If you own a rental property in the UK but your usual home is outside the UK, then you need to comply with the Non-Resident Landlords (NRL) scheme which sets rules around how you pay tax.

The scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non-resident landlords. You can set this tax off against your own tax bill at the end of the year.

• A Non-Resident Landlord is a person who has UK rental income and whose ‘usual place of abode’ is outside of the UK.
• Individuals who are outside of the UK temporarily (less than six months) are not Non-Residential Landlords.
• If Your Move or any other agent receives rent on behalf of a Non-Resident Landlord they have a statutory obligation to deduct 20% of the net income and make payments to the Inland Revenue on a quarterly basis.
• In cases where properties are jointly owned, each individual is liable to pay tax. Both the income and the expenditure is split equally between the two parties.
• Non-Resident Landlords include members of the HM armed forces and other Crown Servants who are outside of the UK for over 6 months.
• When a Non-Resident Landlord receives rent direct from the tenant, the tenant has a statutory obligation to deduct 20% of the net income and make payments to the Inland Revenue on a quarterly basis.
• Non-Resident Landlords can apply to the Inland Revenue for approval that will permit their letting agent not to deduct tax at source by completing an NRL1 form. However, approval of an NRL1 does not mean that the rent is exempt from UK tax.
• In cases of a jointly owned property each owner must complete their own NRL1 application form.

A security deposit should be protected by a deposit protection scheme if contract holder has been:

• renting a home from a private landlord or letting agent since the 6 April 2007
• the contract is a standard occupation contract and
• the contract holder has paid a security deposit (not the same as rent in advance or a holding deposit)
• It doesn’t matter whether it is the contract-holder, or someone else such as a parent, or a local authority, who provides the money for the security deposit.

What does a landlord or agent have to do?

If a contract holders deposit was paid to a landlord or agent on or after 6 April 2012, within 30 days of receiving it they must:

• protect the deposit with a government backed scheme, and
• provide the contract holder with certain information. The law calls this ‘required information.’

The ‘required information’ that must be provided to the contract holder includes:

• details of the deposit protection scheme used
• any information which may be included in a leaflet supplied by the scheme
• how the contract holder will get their deposit back when they leave
• what to do if the contract holder is in dispute about its return
• details of the occupation contract, including the amount of security deposit paid and the landlord’s name, address and contact details, together with a certificate, signed by the landlord confirming these details to be true.

The contract holder should also be provided with a copy of the deposit protection certificate, complete with the landlord’s signature.

There are two types of government approved schemes available:

• a custodial scheme – the landlord or agent pays the security deposit to the scheme, which will keep it until the end of the contract
• an insurance scheme – the landlord or agent keeps the security deposit but pays insurance premiums to the scheme. This means that the deposit is insured if there is any dispute, and the scheme will repay the contract holder the agreed amount directly.

It will be up to the landlord or agent to decide what scheme to use.

• This covers all gas appliances, flues, meters and associated pipe work and requires the Landlord to arrange an inspection, which is to be carried out by a ‘Gas Safe’ registered engineer.
• Once the engineer is satisfied, a Landlord Gas Safety Certificate will be issued, a copy of which must be held by us and a copy will be given to the tenant before they move in. This certificate must be renewed annually, and landlords are also responsible for ensuring that either the operating instructions are shown on the appliance or an instruction booklet is supplied.

• It is a landlord’s responsibility to ensure that the electrical installation and electrical appliances in the property are safe when tenants move in and maintained in a safe condition during the duration of any tenancy, using qualified contractors.
• All electrical installation work must comply with Part P of the Building Regulations for England and Wales.

• 1st December 2022, the Renting Homes (Wales) Act requires all rented homes to have a periodic inspection and testing (PIT) of the electrical installation, carried out by a qualified person such as a registered electrician, every five years unless the requirements of the previous Electrical Installation Condition Report (EICR) indicate a shorter inspection and testing interval. Failure to comply will mean that the dwelling is considered unfit for human habitation and the landlord could face prosecution.
• The current EICR must be made available to the contract holder (tenant) within seven days of the occupation date. Where a PIT is carried out after the occupation date the EICR must be provided to the contract-holder within seven days of the inspection date. Landlords will also have to provide contract-holders with written confirmation of all investigatory and remedial work carried out because of the PIT. This must be provided to the contract-holder within seven days of the occupation date or within seven days of the landlord receiving this confirmation if the property is already occupied.

• An EPC is a report that assesses the energy efficiency of a property. The report considers things such as how well insulated the property is and potentially how much the bills might cost. It will give an energy efficiency rating and an environmental impact rating. It will also estimate the energy use, carbon dioxide emissions, lighting, heating and hot after per year, along with the potential annual costs for each. An EPC will be required before the property can be marketed for rent with one currently lasting 10 years.

• These regulation set levels of fire resistance for domestic upholstered furniture, furnishings and other products containing upholstery. These include beds, mattresses, headboards, sofas, nursery furniture, garden furniture which can be used inside a property, cushions, pillows and loose and stretch covers for furniture. Compliant furniture carries the correct safety label. Landlords letting residential property must ensure that all of the furniture is “fire resistant” to comply with the regulations, otherwise they will be committing a criminal offence.

• From the 1st December 2022 regulations require smoke alarms to be hard wired and interlinked within rented residential accommodation and carbon monoxide alarms in rooms with a solid fuel appliance.

• The risk of exposure of Legionnaires’ Disease in the premises must be properly controlled and a risk assessment carried out by the landlord or a competent third party. If a risk is identified, appropriate steps must be taken to remove or minimise the risk and the tenant must be kept informed.

This guide has been created to remind you of your responsibilities to tenants and contractors regarding Asbestos.

What is Asbestos?

• Asbestos is a potentially dangerous mineral fibre. Before its dangers were known, asbestos was often used in buildings for insulation, flooring and roofing, and was sprayed on ceilings and walls. Asbestos use is now banned in the UK, however buildings constructed before the year 2000 may still have asbestos in them.
• When materials containing asbestos are damaged or disturbed, tiny asbestos fibres can be released into the air and breathed into the lungs. The associated health risks can take 15 to 60 years to develop. They are incurable and often fatal.
• Your licence conditions state that you must comply with ‘Code of Practice for Licensed Landlords and Agents’ licensed under Part 1 of the Housing (Wales) Act 2014’.
• In order to satisfy the requirements in regard to Asbestos, a risk assessment should be carried out by a competent person* in respect of every rental property being managed. This could be done by ensuring that these checks are included on your property inspection checklist and discussed during initial conversations between agents and landlords.
• It is essential that you have basic awareness of what asbestos is and where it can be found. This will assist you to provide required information to contractors prior to the commencement of any works. Rent Smart Wales also advise and strongly recommend that you pass this information onto your tenants.

* Competent person – could be an employee trained in asbestos identification.