How you choose to manage your rental property might have previously been decided by the savings of doing it yourself, versus the convenience of having an agent handle the process for you. For many, especially those with only one property, the choice may have been to manage it yourself.
But with so many changes to the renting process imminent under the Renters’ Rights Act, now could be a good time to review whether that strategy is still right for you. The legal and compliance risks, as well as the need to ensure effective tenant management and optimise the financial performance of your property, could mean that you need more help.
Complying with the Renters’ Rights Act legislation
The changes contained within the Renters’ Rights Act are the most significant in more than three decades. As such, it will take time for tenants to adjust, and they are likely to have questions. Do you have the time to deal with them as the new obligations come into place and are you confident that you have all the answers?
You are also likely to have your own questions. Do you have the time to research the answers, or would you prefer the peace of mind of knowing an expert has them to hand and is ready to manage the new compliance obligations for you?
There will be a host of procedural changes to comply with. These range from issuing tenants with a government-issued information sheet to update existing tenancy agreements, to ensuring you are aware of the possession grounds that will apply from May 1, to how you raise rents and who you must allow in your property without discrimination.
This isn’t just about top-line compliance either. Much of the new legislation is dependent on certain caveats in processes and procedures. Grounds for possession or rent increases, for example, must be supported by proper associated evidence, while the relevant notice periods must also be adhered to.
Stricter tenant vetting
The abolition of section 21, in conjunction with the shift to periodic tenancies, will make tenant vetting even more crucial. Although you will still be able to evict when the tenant is at fault, other grounds for possession will be more limited, largely restricted to you moving in or selling the property.
Both require four months’ notice and must follow an initial 12-month protected period at the beginning of the tenancy. The notice period for eviction for rental arrears and the mandatory threshold for eviction have also increased.
Building tenant relationships
The aim of the new legislation is to encourage tenants to stay longer in their properties, putting down roots in the communities they live in. Building solid tenant relationships will be key to a harmonious partnership, especially if tenants are choosing to stay longer. Regular inspections will help identify any potential issues or niggles that could cause problems later. Resolving them quickly will keep tenants happy and avoid civil penalties or prosecution for non-compliance.
How a managed service could help
Managing these changes will be time-consuming for individual landlords who must understand and implement the new requirements while juggling their portfolios or other roles.
It can make an agent’s managed services offer even more appealing. A managed service covers these important basics, ensuring quality tenant sourcing and reference checks, regular inspections that enable effective property maintenance and rent collection that takes the headache out of chasing for late payments.
Importantly, it also ensures compliance with safety and legal requirements, reducing the risk of non-compliance fines and prosecution which are such a major part of the new Renters’ Rights Act. And it enables professional handling of complaints, helping to resolve disputes before they might escalate to the ombudsman or court, avoiding penalties and increasing the likelihood of retaining your tenants and your reputation.
For more information on how we can assist you on your lettings journey, please contact one of our branches in Essex, London or Hertfordshire today. We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.
