Owning a holiday let is an excellent way to get an additional income but there are some legal issues to consider before you advertise your property.
As with any type of let, your main priority is the comfort and safety of your guests and if you’ve been keeping up to date with recent changes to the law, you’ll have noticed that UK landlords are now legally required to have an up-to-date EICR.
But where does your holiday let fall into this?
Are Holiday Lets Required To Have An EICR?
In 2020 new regulations came into effect for private landlords in the UK. The law stipulated that by June 2021, all private rented properties must have an up-to-date EICR.
For context, an EICR or an Electrical Installation Condition Report is a test completed by a qualified electrician in order to highlight any issues with your electrical installations. For UK landlords, if any issues are brought to light, there is a maximum of 28 days for these problems to be addressed.
But the law for holiday let owners is different and this has been the source of some confusion.
There is currently no law that states holiday let owners must have an up-to-date EICR. However, other laws state that your property and the electrical installations within it must be safe for use by the people staying there.
In the event that an electrical fire was to break out and someone was injured or killed, the onus would still fall on you. So, while it’s not legally required for you to have an EICR, it’s usually the best course of action to protect your guests and prevent any legal ramifications in the event of an incident.
What’s more, as a holiday let owner, you’re still required to remain compliant with the Electricity At Work Regulations 1989. Within this legislation, it is stipulated that your property’s electrical installations must be maintained to a safe standard. Having an EICR is a great way to keep on top of this.
Is The Law Going To Change In The Near Future?
As things stand, there is no indication that any laws related to holiday lets and EICRs are going to come into place.
However, there is always the potential for this in the future so it’s better to be up-to-date now than to have to scramble around trying to find an electrician if the law does change.
What’s more, it’s recommended that a new EICR be completed every five years so once it’s done, it isn’t something you’re going to need to worry about for a good while.
Why You Should Consider An EICR For Your Holiday Let
While you aren’t required by law to have an EICR for your holiday let, that doesn’t mean it’s not something you should do.
You aren’t legally required to leave some biscuits, wine or chocolates for your guests but most holiday let owners leave some sort of token to keep their guests happy.
In the case of an EICR, it’s just another way of showing that you’re a responsible landlord and want your guests to have the safest and most enjoyable time.
It’s Inexpensive
When people think about electrical work, they instantly think about the impact it’s going to have on their bank account.
But the great thing about an EICR is that it isn’t an expensive test. In fact, for smaller properties, it may cost just a little over £100. Even if you have a larger property, you might only be looking in the region of £300.
When you consider that an EICR only needs to be carried out every five years, this is a financial drop in the ocean compared to the legal costs you’d acquire if something went wrong and you didn’t have an EICR.
You Have A Legal Responsibility To Your Guests
As I mentioned earlier in this post, you might not be subject to the same laws as private landlords but you still have to adhere to the Electricity At Work Regulations 1989.
This means that your property must be safe to use and that the electrical installations must be well maintained, with any problems promptly addressed.
Without an EICR, it is not uncommon for electrical faults only to be recognised when there is an incident.
Since you have a legal responsibility to your guests, you could face serious financial ramifications, legal costs, and even prosecution if the worst were to happen.
It Builds Trust
If I was renting a holiday let and found out that the electrical installations were not up to scratch, I’d quickly cancel my reservation.
When clients come to you, they’re looking for a time of relaxation and enjoyment; not a time where they need to fear for their safety.
Holiday let owners who can prove they have put their guests’ safety first are far more trustworthy and this is an excellent way to build your reputation.
It Makes Your Property More Attractive
In line with my last point, guests are far more likely to want to make a reservation at your property if they know everything is above board.
Not only will an EICR demonstrate that your property is comfortable and safe but it’ll also encourage more people to visit.
When guests have a positive experience, they’ll tell their friends and family about it and this is an excellent way to attract more business without having to do any marketing.
On the flip side, if your property does not have an up-to-date EICR and is deemed to be unsafe, this is something your guests will report, warning people not to come and stay.
Boost Your Income
Whether you’re looking to make a second income or your holiday let is your primary source of income, you’re going to want to make as much as possible.
As I mentioned in my previous point, a safe and well-maintained property is going to attract far more attention and this means more money in your pocket.
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