Renters Rights Bill (RRB) – Be Prepared!

Renters Rights Bill (RRB) – Be Prepared!

A lot has been written about the RRB and it is fair to say that this piece of legislation will fundamentally change the way that landlords and agents look at and work within the PRS (Private rental Sector). For many good landlords who are doing most of the things that the government see as important in this Bill, it will be more a case of adapting rather than wholesale change. It will be worthwhile for all landlords to be aware of what the Bill covers and to have an understanding of how it will affect them and their property. The key will be in being prepared before it becomes law.

It is still uncertain when the Bill will get Royal Assent, but the feeling is leaning towards the Autumn and becoming law some six months afterwards – early 2026. It still could be this summer but the clock is ticking down towards the parliamentary Summer Recess, which will push any Bills still in transit, into the autumn. It is a major bill, so keep an eye out for any new announcements and take professional advice for clarification.

Preparation can mean many things to many people, but here is a very brief guide of what landlords can do to be ready for the Bill becoming an Act. A lot of the details will follow Royal Assent and will probably be installed via secondary legislation. This hopefully will give all sides of the PRS the time to make sure that everything, including any guides, are in place for a smooth transition. Things to do:

1. Review the portfolio – are any properties too risky to keep, either in relation to the RRB or the new and future EPC (Energy Performance Certificates) guidelines. If it will cost too much to improve them to the future standards, now is a good time to sell and reinvest in more easily manageable property. Many landlords are either reducing their portfolio or expanding it by buying older properties from exiting landlords and taking the opportunity to do all of the improvement/conversion work whilst the properties are empty.
2. Assess the standard of the current portfolio; are all the properties “fit for purpose”? If they are, are there any future maintenance issues that will be required and if not, what might need doing and in what timescale? The incoming Decent Home Standard should not be too onerous for most landlords, but expect to have to be proactive rather than reactive to issues.
3. Check all maintenance schedules, visit all of the properties, decide if any work is required and organise it accordingly.
4. Review all current agreements and make sure they are up to date in readiness for the change from the current fixed/contractual periodic tenancies to the new statutory periodic tenancies that will supersede them.
5. Objectively assess the current tenancies and make sure there are no outstanding or potential issues – if there are, what is the income risk to the portfolio? It might be worth a serious conversation with the current tenants to try to get a resolution to the issue, or worst-case scenario consider changing tenants whilst a Section 21 is still available.
6. Review the rents and proposed future rises. Do the homework and seek out comparable properties to make sure the rent is in line with what is required or current market values. Once the RRB becomes law, obtaining a significant rent increase could be more difficult and will be open to being challenged by the tenants. Two moderate increases will be a lot more palatable than one large increase. The RRB will certainly make rents more expensive, so plan accordingly.
7. Check the reference procedures and make sure the right tenants are in situ both now and in the future – any increased risk will impede the business model that will be needed to organise these changes.
8. Be aware of the advertising methods that are currently used – will they be legal once the RRB comes in? Put additional procedures in place to make sure that the rent advertised is the top figure that can be accepted, and no one accepts higher or encourages rental bidding. Similarly, be very aware of any possibility of blanked discrimination in adverts.
9. Formulate a fair method of assessment for all new potential tenants and make sure it is legal and transparent, so as to avoid future discrimination claims by tenants who miss out! Affordability is the most obvious route to choosing the right tenant but do not prevent everyone from viewing as the choice will need to be made after seeing the property, otherwise it could be open to a charge of discrimination.
10. Make sure there is a robust and fair complaints policy that can cover all issues should they be raised by a tenant – communication and swift response times will be essential for compliance with the RRB.
11. Investigate the most suitable Rent Guarantee and Legal cost insurance providers and register with them. If something beyond the landlord`s control goes wrong, it is comforting to know that an insurance scheme is in place. The notice periods are going to be extended and the court process is likely to be congested with the increased volume, which will inevitably lead to time delays in getting a court hearing and ultimately a possession order.
12. Keep an eye on Government Notices as the time for the Bill to receive Royal Assent gets closer, because some of the more exact wording will only become clear once the Act becomes law.

There are a lot of changes to understand in the RRB, but many will already be being done and the processes will just need tweaking. Wales has undergone similar significant changes in the last few years and there is still a strong rental market. From a rental point of view, for those Landlords that are committed to the future, then, this is a good time to sit tight or consider expanding the portfolio for the “right properties”! The property shortage, the inability to build enough new homes and the population demographics, scream that there are and will be for many years, far more tenants than properties available.

Choosing the right property in a desired location, the right tenant who can pass referencing as well as the landlord acting in a professional manner will be the main requirements for a successful long term tenancy that will be compliant with the new rules when they become law. For many, the RRB will be an opportunity to prove how business like landlords can be and will enable this cottage industry to thrive into the future!