Renters’ Reform: Why Strict Tenant Referencing and Knowledgeable Letting Agents Matter More Than Ever
The rental market in the UK is on the cusp of significant change, thanks to the proposed Renters’ Reform Bill. The changes, aimed at providing greater security and fairness to tenants, also raise new challenges for landlords. As a result, the role of letting agents in selecting the right tenant and staying informed of regulatory shifts is becoming even more crucial.
What Is the Renters’ Reform Bill?
The Renters’ Reform Bill, introduced by the UK government, aims to overhaul the rental sector with the following key changes:
- Abolition of Section 21 (“no-fault” evictions): Landlords will no longer be able to evict tenants without providing a valid reason.
- Reformation of Section 8: More robust grounds for possession will be introduced. Landlords will still be able to reclaim properties for specific reasons (such as rent arrears or property damage), yet changes will be implemented to ensure it is fairer for both parties.
- Periodic Tenancies: All tenancies will be periodic, meaning tenants will no longer be locked into fixed-term contracts and will have more flexibility.
These changes aim to provide tenants with greater stability, and landlords will need to jump through more legal hoops to regain possession of their property.
The Impact on Landlords and Letting Agents
While the proposed bill brings welcome protections for tenants, it poses a new set of challenges for landlords. The removal of Section 21 makes it more difficult to evict problematic tenants. Therefore, ensuring that the right tenant is chosen from the start becomes even more critical. This is where the expertise of a letting agent is invaluable.
In a post-Renters’ Reform landscape, landlords can’t afford to take risks when it comes to tenant selection. With the abolition of “no-fault” evictions, removing a tenant for reasons such as consistently late payments, antisocial behaviour, or property damage will require a more complicated legal process.
A professional letting agent will conduct thorough tenant referencing, which includes:
- Credit checks: To assess the financial stability of a prospective tenant and their ability to meet rent payments.
- Employment verification: To ensure the tenant has a reliable income stream.
- Previous landlord references: To check for any history of late payments, property damage, or antisocial behaviour.
- Right-to-rent checks: Ensuring the tenant is legally allowed to rent in the UK.
Understanding and adapting to ongoing changes in legislation is essential for landlords. However, keeping up with evolving regulations can be time-consuming and complex. This is where a knowledgeable letting agent becomes indispensable.
In addition to finding and securing the best tenant, as well as drafting the tenancy agreement that protects the landlord’s interests and complies with legislation, a letting agent that has been instructed on full management terms will also do the following (including, but not limited to):
- Stay up-to-date with legislative changes: Keeping landlords informed of how new laws affect their property rights and responsibilities.
- Advise on compliance: Ensuring properties meet the required legal standards, from energy efficiency regulations to tenant safety.
- Guide through dispute processes: Should any issues arise with tenants, a well-informed agent can navigate the legal frameworks effectively, helping to mitigate risks and costs.
As the Renters’ Reform Bill evolves, having a letting agent who fully understands the intricacies of the new legal landscape will help landlords avoid costly mistakes.
Why Now Is the Time to Invest in a Professional Letting Agent
As these reforms take shape, now is the time to ensure you have a trusted and experienced letting agent who can guide you through this period of change. Tenancies being agreed now, need to be done so with Renters Reform Bill in mind, as they will be active during a period of change. Whether you’re a seasoned landlord or new to the property market, the right agent will be your greatest ally in safeguarding your investment.
The DOMVS lettings team is closely monitoring these changes and will ensure that all managed tenancies benefit from our expert guidance. With our proactive approach, we keep landlords, tenants, and properties protected, offering peace of mind in an evolving rental market.
