What’s In Phase 2 Of 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.

All landlords will need to register on the PRS Database. This applies regardless of whether their property is managed by an agent. Please note that agents will not be able to register on behalf of their landlords and there will be a cost associated to registering, however the price is yet to be announced.

It’s expected that there will be an annual fee to register on the database.

Landlords will also need to register with a property redress scheme – even if they have their properties manged by an agent who is already registered with a scheme.

There will be a fee for registering You will need to be registered before your property can be marketed – breaching this could result in a penalty of £7,000. Following the first penalty, if you haven’t registered with 28 days, you can be penalised again with a penalty of £48,000.

A new, independent Private Landlord Ombudsman will provide landlords with tools, guidance and training on how to deal with complaints from tenants early on, while also providing renters with help on how to sort complaints against landlords quickly and fairly, without the need for court proceedings.

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.