Tenants will soon face harsher referencing by landlords, says expert
After the Renters’ Rights Bill is introduced it will be far harder to evict tenants so choosing the right ones will be critical says Sim Sekhon.
The new rules introduced by the Renters’ Rights Bill and the abolition of Section 21 notices mean ‘careful scrutiny’ must be landlords’ default approach, says Sim Sekhon.
He claims that many landlords have ‘grave concerns’ about the legislation eroding their rights and that they are angry that the Government is pressing ahead irrespective of the log-jammed courts system and shortage of bailiffs but recommends that the best way to deal with it is to have a clear, rational plan.
Landlords, he adds, must become more selective in their tenant choices and that careful scrutiny needs to be their default approach.
Rents have risen, and the stakes are higher.”
“Rents have risen, and the stakes are higher. You simply cannot risk agreeing to a tenancy without thorough referencing. Review the information provided carefully and, wherever possible, meet with the potential tenant.”
Sekhon, CEO of LegalforLandlords, also recommends landlords should take out rent and legal costs insurance cover. Currently only 16% do so, but he expects, in the current climate, those numbers will soon double.
He thinks switching to an agent rather than self-managing will help, too, but only if the agent is ‘reputable’.
Cautious approach
Even though it may be months before the Renters’ Rights Bill is enacted, he says it is already having an impact, forcing landlords into a very cautious approach, demanding higher affordability and more employment security from potential tenants.
The bigger problem for us will be tenants who state they intend renting the property for a minimum 12 months and leaving during the 12 months. It wont take long before tenants who want to rent short term state no intention of moving during the year in order to secure the tenancy for a short term rental.
It is important reference providers continue to report back on the applicant’s permanence of their employment contract. If not we will have to take on this additional referencing to void a landlord claiming we hadn’t carried out sufficient due diligence to avoid putting them in the costly position of having to re-let a property twice in one year – a sure way to find ourselves re-letting for free or face loosing the landlord’s business!
Govt don’t get it do they. I’m Nottingham’s biggest Private provider to Benefit tenants over 27 years. And I no longer am taking them.
It’s OK trying to protect tenants that want to stay in their homes forever. What about those that want to move? They can’t get anywhere any more unless joint income 60k.