The Renters’ Rights Bill has dominated landlord news for months. The headlines have been hard-hitting thanks to the major changes within the bill, including the end of no-fault Section 21 evictions and fixed-term tenancies.
So, amidst all the hype, what are some of the lesser known but still important, truths for landlords?
1) You can still raise rents but must follow the correct procedures
The bill will limit how and when you can raise rents. To be valid proper procedure must be followed. This includes raising rents once a year to the market rate via a section 13 notice and giving at least two months’ notice. Tenants will also be able to appeal excessive rental increases through an independent tribunal.
2) You can still refuse to allow a pet if your grounds are ‘reasonable’
Strengthened rights to have a pet in a property is great news for your tenants but might not be for you. You must not ‘reasonably’ refuse a pet, or a tenant can challenge such a decision. However, what’s reasonable hasn’t been defined and you can still refuse if your superior landlord prohibits pets. You can also require tenants take out additional insurance to cover potential pet-inflicted damage.
3) If you want to move back in or sell the property you can
Although no-fault evictions will be banned you will still be able to serve notice and regain a property if you want to sell or you or a family member want to move in. However, there is a 12-month protected period at the start of the tenancy, and you must give four months’ notice.
4) You must have a 12-month break before re-letting after serving notice
The caveat to serving notice to move back in or sell the property is that if you don’t do either then you must have a 12-month break after serving notice before re-letting the property.
5) You can still refuse a tenant, but only on affordability grounds
Anti-discriminatory powers will mean that you can’t refuse a property on the basis of a tenant having children or being on benefits but must assess on the grounds of affordability only.
6) Rent arrears notice periods will increase
Rental arrears will remain a cause for potential eviction but the mandatory threshold for eviction will increase from two to three months while the notice period will double from two weeks to four.
7) You must register your details on the Private Rented Sector Database
You must register your details on the new Private Rented Sector Database or you won’t be able to use certain possession grounds and could face civil penalties imposed by the local council. You will also be required to join the new Private Rented Sector Landlord Ombudsman Service.
8) Councils will have greater enforcement powers
Local authorities will be given greater investigatory powers, as well as the ability to enforce a range of civil penalties of up to £7,000 for initial offences, rising to £40,000 for persistent offending.
9) Rent advances will be capped
Landlords will no longer be able to request large rent advances to secure a tenancy. Instead, you can request up to one month’s rent once a tenancy agreement has been signed and before it begins.
10) Awareness among tenants remains limited
While the Renters’ Rights Bill may be top of mind for landlords, for tenants recent research suggests that fewer than one in three (32%) are aware of the changes coming. That could mean you having to educate your tenants as to the changes and what they mean for them.