Fixed-term tenancies will soon be a thing of the past, but if you have a rental, there’s no need to panic.
The change, coming into force in May as part of the Renters’ Rights Act, will see all tenancies move to a rolling periodic system.
While this will require buy-to-let owners to adjust their thinking and some systems and processes, many of the principles that underpin your role as a landlord will stay the same.
Let’s look at what the end of fixed-term tenancies really means for landlords.
But first, a quick refresh on Renters’ Rights
From May 1, tenancies won’t have an end date, and you won’t be able to use Section 21 to evict a tenant.
These changes make some landlords twitchy. They worry about what will happen if their situation changes and want their property back.
But let’s be clear: you’ll still be able to claim possession of your rental under Section 8, which has been expanded.
Want to renovate, let your children move in or sell up? You still can, just not using Section 21.
And in cases of anti-social behaviour or rent arrears, you can evict too. But you’ll need evidence to back up your position.
What about tenant turnover?
Some landlords have expressed concern that with rolling tenancies, tenants might be more likely to move on more often, increasing tenant turnover.
But the legislation won’t change the fact that moving is expensive and stressful. Tenants won’t want to fork out for removal costs or go through the hassle of finding a new property unless they absolutely have to.
In our experience, when tenants are in a property that feels like home, they’re most likely to stay for a significant period of time.
Get the basics right
Good landlords who take their obligations seriously will continue to prosper.
Maintain your property to a high standard, fix problems quickly and charge a fair rent. That way, your tenants will feel settled.
Be open and communicative – this will build up rapport.
Do your homework
Now’s the time to familiarise yourself with the Renters’ Rights Act, if you haven’t already.*
Give careful consideration to how you do things and identify any areas where you could improve, especially when it comes to things like inspections, inventories and record-keeping.
Get in touch
If you’d like to know more about the Renters’ Rights Act, or how we can help you to manage your rental, give us a call. We’re here to help.
For more information on the new act, including serving notice and grounds for possession, visit the government’s website.
