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Right to rent guidelines: You can’t afford to miss this!
If you’re a residential landlord, it’s likely that you’ve got a lot on your to-do list.
From tenant screening to property maintenance, there’s a mountain of responsibilities on your shoulders. And just when you thought you had it all figured out, there are new curveballs thrown your way.
So, in light of reports that fines for non-compliance with right-to-rent checks are set to skyrocket in 2024 if you’re a residential landlord, here’s what you need to know…
What is the ‘right to rent’?
Since 2016, private residential landlords have been required to check that the proposed tenants and occupiers of the property have a right to reside in the UK. To do this, they must verify the identity of everyone living within the property over the age of 18 before the tenancy agreement officially starts.
It is crucial that these checks are documented, as records must be retained for up to 1 year after the tenancy ends.
Right to Rent guidelines: The current penalties
As it stands, landlords can face the following penalties if they fail to comply with the regulations:
- Up to £1,000 for a first offence
- Up to £3,000 for repeat offenders
However, in serious cases, the landlord could face imprisonment if they are found to have had ‘reasonable cause to believe’ that an occupier did not have the right to rent in the UK.
Right to Rent guidelines: The new penalties
Whilst the current penalties are already robust, as part of the government’s wider proposals to tackle illegal immigration, they will be increased even further.
From 2024, the penalties will increase to the following:
- Up to £10,000 for a first offence
- Up to £20,000 for repeat offenders
This steep rise in fines highlights the urgency for landlords to be meticulous and thorough when conducting screening checks for all adult tenancy applications. Moreover, it is also a clear signal that compliance isn’t optional for landlords.
Historically, the Home Office have not had the resources to routinely check whether or not landlords are complying with Right to Rent legislation. This has resulted in the number of penalties and prosecutions being relatively low.
Do these new penalties mean that more frequent checks will be carried out by Home Office officials? It is difficult to say – but at Pearson Ferrier, our best advice to landlords is to not take the risk of non-compliance.
Immediate Steps You Can Take
- Document Checks
Ensure you have a clear system for confirming the identity of every adult who will live in the property before the tenancy begins.
- Keep Records
Create a secure and organised system to hold all relevant documentation for at least a year after the tenancy ends.
- Stay Updated
Regularly check for updates on new regulations and penalties. Lack of knowledge will not protect you from significant fines or other legal problems.
Still feeling overwhelmed? You’re not alone
If you’re a landlord feeling a little overwhelmed or anxious about these changing Right to Rent guidelines – we’d like to reassure you that you’re certainly not alone.
In the past, self-managing rental properties may have felt doable, but times have changed. The risks of taking a casual and informal approach towards property management now carry increasingly severe consequences.
With more than 300 regulations to meet, the task of renting out your property has become increasingly complex. However, there are professional services that can assist you in meeting these requirements.
Why choose Pearson Ferrier?
At Pearson Ferrier, we have been managing rental properties for landlords for over 25 years. We’re in the business of keeping up-to-date with the ever-changing legislative requirements, taking care of paperwork and conducting property maintenance – so that you don’t need to.
We can help you with:
Right to Rent Guidelines and Regulations
As demonstrated by these upcoming changes to the Right to Rent penalties, regulations are always changing. We ensure that you remain fully compliant with the law, helping you avoid hefty fines and potential prison sentences.
Inspections
We’ll periodically carry out property inspections to make sure the tenant is taking good care of your property and that everything is kept in good order.
Maintenance
Should your property need repairs or maintenance, we have a reliable team of contractors waiting on hand to remedy any potential problems or issues.
Rent collection
We facilitate regular rent collection, which is usually carried out at the beginning of each month. We then pay our landlords within 2-5 days of this. This ensures you’re not constantly chasing rent payments or needing to pester your tenants!
If there’s one clear message from us to landlords, it is: do not wait until the new penalties come into force.
Act now to ensure that you’re fully in line with the law and protected from legal issues further down the line. With severe penalties and consequences on the horizon, now is the time to consider seeking professional support from a team of experts.
Give us a ring on 0161 764 4440 or message us here if we can help you.
