A lettings agent has set the cat amongst the pigeons by saying “professional landlords” do not oppose the Renters Reform Bill.
Dominic Murphy, managing director of DM & Co. Homes – an agency in the Midlands – says there has been what he calls “a lot of scaremongering” about the Bill, with “sensationalist commentators telling the world that it will result in landlords selling up in droves.”
He agrees that some landlords oppose the Bill, but says this did not include those who were “professional landlords”.
He adds: “Those who dislike the new legislation include ‘cowboy landlords’, those who exploit tenants by over-charging and frequently raising rents for what are over-crowded and low standard premises.
“[The legislation] might also present obstacles to what are known as ‘accidental landlords’, which can be people who have not planned to rent as a profession but who suddenly find themselves in situations where they need to rent. These can be individuals who have decided to let a deceased relative’s property while they decide what to do with it, or who want to wait for the market to pick up.
“Or it could people who’ve purchased a flat for a child at university who has since left and they are now renting it out. It could even be a single holiday property that they don’t really think of as a rental but which is on rental websites and generating an income, if only during holiday weeks.
“These ‘accidental landlords’ will find themselves equally liable to the new law as professional landlords, which means they will be expected to adhere to the same rules.
“That might be unfortunate for them, but in the round the Renters’ Rights Bill is positive for so many reasons for both tenants and landlords, and it should be welcomed.”
Murphy believes the new law will provide more certainty and fixed beneficial outcomes for professional landlords.
He continues: “Many professional property investors and landlords I’ve spoken to see this new legislation as overwhelmingly positive. For a start the reform will provide clearer regulations, with more structured guidelines, and this will reduce legal uncertainties for landlords as well as tenants.
“And while Section 21 ‘no-fault’ evictions will be abolished, the legislation actually provides a faster eviction process for tenants who fail to pay their rent.
“The legislation also expands grounds for possession under Section 8, allowing landlords to regain possession in specific circumstances, such as rent arrears, anti-social behaviour, or when they need to move in themselves or have family move in. This provides clearer criteria for regaining possession, potentially leading to more predictable and efficient processes for landlords.
“There will also be stronger lease agreements, with more standardised terms that will make it easier for landlords to enforce their rights.
“Other positives include extra incentives for landlords who improve their rental properties, such as tax benefits or grants, and stricter tenant screening rules will help landlords to ensure they are renting to more responsible tenants.
“The legal changes really are beneficial to landlords, including policies that should reduce rent arrears by requiring tenants to pay on time and offering better dispute resolution that should protect landlords from financial loss.
“Some of the reforms will also see stricter rules on property damage, holding tenants more accountable, and improved mediation services that should reduce lengthy legal battles by making dispute resolution faster and cheaper.
“Even new policies that some critics see as negative have a bright side, such as encouraging long-term tenancies by rewarding landlords who offer such leases, which also reduce turnover costs for landlords.”
This article is taken from Landlord Today