Property Bible (Buy to Let)

Introduction

• The Property Bible, incorporating the Property Boomerang is a complete financial model to manage your property.
• It is divided into three key phases:
  • Phase I: Pre-Purchase: Appraisal Model. Matters to be considered before buying.
  • Phase II: Post- Purchase Appraisal Model. Matters to be considered after and before letting buying.
  • Phase III: Property Boomerang Appraisal Model. Matters to be considered after letting.
  • This should be read in conjunction with the “Guide”.
• The online training video and screen captures explains the functionality of the Property Boomerang (model shown in the video is subject to changes for improvement and updates).

Phase I: Pre-Purchase

Phase II: Post-Purchase

Phase III: Property Boomerang

Legal Requirements

• There are various legal requirements when buying, selling or letting property.
• Energy Performance Certificate (EPC)
  • This is required to be updated every 10 years.
  • It includes information about an property’s energy use and energy costs
  • The EPC also contains recommendations on how to reduce the energy consumption.
• Gas Safety Certificate
  • This is required to be updated every 12 months.
  • You cannot legally let out a property without one and is a criminal offence if not adhered to.
• Electrical Safety Certificate
  • This is required to be updated every 5 years.
  • These regulations require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent.
  • Landlords have to provide a copy of the electrical safety report to their tenants, and to their local authority if requested.
• Property License
  • Most London boroughs require landlords to have a property license in place to let out their property.
  • This is required to be updated annually.
  • Failing to have the correct licence for your property can lead to:
    • criminal prosecution
    • a hefty fine,
    • a civil penalty of up to £30,000,
    • an order to repay up to 12 months rent,
    • inability to evict your tenants using a Section 21 Notice of Seeking Possession.
• Fire Risk Assessment
  • All landlords have legal obligations as regards fire safety.
  • should ensure that there is an adequate means of escape in case of fire
  • landlords of shared and Houses in Multiple Occupation (HMO) properties will have additional obligations:
    • both under the Regulatory Reform (Fire Safety) Order (2005) ,
    • Smoke and Carbon Monoxide Alarm (England) Regulations 2015
    • The Housing Act 2004.
  • Legislation creates a legal entity known as the “responsible person”.
  • So if you are the owner, manager, agent or even own a flat within a block ‘you will need to check’ if YOU are the responsible person.

Useful Links

• Guide to All Boomerangs
• HMRC Property Rental Toolkit 2019/20 Tax Year
• EPC
• Gas Safety Certificate
• Electrical Safety Certificate
• Property Licence