Residential lettings landlords shouldn’t fear the impact of Renters’ Rights Bill – but all must now manage their property portfolios professionally
By Helen Quickfall, Gro Residential Management Manager
The Renters’ Rights Bill has finally become law, with the new legislation intended to improve the experience of private renting by providing better protection and security for thousands of tenants.
Make no mistake, these are law changes which rebalance the pendulum of power between landlords and renters, and will no doubt change the way many landlords now have to manage their residential lettings property portfolios.
At Gro Residential Management, we always welcome changes which drive improvements in the quality of rental properties on the market, as it is something we have long worked alongside the landlords we support to achieve.
Poorly managed and maintained properties lead to poor income, and more problems.
Landlords who have managed properties professionally and successfully have little to fear, but for those who have potentially overpriced properties, cut corners on compliance, and failed to maintain good relationships with tenants, some of the headline changes which may impact upon them include
- Stricter rules being imposed on ‘no fault’ evictions -with landlords now required to prove they have genuine, appropriate grounds for possession, such as antisocial behaviour, damage to property, or falling more than three months into arrears on rent, to end a tenancy early.
- The New Decent Homes Standard - which says all private rented homes must be safe and well maintained, free from serious hazards, fit for human habitation, and in compliance with Awaab’s Law, which means any damp and mould issues have to be resolved in a timely manner.
- Discrimination laws - making it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children.
- Ending rental bidding - by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
Added to this, tenants are also being empowered to challenge unreasonable rent increases, with landlords restricted to increasing rents just once per year to the market rate.
Tenants are also being given the right to end a tenancy at any point by serving a two month notice in writing on the landlord, and will have strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse.
Landlords must ‘get it right or pay the price’
The key for landlords following these law changes is getting things right from the start.
Many will now need to place a greater focus on the strategic management of their property portfolios, and spend more time building relationships with, and understanding, their tenants if they are to avoid costly administration and appeals.
Everything from how they set rental values on properties to how they maintain standards, keep compliant and manage tenant relationships now becomes all the more important.
Finding reliable tenants is a priority, as under the new reforms, tenants will be allowed to fall three months behind on rent before a notice of eviction can be served.
Tenants will also now need to be given four months’ notice if a landlord signals the intention to remove the property from the rental market, with that property then not able to be let again for 12 months (after the four months’ notice period).
Our process at Gro Residential Management has long been focused on ensuring the highest standards of service to landlords, and their tenants.
We do this through providing planned portfolio management, maintenance and repairs, value appraisals, annual rent reviews, regular refurbishments, rent collection and credit control.
Such services will become all the more important to landlords now, given the new expanded powers given to local authorities for enforcement of the new laws, allowing them to issue fines of £7,000 for a first offence, rising to £40,000 for repeat offences.
The Renters’ Rights Bill will bring positive change, but any landlords must embrace it, as failing to properly plan and strategically manage their property portfolios could leaving them paying a heavy price.
