Most of this checklist will only be relevant for properties in England.  There is a different system in Wales (we have separate checklists for Wales)

Properties in Wales

Welsh landlords will need to amend their occupation contract before 1 June to include a reference to the discrimination rules.

The Landlord Law occupation contracts will be amended during May.

If you want to do this yourself you will find the regulations here.

The Renters’ Rights Act applies only (at present) to assured tenancies.

If your tenancy is, for example, a common law tenancy (such as a company let) or a protected tenancy under the Rent Act 1977, you do not need to worry about things yet.  It also does not apply (at the moment) to residential license or lodger arrangements.

You can find out your tenancy type in the Tenancy Trail  here.

If your tenancy is an assured tenancy, read on.

‘Rent to rent’ is where a property owner rents out a property to a tenant specifically so that the tenant can sublet the property.

Note that as the agreement between the property owner and his tenant is not a residential one (as the tenant does not live there – he sublets it out) this is not a ‘residential tenancy’ and cannot be an assured periodic tenancy.

Rent to rent and the Renters’ Rights Act

Although there are many well-run and legally sound rent-to-rent arrangements, the procedure is frequently used by rogue and criminal landlords.  For example, a landlord will rent to a limited company without assets, so if the tenants seek compensation, they may win their case but will not be able to enforce their award.

For this reason, rent-to-rent arrangements have been targeted by the government in the Renters Rights Act.  The following measures make entering into a rent-to-rent arrangement now, significantly less attractive:

• Landlords will find it more difficult to obtain vacant possession at the end of a rent-to-rent agreement
• The case of Rakusen v. Jepson has been reversed, meaning superior landlords can be liable (for example, for rent repayment orders) even if they are not the immediate landlord
• The maximum rent repayment order awards have increased, with the maximum award now being 24 months’ worth of rent
• There are now heavier fines and penalties generally for non-compliance with the rules – and bear in mind that the property owner may be held liable for the acts or omissions of their tenant in a rent-to-rent situation

In view of these changes, we do not recommend that property owners enter into a rent-to-rent arrangement.  If you already have such an arrangement in place, you should consider taking legal advice on how to exit it safely. Our telephone advice service panel solicitors will be able to assist.

The only exceptions could be rent-to-rent arrangements with Local Authorities and Universities.  And perhaps some charities.  However, we strongly advise that you take legal advice before entering into or allowing an existing arrangement to continue.

This is not specifically related to the Renters Rights Act, but it is such an important point that we repeat it here.

If someone wants to fraudulently mortgage your property – where will the notification of this from the Land Registry be sent?  The property.  So if the fraudster is your tenant, and the property address is the Land Registry contact address – the notification will go to him and you will know nothing about it.

In a case in 2008, Barclays Bank v. Guy, Mr Guy’s property was wrongly transferred into the fraudsters name at the Land Registry and a mortgage was taken out.  The Court of Appeal held that Mr Guy could get the property transferred back into his name at the Land Registry but it would still be bound by the mortgage as Barclays Bank had granted it in good faith relying on the Land Registry entries.

The way to avoid this is to ensure that your contact details at the Land Registry are up to date and to sign up for Property Alerts.  Which is free.

You can also register a restriction – means that the Land Registry will not register a ‘dealing’ with your property, for example, a transfer or a mortgage, unless a solicitor or other professional conveyancer certifies that they have checked the identity of the person who has signed the deed.

You can find out how to protect your property at the Land Registry here.

MAKE SURE YOU DO IT!

See below a clip from David Smith’s talk on rent to rent where he discusses the importance this:

This is enormously important as you will need to have clear records:

• To protect your position if Local Authorities threaten enforcement action
• To use as evidence in possession claims (particularly if these involve anti social behavour).

In the new post Renters Rights Act world, documentation will be key.

You should also keep records of

• service of documents
• compliance certificates
• communications with tenants
• property inspections (members, see our Kit here)