April 20, 2024

6 Things Landlords Need to Know About in 2023

4 min read
landlords 2023

We are close to entering 2023. The competition is continuously growing in the rental market and property owners must keep an eye on important changes and regulations. We offer you a list of the most important things you should keep in mind as a landlord in 2023.

MEES Regulations

MEES regulations became eligible in April 2018. Minimum Energy Efficiency Standards are set to be changed by April 2023, so the landlords and tenants have time to prepare. A property must have an eligible EPC rating of E or higher to qualify.

Therefore, according to the Minimum Energy Efficiency Standards, if your property has a valid EPC rating of either F or G, you have time until the 1st of April 2023 to reach the minimum standard.

Remember to re-register your property every five years to get a certified EPC rating.

Safety Regulations

Landlords must make sure that their property is safe for tenants to move into. There is a specific Gas Safety Certificate that the property owners can get, the certificate must be in-date. The certificate should be earned annually, so there are installation and usage safety regulations.

The tenants must have access to the certificate before the lease is signed or the agreement is fulfilled in any other way. The same goes for fire safety regulations. The landlords are obliged to make sure that there is fire safety and protection on their property.

The property owners must carry out fire safety assessments and identify any fire hazards on the property.

Smoke Alarm Regulations

The smoke and carbon monoxide alarm regulations are mandatory for landlords to provide. There must be at least one smoke alarm in the house, as for the carbon monoxide alarm, it must be available in the area where solid fuel-burning equipment is present.

The landlords are obliged to have working alarms before the tenants move in. Therefore, we suggest that if you are a landlord, you have your tenant sign a confirmation form. As a landlord, it’s your duty to replace the smoke alarms if for any reason they are damaged during the tenancy.

EICR (Electrical Installation Condition Reports)

An electrical installation condition report is an official document the landlord can receive after a thorough inspection of the electrical system in the building. After the inspection is conducted you might receive a report with some directions. You are not legally bound to follow them, however, if an accident occurs, you might have to face criminal prosecution.

The wisest thing for a property owner to do is to have a certified contractor lead the inspection of the real estate. Often, property managers are the ones who oversee the inspection process, so it’s advisable to make sure they fully understand the responsibilities.

Tenancy Deposit Schemes

The landlord must put the tenant’s deposit in a government-approved tenancy deposit scheme (TDP). The property owner has a right to accept valuable physical items as a deposit instead of money. The term is necessary since if you fail to make a tenancy deposit scheme, you might lose the argument in court if your tenant ends up damaging your property or fails to pay the rent on time.

At the end of the tenancy, the landlord must return the deposit to the tenant. The TDP scheme is necessary to keep the deposit safe in case you have a dispute with the tenant.

Mortgage & Taxes

The housing market is in a bit of a pickle. As we can predict, mortgage payments are expected to rise in the next year due to the interest rates increasing. Housing prices are through the roof and with the rising of the base rates, the banks plan on pushing the mortgage rates higher as well.

If last year the lenders were asking for 1-2 percent mortgage rates, the number has risen to 4%. The landlords will be hit by the rising interest rates greatly. Property investors are often the ones who rely on loans while purchasing real estate. It would be advisable for landlords to increase the rent instead of selling their properties. In these times, owning multiple properties might be very beneficial.

Naturally, you are going to want to save money on taxes, since the mortgage interests are likely to be raised. By doing your self-assessment tax returns, you will be able to save a lot of money on taxes. Instead of hiring an accountant to do the job for you, after a bit of research and learning you can handle the job yourself and manage the assets. Finally, be ready to handle significant inspections and maintain the accuracy of all crucial papers, reports, and budgets. Safe conditions of your property are essential, therefore, remember to secure your real estate to avoid any big problems. You can use this summary of 2023 expectations for landlords as a reminder of what to double-check, however, it’s important to get into detail when it comes to these important rules and regulations.

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