The Renters’ Rights Act is new legislation brought in by the Labour government. It aims to level the playing field in the rental market and make renting easier and fairer for tenants. This is the largest change to laws in the private rental sector in decades and is set to bring new challenges for landlords.
Many of the new rules brought in will affect landlords, for example, you will no longer be able to evict tenants using Section 21 notices.
There will also be limits on rent increases, stricter enforcements of property standards, you can no longer reject tenants having pets without a valid reason, and periodic tenancies will replace fixed-term tenancies.
Under the Renters’ Rights Act, you can only evict tenants with a valid reason using a Section 8 notice. This requires you to detail the legal grounds for the repossession (wanting to move in to or sell the property, rent arrears, property damage, etc.)
Yes, periodic tenancies will become the new standard tenancy type, replacing fixed-term tenancies which will be abolished.
Tenants will be able to leave the property at any time with two months notice.
The updates to possession grounds mean that tenants will need to be in at least three months of rent arrears before you can serve notice on mandatory grounds. The notice will then give an additional four week period before possession applications can be made to the Court.
Under the new rules, only one month’s rent can be taken in advance of the tenancy.
Although it isn’t a legal requirement, Rent Guarantee insurance can help reduce financial risks brought about by the new legislation.
As it will be more difficult to serve notice when tenants are in arrears, many landlords are looking to mitigate these risks with Rent Guarantee insurance.
You won’t definitely have to although it is more difficult to turn them down. You aren’t allowed to unreasonably say no to pets within specific timescales.
The new legislation is the most drastic change to the rules for landlords in the private rented sector in decades, so if you haven’t already, you should:
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