As a Landlord you are now required to have the Electrical Installation Condition Report (EICR).
From 1 July 2020 all new tenancies and 1 April 2021 for all existing tenancies must have the report (EICR) that will last for 5 years.
Find out what it means to Landlords.
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Video Transcription:
Hey, guys so a boring topic today Electrical Safety regulations. I'm sure this is going to keep you all up at night wondering about how wonderful these things are but no look bottom line is as a landlord now you are going to have to get safety regulations certificates done and effectively what they call an EICR and an electrical installation condition report.
Basically what that means is so from July 1st 2020 this year any new tenancies must have that report and that report lasts for five years okay it's basically all coming out it's coming on the electrical safety standards in private rented sector England regulations 2020 so it only was introduced in January this year sorry it was not introduced it was announced in January this year introduced in July so it's not yet there yet but it's coming they haven't stopped it they haven't postponed it for our coronavirus but effectively yet what you need is the EIRC are okay sometimes called the landlord's electrical safety certificate or the electrical safety certificate but effectively it does the same thing it's basically where you have to get a qualified person to go in they test all the circuits they tests all the equipment and they issue a report effectively the certificate and that you need to keep on a continuous basis okay until the next report is done then you can throw that one away.
All new tendencies from the July 1st 2020 and all existing tenancies by the 1st of April 20-21 okay so it's spread out a little bit my concern is and then I think everyone's concerned is whether the industry can cope given coronavirus and given everything that's going on and the fact there's a backlog of maintenance issues and all sorts of things like that it's gonna be an interesting take and it's just another kick in the teeth for landlords because it's another amount of money you get to pay which we will look at soon.
Look so when do we have to provide it so we're to refine it to the tenant prior to occupation okay so how we'll be handling this is we send out the documents before with all the prescribed armed information and we'll be sending it out with that which means you need to have it before lieutenant can occupy so it's far better to get it last for five years so to get it ASAP okay if the local council asks for it you've got to provide it within seven days and the basic local housing authority is the one managing this and they can issue up to thirty thousand pound fines for not having it and I imagine that's repeat offenders and all that stuff.
A prospective tenant can ask for it you've got to give it within 28 days all right so what it means is that you just better have it there you know and just know that it's there for five years and then do that.
So cost yeah cost ranges from 50 bucks or 50 pounds up to I've seen up to 300 over 300 Reno plus back and and then I've also seen it on a per Circuit basis so that the cost varies greatly across the UK and depending on who you're using so effectively what we're doing is we're negotiating now with a uk-wide contractor but we've also got a number of other individuals that we can use and we're just trying to find out the best rates possible it's a little bit hard right now we're in the middle of it I'm about to literally launch this email and we thought maybe covid will delay it a bit so we'll just hold off but it's not and with a confirmation it's not so we need to go ahead with it and get it done.
Now what that's gonna mean is yet it does mean somewhere between and look I'll be honest with you we're not going to use the $50 guys the 50 pound guys the 50 pound for me is you know that guy that goes round it does a really poor job and still keeps you at risk so yes you can say but I can sue him but the likely the insurance doesn't work he's not a part of regulated body who knows I'm just not comfortable using that lower end of the marketplace.
I think somewhere between a 100 and about 200 pounds is where we're gonna end up in the cost range, okay you know the odd occasional area depending on what you know the supply and demand in that area might be a bit more or a bit less but for the most part that's what I'm thinking is about 100 to 200 pounds and we're gonna and it depends on the number of circuits so if you want to know how the circuits work effectively just think circuit breakers so if you open up that box count how many circuit breakers as that's approximately how many circuits so a lot of places will say it's 60 plus a twenty bucks per circuit or 30 per circuit or a 100 you know plus twenty bucks per circuit because they have to test all the circuits and all that stuff and then they should and basically what happens.
It's either a satisfactory yeah or an unsatisfactory even it's unsatisfactory it'll be you know danger is present in which case you know literally your place is going to be stopped and you gonna have to fix it immediately like that's an emergency type thing you've got potentially dangerous you've got improvement so you got c1 c2 c3 and the f1 which is further investigation needed there's something not right and that might be switch on the lights and the lights don't turn on for like ten seconds or something like that, okay so it may raise other issues that then cost money to fix but to be fair it's electrical safety you don't really want to stuff around with that and as an agent, we don't want to stuff around this.
So what we're looking at now is rolling this out to all landlords as quickly as possible because obviously and when I say as quickly as possible what I don't want to get to is right now there's lots of work available we can give it to people and people are willing but as soon as all the other agency to jump on board we may find the prices get driven up and you know they can't do it for six weeks or eight weeks and that's the stuff and so that that's one of our fears so I think getting it done it might be a month or two early but certainly not leaving until the 1st of July or just before the first July because the likelihood is you know you might end of problems there but we're gonna so we're gonna start rolling that out so it's available but it may take six months or 12 months.
We're not gonna do hundreds all at once because we just can't and it would cost too much immediately you know so we'll roll that out we'll come to you and write to you having the exact roll out things because obviously we're trying to get everyone off covid and off furlough and things like that as soon as we're back then we'll get onto that and you know we'll be on top of that but we just want to sort of give you the heads up that this is coming and it's not going to go away you have to deal with all right and yet basically what we'll sort of you know we're on top of that I think will be the key things here I think this is with all regulation.
What I'm noticing I'm on a lot of landlord sorry agent portals and Facebook pages and things like that we've got guys agencies coming on and saying you know what's this what's that it is amazing how many agents out there actually don't understand the regulations and are up to date with the regulations and haven't got qualifications all of our staff okay are either have or are going through the process of getting their level 3 ARLA and that gives them at least a base level of knowledge across the broad range I think that's really important yeah so guys but any questions you've got you speak to your property manager but look this is coming it's not going to go away so we'll be coming back to you on an individual basis when we're looking to get it done.
Any new tenancies 100% need it the existing Tenancy will need you done before April the 1st next year all right guys have a great day little bit passion and remember if you're watching this on a YouTube channel make sure you subscribe and get heaps of updates for landlords and investors and you know to learn all about property alright guys see you later bye.
