Landlord Guide

Rent Smart Wales

Since 23 November 2015, all Landlords with privately rented property let out on a domestic tenancy in Wales are legally required to register with Rent Smart Wales in order to comply with the law.

Domestic tenancies include Assured/ Assured Shorthold Tenancy under the Housing Act 1988 or a Regulated Tenancy under the Rent Act 1977 (even if the tenancy is not written) (as defined in s.2 of the Housing (Wales) Act 2014).

For more information and to register with Rent Smart Wales, please click on this link: Landlord Registration - Rent Smart Wales (gov.wales)

Rental yield

Also known as your return on investment it is important to take into account purchase fees, repairs, void period, mortgage repayments and running costs. So be mindful of this when agreeing what your monthly rental income is going to be. 

Insurance

You will need to have building and Landlords insurance from the offset. Buildings insurance covers the risk of damage to the structure and the permanent fixtures and fittings of a building. Tenants are responsible for providing their own contents insurance to cover their personal belongings. Policies are also available to cover loss of rental income and so on, Bluestone can also arrange this for you, be sure to ask about our landlords’ buildings policies. 

Furnished or unfurnished

If you are providing furniture in your property you need to ensure that you comply with the Fire Safety Regulations (1988) so keep this in mind. 

Energy Performance Certificate

Landlords are required to have an EPC by law. The EPC shows prospective tenants the energy performance of the property. From April 1^st 2018, properties rented out in the private sector must have a minimum energy performance of E. A civil penalty of up to £4,000 will be imposed for breaches. The EPC will need to be arranged before the property is marketed. Bluestone can arrange this for you if required. 

Gas Safety Certificate

Landlords are required by the regulations to ensure that all gas appliances are adequately maintained and than an annual safety check is carried out by a registered tradesperson. From March 2009, the Gas Safe Register has replaced CORGI gas registration in Great Britain and is now the official industry stamp for gas safety. 

Electrical Certificate

Landlords needs to ensure that electrical installations and all electrical appliances are “Safe” with little risk of injury or death to humans or risk of damage to property. Any equipment supplied must also be marked with the appropriate CE marking. 

Choosing the right tenant

Give some consideration to the type of tenant you want before thinking about where and what you buy, if you haven’t already done so. Some common rental personas that we see regularly in our Newport lettings office are; working professionals, families, those on housing benefits and those looking for a house share. 

Tenant Referencing

As a Landlord, you want to safeguard your investment, so you will likely want tenants who are reliable, pay on time and take care of your property. We use a rigorous referencing process though identity and credit checking to see if the applicant could be a suitable tenant. These checks include; credit checks, bank statements, landlord referencing, employee referencing and so on. 

Tenancy Agreement

This is a contract between the Landlord and Tenant that outlines rental rights and responsibilities of both parties. Most tenancy agreements are on an Assured Shorthold Tenancy (AST) basis. This type of tenancy allows the landlord to recover the possession of the property without a reason, providing that the fixed term has expired and the proper form of notice has been served correctly. This notice is known as a Section 21 and can be arranged at Bluestone. 

Deposit

A deposit will be collected to the sum of approximately four weeks rent. This protects you from any damage caused by the tenant. Deposits must be placed in one of the registered deposit protection schemes. Some Landlords like to increase the deposit for example if they are going to be accepting a pet at the property. 

Inventory and Schedule of Condition

Keeping a record of what condition and what items were in the property at the start of the tenancy is imperative for protecting your finances. With our fully managed service we require a full inventory for the property file. We can provide you with a full HD video, so if a dispute over the condition of the property was to arise, we are able to provide independent evidence. The inventory will need to be agreed and verified by both parties. It is also advisable to keep all receipts and to make a record of the meter readings

Inspections 

These are important to identify and prioritise repairs and other works which may need doing and to ascertain whether the tenant is conducting their tenancy in an acceptable manner. We visit all managed properties within the first three months of the tenancy and will send you a full written report. You must give tenants at least 24 ours notice of any visit and its purpose.