The Renters’ Rights Act starts in days. Is your agency compliant?

1 May brings the biggest private rented sector rules changes in 40 years. If your agency’s processes aren’t up to date yet, there’s only a week left to prepare.

Starting on 1 May:

• All assured shorthold tenancies will be converted into assured periodic tenancies (APTs), removing fixed terms and allowing tenants to end the tenancy with two months’ notice

• Section 21 “no-fault” evictions will no longer be an option and all evictions will have to go through the Section 8 process – but eviction proceedings that are already in flight can go ahead until the end of July

• Landlords won’t be allowed to accept rental offers higher than the advertised rent, or ask for more than one month’s rent in advance

• Rent increases will be limited to once a year and will have to go through the formal Section 13 process, which tenants can challenge at the First-tier Tribunal

• Tenants will have the right to ask to keep a pet, and landlords can’t unreasonably refuse

Agencies will also have to send tenants an official Renters’ Rights Act Information Sheet by 31 May, either digitally or in print, or face fines of up to £7,000.

Getting ready for Renters’ Rights

The Renters’ Rights Act is expected to make already-stretched eviction processes longer. Propertymark said last month that the average possession process now takes 68 weeks, and members of the House of Lords have warned that courts won’t be ready for the extra workload next month.  

As a result, landlords may be rushing to get evictions completed before May. According to a survey by house sharing site SpareRoom, 11% of tenants were either evicted or received an eviction notice in the six months since the Renters’ Rights Act got royal assent. Of those, 9% said they had been told it was because of the Act or other regulatory changes, while 43% said it was because the landlord was selling – possibly due to the new rental rules.

Specialist lender Pepper Money also predicts that 220,000 rented homes will leave the private rented sector by the end of the year – 65,000 of them due to the Renters’ Rights Act.

For agents, the Act can be an opportunity to offer value-added services – but also adds to their compliance workload. Landlords may need extra help with gathering evidence for eviction proceedings in court, setting market-led rent increases that can withstand challenge, and getting the legally required paperwork to tenants in time.

We’ve put together a checklist to complete in time for 1 May, which also includes tips for managing rent increases, evictions and more.

For more on adapting to the Renters’ Rights Act, visit Reapit’s Renters’ Rights Act hub. Our resources will help you understand your new obligations and find business opportunities in the new legislation.  

Reapit and PayProp are already updating workflows and documentation to reflect the new rules, so you can focus on advising clients with confidence.