Owning a property is a significant life decision. Having your own property is to have a consequential financial asset and security that could provide you with a steady supplementary rent income. However, property ownership doesn’t end with owning a property; it comes with its own share of tasks and responsibilities that can’t be overlooked.
Property owners are expected to invest time in its upkeep and maintenance and address challenges when they arise. With multiple complex legislations to comply with, the last thing you want is to break the rules and get into a sticky situation.
Knowing your responsibilities and meeting important rules and regulations beforehand can allow you to breathe easy and reap the benefits of being a property owner.
This guide covers a few key aspects that every property owner must know and ensure.
1. Ownership Rights
As a property owner, you are entitled to certain ownership rights. This means you have the exclusive right to possess and use your property. You have the control and authority to allow or disallow who enters your property and how it’s used.
It also allows you to include the property in your will through a property protection trust will. A property protection trust will is a legal arrangement that allows your share of a property, for example, in joint ownership, to be placed into a trust. This ensures that your spouse or next of kin has the right to live in or control the property after you have passed, while still allowing you to decide who eventually inherits it.
Your share of your property after death can be passed on to whomever you wish to entitle, be it your children or relatives. However, before you plan your estate, make sure all the property-related paperwork is in the clear.
2. Get Insurance
Regular home insurance policies usually don’t cover the risks of letting out property. In the event that your tenants leave your property damaged or uninhabitable, you may have to deal with some unmanageable costs if you rent it out without having exclusive landlord insurance.
That’s why it’s important to get the right insurance policy. While some landlord insurance policies may look similar to your home insurance policy, they won’t cover you for potential risks beyond your control. Some policies extend coverage to cover loss of rent or accommodation costs if your tenants have to move out following an insured event such as a fire. However, if your tenant suffers an injury or loss due to a fault with the property or rental activity, you’re held responsible as a landlord.
It’s important to remember that landlord insurance is designed to protect you, your property, and your tenants. If your property is on mortgage, your lender usually recommends you take out a special landlord insurance policy.
3. EPC Certificate
If you want to sell or rent your property, you must have an Energy Performance Certificate (EPC). EPCs define how energy-efficient your property is and give a rating from a scale of A to G, where A is the most efficient and G is the least efficient.
These ratings provide essential information about your property’s energy usage and energy costs, which also determines its overall carbon footprint. EPCs are a legal requirement for any property that is built, rented, or sold, which is why you must ensure you get regular EPC checks for your property.
4. Safeguarding Property from Fraud
Property fraud is a real risk for land and property owners, with scams like their fraudulent sales and mortgages being common. For example, scammers may use an already registered property to secure a mortgage without the owner’s knowledge. However, taking certain steps can help prevent property fraud.
As per government regulations, any property purchased after 1998 needs to be registered with the HM Land Registry. Registering and keeping track of any changes in the register and restricting the titles can reduce the chances of being scammed. The HM Land Registry sends out alerts if someone is trying to change details about your registered property. This helps reduce the likelihood of a property scam.
5. Maintain Property Fitness
There are multiple legal obligations for landlords and property owners to follow when it comes to property maintenance. Here are some of the key obligations you need to meet before letting your property:
- A House in Multiple Occupation (HMO) license and other regulations set by your local council.
- Your property must be in a livable and safe condition and follow the Homes (Fitness for Human Habitation) Act 2018.
- Compliance with the latest MEES requirements.
- Ensuring all the safety regulations are met, including gas, electrical, and smoke and carbon monoxide alarms.
- Ensuring that periodic fire safety and legionella risk assessments have been carried out.
By following these regulations and legal requirements, you ensure your property is safe and fit to live in, whether you choose to let out your property or not.
Summing Up
As a property owner, you should be aware of your rights and responsibilities to make sure that your property is maintained properly and that you are in compliance with the law.
It’s well worth the effort to know your ownership rights, get appropriate insurance coverage, get EPC checks, and take other measures as mentioned. Whether you’re a new property owner or have owned properties in the past, getting familiar with these key aspects allows you to make informed decisions for your property.