Top 5 Mistakes Landlords Make with Compliance —and How to Avoid Them
Being a landlord in Bristol offers excellent opportunities, but it also comes with a lot of responsibility—especially regarding compliance. With over 170 rules and regulations currently in place for landlords, it's no wonder some slip through the cracks. Failing to meet compliance requirements can result in significant fines, legal complications, and even invalidate possession proceedings during a tenancy.
Here are the top five mistakes’ landlords often make with compliance—and how you can steer clear of them.
1. Ignoring Licensing Requirements
One of the most frequent mistakes landlords make is not securing the correct license for their property. In Bristol and South Gloucestershire, depending on the location and type of rental property, you may need a mandatory HMO license or selective license. Failing to have the appropriate license can result in fines of up to £30,000, not to mention the risk of rent repayment orders where tenants can claim back up to 2 months of rent.
The solution? Be proactive. Check with Bristol City Council about which license applies to your property before you rent it out. Licensing laws are regularly updated, and landlords need to stay on top of these changes to remain compliant.
2. Not Meeting Gas and Electrical Safety Standards
Your tenants' safety should be your top priority, and compliance in this area is non-negotiable. Landlords are legally required to provide a valid Gas Safety Certificate every year and an Electrical Installation Condition Report (EICR) every five years. Missing one of these crucial checks could endanger lives and lead to fines of up to £6,000 or more and, in severe cases, even imprisonment. Avoid this by scheduling regular inspections well in advance to make it easier.
3. Failing to Provide an Energy Performance Certificate (EPC)
Another common compliance oversight is failing to provide an Energy Performance Certificate (EPC) before letting a property. An EPC shows tenants how energy-efficient the property is and must be provided at the start of every tenancy. By April 2025, all rental properties will be required to have an EPC rating of C or above, making it even more essential to stay compliant.
Landlords who fail to provide an EPC could face fines of up to £5,000. Furthermore, neglecting to meet these standards can make your property less attractive to tenants, who are increasingly conscious of rising energy costs. Always ensure your properties meet the required EPC standards and keep up with any necessary upgrades.
4. Inadequate Fire Safety Measures
Fire safety is not something to take lightly, especially if you manage an HMO. Landlords are legally required to install smoke alarms on every floor and carbon monoxide detectors in any room containing a solid fuel-burning appliance. Fire doors, alarms, and escape routes are crucial compliance requirements in larger properties.
Failing to comply with fire safety regulations can lead to fines, invalidation of insurance policies, and, in severe cases, prosecution. Worse, it could jeopardise the safety of your tenants. Ensure your property meets fire safety standards, saving you from potential legal trouble and giving you peace of mind.
5. Not Protecting Tenants' Deposits Correctly
Deposit protection is one of the most overlooked legal obligations. By law, landlords must place their tenants' deposits in a government-approved Tenancy Deposit Protection (TDP) scheme within 30 days. However, many landlords overlook issuing the prescribed information correctly, which is a crucial part of deposit protection. The prescribed information must be provided to the tenant within 30 days of receiving the deposit, including details about which deposit protection scheme you have chosen and how the deposit is being protected.
Failing to do so can result in fines of up to three times the deposit amount and prevent landlords from serving a valid Section 21 notice to regain possession of their property.
A recent case (Siddeeq v Alaian), a landlord in England could not evict their tenants because they did not issue the prescribed information in the correct order when protecting the deposit. The court ruled in the tenant's favour, delaying the eviction process and leading to significant legal fees for the landlord. This situation could have been avoided if the landlord had followed the proper steps in protecting the deposit and providing the required information.
Keeping Up with Compliance: A Time-Consuming Task
With over 170 rules and regulations to keep track of, managing a property can feel like a full-time job. Landlords can easily spend several hours a week just trying to stay on top of the latest changes. That's time better spent elsewhere—like growing their property portfolio or simply enjoying their day-to-day lives.
When you trust Nook Lettings to manage your property, we handle every compliance detail. From licensing and safety certificates to EPC ratings and fire safety, we ensure your property meets all legal requirements. Avoiding these pitfalls saves you from fines and legal battles and keeps your property attractive to tenants. Best of all, you'll enjoy peace of mind knowing that your investment is in safe, knowledgeable hands.
Worried as a landlord about Relinquishing Control?
As a portfolio landlord, handing over properties you've managed for years may feel unfamiliar. You might worry about added costs or whether the job will be done correctly. At Nook Lettings, we understand this feeling better than anyone, as portfolio landlords ourselves we have been there, you complete transparency and value for money. That's why we believe in giving landlords complete control without the hassle of day-to-day management.
When you sign up for our management service, you can access our easy-to-use online app, designed to keep you fully informed and in charge of your property.
With our app, you can instantly access:
Statements: See your up-to-date financials with a breakdown of your full rental income and expenses.
Invoices: You can view and approve maintenance invoices with a tap, ensuring transparency and control over your property's upkeep.
Tenant Requests: Receive tenant maintenance or repair requests directly and approve work orders at the touch of a button. View photos, videos and contractor quotes, stay in control.
This means no more chasing paperwork or struggling to find essential information. Everything is available in real-time, putting you in the driver's seat while we care for the rest. Whether at home, in the office, or on the go, managing your property has never been easier with Nook Lettings. Let us handle the hard work while you stay effortlessly in control.