How Landlords Can Adapt to the Proposals Under the Renters’ Rights Bill in Bristol
The upcoming Renters’ Rights Bill has generated significant attention with its headline changes, such as the abolition of Section 21 and revisions to possession grounds. However, beyond these much-publicised reforms, there are several other important proposals under the Bill that landlords must prepare for. As the legislation heads into its second reading in the House of Commons, it’s crucial for landlords to not only stay informed but to also take steps to professionalise their approach and protect their interests.
Here, we take seven key proposals in the Bill, as examples, and provide practical advice on how landlords can navigate these changes effectively.
1. Periodic Tenancies: What This Means for You
Under the new Bill, all tenancies will become periodic by default, eliminating fixed-term contracts. This shift will apply immediately, with no moratorium for existing tenancies. Tenants will have the flexibility to give two months’ notice from day one, creating the potential for more frequent tenant turnovers.
For landlords, this makes tenant selection and understanding prospective tenants’ circumstances more critical than ever. It’s essential to take extra care during viewings, asking the right questions, and gathering comprehensive information. By thoroughly vetting tenants and building stronger relationships, landlords can avoid unnecessary turnover and maintain a steady stream of reliable tenants.
2. Pets: Balancing Tenant Rights with Property Protection
The Bill introduces a new provision that grants tenants the right to request permission to keep pets, with the stipulation that landlords cannot unreasonably refuse. Landlords will need to respond to pet requests in writing within 28 days, though they may request more information before making a decision.
Crucially, the Bill allows landlords to require tenants to obtain pet insurance or cover reasonable costs associated with any potential pet damage. This change amends the Tenant Fees Act 2019, allowing landlords to lawfully recover costs related to pet permissions.
To protect your property, ensure that you have a detailed, photo-documented inventory both before and after a tenancy. Clear communication with tenants about the responsibilities of keeping a pet is key to avoiding disputes or damage down the line.
3. Student Lettings: Challenges Ahead
One of the significant shifts under the Renters’ Rights Bill is the elimination of fixed terms for student lettings, which will now operate on a periodic basis from day one. This could present challenges for landlords who traditionally rely on set term lengths in the student rental market.
While various bodies are lobbying hard for an amendment, there is no guarantee that student landlords will receive special concessions. For now, landlords in this sector should keep an eye on developments and consider how they might adjust their operations if this change becomes permanent.
4. Rent Increases: Adapting to the New Tribunal System
Tenants will be able to challenge rent increases through a First Tier Tribunal under the new Bill, and there will be no backdating mechanism for any adjustments. If a tenant challenges a rent increase, it will only take effect from the date of the tribunal decision.
Landlords should consider implementing small, annual rent increases to keep rents aligned with market rates, rather than waiting for larger hikes that could invite challenges. Familiarise yourself with Section 13 notices, as this will be the only approved method for raising rents.
5. Decent Homes Standard: Ensuring Compliance
The Decent Homes Standard, which currently applies to social housing, will be extended to the private rental sector. This standard sets minimum requirements for property conditions, and landlords who fail to meet them may face penalties, including fines or prosecution.
To ensure compliance, conduct regular inspections and make any necessary repairs promptly. Being proactive about property maintenance not only helps meet the new standards but also improves tenant satisfaction and reduces turnover.
6. Awaab’s Law: Tackling Serious Housing Hazards
Following the tragic death of Awaab Ishak due to exposure to mould in his home, the Bill extends Awaab’s Law to the private rental sector. Landlords will now be required to address serious hazards, such as damp and mould, within a specified timeframe or risk legal action.
To comply, landlords must take mould and other housing hazards seriously, keep meticulous records, and work collaboratively with tenants to manage any issues. Make sure to conduct regular inspections and address problems promptly to avoid court proceedings.
7. Rent Repayment Orders: What You Need to Know
The Bill will also double the maximum Rent Repayment Order award (RRO) from 12 months to two years, whilst also giving tenants more time to bring a claim (also from 12 months to 2 years). Additionally, the new provisions will extend the application of RROs to superior landlords, potentially affecting those in rent-to-rent or subletting arrangements.
Landlords should be aware of the risks associated with RROs and the importance of maintaining compliance with all legal obligations. In some cities, like Bristol, tenants are being approached by third-party companies offering “no win, no fee” arrangements for challenges, so it’s essential to remain vigilant and to conduct full due diligence, including management experience and affordability of anyone that you are considering entering into a sub-letting arrangement with, as you, as the landlord will be ultimately responsible for tenant management and claims under the new Bill.
Final Thoughts
With the Renters’ Rights Bill set to enter its second reading on October 9th, landlords need to be ready for the significant changes it will bring. By adopting a proactive approach to tenant selection, property maintenance, and compliance with new regulations, landlords can protect themselves from potential pitfalls and continue to operate successfully in this evolving market. Staying informed and professionalising your processes will be key. We have our eyes on this one extremely closely – so watch this space!
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