PEOPLE struggling to sell their property in the economic downturn might choose to let it instead.

However, it is not as simple as handing over the keys in return for cash, warns Renting and Letting, a Which? essential guide Landlords have a number of legal and financial obligations to abide by, or risk prosecution.

Since October, landlords must provide tenants with the opportunity to view an Energy Performance Certificate (EPC) before any contract is signed. This outlines how energy-efficient the property is.

Anyone marketing a property without an EPC can be fined up to £200.

If the rental property is mortgaged, landlords must first get the lender’s consent to let it.

Without this consent, the lender may have the right to demand full repayment of the loan and ultimately to take possession of the property and sell it to recover the loan.

Since April 2007, all deposits paid by tenants must be placed into one of three approved deposit protection schemes.

If it can be proved that a landlord hasn’t paid deposits into one of these schemes, a court can force the landlord to pay back the tenant three times the amount of the deposit.

Anyone earning extra income from property must declare this to the taxman. Any tax owed can be paid through the PAYE scheme if the landlord is already employed and income from renting is less than £2,500, or it can be declared through a self-assessment form. Tax evasion can result in a large fine or imprisonment.

Landlords are responsible for the general upkeep of the property, including the property’s structure and exterior, supplied appliances, heating, hot water, gas supply and electricity.

By law, only qualified tradesmen can carry out electrical and gas work on property, such as installing central heating and showers and conducting an annual safety check on any gas boilers.

All furniture and furnishings must meet the requirements of the Furniture and Furnishings (Fire) (Safety) Regulations 1988.

Kate Faulkner, author of Renting and Letting, a Which? essential guide, said: “More people are becoming ‘accidental landlords’ as they struggle to sell their homes, and for many, letting them out is the only option.

“It’s not just a case of swapping a set of keys for money each month.

“Being a landlord comes with many responsibilities and obligations, and failure to comply with these could result in problems for landlord and tenant alike.”