Accidental landlords urged to get help

Wednesday, 19 November 2008 08:02

UK rents are dropping as unsold properties are rented out and owners become accidental landlords.

The Royal Institution of Chartered Surveyors (Rics) yesterday reported historical highs on the number of flats and houses coming onto the rental market as the mortgage drought and falling house prices deter buyers.

The credit crunch is now creating a new generation of accidental landlords.

"Many landlords have entered the lettings market in the last year without perhaps planning to do so and have taken this step out of necessity rather than desire," said Ian Potter at the Association of Retail Letting Agents (ARLA).

"I would urge these amateur landlords to exercise caution and to research as much as possible as it is a position of no little responsibility.

"It is imperative that they seek out a regulated agent who is in a position to give them strong and independent advice, and who can protect funds that are being held on their behalf under client money protection schemes."

The National Landlords Association (NLA), meanwhile, warns these new landlords pose a major risk to the overall health of the British rental market.

Simon Gordon, NLA head of communications, said: "Becoming a landlord in this market is not for the faint-hearted.

"New landlords, especially those who hadn't planned on starting a lettings business, must make themselves aware of the rules and regulations so they can operate their tenancies successfully."

He added: "There is a major risk that inexperienced landlords, although well-meaning, are not fully up-to-speed with their responsibilities and problems can arise.

"The ultimate responsibility for operating the tenancy lies with the landlord and, although a good letting agent is worth their weight in gold, 'reluctant landlords' are obliged to be on top of their game.

He added: "If landlords are not properly prepared, the potential long-term wait for prices to come back up may prove to be a Pandora's Box for the private-rented sector."

NLA checklist for letting out a property

• Do I have permission from my bank or building society to let out my property?
• Does my current insurance cover letting out the property?
• Do I need permission from my freeholder?
• Do I use a reputable letting agent or try and manage the tenancy myself?
• Do I need a written tenancy agreement?
• Does my property comply with any gas and fire safety requirements?
• How do I provide an energy performance certificate?
• How do I protect my tenant's deposit?

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