Advice on Renting out a Property

Ignorance could cost new landlords

POTENTIAL landlords are being urged to find out about the law before considering renting out their homes.

The current economic climate has seen a rise in the number of people choosing to rent out their homes in order to gain an additional income, but a lack of knowledge of the law could prove costly and new guidance is now available for anyone considering going down the rental route.

Stockton Council, in partnership with the Government's advisory body, Local Authorities Coordinators of Regulatory Services (LACORS), has released the checklist.

Advice includes:

Talk to your mortgage lender
Get references from potential tenants
Prepare a formal tenancy agreement
If you take a deposit, it must be properly protected
Find out if you need a property licence
Get all gas and electrical appliances checked
Obtain an energy performance certificate.
Minimise the risk of fire
Ensure that your property presents no risk to your tenants' health and safety

Failing to talk to a mortgage lender could see people lose their home, while not storing a tenant's deposit in an approved scheme could cost landlords three times over. Failing to apply for a licence for a licensable property could result in up to a £20,000 fine.

Copies of the guide can be downloaded below. For further information, please contact the Private Sector Housing Division.