As you are aware, a landlord requires extensive knowledge of the regulations and legislation necessary to self manage a rental property.
However, there is more to come. There is already pending legislation on the horizon…
EPC Legislation Update
The Minimum Energy Efficiency Standard (MEES) is almost upon us and will see Landlords charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market.
SEE DAREN’S BLOG HERE
From 1 April 2018, landlords will no longer be permitted to grant new tenancies extend or renew a tenancy to an existing tenant if the property has an EPC rating of band F or G. G (as shown on a valid Energy Performance Certificate for the property)
Landlord Redress Compulsory?
Landlords could soon face the need to register with a compulsory redress scheme to solve tenant disputes, as the government looks to improve standards in the private rented sector.
The announcement came at the Conservative Party Conference last October.
While no further details have been confirmed, the government hopes that by making landlords join an ombudsman scheme, renters will be given greater powers to challenge what they consider to be unreasonable behaviour from their landlords.
Tenant Fee Ban
In November 2017, the Government published a Draft Bill with plans to make big changes to how properties are let in England. At the centre of the plans is a ban on tenant fees. Landlords and agents will no longer be allowed to charge tenants for anything except: rent, the tenancy deposit and a holding deposit.
This means you will no longer be allowed to ask tenants to cover the cost of their own referencing. As well as not being able to charge for check-in, inventory or any other administrative fees.
The Bill is currently only in the Draft phase. The details could still change.
This ban is expected to be put in force in April 2019.
The Effect of Self Managing Landlords Whilst the direct effect on landlords may be minimal, those who use an agent for a ‘Let Only’ service may have a problem.
The total ‘fee case size’ on a let only service for an agent is made of of tenant fees and landlord fees. When tenant fees are scrapped, the financial viability of a ‘Let Only’ service for an agent may disappear unless the landlord covers the cost of all the tenants fees – which is unlikely.
The reality may be that agents begin to scrap their ‘Let Only’ service as it will not be worth doing unless the fee is extremely large.
My advice – upgrade to a Managed Service whilst you still have negotiating powers!