The new Renters Rights Bill, replacing the Renters Reform Bill, introduces more tenant-friendly rules which landlord ought to be aware. While it may seem daunting, responsible landlords who follow legal guidelines and choose tenants wisely should be fine. Here are three essential tips:
- Be cautious of ‘Rent to Rent’ Deals
The new law reverses a key ruling, meaning landlords could be liable for rent repayment orders even if their tenant sublets without permission. To avoid penalties, take caution before getting into “rent to rent” arrangements and review your existing arrangements before the new law takes effect. Landlords may wish to carryout extra due diligence that any tenant who intends to rent the property follows the correct laws and regulations to avoid the risk of a rent repayment order being made.
- Regular Rent Reviews
Bring your rent up to market levels and establish a habit of small, annual increases. The new bill limits rent hikes to once per year, so make sure you’re adjusting to cover costs and inflation. You may also wish to make it clear the basis of annual rent increases to your tenants.
- Act Now on Section 21 Evictions
Section 21 evictions are likely to be phased out by summer 2025. If you are thinking of recovering your property, you may wish to serve a Section 21 Notice. Start immediately and consider hiring a solicitor who specialises in landlord-tenant law.
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