Landlords are being reminded that they face fines of up to £7,000 if they do not send a key document to tenants this week.
The Tenants’ Rights Act has made huge changes to private rentals in the country and there are new duties that are required by law, says Castle Property Group.
Elliot Castle, CEO of Castle Property Group, says it is crucial that smaller landlords know the ins and outs of the increased administrative requirements – otherwise they risk huge fines.
By May 31, landlords must provide existing tenants, by email or on paper, with the government’s new information sheet explaining how the Tenants Act will affect their rent.
Any tenants with oral agreements must also have their agreements formalized by the same date.
Castle said: “These tasks are simple but incredibly important. Larger landlords with large portfolios will likely have made arrangements to carry out these administrative tasks weeks ago, but some smaller landlords who manage properties in addition to other careers may not yet have mastered their new responsibilities.”
The Renters’ Rights Act includes a slew of changes designed to provide renters with greater security and stability.
This includes an end to Section 21 ‘no-fault’ evictions, meaning landlords cannot force a tenant to move without a valid reason.
Measures have also been taken to end rent bidding: landlords can only increase rent once a year and landlords cannot charge more than one month’s rent in advance.
The new rules, which came into effect on May 1, also ensure that landlords cannot refuse tenants just because they have children or receive benefits.
Castle said: “These changes are a huge shake-up for the whole sector and aim to make everything fairer and easier to understand.
“Failure to comply with the new rules set out in the Renters’ Rights Act could result in a fine of up to £7,000 or £40,000, depending on the nature of the rule breach.
“The law will come into effect in phases, so further changes will be introduced later this year, including an online register of all landlords and rental properties in England.
“The Awaab Law will be extended to the private sector and there will be requirements to meet the Decent Homes Standard.
“There is no doubt that while the new rules are there to bring positive change to the sector, it will be an incredibly difficult time for smaller landlords as they face significant increases in both costs and complexity.
“It is very important that landlords get to grips with these changes – and quickly.”