Right to Rent Checks

Welcome to another edition of The Business Owners' Property News - my newsletter dedicated to helping business owners and busy professionals get started in property investing.

Today, we are going to look at an important compliance consideration - the Right to Rent check.

As a landlord in the U.K., you have a legal obligation to ensure that your prospective tenants have the right to rent in England. This process, known as a Right to Rent check, is essential to comply with immigration laws and avoid potential penalties.

Read on to find out more...

What Are Right to Rent Checks?

Right to Rent checks require landlords to verify that all adult tenants have the legal right to live in the U.K. before renting out a property. This involves checking original documents that prove their right to be in the country, such as a passport or a residence permit.

How to Conduct a Right to Rent Check

The process involves four key steps:

Obtain the Tenant’s Original Documents

You must request and view the original documents in the presence of the tenant, either physically or via video call.

Check the Validity of the Documents

Ensure that the documents are genuine and belong to the tenant, cross-referencing details such as names, dates of birth, and expiration dates.

Make Copies of the Documents

Keep clear copies of the documents, noting the date you checked them. These records must be stored securely for at least one year after the tenancy ends.

Follow Up on Expiry Dates

If the tenant has a time-limited right to stay in the U.K., you’ll need to conduct follow-up checks before their right to rent expires.

Other Considerations

Understanding Different Immigration Statuses

Foreign applicants may have various immigration statuses, including those with limited leave to remain, refugees, or EU citizens. Each status may come with different documentation, such as a biometric residence permit, visa, or a digital status provided by the EU Settlement Scheme.

Digital Right to Rent Checks

For some foreign nationals, particularly EU, EEA, and Swiss citizens, the right to rent can now be verified digitally. They will provide you with a ‘share code’ along with their date of birth, which you can use to check their status on the government’s online portal. This method is secure and provides instant verification.

Checking Non-Digital Documents

For those without digital statuses, you must physically check their original documents. This could include passports, visas, or Home Office letters. Always ensure that these documents are valid and unaltered, and that they belong to the person presenting them.

Time-Limited Right to Rent

Foreign applicants might have a time-limited right to rent. This means you’ll need to be aware of their visa or permit’s expiration date. Before it expires, you must conduct a follow-up check to ensure they have renewed their right to stay in the U.K. Failure to do so could result in penalties.

Using the Home Office Landlord Checking Service

If you're uncertain about a foreign applicant's right to rent, you can use the Home Office Landlord Checking Service. This is particularly useful when a tenant has an outstanding immigration application or appeal. The service will confirm if the person can legally rent while their application is processed.

Potential Challenges

Some challenges include language barriers and unfamiliarity with certain documents. It’s advisable to be thorough and seek assistance if needed, such as consulting with immigration specialists or using government resources. Taking extra care when verifying foreign applicants helps ensure compliance and protects against legal risks.

Penalties for Non-Compliance

Failing to perform Right to Rent checks can lead to significant penalties, including fines and even imprisonment. It’s crucial to stay informed and compliant with these requirements to avoid legal issues.

For more detailed information on the types of acceptable documents and additional guidance, you can visit the official government website.

So, there we have it - an introduction to Right to Rent checks - one of many compliance considerations of being a landlord in the UK!

But nothing to worry about! Want some help in becoming a compliant property investor? Get in touch now to find out more about my Business Owners' Property Programme - 0121 647 7090 or email [email protected]