Managing Your Own Rental Properties in Cheshire & Merseyside

Why ??

If you are a Chester or Liverpool landlord with (plenty of) time, and enough knowledge, you might consider managing your own rental properties.

The benefits are:

• Maintaining "full control" of your investments
• Reducing overhead by avoiding agency management fees

But it's not for the faint hearted. There are over 150 laws and regulations associated with rental properties which must be complied with - or face very large fines. And when there are issues to resolve, it can be very frustrating and time-consuming. FIRST - decide what your time is worth.

If you still want to take on this huge responsibility, here is a brief overview of the requirements along with tips for effective management.

Before You Start

Landlords must register themselves and their properties on a new government portal and join a compulsory ombudsman scheme (fees apply).

Also, register with the Information Commissioner's Office (ICO) to comply with relevent GDPR laws. If you rent out a property, you are a business (fees apply).

If you have any individual properties that rent for more than £8,500 per month - you must register with HMRC's Anti-Money Laundering scheme and carry out AML checks on tenants (fees apply).

The Lettings and Management Process

STEP 1 - Compliance

Ensure your rental property complies with all national and local legislation. Refer to government and local authority websites. Familiarise yourself with the Housing Health & Safety Rating System (HHSRS). This will cover:

• Fire safety (alarms, windows, doors etc)
• Trip and fall hazzards
• Heating, lighting, and hot water
• Safety and security
• (plus lots more)

STEP 2 - Marketing

To attract good tenants, your property must look its best. Spotlessly clean. Freshly decorated. Even use ornaments and furnishings for staging. All this helps your property to stand out.

• Use a professional photographer to take lots of bright, high quality pictures
• List your property on the major online portals for maximum exposure to more people. Your advertising must comply with Consumer Protection Regulations as guided ny National Trading Standards
• Create effective systems to screen and sift enquiries to identify the most suitable potential tenants
• Carry out accompanied viewings with the most promising applicants (ask more questions and use your instincts to evaluate suitability)
• If everything looks favourable and you wish to accept an application, move on to the next step

STEP 3 - Creating a tenancy

It's now time to carry out detailed background checks on your rental applicant(s) and to create an Assured Tenancy Agreement.

• Landlord references
• Proof of address
• Proof of ID
• Right to Rent checks (where applicable)
• Affordability checks
• Employment checks
• Credit checks

STEP 4 - Start of tenancy

After all checks have been carried out and you are satisfied with the outcome, you can now prepare for the start of the tenancy.

Monies cannot be requested from the tenant(s) until the tenancy agreement has been signed and executed. Once executed, you can request the deposit payment and first rent payment.

Deposits must be registered with an approved tenancy deposit scheme within 30 days of receipt, and send your tenant(s) a copy of the "prescribed information". For your security, create a full photographic inventory report and provide a copy to your tenant(s).

Prior to handing over the keys, you must also provide your new tenant(s) with copies of:

• The latest "How To Rent" guide
• Valid EPC certificate
• EICR
• Gas safety certificate (where gas is supplied)
• Selective licence (if required)
• Assured Tenancy Agreement (signed)

During The Tenancy

You now move into the long-term management phase, which comes with more responsibilities.

You must provide your tenant(s) with full contact details (name, address, contact number, and email address) of the person responsible for managing the property - YOU.

During the tenancy, you must:

• Provide the tenants with receipts for rent payments
• Respond promptly to maintenance requests and emergencies
• Maintain the property to a good standard (see the government's "Decent Homes Standards" documents)
• Ensure compliance certificates are updated before they expire (gas, electric etc)
• Comply with all aspects of housing and tenancy law, including the Renter's Rights Act

And Finally

Have in place processes for dealing with all potential issues, including:

• Maintenance and repairs
• Periodic upgrades (eventually you will need to replace carpets, boilers, foffs etc)
• Rent increases
• Rent arrears
• Anti-social behaviour
• Eviction

Use software to help with all processes. Local authorities (and the tax man) may ask to see all documents and records at any time. Software can help with:

• Tenancy creation
• Inventory creation
• Accounting
• Maintenance

If you try self-management and decide it's not for you, contact Crown Rentals. We can take all of this weight from your shoulders.