The Renters’ Rights Bill: What Landlords Need to Know and why cashflow is so important.

The Renters’ Rights Bill is currently being debated in the House of Lords, having already passed the House of Commons.

While the bill primarily focuses on increasing tenant protections, it also presents a significant shift in responsibilities for landlords. For the majority of landlords who already maintain high standards, these changes represent an additional layer of complexity. However, by understanding the details and preparing in advance, you can ensure a smooth transition and protect your investment.

The key impact that will be felt by all landlords is the abolition of section 21 ‘No-Fault’ evictions. This change removes landlords’ ability to evict tenants without providing a valid reason. While it aims to protect tenants, landlords who need flexibility to manage their assets may face challenges, especially in cases of non-compliance or tenant disputes.

Due to this, it is more important now than ever to carry out cash flow forecasting and ensure your business can cover any potential loss of rent. By using specialist landlord software, such as Hammock, you can more easily track your income and expenditure and generate reports to ensure you are protecting your investment. PJCO can also offer cash and forecasting services to assist with this.

The threshold for evictions in the case of tenant arrears has been increased, with the mandatory threshold changing from 2 months to 3 months, and the notice period has also increased, from 2 weeks to 4 weeks.

Despite the abolition of section 21 evictions, this bill does introduce grounds for eviction for other matters and these include the following:

• If you intend to sell the property
• If you or a family member intend to move into the property
• If the tenant is in arrears or is persistently falling into arrears for payments.
• Tenancy breaches in the tenancy agreement.

Please note that all of the above points do require documentation showing intent.

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