-gov – How to rent in the UK checklist
a. https://www.gov.uk/government/publications/how-to-rent/how-to-rent-the-checklist-for-renting-in-England
12. Inform the following about the tenancy,
a. mortgage company
b. council
c. water supplier
d. electricity supplier
e. building developer
f. building service management company
Feels like everything… Have I missed something out…
As a first time landlord, I am quite nervous about self managing the property, apart from the questions listed above, I am really keen to know from others about things to watch out for…
Thanks in advance for your replies
Tim
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Member Since April 2016 - Comments: 68
10:01 AM, 27th October 2016, About 9 years ago
Is asking for three months wage slips, three months bank statements and doing a credit check a bit overkill and perhaps even a little intrusive. My letting agent uses a referencing agency and they just do a credit check and ring the employer to confirm salary.
Member Since June 2013 - Comments: 1121
10:08 AM, 27th October 2016, About 9 years ago
Usually payslips and bank statements are only requested for self employed. We use a referencing agency and they check credit, employment, and previous landlord reference.
Member Since January 2011 - Comments: 12193 - Articles: 1395
10:27 AM, 27th October 2016, About 9 years ago
Reply to the comment left by “Sean Graveney” at “27/10/2016 – 10:01“:
Payslips can very easily be forgeries, there are several websites selling fakes out there. Bank statements are not so easy to get fakes, but not impossible.
Online referencing is good but it isn’t the be all and end all. If in doubt it’s better to lose a good tenant by asking too many questions than taking a bad one by not asking enough.
Always purchase rent guarantee insurance if possible. My properties are mid to upper end so I will not let to anybody without RGI.
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