Category Landlords

What Is A Break Clause?

Whether you’re a landlord or a tenant, the specifics of your lease are there to protect you, therefore it’s essential to recognise what a break clause is and just how it might be used – if you need to.

If a break clause is added to a lease, it means that either party – landlord or tenant – can end the lease early should they wish to. It might be that a tenant wants to renegotiate their lease and they use the break clause to do it, or it could be that the landlord isn’t happy with the tenant (perhaps due to complaints or late payments) and decides it’s easier to break the lease than continue with it.

break clause

The Lettings Industry

With more emphasis being put on helping people to buy property, the letting market isn’t what it used to be, and landlords are often feeling progressively anxious. When this is in addition to tenants feeling the touch of difficult economic problems, it’s not surprising the break clause has been invoked a lot more recently.

Remember that even with a break clause, there might be conditions that either party has to go through before they can be successful in breaking the lease without penalty.

Serving The Break Clause

All clauses will vary, and if you want to use yours, you will need to establish exactly how the notice should be served. Check the lease and, if you have one, check with your letting agent – getting this right will avoid any nasty confrontations and it will save you money too because if you break the lease in the wrong way, you could be liable for the rent that’s due.

It’s wise for landlords to check in with their tenants on a regular basis. After all, knowing that there’s a problem and pre-emtping any request to leave can put you in a stronger position to either agree to new terms or fix the issues and stick with the original price or other terms.

break clause

When To Deliver The Break Clause

The choice of when you should use the break clause is going to depend on several variables. This might be after a particular time period has elapsed and there might be specified dates when it is able to take place. It’s crucial that this is completely crystal clear in the conditions of the lease.

Tenants must understand the dates specified in the clause and also aim to discuss the options no less than a year prior to the notice period commences. If you’re uncertain of the dates on the break clause, you need to find clarification. Don’t do anything at the last second, as any plans you make might fall apart if the break clause isn’t what you thought it was or can’t be used for some reason.

As a landlord, a greater connection with the tenant is going to allow you to foresee whether a rent increase will mean they invoke the break clause, and therefore provides the opportunity to decide whether to invoke the increase. This can be a big reason why many tenants decide to leave.

The Problems Of A Break Clause

All tenants should make sure to pay any outstanding bills and rent up to the break clause. If anything is left outstanding, they might find it is taken out of their deposit, and that can lead to issues if they were expecting to use that money for something else. Remember, just because you decide to invoke the clause, that doesn’t mean your responsibilities are ended.

Renting With A Pet – More Want The Option

There has been a massive jump in enquiries for pet-friendly rental properties. Requests are currently up by fifty percent on usual levels. And it’s all down to the coronavirus pandemic. But is renting with a pet going to become any easier?

renting with a pet

Or rather, it’s lockdown that has caused the trend. People have been lonely, and have either got a pet or at least thought about getting one, the delay perhaps being that they cannot have one right now due to their landlord not allowing it. So, wanting a pet or having one already, and the larger numbers thinking in this way, means that the next property these tenants are going to be looking for should take pets. Hence the increase.

As lots of people, as well as their companies, have realised that they are able to work at home, and companies are actually considering ways for home working to be normalised, folks are actually reassessing if it’s feasible for them to get a pet. This means an increased need for pet-friendly rental properties. Landlords will discover in the coming weeks and months that they might well have to adjust and review their policies if they would like to let their property quickly, or even at all. Renting with a pet is becoming the new normal and landlords must be aware of this change.

Why Not Pets?

The worry for virtually all landlords is that pets result in much more daily wear and tear than individuals on their own. That said, folks with pets will generally remain in the exact same spot for more time, so they can help to reduce the danger of a landlord having to keep looking for new tenants. It might be a better option all round.

With regards to decorating, carpets are a lot more apt to show harm than a wooden floor. Laminate is actually cheaper to install and tougher to scratch, although a scratch on a hardwood floor is easier to repair.

renting with a pet

So the answer here is simple; don’t have carpeting, have hard flooring instead. If the tenant wants to add a rug for additional comfort, that’s their choice, but at least your carpets won’t be ruined by their pet, and you can let the property much more quickly.

Other adaptations to look at for those renting with a pet would be very simple modifications like a cat flap. Either install one yourself, or allow the tenants to if they want to. Plus, you may decide to upgrade your end of tenancy procedures around cleaning, for instance, and having an inventory done as well as a proper check-out will help immensely when it comes to determining if any damage has been done.

Remember To Advertise The Fact Of Renting With A Pet…

If you decide to allow pets, be sure you update listings right away to maximise the chance of you getting the right tenant. If you make sure to advertise the fact that you accept pets, you’ll certainly get a lot more interest, and certainly more than those who says no pets or don’t mention pets at all, forcing the potential tenants to enquire.

renting with a pet

The Tenancy Agreement

Landlords are within their rights to include things like an understanding in your agreement about trying to keep the property thoroughly clean, or perhaps covering the costs of a one off deep clean at the conclusion of the agreement. You should think about a larger deposit to cover any more potential damage, or perhaps increase the amount of interim inspections you have carried out.

Any stipulation surrounding renting with a pet have to be agreed by both parties at the start of the tenancy.

You’ve Inherited A House: Should You Sell Or Rent It Out?

So you’ve inherited a house and now you don’t know what to do with it. There are three different options open to most people – they can either sell it, rent it out and become ‘accidental landlords’, or move into it themselves. Depending on the location and the potential tax issues, this last point just might not be suitable, and most people opt for either renting it or selling it. But which is the better option? Which one is going to help you the most?

The truth is, there isn’t a right or wrong in this situation. There is no definitive path to take. The choice you make is going to be entirely dependent on your own situation, your finances, your needs, your thoughts. But to help you to get to a point where you can make an informed decision, Looksy Inventories has listed out a few of the pros and cons of both selling and renting – this might help you if you’ve come to an impasse.

Renting It Out: Pros

  • Security

If your house is empty and you put it on the market, it can – not always, granted, but sometimes – become something of a magnet for burglars and squatters. If someone is living in the property, this is much less of a problem, and it is therefore kept more secure.

inherited a house
  • Money

If you have tenants in the property then you will be making money (let’s assume there is no mortgage left and you’ve not had to take it over for now – that’s a different kettle of fish and something that can cause a lot of problems, so it’s best to get advice from a mortgage expert if that is your situation). The rent you get each month can go towards the upkeep of the property, but it can also be seen as extra income for you. Bonus time. Plus, if the property is empty between tenants you won’t still have a mortgage to cover so as long as you treat your rental income as additional to and not instead of your day job, you won’t have to worry about it.

  • You Can Still Sell

Even if you choose to rent the property out to begin with, if you don’t like the experience of being a landlord you can still sell later on, once the tenancy agreement is up, for example. If you’ve sold, that’s it – no second chances.

Renting It Out: Cons

  • Trusted Tenants?

If the property you have inherited is a place you know and perhaps even love, maybe somewhere you have happy memories of childhood, you might be reluctant to let someone else move in. If you’re going to be constantly worried that your tenant isn’t taking care of the property in the way you’d like, it’s just going to cause more stress than anything else.

  • Cost

It’s true, if you have inherited a house you’ll be getting a monthly rental income for the property, but there will be outgoings too. Insurance, regular maintenance, a letting agent if you go down the fully managed route, repairs (sometimes urgent ones), and so on all need to be factored into the cost. How much money are you really going to make? Is it going to be worth it?

inherited a house
  • Legislation

If you decide to become a landlord, even if it’s not something you ever considered before, there are in excess of 150 pieces of legislation to abide by. Happy reading!

Selling It: Pros

  • Money

Of course, the biggest ‘pro’ when it comes to selling the property is that you’ll get a good few thousand – probable a few hundreds of thousand – in your pocket after all the fees have been paid. The property will be someone else’s to enjoy, and you’ll have an inheritance you can really put to good use.

  • Memories

Again, if you have inherited a house and the property is something sentimental to you, you will be able to remember it just as it was, without having to change anything for a tenant, or have a tenant make changes themselves. Even if you give them permission to do it, the property still won’t be how it was anymore, and this can be upsetting.

Selling It: Cons

  • It can take an exceptionally long time to sell a property, in some cases over a year. And even when the property is sold, completion can come a long time after exchange, adding even more months to something that has taken an age already. If you’re relying on the money from the property to do something for yourself, you may have to put those plans on hold. If you’re renting the property out, you’ve got money coming in straight away, albeit a smaller amount than you would get in one shot when selling.
inherited a house
  • Although you might tell yourself it’s just a house and that you shouldn’t get attached to it, this is what human beings do – we do attach ourselves to places and things, so selling the family home can be utterly heartbreaking, and it often comes with a lot of guilt, even if that guilt doesn’t actually make any sense at all.

As you can see, there is absolutely no right or wrong here when you have inherited a house. It’s the situation that suits you, and the one you feel happiest with. If you do choose to rent out your property, don’t forget that an inventory should be carried out by experts before anyone moves in, to keep both you and the tenant covered.

Why Do You Need An Inventory Clerk?

Have you ever stopped to think how just a few small things – or one larger thing – can make a difference? It can be the difference between a good day and a bad one. It can be the difference between success and failure. When you’re a landlord or a tenant, it can be the difference between an easy end of tenancy and a difficult one. The inventory clerk can make it a simpler process for everyone.

Think of it this way; if there is a ripped carpet, a marked wall, a broken window, or any number of ‘small’ issues with the way a property is left after a tenant has moved out, it will clearly have an impact on their deposit. That is what the deposit is there for, after all. It’s a bond which will be paid back if the tenant has left the property in a satisfactory condition. If not, the deposit can be used to pay for repairs and cleaning. It’s a good system which helps both tenant and landlord when used in the right way.

Yet it can also, clearly, be problematic. In order to minimise (and ideally eliminate) any arguments, a professional inventory clerk can be hired to carry out an inventory of the property. In this way, it is quick and easy to see at a glance what damage the tenant caused, and what they inherited when they moved in.  

inventory clerk

What Is An Inventory Clerk?

An inventory clerk is a highly skilled individual who makes in depth notes relating to the contents and condition of a property before it’s let to a tenant. An inventory clerk may also conduct mid-tenancy inspections on a property, and return once the residency has ended so as to match the current property condition to the initial condition as stated in the inventory. Ultimately, the return of a tenant’s complete deposit is going to relate to the condition of the property once the tenant leaves, excluding standard wear and tear.

A property owner commonly asks for a deposit to be paid by new tenants, usually the equivalent of five week’s rent. That deposit is kept in a tenancy deposit scheme (an official one, of course) until the renter leaves the property.

Why An Inventory?

An inventory, carried out by an experienced inventory clerk, is in the best interests of both the owner and also the tenant. This ensures that there are fewer problems once a tenant leaves the property, as all aspects of the property are noted in the inventory report. These reports should be read and signed by the tenant and landlord on the day that the tenant moves in. This shows both parties what the current condition of the property is, and of both parties agree, should anything be different when it comes time for the tenant to move out, it is easy to point out and detail with.

The inventory report can list everything that’s within the property as well as the condition. This can include heating appliances, extractor fans, cupboards, plug sockets, door frames, smoke detectors, curtains or blinds, flooring, light fittings, walls, ceiling and doors.

inventory clerk

In addition to those fittings and fixtures, any piece of furniture that belongs to the owner should be mentioned, in addition to descriptions of their condition. It is very important that any marks, chips, or damage are reported in the inventory to confirm that the tenant isn’t accountable for any damage when they move out.

Looksy’s inventory reports also will include utility readings: electricity, water and gas.  The report should contain plenty of photographs as proof of what is being noted.

For landlords, hiring an inventory clerk saves you time and prevents future problems. An expert service ensures that everything is noted in the report, and you gain peace of mind. As an inventory clerk is freelance and unbiased (or should be), they’re going to be able to look at the property objectively.  

For more advice and to book an inventory, please get in touch with us today.

Changing The Locks On A Rented Property: Who Is Responsible?

Landlords and tenants alike have to be careful when it comes to changing the locks on a rented property. Although the landlord might own the property (or at least have a mortgage on it) they are renting out, they have to aware that this is someone’s home, and that the person living there has a right to feel safe and secure. Tenants are, in fact, granted a ‘right for quiet enjoyment of their rented property’.

Equally, although the tenant lives in the property and calls it home, they have to understand that, ultimately, it belongs to someone else, and that someone else – the landlord – must be in control of the property.

This means that, apart from in a few situations and usually with the tenant’s permission, the landlord can’t change the locks in the property and vice versa.

So just when can the landlord or tenant get away with changing the locks on a rented property? Read on to find out.

Changing The Locks On A Rented Property Between Tenants

The ideal time for a landlord to carry out changing the locks on a rented property is in between tenants. Despite the fact that the rental agreement may well have said that no copies of keys should be made, it could be that this has happened, and that keys have been given to friends and family members, cleaners, contractors, or anyone else who might have needed to access the property when the tenant wasn’t home.

changing the locks on a rented property

The fact that the tenant has moved out should mean that none of these people need to use the keys anymore, and ideally they will either be handed to the letting agent or inventory clerk at check out, or disposed of.

Yet sometimes this doesn’t happen. And to be on the safe side, and to ensure your new tenants are completely safe and secure, it’s a good idea to change the locks. Everyone’s happy, there can be no issues, and you have control over how many keys there are again (for now, at least).

Changing The Locks On A Rented Property If Keys Are Lost

What should a landlord do if a tenant loses their key and can’t get into the house? In most cases, they don’t need to do anything – the tenant will need to fork out for a new lock and they will also need to inform the landlord. Sometimes this just can’t be helped; if the tenant needs to get inside because they’ve lost their key or locked themselves out and they’ve exhausted all other options, there is nothing else to be done.

In this case, it will be down to the tenant to organise changing the locks on a rented property, and they will need to pay for it too.

What If There Has Been A Break In?

If someone has broken into a property changing the locks should be a priority. The lock itself might be damaged so that the property is longer secure, or the thieves might have stolen keys (or have a key) enabling them to return… either way, changing the locks on a rented property if there has been a break in is essential.

changing the locks on a rented property

But who is responsible?

Well, this one is going to depend on the circumstances. If the lock or door was damaged during the burglary, it is most likely to be the landlord’s responsibility to fix the damage and change the lock at the same time – and this is probably going to be covered by insurance. If there was no damage (or if the door had been left unlocked, for example), it is probably down to the tenant to deal with.

This is why it’s important to have a good relationship between the tenant and the landlord so that, should any issues occur, they can quickly be discussed and a course of action decided on.

The Check Out Process: What Is A Pre-Check Out and Do You Need One?

If the current tenant’s agreement is about to end and they are going to move out of your rental property, it’s a good idea to give them some useful information about what’s going to happen during the check out process. After all, this will save both you and them from worrying, make things much smoother, and it will help you to decide whether or not to hire a professional for the pre-check out.

check out process

What Is The Check Out Process?

The check out process is a simple one, but not something that all landlords are happy to conduct themselves. Lettings agents are busy and can’t always be on hand to conduct the process either, and this is where inventory professionals will come into their own; the check out (and pre-check out) is all part of the service.

The check out process technically begins with the notice to leave, which will either come from the tenant or the landlord, depending on the situation. At this time, the pre-check out service can be implemented.

Next, the tenants will need to return the property to its original condition. Remember, a landlord should never expert any betterment (although it is sometimes the case that this has happened – a great bonus) but they should receive their property back in at least the condition they let it in. Again, another reason to have a full inventory report carried out; that original condition will be clearly stated and matched against what the property looks like when the tenants leave.

On the day the tenants move out, the check out itself should take place, and a check out report completed for the landlord. The tenant will also be able to see the report and will be able to either accept it or challenge it. The deposit return can be negotiated and then released.

The Pre-Check Out Process

We’ve mentioned the pre-check out process a number of times now, and although it’s not something that every landlord requests, and it’s not something that every tenant is going to demand, it can be useful in terms of ensuring everyone is aware of their duties at the end of a tenancy. Plus it gives the tenants the time needed to put the property back the way it is meant to be, if that is something that needs to be done.

The pre-check out visit is conducted by an inventory clerk who can look at each room and make a report as to whether any action needs to be taken. The original inventory is crucial at this time, otherwise the clerk is not going to know what the property was like initially, and won’t be able to say one way or another whether anything has or hasn’t been changed.

check out process

What Are The Benefits for Tenants?

The tenant will absolutely benefit from a pre-check out. They will be given all the information they need, written down and explained, regarding the tasks they need to carry out before the day they move out. In other words, they will be told exactly what they need to do in order to have their deposit returned to them with no quibbles.

The tenants do have a number of responsibilities when they come to check out. These will depend in part on what is written in the tenancy agreement, but usually include:

  • Cutting the grass
  • Disposing of rubbish
  • Conducting a thorough clean
  • Defrosting the freezer
  • Removing all personal items
  • Repair any damage (over and above normal wear and tear)
  • Replace any items that were removed during the tenancy

Knowing this information in advance will make it more likely that the work is done.

Benefits for Landlords and Letting Agents

The pre-check out isn’t just useful to give tenants the heads up on what they need to accomplish before the day they move out; it’s also useful for landlords and letting agents. It makes the check out process a much quicker, smoother one. It also means there is going to be less maintenance required before the next tenant moves in, saving time and money and keeping the new tenant happy because there are no delays. Plus it helps to keep communication channels open between all parties, with the inventory clerk as the mediator/facilitator.

What Next?

If you need an inventory report, check in, check out (or pre-check out) or interim report, please get in touch with us at Looksy Inventories. A friendly, family run business with a positive, professional attitude, we can make sure everyone in the process is happy.

Your Rental Property: How To Manage Garden Maintenance

Rental Property

It’s the Chelsea Flower Show this week, and although this year – for obvious (coronavirus) reasons the event is actually a virtual one, it’s still a feast for the eyes and we encourage everyone to take a look online to see the beautiful and innovative displays (check out the link here: https://www.rhs.org.uk/shows-events/virtual-chelsea).

All this talk of gardens and plants and beautiful things got us thinking at Looksy about how to manage garden maintenance in a rental property. There are a number of things to consider when you delve deep down into the subject, and we’ve put together just a few ideas for you here.

The key, as with any kind of tenant/landlord interaction, is understanding. A neglected garden is going to make any property look bad, and the kerb appeal will quickly disappear, but having some rules in place and knowing exactly what the tenant can and can’t do is crucial.

rental property garden

Low Maintenance

Before your tenants move in, you should assess the garden of your rental property and think about ways to make it more low maintenance. If it’s a small garden, this can mean installing a patio (and removing some of the lawn to do it), replacing grass with Astroturf, and putting up fences instead of hedges. This kind of garden will take very little effort to keep looking nice, and the tenant can add their own take using planting boxes and urns if they want to. Otherwise it’s a quick mow and a sweep up and it will look as good as ever.

Are They Gardeners?

If the garden of the rental property is one that is going to need a lot of looking after, and you don’t want to change it or don’t want to spend money making it easier to deal with, you’ll need to speak to the potential tenants before they sign anything. Make sure they are aware of what you need them to do with the garden and how you expect it to look – keen gardeners will be happy to get involved, and those who might not want to carry out these tasks can walk away before they sign up to something they don’t think will fit with their lifestyle.

Hire A Gardener

Something that some landlords are happy to do is hire a gardener. The price can be included in the rent, and it means that the outside spaces will always look attractive and the tenant won’t have to worry about doing any of the work if they don’t want to. Again, this is something that you should make the tenant aware of before they agree to the rent; most will be pleased to find there is an added benefit, even if it means they are paying out more each month.

rental property garden

Use The Tenancy Agreement

If you are worried that your property might start to look neglected because the tenant isn’t doing any work in the garden, and to stop any confusion about who is responsible for what, use your tenancy agreement.

If the ‘rules’ are written out in your tenancy agreement, there can be no arguments, and it makes life a lot easier for everyone involved. This is why having a tenancy agreement is so important, not just for garden maintenance but for every aspect of the tenancy.

Get An Inventory Done

Having a good, thorough inventory carried out at the beginning of the tenancy, and ensuring there is a professional check-in and check-out service, means that the exact condition of the exterior of the house will be recorded. If there are any disputes, the inventory is one of – perhaps the most – important documents you’ll have. Using the report, you’ll be able to show what the garden looked like before anyone moved in, and what it looked like at the end of the tenancy.

If the tenant has left it in a bad state of repair and their tenancy agreement states that they must maintain the garden, the proof is right there in the inventory report.

Get in touch today to book your inventory and give yourself complete peace of mind in the process.

Your Long Term Tenant: How Landlords Can Attract Their Ideal Tenant

 As a landlord, finding a good long term tenant should always be a priority. The rental industry is notorious for having tenants moving on every two to three years because they’ve seen another property, they’re not happy where they are, or they’re ready to buy a house amongst other reasons.

inventory clerk sevenoaks long term tenant

Some of these things can’t be helped – if a ‘better’ property comes up that offers more room or is closer to a good school, then the tenant probably won’t be persuaded to stay. The same goes for if they have saved up their deposit and they’re ready to get their foot on the property ladder. Yet there are some things you can do to make a tenant who might just be used to moving every few years become a much longer term prospect which means you won’t have to go to the expense of having an empty property and finding another tenant to fill it. Here are some tips on what you can do.

 Be Willing To Compromise With A Long Term Tenant

The rental market is a crowded one, and there are many properties that will be up for rent at the same time as yours. They will be the same size, marketed at the same price (give or take), they might even be on the same road, or at least close by one another. With fewer people than ever being able to raise a deposit for a mortgage, renting is fast overtaking home ownership as the norm, and that means there is a lot of choice for tenants – no longer will they have to ‘settle’ if they don’t have to.

 And for the most part, they don’t have to.

 So how can you ensure that the potential long term tenant who is viewing your property and two or three others on the same day and who is going to choose one of them will pick yours? It’s often about compromise. You don’t have to lower the price (especially if the tenant doesn’t ask) although this is something you can keep in reserve if you need to, but you can throw in some extras that might sweeten the deal. You could:

Offer a reduced deposit

Offer to pay the council tax for the first three months

Assure the tenant that you won’t rent to anyone before they’ve had a chance to think things through (you’re not even losing anything here – you’re just showing them that you’re easy to work with and willing to help when possible)

Plus there are many other ideas that you will be able to think of; it’s going to depend on the tenancy and the property as to what you feel you can offer. It’s all about making a good first impression, and if you can show that you are willing to compromise if need be, the long term tenant is going to be happier to rent from you.

landlord and inventory clerk welcome long term tenant

 Give A Warm Welcome To Your Long Term Tenant

You might not be there when someone moves in – that’s what Looksy is there for, after all; we carry out check ins on your behalf. However, that doesn’t mean you can’t still offer a warm welcome to make the tenant really feel at home.

You can have flowers delivered, or leave some wine or chocolate in the property for them to enjoy. Maybe stock the fridge with milk and leave a loaf of bread and some tea and coffee in the kitchen (even if they have their own, your kindness won’t be unnoticed). Or what about collating a list of good places to eat, quality takeaways, great locations to visit, the best schools, and so on? It’s the little things like this that will make people want to stay around for longer.

Remember, this is your house but it’s their home, and if you can stick to this simple mantra you’ll always be seen as a good landlord.

 Keep Your Promises

A landlord can promise the moon and the stars but if they don’t deliver that doesn’t mean they’re a good landlord; quite the opposite, in fact. It’s crucial for you to keep your promises if you want your good tenants – the ones who pay on time, every time, and who look after the property well for you, and who are nice, quiet neighbours and cause no bother – to stick around once their tenancy is up.

 You don’t have to do a lot. You just need to do the things you’ve said you’ll do, especially if you happened to mention those things when the tenant was viewing the property, and they are the reason they took your place over someone else’s… If you don’t do what you said you were going to, don’t be surprised if they decide to go and find someone who will at the earliest opportunity.

The New EPC Rules – Can You Still Rent Out Your Property?

As a landlord, even if you aren’t aware of the new EPC rules, you will know that your rental property must have an up to date EPC in place before you can rent it out. These reports don’t cost a huge amount, and you can often get them organised through your lettings agent if you are using one. Once done, they last for 10 years, so as far as investments go, it’s not a bad one. Plus, as mentioned earlier, it’s absolutely essential and you can’t rent out your property without one.

new epc rules

You’ll receive a report regarding your property, and that result will have two columns. The first, ranging from A (excellent) to G (terrible) is the energy efficiency of your property at the time of the report. The second column, which will also range from A to G, is where your property could be if you carried out the necessary work to make it more energy efficient.

In the past, the result of the EPC didn’t particularly matter. It would be in place for the tenant to see, enabling them to make an informed decision about taking on the property and paying the heating bills – the worse the EPC the more expensive the place would be to run. But that’s all it meant.

Now things are different because of the new EPC rules.

New EPC Rules: The Minimum Energy Efficiency Standards

In April 2019, the government introduced the Minimum Energy Efficiency Standards (MEES). When this was introduced, it meant that all rental properties had to have an EPC rating of at least E. Anything that was an F or a G could therefore not be rented out until the necessary work had been done to bring it up to at least an E (and ideally higher). Landlords who continue to rent out the property without making any changes will face a fine of up to £5,000.

new epc rules

Initially, these changes only affected new tenancies or tenancy renewals. However, what is important to note, and something that might catch a number of landlords out, is that as of April 2020, all existing tenancies will also be subject to the new MEES rules. So even if you’re just partway through a tenancy, as of 1st April 2020 and the new EPC rules, if the EPC on your property is less than E, that tenancy effectively becomes void. Work will need to be done in order to ensure that your EPC is at least an E. If this can’t be done (perhaps because the property can only reach a certain level of energy efficiency due to its construction) then your tenants will need to move out, and you will need to stop renting the property. It sounds harsh, but these are the new rules and they need to be abided by.

Exemptions

Right now, there is an exemption in place called the ‘no cost to the landlord’ exemption. This means that if the landlord cannot afford to pay for the improvements needed to upgrade the energy efficiency of their rental property and they can’t access funding (which might come from their local council or the Green Deal) they won’t have to pay to get the work done. Take note, as of 1st April 2020, that exemption will no longer be in place. All landlords will be liable for any improvements up to a cap of £3,500. Anything over that amount can be funded through other means, but the first £3,500 has to come from the landlord.

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