Residential Landlords: Good Buy to Let?

Contents

1. Introduction
2. EPCs - just more legislation?
3. Tenancy Deposit Schemes - protecting the investment?
4. And don't forget...

EPCs - just more legislation?

The most recent requirement to come into force - from October 2008 - is the Energy Performance Certificate (EPC), designed to help prospective tenants understand the running costs and environmental impact of any house they rent.

Landlords must make this available to prospective tenants free of charge before a tenancy contract is signed.

The certificate itself is the product of an inspection, which looks at the type, construction and size of the property. It pays particular attention to the windows, room and water heating systems, and the insulation provided.

Ratings between 'A' (most efficient) and 'G' (least efficient) are then given for overall energy efficiency and for CO2 emissions, while an accompanying report includes recommendations for improving the building's rating in the future. Each certificate is valid for 10 years.

The National Landlords Association (NLA) is broadly positive about the arrival of EPCs.

"Until recently fuel bills have been rocketing - it is good for the tenant to have up-front information to make a choice and it's not going to break the bank for landlords," says the NLA's Steven Hilton.

"Is it going to change the world or save the penguins? No, but it's a step in the right direction."

However, Sussex landlord Jeremy Head, who owns two one-bedroom rental properties, is sceptical about their worth.

"It just feels like another piece of bureaucracy and I question whether it would be a crucial part of the decision-making process," he says.

"There are more important factors, such as location, the state of the property, and how well you get on with the landlord.

"And every piece of new legislation is going to end up costing the tenant more - each additional piece of paper is simply added on to the rent."

Manny Pisani, chairman of the Westcountry Landlords Association (WLA), also questions how helpful they will prove to be.

"I don't think I've seen an A-rated property yet," he says.

"Although the tenant would know what the cost is of running a property, whether they are able to afford it with the rise in fuel costs is another thing - and would they be able to afford the rent of a high-rated property?"