Managing your legal obligations as a landlord

Managing your legal obligations as a landlord is an ongoing challenge. Our partnership with Taylor Rose Solicitors allows us to share in depth legal knowledge on areas of concern such as Seeking Possession of Residential Premises as well as the upcoming Renters’ Rights Bill. Taylor Rose recently joined us at one of our series of landlord seminars and provided an overview of the key legal requirements a landlord needs to know to ensure they are compliant. We have put together a guide of the key outputs:

Seeking possessions of residential premises - Selective Licensing

Selective Licensing Schemes (SLS) were introduced in 2006 to improve the management and conditions of privately rented properties. The schemes are based on the Housing Act 2004, Part 3, Section 80, which gives local councils the power to require private landlords to license their properties within a designated area.

SLS were introduced to address issues such as poorly maintained housing, anti-social behaviour, and their impact on local communities. The schemes allow authorities to set and enforce minimum management standards.

Each local authority (LA) has its own rules and fees for SLS, and not all LAs have them. Some schemes cover an entire borough, while others target specific areas or council wards.

Overview:

• Introduced by local authorities in designated areas.
• Requires landlords to obtain a license for private rented properties.
• Separate from (House in multiple occupation) HMO licensing requirements.
• Typically applies to areas meeting specific statutory criteria.

Key points:

• Consultation & implementation: Requires a minimum 10-week consultation period and can only be implemented 3 months post-final decision. Lasts up to 5 years.
• Compliance challenges:
• Landlords often unaware of requirements.
• Licenses are non-transferrable and must be renewed.
• Penalties for non-compliance include:
• Unlimited fines on conviction
• Civil penalties up to £30,000.
• Rent repayment orders (up to 12 months).
• Potential banning orders.
• Best practices for landlords:
• Proactive checks: Regularly assess properties for compliance.
• Timely applications: Apply for licenses before renting.
• Stay informed: Keep up-to-date with changes and deadlines.

Sample Selective Licensing:

Renters' Rights Bill

The Renters' Rights Bill aims to reform the rental market, including no-fault evictions and balancing the rights of tenants and landlords. The bill's headline measures are to stop landlords from issuing Section 21 evictions and to end assured shorthold tenancies, making all tenancies periodic. Many of the proposed new laws were also included in the formerly known Renters' Reform Bill, which was shelved shortly before the 2024 general election.

Key proposed changes:

• Section 21 abolition: Landlords can no longer serve "no-fault" eviction notices.
• Rolling tenancies: Contracts will be rolling from the start, with a protected 12-month period.
• Rent increases:
• No increases in the first 12 months.
• Increases limited to once per year via formal notice.
• Tenants can challenge increases via tribunals.
• There are marketing restrictions:
• Landlords must state a proposed starting rent.
• No bidding wars or acceptance of rents above this figure.
• Tenant rights & protections:
• Prohibition of discrimination.
• Right to keep pets (with conditions).
• Centralised landlord database and ombudsman for dispute resolution.
• Compliance with the Decent Homes Standard.
• Enhanced penalties for breaches, including fines up to £40,000 for unlawful possession processes.Civil penalties for improper tenancy terms or notices.
• Landlord responsibilities:
• Provide tenants with a written statement of terms.
• Follow correct procedures for serving Section 8 notices.
• Ensure deposit protection requirements are met.

Immediate action steps for landlords:

• Portfolio review: Identify properties nearing fixed-term tenancy expiration.
• Decide on possession actions: Utilise Section 21 notices while still permissible.
• Compliance audit: Ensure all licensing, tenancy agreements, and notice processes meet legal standards.
• Stay ahead: Monitor legal updates and seek professional guidance.

Conclusion

By addressing these areas, landlords can navigate the evolving regulatory landscape with confidence and mitigate risks.

Our partnership with Taylor Rose Solicitors ensures that we can keep landlords up to speed with your key legal obligations. To discuss any specific legal issues please Contact your local branch.