A Landlord’s Guide to Right to Rent Checks

The Right to Rent scheme is a key part of the UK’s immigration control system and is one of multiple responsibilities that landlords should adhere to. Introduced as part of the Immigration Act 2014 and expanded in subsequent legislation, these checks are mandatory for all residential tenancy agreements in England, including Houses in Multiple Occupation (HMOs). 

To support HMO landlords starting out on their investment journey or getting more established, this step-by-step guide overviews what Right to Rent checks mean. It covers compliance requirements and provides a comprehensive understanding of their legal obligations and practical steps to conduct effective Right to Rent checks, with special attention to the unique challenges faced by HMO landlords.

What are Right to Rent Checks? 

The “Right to Rent” checks refer to a person’s legal status to rent residential property in England. The scheme requires landlords to check that all tenants aged 18 or over have the legal Right to Rent property in the UK before the start of a new tenancy. This applies to all types of rental properties, including HMOs, where multiple or unrelated tenants share living spaces in safe and regulated tenanted buildings.

For HMO landlords, the complexity of Right to Rent checks increases as you must verify the immigration status of each individual tenant, not just the lead tenant. This means conducting separate checks for every adult occupying your property, regardless of whether they are named on the tenancy agreement. 

Furthermore, these are the key points to know:

• Right to Rent checks are mandatory for all new tenancies in England
• All adult occupiers must be checked, not just those named on the tenancy agreement
• HMO landlords must check each individual tenant separately
• Checks must be conducted before the tenancy begins
• Follow-up checks may be required for tenants with time-limited permission to stay

Remember, failing to comply with Right to Rent obligations can result in penalties, including fines of up to £3,000 per tenant and potential criminal charges for persistent offenders. For HMO landlords, these penalties can quickly multiply when you take into account the number of tenants living under one roof. At the more serious end of the scale, non-compliance can result in a potential prison sentence of up to five years which might ultimately devastate your reputation and long-term business. Plus, if you don’t comply, those penalty fees will disrupt your HMO management costs and budget. In turn, neglecting any of your responsibilities as a landlord may cut into and dent any healthy yields you’re achieving from your rental. 

Therefore, it’s important that you are just as vigilant about Right to Rent checks as you are about the Planned Preventative Maintenance checks you make on a property. For instance, if you recognise that original sash windows require restoration and replacement work, or that a living space has hazardous mould from poor ventilation, you’ll equally want to address these issues.

Conducting Right to Rent Checks

Complying with tenancy agreements and conducting the proper checks early on matters just as much as prioritising the ongoing upkeep of your building and safeguarding the health & safety of every occupant. In fact, these measures are an essential part of building a successful investment portfolio and can all go a long way to help you mitigate costly fines, reputational damage or repair jobs in the future. 

Having said that, at the start of any tenancy, every adult renting your property will require a Right to Rent check. This is regardless of their nationality or whether they appear on the tenancy agreement. For HMOs in particular, this means checking every adult who will be living in the property. In order to avoid any fines further down the line, it’s important to ensure you do these checks and have all the right licences in place.

Obtaining Official Home Office Documents

The first step is to obtain the correct and original documents from prospective tenants that will enable you to prove their rights. These must be from the Home Office’s approved list of acceptable documents and you can refer to the official Landlord Checking Service on the Government’s website. In some cases, prospective tenants may not have standard documentation but may still have the Right to Rent and these situations can also be clarified online but might include:

• When to use the service: Use this service when tenants have an ongoing immigration application, appeal, or if their documents are held by the Home Office.
• How to use the service: Submit a request through the online portal or by completing a request form. You’ll need the tenant’s home office reference number.
• Response time: The Home Office aims to respond within two working days with a “yes” or “no” answer.

Meanwhile, for HMO properties, ensure you collect documents from each individual tenant and also be careful to check any documents in the presence of the tenant. This can either be in person or via a video call. The key check is to compare their photograph with their appearance and verify that these tally. You also need to be aware that:

• Documents appear genuine and belong to the tenant
• Names are consistent across all documents
• Dates of birth are consistent across all documents
• Any visa or immigration permissions are still valid

Understanding Different Tenant Categories

As mentioned, the Home Office’s official documents and Right to Rent checking guide can help you navigate the processes. The formal documents, though, are divided into two lists as outlined here :

List A: Unlimited Right to Rent

Documents proving an unlimited Right to Rent in the UK include:

• UK passport
• EU/EEA/Swiss national passport or identity card (for those with settled or pre-settled status)
• Biometric Residence Permit showing indefinite leave to remain
• UK birth or adoption certificate

Tenants providing documents from List A require only one check at the beginning of the tenancy. If possible, make clear copies of each document, recording the date you conducted the check. These copies must be kept securely for the duration of the tenancy and for at least one year afterward. 

If necessary, a tenant might have a time-limit on their Right to Rent if they don’t have permission to stay in the UK. If this is the case, you’ll need to conduct follow-up checks before the expiry of the tenant’s permission to stay or 12 months after the previous check, whichever is later. Tenants providing documents from this second List B will require the aforementioned follow-up checks.

List B: Time-Limited Right to Rent

Documents showing a time-limited Right to Rent include:

• A valid passport with visa or residence permit
• Biometric Residence Permit with time-limited permission
• Home Office letter confirming permission to stay

Implementing Best Practices for HMO Landlords

It is good practice if you’re new to property investing to maintain organised records or appointing a management service to help you can be useful. If you can, consider including Right to Rent compliance in your contract, making it clear that, for example, sub-letting without proper checks is prohibited. If you’re using a managing agent, ensure they understand their obligations regarding Right to Rent checks for HMOs.

As these checks are a legal requirement that landlords must fulfill, ensure that you tick all the right compliance boxes off for your HMO. For HMO landlords, the process requires additional attention due to the multiple tenants involved. By maintaining thorough records and noting what to check off, you can ensure compliance with the law while protecting all your property investments. This is true for any flats, Buy-to-Lets and all types of rentals you’re responsible for to safeguard both your tenants and your returns. 

With that in mind and to recap:

• Check tenants before they move in
• Keep clear records of all checks performed
• Conduct follow-up checks as and when required
• Use the Landlord Checking Service when necessary
• Stay informed about changes to immigration rules

Providing Ongoing Support 

By implementing these practices, you can fulfil your legal obligations while maintaining a successful property investment business. At HMO Architects, we can make that journey even more simple and stress-free, guiding you at every step to ensure your property checks are managed and your investment delivers the results you’re aiming for. 

With us by your side, you’ll have experts handling the details, so you can focus on growing your portfolio and enjoying the rewards of a high-performing property. Check out our full range of services or get in touch with our team today.