As a landlord in England, it's your legal responsibility to ensure that your tenants have the right to rent property. This means conducting Right to Rent checks on all prospective adult tenants before the start of a tenancy. Failing to carry out these checks could result in hefty fines or even imprisonment. Here's what you need to know to stay compliant.
What are Right to Rent checks?
Right to Rent checks were introduced as part of the Immigration Act 2014. They require landlords to verify that all adult tenants have the legal Right to Rent residential property in England. This applies to tenants who are 18 or over, regardless of their nationality.
Importance of Right to Rent Checks
By requiring landlords to verify the immigration status of their tenants, it helps to uphold immigration laws and protects landlords from inadvertently becoming complicit in illegal activities.
Who needs to conduct these checks?
Right to Rent checks are mandatory for anyone involved in renting out residential property in the UK. This includes:
- Landlords: Those who own and rent out property to tenants.
- Letting agents: Individuals or companies acting on behalf of landlords to manage rental properties.
- Subletting tenants: Tenants who sublet part or all of their rented property to others.
Who requires a Right to Rent check?
Tenants
Right to Rent checks are required for all tenants who are entering into a residential tenancy agreement in the UK. This includes UK citizens, as well as EEA (European Economic Area) nationals and non-EEA nationals. Essentially, anyone renting a property in the UK must have their immigration status verified to ensure they have the legal right to live in the country.
Exemptions
Certain groups are exempt from Right to Rent checks. These include:
- Students: Those living in university-provided accommodation under specific agreements.
- Company let arrangements: Properties let directly to companies for employee use are generally exempt from these checks.
Scenarios where Right to Rent is not required
Right to Rent checks are not necessary in some situations, such as:
- Holiday lets: Short-term rentals for holidays or vacations.
- Hostels: Accommodation in hostels, refuges, or similar short-term housing options.
In these cases, the properties are not considered residential tenancies under the legislation, and thus, do not require the checks.
The Right to Rent check process
Step-by-step guide
Step 1: Obtain the documents
The first step in the Right to Rent check process is to obtain valid identification documents from the prospective tenant. Acceptable documents include:
- UK Passport: A current or expired UK passport.
- EEA/Swiss National ID Card: For nationals from the European Economic Area or Switzerland.
- Biometric Residence Permit: For non-EEA nationals with permission to stay in the UK.
- Permanent Residence Card: For those with settled or pre-settled status under the EU Settlement Scheme.
A full list of acceptable documents is provided by the Home Office, and it’s essential to ensure that the documents are current and not expired unless otherwise stated.
Step 2: Verify the documents
After obtaining the necessary documents, the next step is to verify their authenticity. This involves checking:
- Name and date of birth: Ensure these match across all documents provided.
- Photographs: Confirm that the photos resemble the tenant.
- Document validity: Look for signs of tampering, such as inconsistencies in font, smudging, or unclear holograms.
- Expiry dates: Ensure that the documents are still valid, unless they are allowed to be expired, such as a UK passport.
Pay special attention to details that might indicate a fake or altered document. If there’s any doubt, it's important to seek further verification before proceeding.
Step 3: Make copies
Once the documents are verified, you must make clear copies of them. The copies should be in a format that shows all relevant information clearly, including photographs and expiry dates. It’s essential to:
- Copy each page: For multi-page documents like passports, make copies of every page that contains relevant information.
- Store securely: Keep these copies in a secure manner, ensuring that they are protected against unauthorised access.
- Retention period: These copies must be retained for at least one year after the tenancy ends, in compliance with data protection regulations.
Step 4: Record keeping
Proper record-keeping is a legal requirement. You must:
- Document the check date: Record the date you conducted the Right to Rent check, as this is crucial for legal compliance.
- Update records: If you conduct a follow-up check (eg. for tenants with time-limited immigration status), ensure that your records are updated accordingly.
Failure to maintain proper records can result in penalties, so it’s important to keep everything organised and accessible.
Electronic checks
In addition to manual checks, you can use the Home Office's online service to verify a tenant’s Right to Rent. This service is particularly useful for:
- Biometric Residence Permits: Where the tenant has a digital status, or for those with settled or pre-settled status under the EU Settlement Scheme.
- Non-EEA Nationals: For those who can provide a share code generated by the Home Office’s online service.
To use the online service:
- Obtain the share code: The tenant provides a share code and their date of birth.
- Check online: Enter the share code and date of birth on the Home Office's website to verify the tenant’s Right to Rent.
This electronic method can streamline the process and reduce the risk of document fraud. It's important to conduct these checks properly and keep accurate records. You can use the government's official guide for more detailed information on acceptable documents and how to carry out the checks.
When to conduct checks
You must complete the Right to Rent checks before starting a new tenancy. For tenants with a time-limited Right to Rent, you'll also need to conduct follow-up checks either annually or shortly before their permission to be in the UK is due to expire – whichever is longer.
Penalties for non-compliance
Landlords who fail to correctly carry out Right to Rent checks could face a civil penalty of up to £3,000 per tenant. Knowingly renting to someone who doesn't have the Right to Rent could even result in an unlimited fine or a prison sentence of up to 5 years.
While Right to Rent checks may seem daunting, they are vital to being a responsible landlord. By understanding your obligations and following the correct procedures, you can ensure you remain compliant and avoid any penalties. If in doubt, always refer to the official guidance or seek advice from a team of lettings experts, who can manage this process for you.
Frequently Asked Questions (FAQs)
What if the tenant’s visa is about to expire?
If a tenant’s visa is close to expiring, you can still proceed with the tenancy, but you must perform a follow-up Right to Rent check before the visa expires. This ensures the tenant still has the legal Right to Rent after their current visa has lapsed. If the tenant fails to provide evidence of a renewed or extended visa, you may need to take steps to terminate the tenancy to avoid legal repercussions.
How often should I perform Right to Rent checks?
The frequency of Right to Rent checks depends on the tenant’s immigration status:
- Unlimited Right to Rent: UK citizens, EEA nationals, and those with indefinite leave to remain only need to be checked once before the tenancy begins.
- Time-Limited Right to Rent: For tenants with a visa or other temporary permission, a follow-up check is required just before their permission to stay in the UK expires.
This follow-up check ensures ongoing compliance with Right to Rent requirements throughout the tenancy.
Can a tenant start renting before the check is completed?
No, a tenant cannot legally start renting a property until the Right to Rent check has been completed. The check must be done before the tenancy agreement is finalised and the tenant moves in. Failure to conduct the check in advance can result in penalties for the landlord, including fines or criminal charges. Always ensure that the tenant’s Right to Rent is verified before the tenancy begins.
