How Your Tenant’s Rent Has Been Affected By The Renters’ Rights Act

One of the major changes following the Renters’ Rights Act is the way renting out your investment property works. Rules surrounding rent increases, advertising and rent arrears have all been changed and these will affect how you let out your property.

Before 1^st May, a landlord could take the highest bid on their investment property. However, it is now illegal to accept an offer above the asking price of the property as listed.

This also means when listing your property, whether through an agent or independently, the property cannot use the line “offers over £X”.

Upfront rent is now limited to one month’s rent. This rent cannot be paid until the tenancy is entered, which is the start date of the tenancy.

Rent increases are now limited to only one increase every 12 months. This means from the minute your tenant’s tenancy begins, you will need to wait 12 full months before you can increase the rent again.

Tenants must be given two months’ notice prior to the increase taking effect.

Any rent increases need to be formally filed through a section 13, form 4A. Even if you have spoken to the tenant, the rent increase doesn’t become legally binding before this form is complete.

In the event a tenant fails to make rent payments, we would recommend you contact them first, establish what the cause of the issue is and try to come to a fair arrangement.

If your tenant continues to fail to make payments, you can use Ground 8 – Rent Arrears to evict your tenant.

If you choose to go down this route, your tenant will need to owe you 3 months, or 13 weeks’ rent on the day you give them the notice and at the date of the hearing. 

Your tenant cannot be evicted under this ground if they pay off what they owe or owe less than the amounts above by the time you get to court.  

If your tenant owes 3 months or 13 weeks rent because they have not received their Universal Credit, you will not be able to evict them. Benefits are not counted when a tenant owes rent. 

Please note: You must give 4 weeks’ notice before you can apply to the court for a possession order to evict your tenant. 

Today’s landlords face more pressure than ever before, so by contacting our expert team, you don’t only protect your investment property, but yourself from accidently breaching the latest landlord legislation.