Renters' Rights Act FAQs: Discrimination, advertising and referencing
With the implementation of the Renters’ Rights Act just weeks away, our latest exclusive member webinar shines a light on new rules on discrimination, advertising and referencing.
Looking at the existing laws and how they will change, we answered questions on everything from deposits and benefits payments to insurance policies.
And while most of the new rules being introduced under the Renters’ Rights Act apply to England only, the new rules banning discrimination against tenants with children, or those in receipt of benefits will come into force in Wales on 1st June this year.
Landlords will need to inform their tenants of the change by either issuing a new occupation contract or a statement of variation.
The statement can be served up to 14 days after the new rules come in and will be available to download from the NRLA website. Here we share some of your most frequently asked questions – and if you missed the webinar, you can watch it back here.
Your Frequently Asked Questions
Q: My landlord insurance policy will not let me rent to anyone who is not in full time employment. Will this be considered discrimination?
A: Preexisting policies will remain exempt until the policy renewal, but after this, any policy taken out or renewed after 1st May will not be able to include these terms.
Q: I always go for coffee with prospective tenants. Can I select a tenant based on who I feel would be the best and most reliable?
A: Yes, you are able to select a tenant in this way. We would advise conducting a thorough referencing check using NRLA referencing , but it can be helpful to meet potential tenants in person to see how that relationship might develop. However, you cannot base your choice on discriminatory factors, for example whether a potential has children or is in receipt of benefits.
Q: Are the anti0discrimination rules regarding families the same for a licenced HMO. Surely this could be deemed as an unsuitable place for a child?
A: There may be safety grounds for refusing to rent a HMO roo to a family, for example a lack of suitable separate services in an HMO
Q: Can you say professionals or students only when you are advertising a property?
A: You will be able to advertise for students-only, but won't be able to advertise "professionals only" or "for professionals". Advertising in this way would be deemed discriminatory because you would be rejecting potential tenants in receipt of benefits. This could also have been considered discriminatory before the new Act – which will formalise it in law.
Q: Can I ask for a larger deposit, for example two months’ if I believe I am taking on a high risk tenant??
A: Landlords are still subject to the Tenant Fees Act, which caps deposits at five weeks, or six weeks if the rent exceeds £50k per year. You should not exceed this.
Q: Can we insist on Universal Credit (UC) housing element being paid direct to us the landlord as part of the tenancy agreement?
A: No, you cannot insist on this. However, you can apply for a direct payment when there are risk factors present, such as rent arrears of two or more months or previously being evicted for arrears within the last 12 months. For more information see our guidance page on this topic.
Join our next webinar
Our next webinar will discuss what will happen to existing tenancies after the Act is introduced, and will be held on on 1st April.
The presentation will be followed by a live Q&A with the session running from 11am – 12pm.
To find out more, click here, and if you’d like to submit any questions in advance, please email [email protected]
More information
- To visit our Renters' Rights Hub, packed with information and resources to help you manage the transition, click here.
- Read more about the new rules on the prevention of discrimination, advertising and tenant selection here.
- We have also developed an exclusive Navigator tool, offering you your personalised "to-do list” tailored to your needs, which can be accessed here.
- The NRLA's award-winning training academy runs a comprehensive Renters' Rights Act training offer. Click here to book your place.
