Should I rent out a dilapidated property?
9:40 AM, 12th January 2024, 2 years ago
24
Hello, We have a property in the family that we have taken back into possession after a very long rental term, circa 50 years. As you could imagine it is now quite dated and run down inside. All still functional just in need of modernisation all the way through.
No central heating, just electric heaters, an old bathroom and kitchen, gravity fed hot water. 90% double glazed. Has a leak on a flat roof that wants recovering and 2 windows that need double glazing. Needs decorating top to bottom unless 1970s is your taste.
We have a family who are willing to take it as is, and do the work themselves, albeit for a substantial reduction from the market rate rent. Which we are happy to do, for various reasons.
I rent other properties out and know what should and shouldn’t be done generally when preparing a property for rent.
My question is, are we okay to rent it this way?
It wouldn’t get a decent EPC result, there is major work that wants doing. It has been rewired but wouldn’t pass an EICR, without a board swap and some sockets upgrading.
Is there a contractual way to rent it to them given they are happy to take it the way it is?
Thanks in advance for anyone who can assist.
Joe
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Member Since January 2024 - Comments: 341
10:17 AM, 12th January 2024, About 2 years ago
It is the landlord’s responsibility to give gas certificates, EICRs and EPCs when the tenancy commences. As far as I know, the tenant cannot ‘opt out’, so it would be very risky to rent out the property without the correct paperwork.
Member Since April 2017 - Comments: 163 - Articles: 1
10:17 AM, 12th January 2024, About 2 years ago
Will be interested in other people’s comments. Are they planning to do it up themselves? Personally I would refurbish myself, but if not I would do the roof and perhaps the windows if they are rotten. The EPC is a legal requirement to E, as is the EICR, so these are essential and would have to be done.
Member Since September 2013 - Comments: 25
10:20 AM, 12th January 2024, About 2 years ago
I’m not an expert, but having been in the same situation, I decided NOT to rent out until the property was in better condition carried out by myself and other professionals where required. My reasons were that I felt I would need to have a very watertight contract that clearly stipulated the acceptance\agreement of the tenants. Also an addendum that stipulated what repairs were to be performed, the associated cost (so no cheap bodge) the time frame for each repair, if each repair needed to be carried out by a certified professional, inspections, a clause where the standard or approach of the repair having been carried out did not meet the landlords expectations, but the tenant thought it was fine, etc etc.
I felt the risk would be too great that if things went astray I’d be in a very precarious position when trying to get the property back. Also in the back of my mind, was regardless of the willingness of the tenant, how the friendly (not) local council would view this situation and any licence implications.
Member Since January 2020 - Comments: 559
10:49 AM, 12th January 2024, About 2 years ago
If you’re going to transfer repairing responsibility to the tenant, then the lease needs to be for a minimum period of seven years. Such a lease would need to be drawn up by a solicitor.
There will be some compliance issues that you cannot get out of.
Such leases used to be quite common, especially on rural estates, but nowadays are rare as you need to tread very carefully.
Member Since January 2015 - Comments: 1435 - Articles: 1
12:38 PM, 12th January 2024, About 2 years ago
“ Is there a contractual way to rent it to them given they are happy to take it the way it is?”
Simple answer is no.
Member Since December 2018 - Comments: 95
12:45 PM, 12th January 2024, About 2 years ago
If its as bad as you say it is there is every chance it wont meet the minimum EPC requirements but that aside would you be happy to pay rent for substandard accommodation.
Member Since September 2018 - Comments: 19
12:54 PM, 12th January 2024, About 2 years ago
You will have all sorts of issues. They could take the tenancy and then not pay and without the proper certification you would have no grounds for eviction. Also how did you escape having an EICR?
Member Since January 2020 - Comments: 559
1:40 PM, 12th January 2024, About 2 years ago
Reply to the comment left by SimonR at 12/01/2024 – 12:45
People will rent property in a poor condition and agree to repair it over time, but the rent reflects the condition. Our local National Trust estate has done it; tenants get to live in a lovely village for a guaranteed term (min 7 years) subejct to them doing all maintenance.
Member Since January 2020 - Comments: 559
1:43 PM, 12th January 2024, About 2 years ago
Reply to the comment left by Judith Wordsworth at 12/01/2024 – 12:38
Noting that s11 does not apply to leases of more than seven years, so some disrepair can be passed to the tenant to deal with. I assume that the landlord would need to comply with EICR and EPC.
Member Since August 2015 - Comments: 11
1:46 PM, 12th January 2024, About 2 years ago
Reply to the comment left by GREENDIZZYCRAB at 12/01/2024 – 12:54
I haven’t escaped the issue, nothing has been done yet i am just considering options. Thanks for the input.