Here’s our take on yesterday’s news about the Renters’ Rights Bill. If your properties are managed by Homesure, relax, everything is in hand.
If they’re not, if you’re less than confident in your management, then as William Reeve, Goodlord’s CEO, said:
“It’s absolutely essential that anyone with their head still in the sand about the legislation pulls it out sharpish. This legislation is real, vast and can no longer be ignored.”
Watch the video, or read the details below.
Renters’ Rights Bill overview
1. Periodic tenancies replace ASTs
All fixed-term assured shorthold tenancies (ASTs) will convert to periodic tenancies overnight.
This seems like big news, but really it isn’t
And it’s definitely nothing to worry about. Who wants to move house again, less than six months after moving in? Provide good quality homes, and most tenants won’t want to leave soon enough for you to notice this change.
Homesure’s FREE relet guarantee
For the first 12 months after the Bill becomes law, if a new tenant moves into then out of a Homesure managed property in under six months, we’ll relet it for free! We’re that confident this is a non-issue!
2. Section 21 abolished
The Renters’ Rights Bill will ban Section 21 ‘no-fault’ evictions. Section 8 will become the main way to evict tenants, and grounds for possession have been updated and expanded.
The Government’s aim is to end what they see as arbitrary evictions, to give tenants more security and help them put down roots in their communities.
Bad news for landlords?
Not really. We all want happy, secure, long-term tenants. Sure, Section 21 is gone, but more grounds have been added to Section 8. The change means tenant quality is more important than ever, and your agent needs bullet-proof processes. If your properties are managed by Homesure, this box is ticked!
The method of how to evict a tenant has changed, that’s it. That’s unless you want to evict good, rent-paying tenants for the sake of it; you won’t be able to do that!
Addressing your biggest concerns
Can I evict my tenants if I need to sell my property? Yes. You can now regain possession, after the tenancy has been in place 12 months or more, if you need to sell. But you don’t need to evict in order to sell; Homesure’s landlord-to-landlord sales service can help you offload a property you no longer want, even with a tenant in-situ. Get an expert service, a smooth sale, and keep receiving rent right up until completion! Want to discuss this? Book a call.
Tenants now need to be three months in arrears before landlords can serve an eviction notice. As long as you have good rent guarantee and legal protection insurance, you’re covered. So make sure you’re covered! We’ve put a lot of energy into making sure we offer the best protection on the market. Contact us for details, and to take advantage.
3. Rent increases limited to once a year
Serving a Section 13 notice once per year will be the only permitted way to raise rents.
No problem. This is Homesure’s process already, because it gives tenants the security of knowing what to expect and when to expect it.
4. Tenants can challenge rent increases
Tenants can use a first-tier tribunal service to appeal rent increases they think are unfair. As we said in the last point, Homesure tenants know the rent increase process. They’re expecting an incremental increase every year, and our landlords don’t charge unfair rents. On the rare occasion of a tenant appealing, the rent protection we recommend provides some legal cover.
If you want this kind of security, we’re here for you.
5 & 6. Decent Homes Standard established and Awaab’s Law introduced
Private rental homes must meet minimum standards, and landlords must follow strict timescales to address health hazards. If they don’t, landlords could face high fines and prosecution.
In short, it’s more important than ever that your properties are high standard, and your management is on-point. Penalties are higher for poor quality homes. If your properties aren’t poor quality, don’t worry.
You still need a paper trail, in case a tenant tries to manipulate a situation. Needless to say, Homesure has a comprehensive system in place, so this box is ticked.
7. Bidding wars banned
We have to advertise a fixed price, and can’t accept offers over that price. Not a big deal. Just means you might choose to set your advertised price a little higher.
8. Tenants have more freedom to request pets
And landlords can no longer require tenants to purchase insurance.
Honestly, the problem is never the pet, it’s the human looking after it! You know we work hard to find good tenants. That goes a long way to mitigating any risk, so don’t settle for less.
9. Digital database and property ombudsman set up
The database will provide transparency on landlord compliance. The property ombudsman will offer a resolution service to settle disputes without the need for court involvement.
These things are unlikely to impact anyone who already employs a reputable property management agent. We’ll follow developments, and report back if and when there’s anything you need to know.
10. Tenant discrimination banned
Landlords can’t refuse tenants just because they have children or are receiving benefits. Of course, they still have to pass affordability checks, so why would you?
If you have a question, chances are someone else is wondering that same thing.
Please get in touch with your queries. Then make sure you subscribe to our Off-Market Mailing list; we’ll include our responses to your questions in our weekly email.
