Labour’s Renters’ Rights Bill is touted as being the largest reform of the private rental sector (PRS) since the 1980s, so now’s the time to prepare yourself to keep your yields high for when the changes come into force – which could be as soon as this summer.
Here are 3 tips to help you survive the Renters Rights Bill:
1) Referencing is everything
The Renters’ Rights Bill is going to remove AST contracts, as well as landlords’ ability to use Section 21.
This means that once a tenant is in a property, there is no way to end the tenancy unless they are in breach of the contract, or you have an express reason such as selling the property.
Workaround
The best tip to counter this change is to reference potential tenants exhaustively, so you know exactly who is going into your property.
This will reduce the chances of housing a tenant who cannot afford the rent payments, or who cannot maintain the property at an acceptable condition – after all, prevention is better than cure.
2) Ensure your property is in good condition
The ‘Decent Homes Standard’ is coming to the PRS, which means that rental properties must be relatively well-maintained, have reasonably modern facilities, have a good degree of insulation etc.
Be sure to have regular inspections to ensure that your property is in good condition throughout the tenancy; these should be detailed and include photos for future reference.
A well-maintained property can generate a strong rental income and warrant rent increases in line with the market rate.
This means you can get the most out of your investment whilst still having a property that accumulates capital gains.
3) Arm yourself with knowledge
As so much legislation is changing with the arrival of the Renters’ Rights Bill, it means that now more than ever, inexperienced investors such as accidental and first-time landlords must familiarise themselves with the changes in the law.
What’s the best way?
The best way is to have the best advice and support for your investments – so surround yourself with experts who can help you understand these changes.
A local managing agent can assist with all things from tenant referencing and property inspections, to market insights, and of course, property management services.
And having a solicitor and account can advise on matters such as legal aid and tax obligations.
If you have questions about the Renters’ Rights Bill or are interested in property management services, get in touch with us today and let’s discuss your assets.