The Renters’ Rights Bill is coming, and it’s time to get your ducks in a row. This new bill aims to overhaul the private rental market and while it’s not going to come into effect overnight, it will eventually change how you do business. Writing in The Telegraph, “The Secret Landlord” shared some tips for coping with the changes.

Here’s what you need to know:

The Big One: Section 21’s Demise

Get ready for a world without Section 21. This means no more evicting tenants without a good reason. While this might seem like a nightmare for some, it’s a move towards fairness and stability for tenants, and for most landlords, it’s just a change in how you manage your properties.

What does this mean for you?

• No more “no fault” evictions. You can only evict for specific reasons, like rent arrears, wanting to move back into the property, or selling the property.
• The old Section 21 notices still hold weight. If you’ve already served one, it’s valid until it expires.

New Rules for Selling or Moving In

The bill proposes a “landlord circumstance” ground for gaining possession. This means if you need to sell your property or move in yourself (or a family member), you can apply for possession.

• There’s a 12-month waiting period. You can’t use this ground in the first year of a tenancy.
• Give four months’ notice. The tenant needs a heads-up to find somewhere else to live.
• No immediate sale. You can’t market the property for 12 months after the notice expires or the court claim is filed.

The End of Fixed-Term Tenancies

Say goodbye to those predictable six-month leases. Tenancies will now be periodic, meaning they roll on indefinitely until either the tenant or landlord gives notice.

What this means for you:

• More flexibility. You won’t be locked into fixed terms.
• Uncertainty for short-term rentals. This might affect the student market and short-term let sector, which rely on fixed-term tenancies.
• Two months’ notice required. Tenants can leave with two months’ notice at any time, making it a bit easier to predict turnover.

New Rules on Rent Arrears

• The clock’s ticking. You can’t evict for possession until after three months of unpaid rent (previously two months).
• Guarantors are gold. Tenants with working guarantors are still a good bet, and rent guarantee insurance is worth considering.

Decent Homes Standards: Get Up to Speed

Most landlords are already following decent homes standards, but the bill will beef up the enforcement.

• Fast action on damp and mould. You’ll have just 14 days to address reported issues, thanks to “Awaab’s Law”, which was first introduced in social housing.
• Keep records. Keep photographic evidence of repairs and communication to avoid problems later.
• Invest in ventilation. Mechanical ventilation could become a necessity, so it’s wise to start thinking about how you’ll address this.

Rent Increases: A New Approach

• Two months’ notice required. You must give your tenant two months’ notice (previously one month) before increasing the rent.
• One increase per year. You can only increase rent once a year.
• No bidding wars. Rent must be set upfront, and no “offers over” will be allowed.
• The tribunal can’t go higher. The property tribunal, if involved in a dispute, can’t increase the rent beyond your proposed amount.

Pets, Children, and Benefits: No Discrimination

• Pets are allowed. Landlords cannot blanket refuse tenants who want to keep a pet, but there may be exceptions for properties that are unsuitable for pets, and for leasehold properties with restrictions.
• No more discrimination. It’s illegal to refuse tenants with children or those receiving benefits.

The Bottom Line

The Renters’ Rights Bill is a significant shift in the landscape of private renting. While it presents some challenges, it’s a good time to adapt and embrace these changes.

If you’re a good landlord, who intends to stay in the market long-term, you can adjust and make these changes work for you. Keep up to date with the legislation and prepare for the future, and you’ll be well-positioned to continue succeeding in this evolving market.