Before the Renters’ Rights Act came into force, landlords could evict tenants without having to give a reason. It resulted in a lack of security for tenants but allowed landlords to change their minds about what to do with their properties or their tenants, without having to explain why. They could simply serve a section 21 notice and evict on a no-fault basis.
With the introduction of the Renters’ Rights Act, the first phase of which went live on May 1, that’s no longer the case. Getting the right tenants in place in the first place is crucial.
The end of no-fault evictions
The end of no-fault evictions means that you must now provide a valid and legal reason to evict a tenant – and must be able to evidence that reason. They may be negative reasons caused by the tenant, such as not paying the rent, committing antisocial behaviour or breaking other terms of the tenancy. In such cases, the grounds for possession have strengthened, although the correct process for eviction must be followed.
You can also evict a tenant if you or your close family need to move into the property or you want to sell up. However, you need to provide four months’ notice and these last two possession grounds cannot be used within the first 12 months of a tenancy. There’s also an additional 12-month ban on marketing or reletting the property after these grounds have been used.
Greater lenience on rental arrears makes affordability checks vital
The RRA has also introduced new rules around rent-setting, with rental bidding banned, increases limited to once a year and tenants able to challenge unfair rent hikes. In addition, no more than one month’s rent can be requested.
However, rules have also changed regarding rental arrears, which will make affordability screening even more of a necessity for landlords. The mandatory threshold for eviction for tenants who have fallen into rent arrears has increased from two to three months’ arrears.
Meanwhile, the notice period to evict tenants who have fallen into rental arrears has doubled, up from two weeks to four. The idea behind the change is to allow tenants more time to repay arrears and to stay in their homes.
Thorough affordability checks are therefore vital to ensure that your tenants will be able to afford the rent and avoid falling into arrears. You must also be aware that such checks, as well as your decision-making around your choice of tenants, must be fair since the act also includes a ban on discriminating against tenants who are receiving benefits.
Lengthier legal processes risk delays
Tenants now have greater powers to challenge landlords. However, it will take time for tenants, landlords and councils alike to absorb the changes and a longer legal process is likely.
Professional tenant screening and vetting assesses affordability with thorough credit checks, verification of employment and income, as well as background checks for character and potential issues that could impact the tenant’s reliability. It also includes the right to rent check, one of your legal responsibilities when letting a property. Vetting helps you to make informed decisions about tenants, giving you extra peace of mind that you’ve chosen right first time.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We are also an HMO specialist. Get in touch to find out more.
