People who have let out their property as a result of the financial downturn are being warned to make sure they adhere to all landlord regulations.
Many homeowners could be putting themselves at risk of fines through ignorance of landlord legislation, Paragon Mortgages has warned.
A trend has developed in the UK for so-called "accidental landlords", who have decided to rent out properties they would have sold had the property market been stronger. Renting out these homes is seen as a way to make money until house prices recover.
However, Paragon Mortgages - which specialises in landlord mortgages - cited estimates from the National Association of Landlords which show that there are more than 50 acts of parliament and 70 sets of rules which govern the private-rented sector. Many landlords may be inadvertently in breach of these regulations.
"The onus is on the landlord to make sure they comply with all regulations and they are liable if something goes wrong, even if they employ the services of a letting or managing agent. Ignorance of legislation is not a defence," said the firm's managing director John Heron.
Mr Heron explained that landlords must have an energy performance certificate and a gas safety certificate for the rented property. Additionally, they should make sure they have insurance in place which covers rented properties, while letting out rooms could be in violation of mortgage conditions.
