New rules come into force after 1 February 2016 in relation to checking tenants’ right to rent residential property in the UK. (Landlords in Birmingham and surrounding areas have had to follow these rules since December 2014.) We wanted to ensure our landlords were ready. Using an online estate agent saves you thousands but you must ensure that all the boxes are checked, so here we go the less fun bit:
The fine for renting to tenants who are not entitled to rent in the UK is an eye-watering £3,000, so it is certainly worth ensuring you have completed all checks before entering into any tenancy.
The checks must be made within 28 days of the start of a new tenancy in respect of all tenants aged 18 and over, whether or not they are named in the tenancy agreement, and in relation to all types of tenancy agreement (including oral agreements).
Landlords will have to:
- See original documents provided by the tenants confirming they are allowed to live in the UK. The acceptable documents are listed here. The tenant must be present when the documents are provided, so it won’t be possible to rely on copy documents sent by email. (If the letting is to an overseas tenant, landlords must see the original documents before the tenant can move in.
- Check that the documents belong to the tenant and that they are genuine. Also, check that dates and photographs in related documents correspond.
- Check that the right to stay has not expired.
- If the permission to stay is time-limited, checks should be made to ensure appropriate extensions are obtained. (A fine can also be levied if permission to stay runs out during a tenancy.) If the tenant’s right to rent legally in the UK expires during the tenancy the landlord is obliged to report this to the Home Office and can be fined if the report is not made.
- Obtain any corroborating documents that confirm the tenant’s identity.
- Keep copies of the documents in a form that can’t be altered (eg, a photocopy) with the date noted. Copies should be maintained for at least a year after the tenancy has expired.
- One small relief: in the event that a tenant sub-lets without the landlord’s knowledge, it is the responsibility of the tenant to make these checks, with the commensurate penalties if they do not do so!
- Landlords will also need to keep an eye on data protection law, to ensure they are not breaching any of its requirements in relation to an individual’s identity documents.
- Landlords of managed properties are entitled to ask their managing agents to deal with all these checks, and this requirement should be stated in writing in the management contract.
For more information, there is some helpful Government guidance here.