Landlords: How Should You Be Preparing For The Renters Reform Bill?

Mark ShiptonAdvice & tips, Landlord news

The Renters Reform Bill is still in the House of Commons stage of the process. 

Though the Bill has not yet been passed, we understand that the changes within it will be revolutionary for the private rental sector. We are, therefore, advising all our clients and contacts to educate themselves on it now so they can be totally prepared when it gets Royal Assent. 

WHERE THINGS STAND 

The Renters Reform Bill was analysed and debated at the Committee Stage on 28th November, and its amendments were considered.   

However, progress on the Bill has since stalled. This is mainly due to concerns raised by backbenchers within the Conservative Party about several aspects of the proposed reforms. 

Worries include the impact of abolishing section 21 (no-fault eviction) without adequate readiness in the court system to handle the potential increase in section 8 hearings.

Additionally, there are reservations about allowing tenants to terminate their tenancy at the end of the second month, which could lead to tenancies resembling short-term lets. 

Lastly, there’s debate surrounding whether selective licensing would still be necessary once the Property Portal is operational.

Because of these concerns, the Bill has remained at a standstill since the Committee Stage.  This is despite assurances from Michael Gove on 11th February that Section 21 would be “outlawed” by the General Election.  

THERE ARE ACTIONS YOU CAN TAKE TO GET READY FOR IT 

As a Propertymark Agent, we are kept up to date with progress on the Bill, and we’re here to help you.  In the meantime, can we suggest that you do the following: 

Understand the Bill: Begin by thoroughly understanding the provisions of the Renters Reform Bill. This includes studying the proposed changes to rental laws, regulations and tenant rights. Understand what aspects may affect your type of property or tenancy. 

Assess your current practices: Evaluate your current rental practices, policies and tenancy agreements in light of the proposed reforms. Identify areas that may need to be adjusted to comply with the new requirements or to address potential challenges posed by the Bill.

Review tenancy agreements and head leases: Review and update your tenancy agreements to ensure they align with the requirements of the Renters Reform Bill. Pay particular attention to clauses related to rent increases, eviction procedures, security deposits, pets and tenant rights. Also, check your Head lease for restrictions on pet keeping.

Join industry associations: Consider joining industry associations such as the NLRA. These associations can provide support, resources and representation in advocacy efforts related to the Renters Reform Bill. They can also keep you informed about legislative developments and best practices for landlords.

Prepare for financial implications: Assess the financial impact of the Renters Reform Bill for your rental business. This may include budgeting for potential changes in rental income, compliance-related expenses or adjustments to eviction procedures. It’s best to err on the side of caution so you’re cushioned from the impact this Bill might bring. 

Communicate with tenants: Proactively communicate with your tenants about the Renters Reform Bill and any changes that may affect their tenancy. Be transparent about how the new legislation will impact them and address any concerns they may have.  We’d suggest doing this sooner rather than later. 

Consider professional property management: If managing rental properties becomes more complex or time-consuming due to the Renters Reform Bill, consider hiring a professional property management company. Property managers can help navigate legal requirements, handle tenant relations and ensure compliance with the new regulations. This can be a massive weight off your mind and can prevent you from making costly, stressful and time-consuming errors that can be easily avoided. 

As with everything in business, it’s crucial now more than ever to stay flexible and adapt. 

You may need to be prepared to adjust your rental business strategies and practices so you can comply with the Renters Reform Bill. Staying flexible and responsive to changes in the regulatory environment and tenant preferences will enable you to maintain a successful rental business now and in the future. 

This is a worrying time for landlords, and, as always, we’re here to help you and on your side.  If you ever want a friendly chat or some advice, please give us a call on 020 8605 1300.

“Grace Miller is an excellent property management company. They were extremely helpful and prompt at dealing with enquiries, both from me and our tenants. They also worked to keep costs down, always finding the best available price.”

Victoria B.

Since opening Grace Miller & Co. in 2000, we’ve given all our clients proactive, professional and personable care. We’re very proud of the reputation we’ve built and the client reviews we’ve received. If you have a property in London or Surrey and would like to benefit from our outstanding service and unrivalled knowledge in residential lettings, sales and block and estate management, please contact us today