The Renters’ Rights Act has caused concern among many landlords involved in property, from experienced investors to accidental landlords. In our view, however, those concerns are largely unfounded. If you provide a good-quality home, respond promptly to maintenance issues and treat your tenants fairly, there is very little to worry about.
The Government’s aim is to raise standards across the Private Rented Sector (PRS), and we support that objective. Higher standards benefit everyone. Tenants enjoy better homes, while landlords who invest in their properties are likely to see stronger demand, longer tenancies and improved long-term value.
No More Rental Bidding
The proposed ban on rental bidding is, in our opinion, a sensible change.
While bidding wars may increase rent in the short term, they often create resentment before a tenancy has even begun. A tenant who feels they have overpaid is unlikely to start the relationship positively.
Successful letting isn’t about squeezing every pound from the market. It’s about pricing a property correctly from the outset. A competent letting agent should market your property at a fair rental value, (high enough to attract quality applicants), but realistic enough to avoid unnecessary competition.
Two Months’ Notice
This is the provision that has generated the most discussion, but its practical impact is likely to be smaller than many expect.
Most tenants want stability. Moving home is expensive, time-consuming and disruptive, so few people will choose to move after only a couple of months without good reason.
Where tenants do leave quickly, there are usually two explanations;
Firstly, the property has not met expectations. Unresolved maintenance issues, damp, heating problems or poor communication can all encourage tenants to move on. Good landlords who maintain their properties and respond promptly to repairs are unlikely to encounter this issue.
Secondly, some tenants genuinely need short-term accommodation; for example, while relocating for work, purchasing a home or carrying out renovations. With thorough referencing and experienced management, these situations can usually be identified before the tenancy begins.
If your property is well presented, properly maintained and correctly priced, finding a new tenant should rarely be difficult.
The Bigger Picture
Many of the remaining changes are procedural, and an experienced managing agent should be able to navigate them with ease.
Ultimately, the principles of successful letting remain unchanged:
- Provide a good-quality home.
- Respond quickly to repairs.
- Communicate openly.
- Treat tenants fairly.
- Price your property realistically.
The Renters’ Rights Act doesn’t change the fundamentals of good property management; it simply reinforces them.
At Feliks Augustine, those principles have guided us since 1950, helping landlords protect their investments while providing homes accommodation tenants are proud to call home.
If you’d like advice on preparing your property for the changes ahead, or on letting, selling, improving or maintaining your home, we’re here to help.
Feliks Augustine Estate Agents has been serving clients since 1950 and is regulated by the Royal Institution of Chartered Surveyors (RICS). With decades of experience, we’re here to help you get the very best from your property.