The UK rental market has been undergoing significant changes in recent years. With the introduction of the Renters' Rights Bill, landlords are facing increased regulatory burdens and potential risks. However, there's a solution that can offer peace of mind and stability: Guaranteed Rent.
Understanding the Rental Market Challenges
The Renters' Rights Bill aims to strengthen tenant rights and improve the rental experience. While this is a positive step, it also introduces new restrictions for landlords, including:
Section 21 Notices: Restrictions on no-fault evictions, making it more difficult to regain possession of your property.
Abolition of Fixed-Term Tenancies A shift towards periodic tenancies can lead to increased uncertainty and complexity in tenancy management.
Rent Caps and Regulation: Landlords will be restricted to charging no more than one month's rent in advance, causing income uncertainty.
These changes can create uncertainty and additional costs for landlords.
Why Choose Guaranteed Rent?
A recent survey by Elliot Leigh revealed that 33% of landlords experience challenges receiving rent on time. This statistic highlights the growing concern among landlords about rent arrears and the financial impact they can have on their rental income.
Elliot Leigh have been managing properties on behalf of landlords for over 20 years and have paid out £400m in rent to landlords. We currently manage over 1,600 properties as part of our Guaranteed Rent scheme.
Guaranteed rent provides a reliable and hassle-free alternative to traditional letting. By partnering with a reputable guaranteed rent company such as Elliot Leigh, you can:
Secure a Guaranteed Income: Receive a fixed monthly rental income, regardless of tenant turnover or void periods.
Reduce Tenancy Stress: Avoid the complexities of tenant screening, rent collection, and property maintenance.
Protect Against Rent Arrears: Eliminate the risk of lost rental income due to non-payment.
Mitigate Legal Risks: Benefit from expert property management and legal advice to ensure compliance with rental regulations.
How Guaranteed Rent Can Protect You from the Renters' Rights Bill
After consulting with legal experts at Landlord Action, we at Elliot Leigh believe our Guaranteed Rent scheme can help landlords mitigate the impact of certain provisions of the Renters' Rights Bill, such as:
Section 21 Notices: The bill will prevent landlords from evicting tenants without a reason. Landlords will need to provide valid grounds for eviction, such as rent arrears or breach of the tenancy agreement. We believe this change won't affect landlords renting to local authorities under approved guaranteed rent schemes. This is because Section 21 notices aren't used for evicting social housing tenants on license agreements.
Abolition of Fixed-Term Tenancies: Fixed term AST’s (Assured Shorthold Tenancies) will be ended and 30 day periodic tenancies will come into effect. With the abolition of these contracts, landlords would lose the certainty that comes with knowing when a tenancy will end. However, we believe this won’t affect landlords under our Guaranteed Rent scheme as we offer lease agreements rather than AST’s.
Rent Caps and Regulation: Landlords will no longer be able to ask for more than one month’s rent in advance. The bill also includes measures to limit rent increases, including a ban on mid-tenancy rent rises. This does not apply to properties under our Guaranteed Rent scheme as a landlord enters into a lease agreement directly with Elliot Leigh (and not the tenant).
Property Standards: The bill includes legislation that will enforce enhanced standards for rental properties, including regular safety checks and maintenance. At Elliot Leigh, we have a team of property maintenance specialists who carry out regular property inspections and maintenance, to ensure our landlords’ properties meet the required standard. This saves a massive amount of time and hassle for landlords.
In addition to these new measures, a shortage of bailiffs is creating lengthy delays at court hearings. Landlords under our Guaranteed Rent scheme will avoid this, as if a court hearing is necessary, our team will attend on behalf of the landlord.
Don't Sell Up, Switch to Guaranteed Rent
If you're considering selling your rental property due to the changing landscape of the rental market, don't give up just yet. Guaranteed rent offers a viable solution that allows you to retain ownership of your property while enjoying the benefits of a stable income stream.
By partnering with a reputable guaranteed rent company, you can safeguard your investment, minimise risk, and navigate the complexities of the rental market with confidence.
Ready to switch to Guaranteed Rent? Get a quote to find out how much rental income you could achieve with our Guaranteed Rent scheme. Alternatively, get in touch today! Our team of property management experts will be happy to help.
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