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Tough tenant referencing to be 'crucial' after renting reforms

tenant referencing

Robust tenant referencing will be increasingly important for landlords when the Section 8 process becomes more protracted, a lettings expert has warned.

As the Renters’ Rights Bill enters its next stage in the House of Lords tomorrow, Allison Thompson (pictured) national lettings managing director at Leaders, says the most effective way to protect income and reduce risk once reforms are introduced is for landlords to ensure tenants are a good match from the outset and that clear, compliant agreements are in place.

Under the new legislation, landlords will need to use the Section 8 process and demonstrate a valid ground for possession, while all contested evictions will require a court hearing, and the accelerated possession process will be removed.

When Section 21 is abolished and notice periods for the most commonly used Section 8 grounds lengthen, tenants should benefit from increased security and stability, but this change is likely to extend the timeline and cost involved in gaining possession, she explains.

Transition

“At LRG, we’re already working with landlords to prepare for the changes. Our lettings teams are reviewing tenancy processes, updating legal documentation and making sure clients understand how to manage the transition confidently.”

All landlords can prepare by reviewing their current approach and updating tenancy management plans, advises Thompson. “Make sure all tenancy agreements are legally compliant and up to date, strengthen referencing and affordability checks before new tenancies begin and understand the revised Section 8 grounds and notice periods.

“We also recommend working closely with your managing agent to ensure all steps are being followed correctly and that you are prepared for the legal changes ahead.”

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