Landlord paperwork - what do you need to keep copies of?

There’s no question that over the last 15 years or so there’s been a huge increase in the amount of administration landlords have to deal with. Thanks to the tightening of the rules and regulations around letting a property, being legally compliant now involves a lot of processes and paperwork - and it all has to be carefully documented and filed.

In some cases, you’re legally required to obtain and keep certain documents, while in others it’s simply in your own best interests to hold on to information. And protecting yourself have never been more important, as the consequences and penalties for landlords who break the law – or even for those who just can’t prove they complied - can be so severe.

For example, if you can’t provide evidence to the council that your property passed a gas safety check within the last 12 months, they could fine you anything up to £30,000. And even something as relatively minor as not being able to prove you gave a new tenant information relating to their deposit could prevent you from being able to serve a valid section 21 notice to evict them.

How long does paperwork have to be kept?

Ideally, all paperwork should be kept until seven years after the end of the tenancy. That’s because:

1. HMRC can request documentation from you for up to seven years after an event if they’re carrying out a tax investigation, and
2. Your tenants can bring proceedings against you up to six years after they leave, so you need to hold on to proof that you acted legally.

How should paperwork be filed?

These days, it’s ideal to have everything stored digitally with a back-up, such as ‘cloud’ storage of some type. That should ensure nothing goes missing and any document can be located and emailed easily, as and when required. So even when you’ve got hard copies of documents – such as the tenancy agreement, and gas and electrical safety certificates – it’s worth scanning and saving them as PDFs.

Whatever filing system you use, remember that it’s always best to err on the side of caution – i.e. if you’re not sure whether to hang on to paperwork, do!

Reasons for keeping everything on record include:

• You might want to look back at certain details yourself
• Your tenant or accountant might ask you for copies of documents they don’t have
• Your local council may request copies of things like safety certificates
• If you have to go to court – e.g. to regain possession of your property or because someone is pursuing you for compensation - you may need to prove that you acted legally and took all required steps to ensure the property was safe
• HMRC may carry out a tax investigation
• When you come to sell or pass on the property, the process will be a lot smoother if all the documentation has been filed in a clear and comprehensive system

If we let and manage your properties, we have a really useful portal that you can use to keep the paperwork up to date.

Login to your landlord portal here

 

So, here’s a round-up of the key information you should file. You might choose to categorise things differently, but all your paperwork should be in a logical place and easy to find. 

Tenancy

It’s important to know that any tenant data must be held and used in accordance with data protection laws – see our ‘Legal legals’ article on the top 10 things to know about data protection rules. [LINK]

• Personal information about the current tenant/s, including proof of identity
• Referencing checks – including written confirmation that each tenant is happy for credit checks to be done
• A copy of your data protection notice (advising tenants how you will be dealing with their data)
• Proof that right to rent checks were carried out
• The signed tenancy agreement
• A copy of the check-in inventory, signed by the tenant – including confirmation that the smoke alarms were tested and working properly at the start of the tenancy
• Deposit protection documentation
• Evidence that the tenant was provided with all the legally required documents at the start of the tenancy:
  • The latest government ‘How to rent’ guide
  • Current gas & electrical safety certificates
  • A copy of the EPC
  • Deposit protection prescribed information
• Correspondence with the tenant during the tenancy, including texts and other messages
• Careful records relating to evictions, including evidence that the tenant was served correctly and any court correspondence

Tip: Follow up significant conversations in writing via email and always request a ‘read receipt’ to prove that the tenant has received and opened the email.

Property certificates

• Any documentation relating to planning permission
• Any Building Regulations approval
• Warranties for building work
• The annual Gas Safety certificate (must be kept for at least two years)
• The latest Electrical Installation Condition Report
• Licence information (if required)

Property inspections

• An up-to-date risk assessment (must be carried out annually for HMOs)
• Records of alarm testing
• Notes on maintenance and repairs identified, along with photographs
• Council correspondence relating to any inspections

Maintenance & repairs

• The regular maintenance schedule
• Quotes, invoices, receipts and guarantees for works carried out
• Warranties and guarantees for appliances, etc.

Finances

Spreadsheets or bookkeeping/accounting software that details:

• Income and expenditure balance sheet
• Long-term maintenance budget and schedule
• KPIs – updated regularly for yield, profit and return on capital invested
• Tax forecasts: income tax and CGT
• Income tax returns

Property value & financing:

• BTL mortgage details, including end dates of any special rates
• Most recent valuation from a surveyor or market appraisal from a local agent

 

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If you have a managing agent like Your Move that logs all property paperwork and administration on a 24/7 access portal, you won’t need to file a lot of this information yourself. Find out more about our own LandlordPortal here.

And if you have any questions about our landlord management services or would like to chat to us about how we can help you let legally and successfully, just get in touch with your nearest Your Move branch.

Find your local Your Move branch now