Here are eight areas that landlords should keep tabs on:

Make energy efficiency a priority

Since 2007, residential landlords have been legally required to produce an Energy Performance Certificate (EPC) showing a building’s energy efficiency. However, from 2016, the Minimum Energy Efficiency Standards (MEES) state that tenants will have the right to request energy efficiency improvements, regardless of a property’s EPC rating. From April 2018, properties must achieve a minimum EPC rating of ‘E’ if they are to continue to be let without penalty. To properly understand a property’s position for MEES, an EPC must be accurate and recommend appropriate upgrades; however, many older EPCs were written by newly qualified assessors with little understanding of period and rural properties.

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Develop a plan for fixed farm equipment

For agricultural tenancies, landlords should put in place a 20-year plan to identify the fixed equipment needed to support the estate acreage. In order to facilitate the evolution of the agribusiness and its competitiveness in a global marketplace, let agricultural estates will need to have modern and efficient fixed equipment. Any plan must link into the overall strategy for the let agricultural portfolio, as getting the best tenants to occupy the best units is equally important, and this overarching plan should inform daily management decisions.

Keep abreast of the latest tax changes

The implications of capital, transactional and income taxes on a rental property portfolio can be difficult to understand, but they are essential to the decision-making process. Further changes for residential properties, such as restricting the interest on debt to the basic tax rate; proposed higher Stamp Duty Land Tax rates on the purchase of additional residential properties (an extra 3% on existing rates); and the change in payment date for Capital Gains Tax following the sale of residential property (down from 10-22 months to 30 days). How ownership and debt are structured will need to be kept under constant review as the taxation landscape continually evolves.

Update your check-in procedures

The ‘check-in’ is a great way to get a tenancy off to a good start while also dealing with a number of statutory requirements. This procedure should already include the likes of gas safety certificates, instruction manuals and contact details for repair needs. Now it also needs to cover recent changes to best practice on the control of Legionella bacteria, and also the Smoke and Carbon Monoxide Alarm Regulations 2015, which require all private landlords in England to have at least one smoke alarm on every storey of their property, and a carbon monoxide alarm in any room containing a solid fuel-burning appliance.

Establish good broadband connectivity

High-speed broadband and good mobile phone coverage are becoming necessities for tenants. Strutt & Parker’s most recent Housing Futures survey found that 49% of respondents who were intending to move listed broadband connectivity as a key factor. With the rollout of 5G telecoms billed for 2020, rural estates are at risk of being left behind. One solution is to take advantage of the Department for Culture, Media and Sport’s scheme to reduce ‘not-spots’ – remote areas where coverage is patchy or non-existent – for which the mobile network operators have committed £5 billion to fund infrastructure improvements. Ignoring advances in technology in the hope they come to you is a high-risk strategy.

Maintain your property to a high standard

With the amendments to section 21 of the Housing Act 1988 as part of the Deregulation Act 2015, tenants in England are now protected from ‘retaliatory evictions’ – where a landlord serves an eviction notice in response to a tenant making a legitimate complaint about the property’s condition. So, be proactive: keep track of the changing demands of the rental market, develop your properties to an aspirational standard, and carry out routine maintenance and repairs promptly. This will result in a satisfied tenant who is more likely to remain in your property for longer.

Evaluate potential new tenants online

Vetting procedures will ensure that you find the best tenants for your property. A reputable referencing company will cover the basics, such as credit and landlord checks. However, a quick internet search of the prospective tenant can also shed some light on their circumstances and background. Cross-reference the IP addresses provided by various sources – accountant, landlord and employer, for example – and be suspicious if they are the same. Also, find out if your property falls within a landlord licensing area. Finally, ensure that you have proof that your tenant has the legal right to reside in the UK.

Choose your contractors carefully

Using reliable and qualified contractors is a vital part of the tenant experience. Careful contractor selection and appointment procedures help ensure high standards of conduct and workmanship, but also mean that, as the employer, you comply with the new Construction Design and Management Regulations that came into effect in April 2015. These specify the health and safety obligations of both client and contractor, and apply to all construction projects and property maintenance works.

Strutt & Parker work closely with landlords from all areas of the property sector, giving them expert advice and guidance based on decades of experience. For more information, read our advice for residential property landlords or find out how we work with commercial landlords.