Becoming a landlord can be a great way to generate long-term income and build a property investment portfolio. However, letting a property in Wales involves considerably more than finding a tenant and collecting the rent.
Landlords have a range of legal, safety and administrative responsibilities, and getting things right before the tenant moves in is extremely important.
Whether you’ve purchased your first buy-to-let property, inherited a property or decided to rent out your existing home, this guide explains some of the key things you’ll need to consider before letting a property in Wales.
1. Registering With Rent Smart Wales
One of the first things new landlords in Wales need to understand is Rent Smart Wales.
Landlords of rental properties in Wales generally need to register themselves and their rental properties with Rent Smart Wales.
If you’re carrying out letting or property management activities yourself, you may also need the appropriate landlord licence.
Alternatively, many landlords appoint a licensed letting and management agent to undertake these activities on their behalf.
Registration and licensing are separate requirements, so it’s important to understand which obligations apply to your circumstances.
2. Make Sure the Property Is Fit for Human Habitation
Under the Renting Homes (Wales) Act, landlords have responsibilities surrounding the condition and safety of their rental properties.
The property must be fit for human habitation.
This isn’t simply about whether the property looks presentable. Landlords need to consider potential hazards and ensure the property is safe for the contract-holder to occupy.
This can include issues relating to:
- Damp and mould
- Electrical safety
- Heating
- Structural condition
- Fire safety
- Ventilation
- Sanitation
- Trip and fall hazards
- Other risks within the property
Problems should ideally be identified and resolved before a new occupation contract begins.
3. Electrical Installation Condition Report (EICR)
Electrical safety is an important part of letting a property in Wales.
The property’s electrical installation should be inspected and tested by a suitably qualified professional at the required intervals, with the appropriate documentation provided.
If remedial work is identified, landlords should ensure it is dealt with appropriately.
Don’t leave electrical compliance until the day before the tenant is due to move in.
We recommend arranging it early enough to allow time for any necessary work to be completed.
4. Gas Safety Certificate
If the property has gas appliances, landlords will normally require a valid Gas Safety Record completed by a Gas Safe registered engineer.
Gas safety checks generally need to be carried out annually.
This may include appliances such as:
- Gas boilers
- Gas fires
- Gas hobs
- Other landlord-provided gas appliances
Keeping accurate records and ensuring renewals are completed on time is essential.
5. Smoke and Carbon Monoxide Alarms
Appropriate smoke and carbon monoxide alarms are another important part of rental property compliance in Wales.
The correct alarms need to be installed, positioned appropriately and maintained in accordance with the relevant requirements.
They should also be checked before the contract-holder moves into the property.
This is an area where landlords shouldn’t rely on assumptions simply because alarms are already present.
6. Energy Performance Certificate
Most rental properties require a valid Energy Performance Certificate (EPC) before being marketed.
An EPC provides information about the property’s energy efficiency and recommendations for potential improvements.
There are also minimum energy-efficiency requirements that may affect whether a property can legally be let, subject to applicable exemptions.
If you’re purchasing a buy-to-let property, checking the EPC early can help identify whether improvements may be necessary before letting.
7. Prepare the Written Occupation Contract
In Wales, residential tenancies operate under the Renting Homes (Wales) Act 2016, with tenants generally referred to as contract-holders and tenancy agreements replaced by occupation contracts.
The correct written statement needs to reflect the type of occupation contract being used and the applicable terms.
This is one area where using old tenancy agreement templates downloaded from the internet can create problems.
Welsh housing law differs from England, so documents designed for English ASTs should not simply be reused for a Welsh rental property.
8. Protect the Deposit Correctly
If you take a tenancy deposit, it needs to be handled in accordance with the applicable tenancy deposit protection requirements.
This involves using an authorised deposit protection scheme and providing the required information to the contract-holder within the appropriate timeframe.
Improper handling of a deposit can create significant problems later, particularly if possession proceedings or a deposit dispute arise.
Good administration from the beginning is much easier than trying to correct mistakes later.
9. Create a Professional Inventory
An inventory is one of the most valuable documents a landlord can have.
A good inventory should record the property’s condition at the start of the occupation contract and, ideally, include comprehensive photographs.
It can cover:
- Walls and ceilings
- Flooring
- Fixtures and fittings
- Kitchen appliances
- Bathrooms
- Furniture where applicable
- Gardens
- Meter readings
- Keys supplied
- General condition
If there’s a disagreement about damage at the end of the contract, a detailed inventory provides evidence of the property’s original condition.
Without one, proving that damage occurred during the contract can become considerably more difficult.
10. Take Meter Readings
Gas, electricity and water meter readings should be recorded around the start of the occupation contract.
Photographs are useful because they provide a visual record of the readings.
The relevant utility suppliers and the local authority should also be informed of any change in occupancy, where appropriate.
This helps avoid disputes over bills for periods before or after the contract holder’s occupancy.
11. Reference Your Contract-Holder Properly
Finding someone willing to rent the property isn’t the same as finding the right contract-holder.
Good referencing can help establish whether an applicant is likely to be suitable.
Depending on the circumstances, checks may include:
- Identity verification
- Affordability
- Employment
- Previous landlord references
- Credit history
- Supporting documentation
- Guarantor assessment where required
No referencing process can eliminate all risk, but thorough checks can substantially improve the quality of the decision.
12. Set the Rent at the Right Level
It’s tempting to advertise at the highest rent you can find online.
However, just as with selling a property, the advertised price and the achievable market value aren’t necessarily the same.
An experienced letting agent will consider:
- Comparable properties
- Current tenant demand
- Property condition
- Location
- Number of bedrooms
- Parking
- Garden
- Furnishings
- Local rental trends
A realistic rental valuation can generate more interest and reduce the risk of unnecessary void periods.
An additional £25 per month isn’t particularly valuable if trying to achieve it leaves the property empty for several weeks.
13. Consider How Maintenance Will Be Managed
Something will eventually go wrong.
It might be a leaking tap, a faulty boiler, a broken appliance, or a more significant repair.
Before letting the property, consider:
Who is going to deal with it?
Self-managing landlords need a reliable system for receiving maintenance reports, arranging contractors, obtaining approval and keeping records.
For landlords living some distance from the property, this can become particularly difficult.
A fully managed letting service can take much of this day-to-day responsibility away from the landlord.
14. Don’t Forget Ongoing Compliance
Compliance doesn’t stop when the contract-holder receives the keys.
Documents expire.
Inspections become due.
Repairs need completing.
Occupation contracts change.
Legislation evolves.
Landlords therefore need a system to monitor important dates and maintain accurate records throughout the entire period the property is rented.
This is one of the main reasons professional property management has become increasingly valuable.
Should I Manage My Rental Property Myself?
There’s nothing inherently wrong with managing your own property, provided you understand the responsibilities involved and have the time to carry them out properly.
For some landlords, particularly those with experience and properties close to home, self-management works well.
Others prefer an agent to manage:
- Marketing
- Viewings
- Referencing
- Compliance
- Occupation contracts
- Rent collection
- Inspections
- Maintenance
- Contract-holder communication
- Renewals and ongoing administration
The decision ultimately comes down to how involved you want to be.
Letting Your Property in Wales?
At Conrad Estate Agents, we help landlords throughout the letting process, from preparing a property for the market to finding a suitable contract holder and providing ongoing management.
Whether you’re an experienced investor or preparing your first rental property, we can help you understand what needs to be completed before the property is advertised.
Our services include tenant-find, rent collection and fully managed lettings, allowing landlords to choose the level of support that suits them.
Thinking of letting a property? Contact Conrad Estate Agents today for a free rental valuation and to discuss the best way to bring your property to market.
