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Short-term rental (STR) properties come with certain regulations and requirements that property managers should comply with. This includes safety certificates for gas, fire, electricity, etc. These are strictly enforced because they protect the safety and well-being of guests. It also protects property owners from legal risks.
As a property manager or company, it’s your responsibility to ensure that STRs are completely compliant with all these rules. Not only will this demonstrate your competence and professionalism, but it also builds trust. It will lead to smoother operations and improved rental returns.
In this article, you’ll learn more about the various certificates that London short-term rentals should have. You’ll also learn why this is important and how it can lead to higher rental returns and better reviews.
Why are Certificates Important in STR Properties?
Certificates prove that a short-term rental property is legally compliant and well-maintained. There are 3 main reasons why you should complete the certificates discussed in this article.
Safety
Short-term rental properties provide temporary shelter for travellers. You have to make them feel safe and protected so they can relax and attend to the purpose of their visit. If guests are not comfortable in the rental property, it will affect the overall experience of their stay.
Safety certificates provide physical proof that a property is safe and secure. It will reassure guests that you’ve taken measures to avoid accidents like electrical malfunctions, gas leaks and fire risks. It also proves that the property is well-maintained and in good condition.
Compliance
Short-term rentals are heavily regulated in the UK so compliance is a must if you want to keep operating in the STR space. Failing to complete the mandatory certificates could lead to legal and financial consequences. You can be heavily penalised and banned from operating STRs.
Certificates like the EPC and Fire Safety Checks prove that properties meet the standards set by the local regulations. It’s enough to ensure the property can keep accepting guests and earning income.
Credibility
Certified short-term rentals stand out in the rental market because they are credible. Being transparent with the property’s certificates assures potential guests that your STRs are well-maintained and up to the premium standards of the market. It also reflects your credibility as a property manager. It shows that you’re responsible enough to meet the legal and safety requirements in London. This will give guests the confidence to book a stay in your properties. This will increase occupancy rates and rental income potential.
Different Types of Certificates for STRs
Short-term rentals in London are required by law to possess several certificates and each will address specific areas within the property. They ensure compliance with regulatory standards - which ensures the guest’s safety and the property’s integrity.
Here’s a list of the mandatory certificates that STRs should have to operate in London.
Gas Safety Certificate
Rental properties using gas appliances are required to get a Gas Safety Certificate. This covers boilers, cooking appliances and other gas-related systems operating within the property. Only a Gas Safety registered engineer can conduct this inspection which should be scheduled annually. It is best to schedule the annual checks 10 months after the last one - to keep the certificate from expiring.
Once you have the Gas Safety certificate, you have 28 days to provide a copy in the property. These certificates usually cost £60 to £90. Make sure you keep records of previous certificates - at least as far back as two years.
Energy Performance Certificate (EPC)
The EPC of Energy Performance Certificate measures a property’s energy efficiency. The most efficient is A while the least is G. All STRs in the UK are expected to have at least an E Rating in their EPC.
By 2025, all newly rented properties should have at least a C Rating while those currently occupied have until 2028 to comply.
This certificate is valid for 10 years and can only be rated by an accredited assessor.
Improving the EPC of your STRs won’t just make you compliant. It can also reduce energy bills and attract more eco-conscious guests.
Electrical Safety Certificate
This is also known as the EICR or the Electrical Installation Condition Report. It proves that the electrical systems in your rental properties are safe. This includes electrical wirings, appliances and other installations. These safety inspections should be done every 5 years. This applies to both rental properties and HMOs (houses of multiple occupancy). It can only be checked by a qualified electrician. Once you’ve been issued an EICR, you have 28 days to provide the property with a copy of the certificate. If the report shows issues or work to be done, it has to be completed within 28 days to ensure the protection of the guests and property.
Fire Safety Check
This is another mandatory check that all properties should comply with, not just short-term rentals. This is especially true for those in multi-story buildings or HMOs. This fire safety check doesn’t come with a specific certificate. But you still need to comply with the long list of fire safety checks including scheduling regular fire risk assessments, installing smoke and carbon monoxide alarms, providing fire extinguishers and using furniture that complies with the Furniture and Furnishings (Fire Safety) Regulations 1988.
The fire safety assessment, in particular, is mandatory and should be done by a Responsible Person (RP). This guarantees the fire safety information of the property is updated and will help Fire Rescue Services operate in the event of a fire emergency. Ideally, this assessment should be done yearly, but it will depend on the classification of the building the rental property is in.
Portable Appliance Testing (PAT)
This is not specific to STRs but the Portable Appliance Testing (PAT) is highly recommended because it ensures all electrical appliances are safe and in good condition. Among the items that should be checked include microwaves, toasters, kettles, and other portable electrical appliances. Anything that could lead to electrical fires should pass the PAT.
This ensures your guests can use these electrical appliances without fear. This will elevate their experience in your property.
HMO License
An HMO license is needed if your STR is occupied by at least 3 unrelated people (specifically if they use common amenities like bathrooms, etc). This license shows the property complies with stricter safety and regulatory requirements. This includes enhanced fire safety measures, emergency lighting, etc.
The certificate and process to get the license will vary depending on where the property is located. Check government websites for more information about the requirements.
Legionella Risk Assessment
Legionella is a waterborne bacteria that can breed in heating systems and water pipes. It can cause Legionnaires disease, a type of pneumonia that can be fatal if it infects immuno-compromised individuals. Getting a Legionella Risk Assessment protects guests from this threat. Hire an accredited company to check water tanks, outlets and systems to eliminate the risk of this bacteria infecting guests. The assessment cost ranges between £50 and £200 and will vary depending on the property types and the area to be inspected.
Deposit Protection
This might not apply to all STRs but in case your letting strategy requires a deposit, you need to set up a deposit protection scheme. This is mandatory and ensures that deposits are protected. Choose government-approved TDP or tenancy deposit protection schemes to make it credible. This will help keep disputes from escalating and practise transparency in deposit management.
Complete STR Certificates to Stay Compliant
It may feel like a long list of certificates but complying with each can protect your short-term rental operations. It’ll give you peace of mind, knowing that your properties are legally compliant. It does not only keep guests safe. It also protects the property investment and its earning potential. You can avoid hefty fines and penalties as well as increase your credibility as a property manager. This in truth will boost your reputation and attract more guests.
Staying on top of these certifications may feel overwhelming but with the right tools, you can automate compliance tracking. Look for property management software programs so you can be notified of upcoming checks that should be scheduled. This will keep your short-term rentals in perfect condition as these checks can reveal issues with the property’s integrity. You can act on it immediately to avoid expensive repairs and replacements.
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