According to the most recent data from the Department for Levelling Up, Housing and Communities, the average gross rental income for UK landlords is £17,200 a year. With the potential to make a significant amount of money in this industry, it comes as no surprise that so many people are investing in property.
The need for rental properties is huge, with increasing house prices making it harder than ever for people to buy a home. The average house price in March 2022 was £24,000 higher than it was 12 months prior.
Being a landlord isn’t always smooth sailing, however, as they have many responsibilities to ensure their tenant’s welfare is protected. Read on to find out what responsibilities every landlord has for their properties.
Before a new tenant moves in, landlords should inspect the property to ensure the house is habitable. If anything is broken, it will need repairing before the move-in date. Once the tenant is occupying the property, they should be encouraged to report any damage immediately so it can be fixed.
Repairs for accidents such as fires and floods can sometimes come at a high cost, but landlord insurance can help cover the cost of repairs.
The tenant’s safety should be imperative, so the house must be fitted with several essential items. This includes smoke and carbon monoxide alarms. These should be regularly checked to ensure they’re working properly. If they’re not, it could result in serious injuries or death.
It’s also important to guarantee that each property is fitted with a fire blanket and extinguisher to prevent the spread of fires where possible.
Health and safety hazards
In some cases, houses can be filled with health hazards such as mould and damp. This can be extremely dangerous for those living in the property. The Housing Health and Safety Rating System (HHSRS) is used by local councils to make sure rental properties in the area are fit for purpose. They will inspect the property and look for hazards.
If any are found, the landlord will be ordered to pay for repairs. In some cases, they will no longer be permitted to rent out the property. This will result in a loss of income for the landlord, which is why it’s so important.
The tenants will be responsible for council tax while they’re living at the address, but the landlord will be paying tax on their earnings. As with any form of income, tax must be paid. The basic rate of income tax is 20%, with higher earners having to pay 40%.