A series of U-turns in the Renters Rights Bill over covering the cost of pet protection for landlords, is leaving the industry in limbo, it’s being claimed.
The Bill puts an end to blanket ‘no pets’ clauses on rented homes, meaning landlords will be required to accept animals into their properties unless they can provide a valid reason for refusal.
Despite this, there remains general agreement that landlords still need protection against the potential cost of repairing damage caused by pets, which has led to a frantic search for a workable solution.
Initially it was suggested that landlords should be able to insist tenants obtain pet insurance. But then, during parliamentary debate, it was decided that tenants should not be expected to pay for pet insurance, leaving landlords exposed once more.
Now another u-turn has occurred to introduce a proposed amendment that states that landlords can insist on a so-called pet deposit, capped at three weeks worth of rent.
Many of thew twists in the saga happened during the later stages of the Bill’s progress through the House of Lords – so when the proposals return to the House of Commons, next week, they may not even be accepted.
Sián Hemming-Metcalfe, operations director at Inventory Base, comments: “Even if this new amendment does pass, we lack absolute clarity about where the deposit money will come from. Can we be sure that the three-week pet deposit won’t be taken from the standard five-week security deposit? Because if it is, it renders the new pet-deposit non-existent in anything other than rhetoric.
“If, on the other hand, landlords will be able to charge the pet deposit on top of the security deposit, it raises big questions around affordability. After all, the security deposit is being capped at the value of five-weeks rent because that’s how much it has been deemed tenants can afford. So if we start adding another three weeks on top, does it not become unaffordable?”
She says the main stakeholders- Propertymark, deposit services, ombudsman and inventory professionals – “all need to work together as agents, landlords, and tenants all need clarity on how risk will be managed, disputes handled, and evidence evaluated. If the industry wants pet-friendly tenancies to succeed, the solution has to be practical, credible, and based on how damage is actually documented and adjudicated today. In order to avoid the creation of a bad law, it’s time for the sector to create a workable framework that protects everyone involved.”
In the meantime she advises that with legal recourse and risk management options very much up in the air, landlords should protect themselves against pet damage by making proactive adjustments to their processes. Practical steps include:
• Reviewing and updating tenancy agreements to reflect the new legal framework;
• Including guidance documents outlining acceptable reasons for pet refusals;
• Scheduling more frequent inspections for properties with pets;
• Considering modest rent increases to offset potential pet-related damage;
• Keeping detailed records of tenant requests, refusals (with reasons), and all property issues related to pets.
This article is taken from Landlord Today