Before a tenant moves in, there are a number of issues to be considered and steps that should be taken. If the property is subject to a mortgage, the mortgage lender should be informed of the intention to offer the property for rent. In addition, insurance policies covering the building may not be valid if the property is let. It is wise to check with an insurance company before renting the property out.

Gas Safety

If a property has any gas appliances, they must be checked (at least yearly) by a qualified CORGI gas fitter. Every rented property with gas appliances must have a valid certificate. A copy of the certificate should be shown to the tenant and must be made available on request. It therefore makes sense to put a copy in the property.

It is a criminal offence to rent out a property without a valid gas safety certificate.

Electrical Appliances

All electrical appliances should be checked annually by a qualified electrician. Although failure to have such a check carried out is a lesser offence than failure to ensure gas safety, the principle remains that in cases where injury is caused to a tenant by unchecked appliances, the landlord will be liable.

What Furnishings to Include

If a property is furnished, all soft furnishings must be fire retardant. On beds and sofas, all furniture that is retardant will carry a label to say so. It is an offence to offer a property with furniture that does not meet the current standard.

If in doubt, it is better to offer the property for rent without soft furnishings.

If the property is offered with appliances (such as cooker, fridge, washing machine etc) the contract must make clear who is responsible for their repair. Although the landlord is always legally responsible for maintenance of appliances used to heat the property or provide hot water, the legal position is less clear regarding general domestic appliances.

Whether or not to use a Letting Agent

The number of letting agencies and the proportion of lettings that use them has increased in the last few years. Agents can take responsibility for rent collection, for legal documentation and for property management in addition to advertising the property. Most will offer alternative levels of service (from just advertising the property to full management responsibility).

Each agency will make a charge to take such responsibility, usually in the form of a proportion of the rent charged. The landlord is still responsible for the cost of repairs and is named on legal documentation (such as Court documentation if it is necessary to take legal action against a tenant).

In the same way as if you were purchasing any service, it is worth comparing different agencies to compare the service offered and its cost.

Many landlords choose not to use letting agencies - they have to be prepared to manage the tenancy themselves - but consider it better value to do so.

Inventories

An inventory is a list of the fixtures and fittings in a property. It should also note their condition. Inventories can be time consuming to compile but can be very important at the end of the tenancy.

Most landlords expect a damage deposit to be paid by the tenant when they move in. The inventory is therefore a very important document if the property (or any of its fixtures and fittings) have been damaged by the tenant. It is only by comparison with the inventory that the original condition may be checked and agreed.

If a landlord keeps a deposit after the tenant has left, the tenant can take legal action to secure its return to them. It is therefore advisable to take a copy of the inventory and for both the landlord and tenant to sign their agreement that the inventory was accurate on the day the tenant moved in.

Photographs or videos can also form a record of the condition of the property (particularly if a date-code is stamped on the prints or tape). It is particularly recommended to take photographs of damage to a property before repairs are carried out, if a landlord wishes to keep money from the tenant's deposit to meet the repair cost.

How much rent to charge

There is no formal rent control in private tenancies. It is assumed that the landlord will wish to make a profit once any mortgage costs, insurance, agency costs etc have all been met. However, a tenant's circumstances can change during a tenancy. A change of the tenant's circumstances, such as redundancy, ill health or separation may make it necessary for them to claim Housing Benefit.

Housing Benefit will only meet the average rent level of the size needed by the tenant's household. It is possible in these circumstances that Housing Benefit will meet less than the full level of rent. Although there is little a tenant (or landlord) can do in such circumstances, if the landlord is aware of the likely benefit rate to be paid on their property, it gives a good guide to the level of rent to charge. The tenant can request a 'pre-tenancy determination' from the Rent Officer, which will establish how much Housing Benefit can be paid.