Landlords at Risk of £30,000 Fine

If you’re a residential landlord in England with one or more rental properties you could be at risk of receiving a £30,000 fine, with new research showing that one in five landlords are unaware that failing to secure an Electrical Installation Condition Report (EICR) results in financial penalties.

According to the Electrical Safety Standards in the Private Rented Sector Regulations 2020, landlords must have their property’s electrical installations inspected and tested by a ‘qualified and competent person’ at least every five years—which means 2025 is the deadline for you to do so within the timeframe. The EICR must be provided to new tenants before they move in, and to existing tenants within 28 days of the inspection.

The research also found that one in 12 landlords either do not have an EICR or are unsure if their report is valid, while only 10% can identify all the documents required in the event that they evict a tenant.

If you do not currently have an EICR for your property, or you’re unsure about the validity of your report, you should look to arrange a new inspection as soon as possible. Following the inspection and testing, you will need to:

• Obtain the report from the person conducting the test and ensure it provides the results of the inspection, as well as the date the next test is due.
• Supply a copy of the report to your tenants within 28 days.
• Supply a copy of the report to the local housing authority within 7 days of receiving a request from the authority to provide it.
• Retain a copy for your own records, and so you can provide it to the person carrying out the next inspection and test.

However, it’s not just a lack of awareness around EICRs that is an issue for residential landlords, with one third being unaware of the legal requirement to have a valid Gas Safety Certificate, while around 40% don’t know about the need for an Energy Performance Certificate (EPC) or current Electrical Installation Guide Report. In fact, just 10% of landlords across the UK could identify all the documents they legally need to share with tenants.

How Warr & Co supports landlords

We understand that residential landlords have a lot on their plate, which can make staying on top of everything—including your documentation—pretty tough. And since a fine of this magnitude could devastate your landlord business, we’re here to remind you to take this regulation seriously.

Keeping on top of business requirements has come particularly complex when it comes to landlord accounting over the last few years, so it makes sense to have a landlord accountant on your side! Request a free landlord accounting consultation, we’re here to help.

Our experienced team of specialist accountants have been helping landlords to maximise their returns from their portfolios for years, with a variety of services designed to ensure you can focus on managing your properties effectively.

Get in touch today to find out how we can:

• Bookkeeping, with or without a cloud accounting service
• Understanding Making Tax Digital (MTD) and staying compliant
• Managing your Capital Gains Tax exposure

Request a free landlord accounting consultation to find out how we can support you.