The Renters’ Rights Bill is currently a hot topic in the property management sector, sparking various myths and misinformation.
In this article, we’ll address three of the most common questions landlords are asking.
Will I Be Able to Evict Tenants if Necessary?
Yes, but only under specific circumstances.
Under the new legislation, all tenancies will transition to periodic tenancies, eliminating fixed-term shorthold tenancies as we know them. This means tenants will have the right to remain in the property for as long as they choose.
However, if tenants breach their tenancy agreement—such as causing significant damage to the property or falling into serious rent arrears—eviction will still be possible. In fact, the process is expected to be more efficient than it is currently.
It’s important to note that no-fault evictions, often referred to as Section 21 evictions, will no longer be an option. These are situations where a tenant has not violated the terms of their tenancy, yet the landlord wishes to regain possession of the property for personal reasons.
That said, you will still be able to evict tenants if you intend to sell the property or move in yourself. Given these changes, it will be crucial to select and retain quality tenants—something a professional property manager can assist you with.
Will I Be Able to Increase the Rent? (Are There Rent Controls?)
You will have the ability to increase the rent up to current market levels once per year during a tenancy. Tenants will have the option to contest any increases that exceed this threshold. Between tenancies, you can adjust the rent as needed.
This may lead to a shift in how landlords approach rent increases; many may choose to raise rents to the maximum allowed annually, rather than refraining from increases as has often been the case.
Ultimately, the decision will rest with each landlord, but an experienced property manager can provide valuable insights and guidance.
Is Being a Landlord Still Worthwhile?
While it’s true that more regulations may come into play, there could be some positive aspects to consider.
If some landlords exit the market, this could create lower supply in the face of high demand, potentially driving rents higher. For those who remain, this could translate to better returns on investment.
Therefore, it can still be worthwhile to be a landlord, provided you stay well-organised. A reliable property manager can help navigate these changes and manage your properties effectively.
Important Note
The Renters’ Rights Bill is still in the proposal stage and has not yet been enacted into law. Expect potential amendments and updates in the coming months.
Stay tuned for further developments, and we will keep you informed as the situation evolves.
If you know other landlords who might find this information beneficial, feel free to share this article with them.
