Landlords and agents have been warned to get ready for upcoming rental reforms or face costly fines.

With just a month to go before the first stage of the Renters’ Rights Act takes effect on 1st May, landlords need to keep records and communicate clearly with letting agents and tenants – first by giving them the information sheet by 31st May either as a physical copy or electronically.

Sean Hooker, head of redress at the Property Redress Scheme, says sending this as an attachment is fine, but that it can’t be sent as a link. He adds: “With major changes fast approaching, now is the time to make sure you’re complaint and prepared. Act now, avoid penalties, stay informed.”

The first stage of the Act will include the abolition of Section 21 ‘no fault’ evictions, and all tenancies will transition to a new assured periodic model, ending the use of fixed-term assured shorthold tenancies. New and more clearly defined grounds for possession mean landlords will only be able to regain possession under specific circumstances, such as serious rent arrears, if they intend to sell the property, or if they or a family member wish to move in.

Key

Other key elements include limiting rent increases to once per year, a ban on rental bidding, and strengthened protections against discrimination. Between 1st May and 30th July, student landlords will be able to use Ground 4A to give two months’ notice to regain possession.

Hooker advises that agents will need to ensure they have sent the information sheet to tenants and that their landlords have too. They must also prepare new tenancy agreements that come into force on 1st May and make sure both they – and landlords - understand the new Section 13 rules and how they must notify tenants about rent increases. Agents need to get to grips with a raft of other changes including rent in advance and rental bidding.

Landlord Action's Paul Shamplina says it's time for landlords to look in the mirror and decide whether they want to carry on doing self-management or start delegating. "Ask yourself, 'Have I got the right experts to advise me about licensing', for example," he tells LandlordZONE. "It's all about having that business mindset."

For agents, now is the time to shine, he adds. "Show your value to landlords and look at the services you're offering them in order to keep calm and compliant - and continue having a successful buy-to-let."

Masterclass

Landlord Law’s Tessa Shepperson is hosting a live online masterclass on 21st April to guide landlords through what the new rules mean in practice, and what they need to do now to protect their position.

She promises to help landlords as well as letting agents, property managers, council staff and advisors understand the changes and what action is required, know how to avoid the most common legal traps, be confident in managing tenancies under the new regime and to have a clear plan for updating documents and procedures.

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