Following the national launch of the controversial ‘right to rent’ scheme on the 1st February 2016, many landlords are unaware of the potential risks posed by the legislation and how to avoid getting stung (sorry couldn’t resist a bee reference). For instance, many landlords don’t realise that failure to carry out the relevant checks can lead to £3,000 fines for each illegal occupant housed over the age of 18. The first illegal occupant incurs a £1,000 fine and then it’s £3,000 for each subsequent illegal occupant. Furthermore, unlike majority of property legislation, the checks have to be performed even if the occupant is not named on the Tenancy Agreement.
I recently delivered a workshop on the ‘right to rent’ ID checking requirements at the London Landlord and Letting show. The issue of sub-letting was raised by an astute landlord. Her question went something like this:
“I have a number of properties in the London area and it has been known in the past for some to sub-let the property without my consent. Therefore, how can the Home Office expect me to monitor the immigration status of all my occupants, when I don’t even know they’re residing in my property?”
For this landlord and many others, it’s crucial to have a sub-letting clause within the Tenancy Agreement. By having one in place, the tenant becomes landlord in the eyes of the Home Office. Which means it becomes the tenant’s responsibility to check the ‘right to rent’ status of their sub-let occupants. Failure to carry out such checks results in the same penalties as any other landlord caught flouting the requirements.
In summary, to avoid the risks of this issue, ensure your Tenancy Agreements are up-to-date. I know that the Residential Landlords Association has recently revised their AST agreements to address this very issue.
My next blog will explore the cross-over implications between ‘right to rent’ legislation (Immigration Act 2014) the Equality Act 2010 and the Data Protection Act 1998. Along with tips on how to stay compliant.