Renters’ Rights Bill will swing the pendulum of power to tenants – so landlords need manage their property portfolios better than ever
By Helen Everritt, Manager, Gro Residential Management
The Renters’ Rights Bill which returns to Parliament next week - and is expected to be introduced later this year - includes many new measures which have been long overdue to provide better protection and security for thousands of residential lettings tenants.
These include the introduction of a Decent Homes Standard, deadlines being placed upon landlords to tackle dangerous conditions, and new laws being introduced to prevent unfair evictions.
This is a Bill which will effectively swing the pendulum of power away from landlords and into the palms of renters, who will no longer have to agree to fixed periods of tenancies, be allowed to give less notice when moving out, and be able to fall further behind on rental payments before a landlord can take action.
In my opinion, it will leave many landlords needing expert advice and support more than ever, as the way they set rental values, and how they deal with non-payment of rents, notice periods, tenancy agreements, and the overall management of portfolios will change for many.
For our team at Gro Residential, little will change in terms of supporting our clients.
Our process has long been focused on ensuring the highest standards of service, with portfolio management, tenant vetting, maintenance and repairs, value appraisals, rent reviews, refurbishments and rent collection credit control all part of the work we do for landlords.
However, for those who look after and manage their own property portfolios, the Bill will put new pressures upon them, and many will need to be more proactive if they are to reduce the risk of losing out.
Focus required to avoid paying a heavy price
Many landlords are going to have 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.
Finding reliable tenants has to be 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.
With many landlords often having a number of mortgages to be paid, few can afford to be left in this position, but it can be avoided by having processes in place to have good, reliable tenants.
Also, as fixed-term tenancies are being stopped, it will be imperative for landlords to have a good understanding of just how long each tenant is likely to stay – especially as they will only need only serve two months’ notice of leaving.
Ensuring the right rental value of properties will also be a must, as under the new reforms, landlords will only be allowed to raise their rents once a year, and tenants will have the right to challenge excessive increases via a Tribunal.
Market research can ensure rental prices reflect the market value of nearby, similar properties.
Finally, with new laws being introduced around evictions and the end of tenancies, landlords must plan ahead to effectively manage portfolios.
Tenants will need to be given four months’ notice, and landlords must keep in mind that they will not then be able to let that property again for 12 months (after the four months’ notice period) – or risk being handed a £7,000 fine.
Therefore, taking a property off the rental market to sell has to be done at the right time, or once again, an empty property could be left on their hands.
The message is clear. The Renters’ Rights Bill could be a game changer, and landlords who fail to plan and strategically manage their property portfolios, could pay a heavy price.
