Landlords across the UK are preparing for the introduction of the Renters’ Rights Act on 1 May by tightening tenant screening processes. A recent survey reveals that nearly seven in ten landlords plan to implement more thorough checks to mitigate the risks associated with eviction under the new legislation.

Increased Tenant Vetting Ahead of New Legislation

According to a survey conducted by Paragon Bank involving 500 landlords, 69% intend to carry out more detailed vetting of prospective tenants. This move reflects concerns about the potential complications arising from the Act, particularly the abolition of Section 21 ‘no-fault’ evictions, which 42% of landlords identified as the most significant change affecting their business.

Additionally, 70% of landlords reported they will be more selective about where they advertise their rental properties, aiming to attract tenants who are less likely to cause issues under the new regime.

Landlords’ Preparedness and Concerns

Three-quarters of landlords surveyed feel prepared for the changes introduced by the Renters’ Rights Act. However, 43% expressed worries about tenants falling into rent arrears or engaging in anti-social behaviour, which remain key challenges in managing rental properties.

Lisa Steele, Mortgage Lending Director at Paragon Bank, commented on the situation: “The Renters’ Rights Act represents a major policy shift, and landlords are adapting their approach accordingly. Given the pressures expected on the courts through the change to the eviction process, landlords are understandably planning to make more expansive checks on prospective tenants as they don’t want the cost and time involved in a lengthy eviction process.”

She also highlighted the difficulties this poses for certain tenant groups: “This creates challenges for those new to the rental market who have not yet built-up a tenant reference history, as well as those with infrequent income schedules. This was always the challenge for the RRA; while it brings in extra protections, it could exclude some of those tenants at the periphery of the market.”

Concerns Over Court Backlogs and Tenant Behaviour

Landlords are also apprehensive about the capacity of the courts to handle eviction cases efficiently. The survey found that 65% of landlords want faster court processes to reduce delays, while 39% believe the number of mandatory grounds for possession should be increased to provide clearer legal pathways.

In terms of tenant behaviour, 51% of landlords reported experiencing at least one instance of rent arrears or late payment in the past year. Anti-social behaviour was encountered by 27%, and 22% noted tenants remaining in properties longer than intended. Damage linked to pets was reported by 18% of landlords, further complicating property management under the new legal framework.

Financial Impact and Rent Adjustments

Approximately 35% of landlords anticipate a direct financial impact from the Renters’ Rights Act. In response, 53% are considering increasing rents, while 37% plan to review rents more frequently to keep pace with changing costs and risks.

Some landlords are also looking to reduce expenses, with 18% exploring cost-saving measures such as adjusting maintenance schedules and delaying white goods replacement to offset the financial pressures brought about by the new legislation.

What this means for landlords

The introduction of the Renters’ Rights Act marks a significant shift in landlord-tenant relations, placing greater emphasis on tenant protection but also increasing the operational challenges for landlords. The removal of Section 21 evictions means landlords must rely more heavily on detailed tenant vetting to avoid protracted and costly eviction processes.

Landlords will need to balance thorough tenant screening with the risk of excluding potential tenants who lack extensive rental histories or have irregular income patterns. Moreover, the anticipated court delays and the increased risk of rent arrears and property damage require landlords to adopt more proactive management strategies and consider financial adjustments to maintain sustainable rental operations.

Source: Based on reporting from Property118

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/