Buy to Let Mortgage Rules

To an outsider, buying properties and renting them out can seem like an easy thing to do. But there are many responsibilities that landlords have to deal with along the way. Some of these new buy to let mortgage rules mean they have strict guidelines that must be matched in order for them to rent the property. Most of these are related to the health and safety of the occupants.

One of the most recent rules was that all properties with at least 3 floors that will be used to rent out must have a special license. These licenses are issued by the local authority once they have inspected the property. They look for a variety of different things such as the sizes of the rooms, all the safety aspects and how the property meets fire safety regulations. The licenses last for a period of 5 years before they are reviewed and renewed. If a landlord doesn’t comply then they might face a hefty fine.

Another rule has affected how the deposit is handled. Normally the landlord would require a deposit before allowing a tenant to move in. This is handed back to the tenant when they leave assuming that the property is in the same state as it was when they moved in. But there are many cases when landlords say that property is damaged and needs repairing and keeps the deposit.

That is why the Tenancy Deposit Scheme was introduced. This is a third party that deals with the deposit. When a tenant wants to leave, the landlord and tenant agree on the amount to be refunded and this is done by the administrator dealing with the case. It was done to prevent the cases of landlords keeping the deposits for themselves.

So there is more to being a landlord than meets the eye. They have various buy to let mortgage rules to follow and also property regulations to ensure the safety of the tenants.