With the new Renters’ Rights Bill coming into force this year (the date has yet to be specified), there are a number of significant changes that will impact landlords.
Two of the most significant items will be the introduction of a new landlord register (the Private Rented Sector Database), and the Landlord Ombudsman Service. The goal of both will be to formalise private lettings, ensure clear and enforceable standards, and provide transparent guidelines for both landlords and tenants.
In this article we explain what the Private Rented Sector Database and the Landlord Ombudsman Service will be, what they will do, and how landlords can prepare and get everything in order. For more information on the Renters’ Rights Bill, you can also look at our landlord's introductory guide.
Read our landlord's introductory guide to the Renters’ Rights Bill - here
When you take the Bill in the round, what's changing for landlords is that clearer and more defined standards and processes are coming into place around the condition of the property, contract details, and the way tenants and landlords interact.
The Private Rented Sector Database and the Landlord Ombudsman Service are both going to be set up to help with that, by providing go-to bodies for information, by helping to settle disputes, and enforcing rules.
While some might find it a bit of a headache in the initial instance, the whole purpose of the Bill is really to be helpful. Although many of its benefits focus on protecting tenants, they also help to support good landlords and to make sure that those who are doing things properly are not undercut by those who aren't.
The Private Rented Sector Database will be a new national landlord register implemented by the Bill. Once it comes into being, landlords must register themselves and their property before they market it, in order to be eligible to let. The intention is to provide a single place where landlords can find guidance, show compliance, or find out about any new changes. For tenants it will provide information and transparency, as well as clarity about when they can take action to enforce their rights.
The Landlord Ombudsman Service will be designed to help resolve disputes between landlords and tenants. By law, all private landlords in England will have to join the Ombudsman service before marketing their property for letting. The service will be the go-to place for tenants to make a complaint, while providing landlords with guidance, as well as quick and binding resolutions to any issues.
The Bill as a whole will be about improving housing standards, fairness and security for renters. It comes off the back of stories like two-year-old Awaab Ishak, who died due to exposure to damp and mould in his home, as well as a rise in homelessness resulting from no-fault evictions. In many ways, this Bill will bring the private rental sector regulations in line with those already in place for social housing.
Both The Landlord Ombudsman Service and The Private Rented Sector Database will be about making sure people don't just pay lip service to the details set out in the Bill. Instead, they will be there to provide practical steps towards implementation and enforcement of the rules amongst landlords, tenants, and letting agents.
In the initial instance, The Landlord Ombudsman Service will help to resolve disputes by making the rules much clearer from the outset, so it's more apparent if or when someone is in breach of them.
A significant part of its role will then be acting as the go-to destination for resolving disputes, where an agreement between a landlord and tenant can't be reached privately.
● That will start with encouraging the issue to be addressed at a local level.
● The next step will be to offer mediation, and in some instances it might make recommendations about how to resolve the challenge.
● If mediation does not work, the Ombudsman will be able to investigate the complaint further, assess the situation, and ultimately make binding decisions where necessary.
● If it is found that the landlord is in breach of the rules, or has not acted fairly and reasonably, the Ombudsman will have the power to issue orders to pay compensation, and complete repairs or property updates.
● If landlords fail to comply with Ombudsman decisions they may be expelled from the Private Rented Sector Landlord Ombudsman scheme (which would mean they are no longer eligible to let the property). Landlords may also find that this is followed by possible fines and penalties from the local council. These penalties may include:
● A civil penalty of up to £7,000 for initial or minor non-compliance
● A civil penalty of up to £40,000 for serious, persistent, or repeat non-compliance
● Serious, persistent or repeat non-compliance may also lead to a criminal prosecution
● Private Rent repayment orders (RROs) may also mean tenants can seek repayment of rent from their landlord if they don't comply with the Renters’ Rights Bill
While there has been a certain amount of anxiety caused by the Renters’ Rights Bill already, it's rooted in good intentions that most landlords will either already be honouring or want to adhere to. Therefore, much of the process will be about documenting what you're doing to make sure all the I's are dotted and T's are crossed.
An experienced letting agency will make sure that these rules and regulations are written into their own processes. So, whether you're a new or existing landlord, they should help answer questions, as well as offer guidance and support to make sure you and your property are acting in accordance with the rules.
We certainly do all of this at Chestertons, where we also have a property management team and a full-time compliance department to make sure we are not only fully informed, but we are also in a position to support you in making sure your property meets and exceeds expectations.
As a starting point to make sure you comply with the rules and stay compliant, we suggestive following checklist:
● Register with the Private Rented Sector Landlord Ombudsman Service when it is established
● Register the landlord and property with the new Private Rented Sector Database when it is established
● Consider landlord insurance
● Check that the property meets the requirements of the renewed Decent Homes Standard (DHS), make a list of any required updates and repairs, and make sure you follow them through
● Gather all essential documentation including Gas Safety Certificates, Energy Performance Certificates (EPCs), and electrical compliance reports (EICRs) and update where necessary
● Review tenancy agreements to ensure they meet the new requirements and update where necessary
● Keep a digital and printed, organised and up-to-date record of all communications between yourself, your agent, your tenant, and any other relevant parties
● Familiarise yourself with the updated notice procedures, new grounds for possession, as well as complaint and dispute resolution processes
● Make sure your notice procedures are up to date
● Take time to read the Renters’ Rights Bill yourself and discuss any questions with your letting agent: https://bills.parliament.uk/bills/3764
● Work with a letting agent you trust, with the size and scope of services to support the requirements for you and your property
● Read and review your documents annually
● Put procedures in place to maintain key aspects of the property on an annual basis or in accordance with requirements (gas and electrical certificates, for example)
● Make sure you read any updates issued by the new Private Rented Sector Database when it is established
Chestertons is the premier London lettings and estate agency with more than 200 years’ experience and a team of experts offering a range of services from a full-time compliance department to valuations and management, for both long- and short-term lets. If you would like to find out more about working with Chestertons contact your local Chestertons letting agent at any time.
Contact your local Chestertons letting agent - here