As it makes its way through the House of Lords, the Renters’ Rights Bill promises some of the biggest changes to the private rental sector in 40 years. But are you ready for the changes it will bring and do you understand all the implications for your rental business?
A change to tenancy structures and possession grounds
One of the biggest changes to the sector will be the end of assured shorthold tenancies and a move instead to rolling periodic tenancies. This aims to give greater security to tenants to make a property their home, rather than worrying about what will happen when their fixed term is up.
As a result of this, grounds for possession are also being revised and redefined to give clearer grounds for possession when needed. Section 21 no-fault evictions will no longer be valid and landlords will need to use other possession grounds instead.
Rental bidding prohibited
Rental bidding can drive up prices and mean that tenants lose out on a property because someone else has offered more. After the Renters’ Rights Bill comes into effect, landlords will have to stick with their original advertised rent and can’t accept or request any higher bids. The frequency of rental increases will also be limited to once a year and will require two months’ notice.
Allowing pets
Currently, you can decide whether to allow tenants to have pets or not, but as part of the Renters’ Rights Bill tenants will have the right to request permission to keep a pet and you must not “unreasonably refuse” their request. You will have 28 days after tenants submit their written request to respond but will also be able to ask tenants to take out pet insurance for any damage or issues a pet on your property might cause.
Ending discrimination of tenants with children or who are on benefits
As well as no longer being able to say no to tenants with pets, the bill will also introduce changes that prevent discrimination of prospective tenants who may have children or be in receipt of benefits. This aims to end prejudice and make it a fairer system for all.
Listing on the Private Rented Sector Database
Once it launches, you will have a legal responsibility to register and maintain your full details on a new Private Rented Sector Database which will operate nationally and provide greater market transparency. There will also be a registration fee to pay. The introduction of new landlord redress schemes will also mean that councils will have greater powers to both investigate and fine rogue landlords.
Decent Homes Standard and Awaab’s Law
The introduction of the Decent Homes Standard to the private rental sector will require an improvement in the minimum standard expected of a rental property to improve living conditions for tenants. In addition, Awaab’s Law will set strict legal timeframes for landlords to rectify any hazards in their property, including issues such as mould and damp.