What Does The Renting Homes Act Mean For landlords?
With changes for Welsh landlords now fully in place, you may be wondering what the Renting Homes Act (RHA) means for landlords and what the changes in the rules REALLY mean for you as a landlord in Wales.
In this blog, we’ll look at how the RHA can benefit and protect both you and your property, how the changes might alter the way you do business and an overview of the new legislation as a whole.
So lets start at the start, What IS the Renting Homes Act?
The RHA is a piece of legislation that has been introduced in Wales to reform the renting sector.
The act aims to simplify the renting process, improve tenant rights and provide greater protection to landlords.
Although some landlords may view these changes with a bit of worry, confusion and doubt, it’s worth noting that there are many positive aspects to the new law.
Firstly, the RHA makes it easier for landlords to regain possession of their property.
Under the previous system, there were two types of tenancy agreements: assured shorthold tenancies (ASTs) and regulated tenancies. ASTs were much easier to terminate, whereas regulated tenancies were much more difficult and this led to some landlords being unable to regain possession of their property for months or even years.
Under the RHA, there will be a single type of tenancy agreement, which will be easier for landlords to terminate when necessary which does offer an additional level of control and security.
Secondly, the RHA introduces a new model of renting called the “standard contract”. This is a shorter and simpler contract that is easier for both landlords and tenants to understand.
The contract is designed to be flexible and can be tailored to meet the needs of individual landlords and tenants.
This should reduce the likelihood of disputes arising between the two parties.
Thirdly, the RHA improves tenant rights by introducing minimum standards for rental properties. Landlords will be required to ensure that their properties are safe, secure and in good repair.
This will help to prevent tenants from living in substandard conditions, which can lead to health problems and other issues.
Landlords will also be required to provide tenants with certain information, such as details about the property’s energy efficiency, before the tenancy starts.
While this might create additional work and expense, it’s worth noting that improving the property will add value to it and, by improving energy efficiency, can keep your running costs down significantly.
Fourthly, the RHA provides greater protection to landlords by making it easier for them to recover unpaid rent.
Under the current system, landlords often have to go through a lengthy and expensive legal process in order to recover unpaid rent. The RHA introduces a new system that will allow landlords to recover unpaid rent more quickly and easily.
Fifthly, the RHA provides greater clarity on the responsibilities of landlords and tenants.
This should help to reduce disputes between the two parties, as both will have a clearer understanding of what is expected of them.
The act also introduces a new system for resolving disputes between landlords and tenants, which should be quicker and less costly than the current system.
Overall, the Renting Homes Act introduces a number of positive changes for landlords.
These changes should make it easier for landlords to regain possession of their property, reduce the likelihood of disputes between landlords and tenants, and provide greater protection to landlords. Landlords will also benefit from the increased clarity on their responsibilities and the introduction of a more streamlined system for resolving disputes.
For me, the RHA is a positive step towards creating a fairer and more transparent renting sector for both landlords and their tenants.