Landlords are set to apply more stringent vetting rules to tenants when the Renters’ Rights Act comes into force next month.

On 1st May, key parts of the Act will apply for the first time, including an end to Section 21 ‘no fault’ evictions.

And new research shows nearly 70% of landlords plan to be stricter when they select renters.

Greatest impact

Earlier this week, Propertymark issued a ‘one month to go’ warning to landlords and letting agents ahead of the Act coming into effect.

A survey of 500 landlords by Paragon Bank found that 69% will introduce more in-depth checks for prospective tenants to reduce the risk of having to evict them later.

Although three quarters feel prepared for the Act, 42% said the end of Section 21 evictions will have the greatest impact on their business.

And 43% were concerned about the risk of problem tenants, due to rent arrears or anti-social behaviour.

Increase rent

Nearly two thirds of landlords – at 65% – called on the Government to implement faster court processes to minimise delays in the eviction process.

In addition, 39% said that the number of mandatory grounds for possession needs to increase.

Just over one third – at 35% – of landlords expect the Act to impact them financially, and more than half – at 53% – say they will consider increasing rent.

Landlords are understandably planning to make more expansive checks on prospective tenants.”

Lisa Steele, Mortgage Lending Director at Paragon Bank (pictured), says: “Given the pressures expected on the courts through the change to the eviction process, landlords are understandably planning to make more expansive checks on prospective tenants as they don’t want the cost and time involved in a lengthy eviction process.

“This creates challenges for those new to the rental market who have not yet built-up a tenant reference history, as well as those with infrequent income schedules.”

More on the Renters’ Rights Act