The Report Stage and Third Reading of the Renter’s Rights Bill is scheduled for today – and landlords are worried about the advance rent amendment.
If that goes through it means landlords will be prohibited from receiving multiple months of rent in advance.
Some landlords require six months’ of rent in advance to grant an assured shorthold tenancy, while others expect more upfront if a tenant has a lack of credit history.
Sarah Taylor, property dispute resolution partner at Excello Law, said: “The amendment that is causing most concern amongst landlords and agents is the proposed prohibition of obtaining rent in advance. This can leave landlords at risk of unpaid rent.
“However, it is onerous and potentially discriminatory to require large payments of rent upfront. Tenants may be able to pay their rent regularly but may not be able to save up a significant amount of rent to pay up front.
“This proposal should assist in making rental accommodation accessible. It highlights the difficulties in trying to balance the interests of landlords and tenants in the legislation.”
Other proposed amendments include limiting the guarantor’s liability for rent following the death of the tenant, a move Taylor called “sensible”, as it will put the onus on the landlord to recover possession and re-let thereby avoiding a void for the landlord, while ensuring that housing stock is available for tenants.
In terms of other concerns with the Renters’ Rights Bill, abolishing Section 21 evictions without reforming the courts is an ongoing worry due to the time it takes to evict a tenant that doesn’t pay the rent via Section 8.