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Recent research from the Home Office has revealed that landlords who operate without the support of a letting agent are the least likely to fully understand their legal obligations when onboarding new tenants under the Right to Rent scheme. This oversight can lead to severe financial and legal consequences. Here’s what landlords need to know.
What Is the Right to Rent Policy?
The Right to Rent policy, introduced in 2016, requires landlords in the UK to verify that prospective tenants have the legal right to rent before allowing them to move into a property. This involves checking immigration status and ensuring that tenants meet the criteria set out by the UK government. Non-compliance can lead to serious repercussions.
When Do These Checks Need to Take Place?
Landlords must conduct Right to Rent checks before a tenancy begins. For tenants who are only permitted to stay in the UK for a limited time, the checks must be performed within 28 days prior to the start of the tenancy. Conducting these checks too early or too late can result in non-compliance.
How to Conduct a Right to Rent Check
To comply with the Right to Rent policy, landlords must:
Verify Identity: Ensure that the tenant’s photograph, name, and address match across all documents, and check for signs of tampering.
Retain Records:Take copies of the tenant’s documents and keep them on file for at least 12 months after the tenancy ends.
These steps are crucial to demonstrate compliance with the Right to Rent rules and to protect yourself from penalties.
What Are the Consequences of Not Complying?
Failing to carry out the necessary Right to Rent checks can result in severe penalties. Landlords who do not comply with the regulations may face:
Civil Penalties: Fines of up to £3,000 per tenant.
Criminal Penalties: In extreme cases, landlords may face criminal charges, leading to a custodial sentence of up to five years.
Given the severity of the consequences, it is essential for landlords to take this responsibility seriously and ensure that all necessary checks are completed correctly.
How Letting Agents Can Help
Navigating Right to Rent policies can be complex, especially for landlords managing properties without professional assistance. Working with a letting agent can help ensure that all legal obligations are met. Letting agents are experienced in handling Right to Rent checks and can provide peace of mind by ensuring that all processes are followed correctly, thereby helping landlords avoid potentially costly penalties.
By staying compliant with the Right to Rent scheme, landlords can protect themselves from legal and financial risks, while ensuring that their tenants have the legal right to rent in the UK.
