It’s no secret that the Renters’ Rights Bill will reshape landlord and tenant dynamics. The clue is in the name. It aims to more clearly set out the rights of renters.
One of the key objectives is to give greater security so that tenants can live in a property without fear of sudden eviction or a looming end of a fixed term. It’s also designed to stop landlords taking advantage of the previously limited rights of tenants.
Although some may see this as a levelling of the playing field that was previously skewed to landlords, others might think the legislation goes too far the other way. Whatever your view, rethinking your long-term letting strategy to adapt will be important.
Longer-term relationships
The end of fixed-term tenancies and the abolishment of section 21 no-fault evictions both have the same purpose. They aim to give tenants greater assurances that they can stay put for longer and move when they choose not when you do.
The fact that they should hopefully be staying in situ longer, offers a chance to focus on building stronger, long-term relationships. Clear and open communication will be even more important, both to build relations but also to give as much warning as possible of potential issues or a tenant wanting to leave.
Redefining standards
Ensuring higher standards of private rented accommodation will also be important as the new legislation comes into force. The application of the Decent Homes Standard and Awaab’s Law to the private rented sectors will redefine property standards, as well as how quickly landlords must work to resolve hazards such as damp and mould. If tenants are staying longer, then keeping on top of maintenance and repairs, rather than swooping in and revamping at the end of a fixed term, will also be important.
Keeping up with market rates
The Renters’ Rights Bill will also restrict when and how rents can be raised. The main aim is to prevent landlords from effectively forcing evictions by increasing rents to levels that tenants can’t afford. Instead, rents must be set at a fair market rate with an awareness that these can be disputed by a tribunal. This makes it vital to get rents right. They must be published when looking for a new tenant and no higher bids can be either sought or accepted.
Rent rises will also be limited to once a year. That means you should bake in sensible tracking of local market rents as part of your long-term letting strategy to ensure that you stay competitive and compliant. You’ll also need to support any rent rises with relevant evidence and notice which makes this tracking even more important.
Be more certain of your longer-term plans
The move to periodic tenancies will include a clause allowing tenants a 12-month protected period in your property before a section 8 eviction can be enforced. If you are planning to move back in or to sell your property, you’ll need to ensure it’s out of this protected period. You will also need to give your tenants four months’ notice of your plans.
An added proviso is that if you don’t move in or sell after serving the relevant notice then you must wait a further twelve months before remarketing the property. Having a clear idea of your long-term plans for a property will be essential.
The Renters’ Rights Bill brings big changes to your long-term letting strategy. You can either navigate these yourself or speak to expert agents like us for advice or to manage the changes on your behalf.
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.
