We may not yet have a date for implementation but one thing is for sure, the Renters’ Rights Bill is coming. There’s also some debate as to what parts of the Renters’ Rights Bill will be implemented first, or whether it will be an all-in-one hit, as well as what amendments made by the lords at report stage may actually stick.
Landlords will need to prepare for the extensive changes, the biggest in the private rented sector in more than 30 years.
Understanding the key changes
The critical thing for landlords is to understand the main changes within the bill and their impact on letting strategies and portfolios. Major changes include the end of Section 21 no-fault evictions, a greater right to have pets in properties and improved rights for tenants overall, as well as changes to how rent is set.
Reviewing portfolios
Having a clear understanding will help you assess whether you can manage all the changes yourself or whether you might need expert help in understanding the implications or managing them on your behalf. This is especially important if you have a portfolio of properties and the changes are going to take more time and energy than you have. However, it may be equally important if you are an accidental landlord and are trying to understand if the market is still for you.
Amending tenancy agreements
Once the bill comes into force, all tenancies will be on a periodic rolling basis, rather than fixed terms. This provides greater security for tenants but less visibility for landlords. Tenancy agreements will need to be reviewed. With the end of Section 21, eviction procedures will also be revised, so you will need clarity on whether you are likely to want your property back in the near term.
Updating rental rates
Rental changes are also coming. Rents can also only be increased once a year with increases limited to market rates and tenants able to more easily contest increases if they disagree. Rental bidding will also be forbidden.
Upgrade energy efficiency and property standards
New minimum safety and quality standards will come into force with the Decent Homes Standard. This will include heating, so upgrading to new, more energy-efficient heating options will satisfy both tenant and regulatory requirements.
Review pet and children policies
Another change will be anti-discrimination measures that will ensure landlords consider all applicants equally – including those with children or who are on benefits. Similarly, landlords will also need to rethink policies around pet ownership. Applications to keep pets must be considered on an individual basis and you won’t be able to refuse pets without good reason.
These are just a few of the changes to impact the private rented sector once the bill comes into force. If you need help understanding the rest of the implications in order to prepare, then give us a call.
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. Get in touch to find out more.
