Deregulation Act for Landlords: understanding the rules
We’ve previously reported on your ability as a landlord to serve a Section 21 as part of the Deregulation Act 2015, but are you compliant with the other changes brought in by the Act? Chances are you might not have even been aware of these new laws, and therefore could face substantial fines if you’re not compliant. In this blog we give you an update on the changes to avoid breaking the rulebook.
Protecting deposits
By law, once you receive your tenant’s deposit you have 30 days to protect it into a government scheme, such as My Deposits. You will then need to provide the prescribed information with a certificate given to your tenant to prove that their deposit is protected, stating when it was served. Failure to do so could effect regaining possession of your property upon serving an s21 notice.
Section 21 notices and shelf life
Section 36(2) of the Act states that landlords cannot serve notice with an s21 during the first four months of a tenant’s occupancy under a tenancy agreement. You should bear in mind that when serving an s21 you need to give at least two months notice or more. In which case you should check the contract term, as a minimum of six months is now likely to be void once you take into account when you can serve an s21 (after four months) combined with the minimum notice time (two months). Also be aware that an s21 notice now only has a shelf life of six months.
Repayment of rent
As the landlord, you will be required to repay rent to the tenant where a tenancy is brought to an end under s21 before the end of the period of the tenancy for which the tenant has paid rent in advance. If you fail to repay what is owed to the tenant the court will order you to pay the amount the tenant is entitled to. The tenant will be entitled to the amount of rent they have paid to you, calculated pro-rata for days they will not be occupying the property.
Preventing Retaliatory Evictions
Since 1 October 2015, Section 33 of the Deregulation Act came into force. This section provides protection for tenants against retaliatory eviction, where tenants are suffering from poor or unsafe property conditions. This legislation is also to encourage, you the landlord to maintain the property in a decent condition and respond adequately in writing (within 14 days) to any complaints raised by the tenant. Proof of the response and evidence of how the problem was solved is a legal requirement and could mean that issuing an s21 notice could become invalid. Comply to all legal requirements and ensure the property is free from any issues and you won’t have a problem.
In addition to the above you will also need to provide various documents and proof of such to your tenants including; a hard copy of ‘How to Rent: the checklist for renting in England’, and copies of the EPC and Gas Safe Certificate.
With plenty to take in and comply with the pressures on landlords is certainly increasing, however at Proctors we can ease the stress and keep on top of the legal requirements on your behalf. Find out about our landlord services here.
If you have any questions you can contact our offices or drop us a line on social media. Find us on: Twitter, Facebook, Google+, LinkedIn, Pinterest and Instagram.