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This information is obtained from independant sources, it does not represent the views or opinions of Calico or doitin.co.uk and should only be used as a guide. Expert/ Legal Advice should be obtained before taking any action regarding property rental.

Whether you are considering becoming a Landlord or currently have properties to let, our quick guide should contain some useful points for you to consider.

There are three ways to become a landlord:

• You can buy a property and then hand over the responsibility of letting it to a professional property management company.
• You can buy a property then go it alone and be a hands on landlord seeing to the letting and maintenance of the property yourself.
• You can rent out part of the property that you are currently living in.

Each approach has its plus points. If you delegate to a property management company you also delegate the day to day business of dealing with tenants, ensuring rent collection, and finding new/researching new tenants. If you decide to adopt the hands on approach then all the financial rewards are yours to keep. But you will probably, depending on the age/state of the property, quality of the tenant, and the state of the market, find yourself devoting far more time, energy and emotion on maintaining the property than you ever intended.

If you’re going to rent out part of your home, however, then you don’t have much choice but to be the hands on type. Again, with the right lodger/tenant this can be a very satisfactory arrangement. If it all goes wrong, however, you may find the trouble a little too close to home.

Before your property to let is even occupied however, there are a number of legal responsibilities that are placed upon you as a landlord. Under an assured shorthold tenancy (Landlord and Tenant Act 1985), you are obligated to:

• Keep the structure and exterior of the property in a good state of repair.
• Ensure that hot water installations, water supply, washbasins, sinks, baths, showers, toilets etc are safe and fit for use.
• Provide adequate lighting, heating and ventilation.
• Treat any health-threatening damp.
• Repair and maintain any areas or installations, which you own or control.
• Ensure that all gas appliances are maintained in good order, and pay for an annual check/service from a CORGI approved tradesman. You must also ensure the tenant receives a copy of the safety certificate.
• Ensure that any and all electrical appliances provided with the property are safe to use.
• Be able to verify that all new furniture complies with regulatory levels of fire resistance as set down in Furniture and Furnishings (Fire)(Safety) Regulations 1988.

These regulations will apply whenever the primary use of the property is as a source of income.

Although there are two types of tenancy – assured and assured shorthold – it is required by most lenders that you opt for the shorthold tenancy, which offers you the safeguard of being able to take possession of your home after a six month period if it becomes necessary. In an assured shorthold tenancy, both landlord and tenant will agree the duration of the minimum term and the level of rent to be paid. The fixed term can only be terminated by mutual consent.

If you intend to rent out part of the home that you are living in as a resident landlord, different rules apply.

When preparing your tenancy or right to occupy agreement you need to consider a few additional lifestyle matters:

Whether to allow tenants to keep pets
A pedigree puss is one thing, but a boa constrictor or St Bernard quite another. Agree boundaries and wherever appropriate put them in writing.

Whether to allow tenants to change the décor
If you do you may want to ensure that a scheme is agreed between the two of you before decoration begins, or that the tenants is required to return the scheme to neutral before they move on.

Whether you will allow smokers
Consider the safety issues – a large proportion of house fires are caused by carelessly discarded cigarettes. Smoking can cause health issues for other tenants. Also smoke will damage décor and furnishings, all of which may need remedial action before a new tenant takes over the property.