Renters' Rights Act: Your questions answered
Since the Renters’ Rights Act received Royal Assent and moved into law we have been inundated with questions about what happens next. With all sorts of myths and misinformation circulating online, we’re answering some of your most common questions.
Q: What happens now the Bill is law, and what does implementation mean?
A: Despite the Renters’ Rights Act now being on the statute books, nothing has changed yet. The new rules will only take effect once the act is implemented, which, in layman's terms is when the Act will actually take effect. Even then, the changes will be introduced in phases – with the tenancy elements expected before things like the new database or ombudsman.
Q: When will implementation happen?
A: Currently, there is no information as to when the Act will come into force. We have been pressing Government to announce its timeline for implementation as soon as possible, arguing the sector needs at least a six-month lead-in period before measures take effect. As soon as the Government makes an announcement, we will update you by email and on our news and social media channels.
Q: Do I need to join the new PRS database and where do I do sign up?
A: Yes, you will need to sign up to the PRS database; however, you can rest easy for now, as it has not yet been set up by Government and isn't expected to be set up in the near future. Again, as Government publishes this information will will update you on exactly what you need to do.
Q: Is there a way I can structure my tenancy agreements in order to keep fixed-term tenancies?
A: In almost all cases, no. When the Renters’ Rights Act comes into force, if you meet the conditions for an assured tenancy, then fixed-term tenancies will be abolished and you will no longer be able to offer fixed-term contracts. If you then try to offer a fixed-term contracts once the Act has been implemented, you could be fined up to £7,000.
Q: What are reasonable reasons to refuse a pet?
A: Requests will normally have to be assessed on their own merits. Landlords will be expected to factor in things like the suitability of the home for the pet, allergies of other tenants, previous conduct of the pet, etc and come to a decision based on that particular case.
The only exception to this is when the superior landlord has refused permission to house a pet. In these cases it will always be justified to refuse permission regardless of any other circumstances.
Q: I know tribunal decisions can often take more than six months. If a tenant challenges a proposed rent increase, and it goes to tribunal, will the payments be backdated if it finds in my favour?
A: No, any increase in rent will only apply from the date of the tribunal decision, or later if the tribunal believes a rent increase may cause undue hardship to the tenant. This means that any increase will not be backdated.
However, the Government does have the power to change this if it believes the tribunal is becoming overwhelmed. We are pressing them for detail on when this power might be used.
Q: If I evict my tenants to sell the property (a valid ground for possession) and the sale subsequently falls through, can I re-let my property?
Not until 12 months after the original notice expired or you applied to court.
Q: Will the NRLA be providing an updated tenancy agreement template to members?
Yes. Once the Government has confirmed what will need to be included in this document and others (ahead of commencement) they will be available to download from the NRLA website.
Q: Can I still issue a section 21 now, and will it still be valid when the Act is implemented?
Yes, you can still issue a section 21, as the Act has not yet come into force. Of course, landlords issuing section 21s will need to ensure they comply with all existing requirements under this notice.
Once the Act is implemented, landlords will have either until the notice expires or three months after implementation to apply to court for a possession order, whichever is sooner.
Where can I find out more?
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The NRLA is running multiple webinars on the Renters’ Rights Act to help you prepare, and to answer any questions you may have regarding the coming changes. The next one is on the 12th November and you can sign up here.
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We also run comprehensive Renters’ Rights training that gives all the information you need to ensure you don’t fall foul of the new regulations – which could land you with a civil penalty or hefty fine. If you want to make sure you’re fully prepared, join the thousands of landlords that have already trained with us, by clicking here.
