After the Renters’ Rights Bill – how can Lurot Brand help?

The Renters’ Rights Bill will bring the most significant changes to the Public Rental Sector since the Housing Act of 1988. The complexity of compliance requirements can be overwhelming, leading some landlords to question whether they should continue to let their properties. However, it’s not all doom and gloom – research conducted in partnership with the NRLA and shared on Rightmove shows that rental yields have continued to rise, reaching a 10-year high of 6.5%, with nearly 9 in 10 landlords reporting a profit from their lettings. With the right support, landlords can still navigate these changes successfully. Here we outline our services and how we can help protect your investment moving forward.

A) Compliance before move-in:

Ensure compliance of all documents required for letting: With significant fines on the table and Notices at risk due to non-compliance, Lurot Brand will be there to ensure our landlords’ tenancy documentation is complete and in full compliance.

We will organise: the Gas Safety Certificate, Electrical Installation Certificate and the Energy Performance Certificate.

PRS Landlord Database: Although yet to be confirmed, we believe we will be able to manage all necessary documentation for the registration process on behalf of our landlords. If there is any part of the database upload that we cannot carry out as your letting agent, we will provide guidance at every step to ensure you are compliant ahead of letting your property.

Redress Scheme Membership: Landlords will need to register with a redress scheme. As above, where possible we will assist you in joining a scheme and in any case, provide guidance on what needs to be done at each stage.

B) Negotiation of offer/tenancy:

Getting the best deal: Landlords will no longer be able to accept offers above the listed price for a property. As such, Lurot Brand will ensure that our pricing reflects the market and that our advice is backed by evidence of properties let.

Tenant referencing: With advance payments no longer allowed and changes to notice-serving rules, referencing will be increasingly crucial as we move through the legislation. The referencing companies we use are rigorous, verifying a tenant’s right to rent, employment status, salary and previous landlord reference, so you can feel confident in your decision to approve a tenancy. In addition to the initial checks at the start of the tenancy, we will continue to monitor the tenant’s right to rent as it expires, ensuring ongoing compliance for our landlords.

Tenancy agreements:  Lurot Brand will use the latest agreements to ensure compliance with UK law. The upcoming legislation will introduce new specifications for tenancy agreements, making it important to incorporate any newly prescribed clauses and ensure the agreement used remains fully compliant.

Inventory and schedule of condition: We will book this on your behalf to ensure the condition of your property is checked prior to tenants moving in.

Holding the tenancy deposit as stakeholder: Lurot Brand will continue to offer this service and ensure the deposit is registered with the Tenancy Deposit Scheme.

C) Yearly Rent Increases via service of a Section 13 Notice (form 4):

Under the new legislation, rent increases will be allowed once a year via service of a Section 13 Notice.

In month 9 of the tenancy, Lurot Brand will contact our landlords to discuss the market, rental levels and provide comparable evidence of recently let properties. 

Once a rental increase is agreed with the landlord, Lurot Brand will send the Section 13 Notice (form 4) to the Tenants, along with comparable evidence to support the proposed rental adjustment. 

If the Tenants do not accept the proposed rent increase, they will be able to discuss it with Lurot Brand. Similar to the current renewal process, serving the Section 13 Notice may serve as the starting point for negotiations.

If no agreement is reached on the new proposed rent, the tenant will have the right to take the matter to a First-Tier Tribunal. In this case, presenting strong evidence to support the proposed rent is crucial, as is ensuring the tenancy remains compliant and all documents are in order. Lurot Brand will once again ensure compliance and assist with presenting evidence for our clients at the Tribunal.

Section 8 Notice for vacant possession

With the new legislation, Section 21 Notice will no longer be used to end a tenancy. Instead, a Section 8 Notice will need to be served, citing a specific ground for possession.

Lurot Brand will assist in navigating the new grounds for possession, helping you understand which one applies, when the notice can be served and the procedures to follow.

Notices require specific prescribed information to be served correctly. We will ensure that all notices are properly executed to comply with the law. Some examples of grounds for possession include the landlord wishing to sell the property, redevelop it or use it for personal or family use. For each of these, landlords will be required to give four months’ notice and cannot cite these grounds within the first 12 months of the tenancy.

In addition, there will be several discretionary grounds allowing a landlord to serve notice to end a tenancy. This will be done using the current Section 8 Notice, and it will include reasons such as rent arrears or breaches of tenancy terms. Under the new bill, the notice period for serving a Section 8 Notice for rent arrears will be four weeks.

Beyond our Let and Rent Collection Service – Full Property Management

We offer a comprehensive Property Management Service to our Landlords. Along with our Let and Rent Collection Service, we strongly recommend considering our full management service, and here we explain why it could be the best choice for you.

Tenant Liaison

Lurot Brand will serve as the point of contact for your tenants. A good relationship with tenants is important and we work to establish a good rapport with them, which helps make the organisation of contractors’ visits and property inspections much easier.  

Maintenance and Repairs

Tenants have our contact details to report any maintenance issues that arise. We maintain a reliable list of contractors who we can call upon as and when needed. Once a maintenance issue is raised, we liaise with both the tenant and contractor to ensure timely attendance.  For more substantial works, we will obtain estimates for our clients’ consideration, always aiming to secure the best value for money in terms of both quotes and work.

Property inspections

We carry out a minimum of 2 inspections per year. These inspections are essential for identifying any maintenance issues early. By staying proactive and maintaining the property, we ensure it remains in good condition, minimising any work needed between tenancies.

Compliance

Using our property management service will ensure your property stays compliant throughout the tenancy. We will book in the annual Gas Safety check, the EICR renewals, and the Energy Performance Certificate when it expires.

Deposit return negotiation

Once the tenants vacate the property, our Property Management team is responsible for the deposit return.  We compare the property’s condition from the check-in to check-out reports. If any damage is noted, we will negotiate the appropriate deductions with the tenant. Once both parties agree, we will return the deposit accordingly.

Refurbishments

Interested in refurbishing your property? Ask our team about our Refurbishment Service for larger projects.  If you are planning a renovation, we will discuss your plans and provide at least three detailed quotations for you to consider. These estimates will outline the proposed work so you can make an informed decision.

If you would like to discuss any aspect of our lettings service, please do let us know as we would love to help.