Landlords, Are You Ready? What Landlords Need to Know About the Renters (Reform) Bill.

Photo by josue Verdejo

As the Renters (Reform) Bill makes its way through parliament, landlords in England are bracing themselves for significant changes in how they rent out their properties. While the specifics of the legislation are still being debated, it is clear that several measures will soon become a reality, impacting millions of property owners across the country.

The proposed bill aims to introduce several key changes to the rental sector. Here’s a breakdown of what the bill plans to do:

Scrapping Section 21 ‘No Fault’ Evictions

One of the major changes proposed in the bill is the scrapping of Section 21 ‘no fault’ evictions. This can make it harder for the landlord to evict a sitting tenant in various circumstances such as the landlord has found new tenants who are, for whatever reason, preferable to the current sitting tenant.

In place of Section 21 the bill aims to strengthen Section 8 with new grounds for landlords to invoke it. Landlords will now be able to utilise this provision if they intend to sell the property or accommodate their family members in the rental unit. This option becomes available once a tenant has resided in the property for a minimum of six months.

Making it Illegal to Discriminate Against Tenants

The bill seeks to make it illegal for landlords and agents to refuse to rent properties to people who receive benefits or have children.

A ‘Pets with Lets’ Policy: One change landlords will face is related to allowing pets in rental properties. The new legislation is expected to address this issue, potentially altering the rules around pets in tenancies. Landlords will have to have a good reason for refusing pets although they will be able to insist on pet insurance to cover any damage.

Creation of a National Landlord Register

Another key aspect of the bill is the creation of a national landlord register through a new property portal. This register will provide renters with all the necessary information they need to make an informed choice before entering into a tenancy agreement. It will enhance transparency in the rental sector and empower tenants to make better decisions.

This all sounds very weighted towards the tenant. Does the landlord have any rights at all?

While the abolition of “No Fault” evictions present a new set of problematic scenarios for the property owner, one such benefit the Bill aims to provide is to streamline the process of evicting anti-social tenants and tenants who fail to pay the rent. It intends to expand the criteria for eviction, making it easier for landlords to take action against problematic tenants as well as speeding up the whole process of eviction. Take heed though, knowing how this new system will work is crucial to its success as a benefit to the landlord.

The Government’s initiative is to address the issue of criminal landlords within the rental property sector. Its primary objective is to drive poor landlords out of the market by preventing them from renting out properties again once a finding has been made against them. This measure is aimed at improving the overall quality and safety of rental properties and remove bad quality landlords that would otherwise compete on an uneven playing field, lowering perceived competitive rental rates unfairly.

What do I need to do as a Landlord?

As per the proposed new regulations, landlords must ensure that their properties are in a satisfactory condition, undergo regular inspections, and are well maintained. It is crucial to have all relevant licences and safety certificates in place. Failure to comply may lead to tenant complaints being referred to the Ombudsman more promptly.

One easy way to navigate these new requirements is to hand that aspect over to a property management company. It’s their job to keep on top of regulations, property maintenance, handling rent collection, bad tenant evictions, sourcing new tenants and the general running of the property.

A good property management company will even find ways to improve rental yields on what you are currently receiving which means you may not even feel the cost of their services at all.