Renters Reform Impacts for Bristol Landlords

The discussions on the Renters Reform have been going on for years, but it is finally here (well, sort of!). The bill had its “first reading” on the 18th of May and will be debated in its “second reading” soon. It will take a little time for the bill to get through the Westminster process and into law. Once it reaches Royal Assent (rubberstamped) there will be a phased approach to some elements of the bill.

So, what do we know about the Rental Reform proposals? 

Removal of Section 21s

As expected, the much-publicised removal of Section 21 (the so-called ‘no-fault eviction’) has been included. This means that a landlord can only bring a tenancy to an end if they have a valid ground for possession. Some of the reasons include:- 

• the sale of the property 
• either the landlord or a close family member wishes to move in 
• tenants willfully do not pay the rent 
• repetitive anti-social behaviour (new tools will be introduced for landlords to deal with repeat offenders) 

No more fixed-term tenancies  

The end of fixed-term tenancies is another big change. This means landlords and tenants will enter a periodic (rolling) tenancy whereby a tenant can choose to give notice (a minimum of 2 months) at any point. Whereas the landlord will have limited powers to regain possession of their property.  

Whilst it does mean that a tenant could leave quickly, the demand in the market outweighs the supply, therefore we feel it’s unlikely to result in a spike of short-term tenancies, though there will be some. Part of a good Bristol Letting Agents job is to find you good quality tenants, that will look after the property as their own and stay longer-term (if that’s what the landlord is looking for) so this doesn’t change. 

Rent increases

Whilst serving rental increases is still possible, landlords will have to submit a form and serve this to the tenant. It’s then with the tenant to accept and pay the increased rent moving forward. Alternatively, if the tenant doesn’t feel it’s in line with market value they can raise a dispute which results in a “First-tier Tribunal.”  

Other headlines include:  

• Changes will be introduced alongside a reformed court process. Digitising some of the processes to reduce delays. 
• New digital portal to make sure landlords understand their obligations and support tenants in deciding whether to sign a new tenancy agreement. 
• Outlawing blanket bans on families with children or those in receipt of benefits. 
• Tenants’ request for having a pet in the property must be considered by the landlord and cannot unreasonably be refused.  
• Create a new ombudsman to deal with tenancy disputes quickly. 
• Improve the standards of the private rental sector by applying the Decent Homes Standard. 
• Give councils stronger powers to drive criminal landlords out of the market
• Shield tenants from excessive deposits and fees through the Tenant Fees Act 2019. 
• Notice periods will be reduced if tenants have been “irresponsible” e.g. breaching the tenancy agreement. 

At this stage, the bill has not been passed by parliament and inevitably there will be some changes as it’s debated. The above is our interpretation of what is known so far, but the government have published some guidance on the reform which you can read through here. 

There is quite a bit to digest, and we’ll keep you informed on how it impacts Bristol’s landlords. We’ll be here to support our landlords with these changes. 

Rent and deposit terms explained

As an agency we believe in being crystal clear and open. As part of this we like to cut through the jargon to make sure our tenants and landlords understand all the typical rents and deposit terms.

Deposits, fees & guarantors

Security Deposit

A little “peace of mind” that the property will be looked after. It’s a sum paid by tenants to our landlords at the start of the tenancy, held as a guarantee against any potential mishaps or unpaid rent.

Holding Deposit

A sum paid by tenants to express their commitment to renting a property. It shows goodwill and holds the property off the market until the tenancy agreement is finalised.

Holding Fee

In short a token of intent! Another word for a holding deposit

Guarantor

A helping hand that can step in if needed. A guarantor is an individual who vouches for the tenant’s financial responsibility, providing an extra layer of security for landlords in case of unforeseen circumstances.

Deposit Protection Scheme

Safekeeping for everyone! Deposit protection schemes are government-backed initiatives that securely hold tenants’ deposits during the tenancy. They offer impartial resolution services in case of disputes between tenants and landlords. The Letting Game use mydeposits.

Tenancy Deposit Scheme

Keeping your funds safe! A tenancy deposit scheme securely holds tenants’ deposits and provides protection and dispute resolution services. By all means we can help landlords through the process of complying with deposit protection requirements.

Deposit Dispute Resolution

Finding a middle ground! Resolution processes provide impartial mediation and arbitration services to settle disagreements between tenants and landlords, over the return or allocation of the deposit at the end of the tenancy.

Rent terminology

The payment made by tenants to landlords in exchange for a rental property they can call “home.” There are several other terms linked to this: –

Rent Arrears

Rent arrears occur when, for whatever reason, the rent goes unpaid, resulting in a debt owed by the tenant to the landlord. It’s a situation we tackle head-on, offering guidance and support to find a resolution. There are options for landlords to protect against this with Rental Protection Insurance – ask one of our team.

Rent Review

Keeping up with the times! A rent review is a periodic reassessment of the rent amount to ensure it remains fair and in line with market conditions, offering a balanced approach for both landlords and tenants.

Fair Rents

Keeping it reasonable! Fair rents are rental prices that are considered reasonable and in line with market conditions, striking a balance between affordability for tenants and fair returns for landlords.

Rental Yield

The return on investment! Rental yield is the annual return on property investment, comparing the rental income generated to the property’s value or purchase price.

Rent and deposit terms explained

As an agency we believe in being crystal clear and open. As part of this we like to cut through the jargon to make sure our tenants and landlords understand all the typical rents and deposit terms.

Tenancy Agreement/Rental Agreement

All agreed! A tenancy agreement is a legally binding document that outlines the rights and responsibilities of both landlords and tenants. We craft clear and comprehensive rental agreements to establish a strong foundation for the tenancy.

Assured Shorthold Tenancy (AST)

The type of agreement we and most landlords use in the UK! This provides both landlords and tenants with the peace of mind of a fixed-term agreement while allowing landlords the ability to regain possession through a Section 21 notice. The renters reform is likely to impact this area of the rental market when introduced. Here is our latest renters reform update.

Tenancy Renewal

The stay continues! A renewal allows tenants to prolong their term in the property, securing their continued enjoyment and rent payment in the home. Providing peace of mind for longer-term tenants to the landlord. We guide them through the process with expertise and care.

Periodic Tenancy

At the end of the fixed-term our tenancies switch onto periodic – without a fixed end date. This provides an ongoing arrangement whilst providing the option to conclude or renew at the end of each period.

Remember, we can help Bristol landlords with all the above and are happy to answer any questions from our Bristol tenants.

Ending a tenancy/regaining possession of the property

These are some of the key terms explained for bringing the agreement to an end, or the moving out of tenants:-

Repossession

Repossession is the legal process through which a landlord regains possession of a property. We guide landlords through the steps of repossession, ensuring compliance with the legal process.

Giving notice

Time to say goodbye! Giving notice is a formal notice served by either the landlord or tenant to end the tenancy and inform the other party of their intention to part ways.

Eviction

Last resort, explored thoughtfully! Eviction is the process of legally removing a tenant from a property. We prioritise open communication and explore all alternatives before considering eviction, striving to maintain a good landlord-tenant relationship.

Grounds for possesion

The valid reasons! Grounds for possession are the legally acceptable reasons for a landlord to regain possession of a property, such as tenant arrears, breach of the tenancy agreement, or property damage.

Meet The Letting Game’s Marketing Manager Bradley

Bradley joined The Letting Game as Marketing Manager  in January 2022, with over 15 years of marketing experience working for big well-known UK Brands. Having spent his career in larger organisations, Bradley wanted a new challenge in a role where he could influence across the broad world of marketing, in an organisation looking to be the best in their market, so he joined us!

Meet Bradley, Marketing Manager

“I moved from Norwich to Bristol in 2012, initially living in Redland. I’ve built a great group of friends through joining a Bristol Downs League football team. I love Bristol, particularly the independent shops, restaurants and pubs. I try to support local businesses like Pawsons (fruit and veg) and Dave Giles (butchers) on Gloucester Road. So, it was great when the opportunity to work for a Bristol Independent came along.

Working for The Letting Game has been a great opportunity to work for a company striving to be the best. I’m proud to be part of the team that won the allAgents award for best Bristol letting agent and the 3rd best in the UK.”

What have you been working on?

“Since joining The Letting Game I’ve rolled out our re-brand which I believe strongly represents who we are; a Bristol independent, professional, expert business thats proving we don’t play like the others. We are working hard to improve the world of lettings for our landlords and tenants alike.

The rebrand included a brand-new website, which I’m proud to say ranks us at the top of Bristol letting searches. We’ve also introduced a ‘first look’ of our landlord’s properties on Instagram (flattering to see some competitors trying to copy.) I believe our properties are the best presented on the market, with professional photography, unique descriptions, and virtual tours.

We were also very aware that the people of Bristol are very conscious about the environment and their impact on it, something we care about too. So, we set a target of becoming Bristol’s Greenest letting agent. Whilst there is more we can do, we are now Carbon Neutral, we’ve gone electric with our fleet of Minis and we even plant 3 trees for every let we do. One each for the landlord, tenant and our team – we want to make sure we do our bit for our clients.”

What’s your favourite thing about working for The Letting Game?

“It has to be the people! I work with a great bunch who are always willing to help. It makes me proud to work with a team that represents the brand and our values so well. They really are hard-working and dedicated, with expert knowledge and experience of the Bristol rental market.”   

Renters Reform Impacts for Bristol Landlords

The discussions on the Renters Reform have been going on for years, but it is finally here (well, sort of!). The bill had its “first reading” on the 18th of May and will be debated in its “second reading” soon. It will take a little time for the bill to get through the Westminster process and into law. Once it reaches Royal Assent (rubberstamped) there will be a phased approach to some elements of the bill.

Mrs Potts

Serving the most decadent of chocolate treats, this family-run establishment on Park Street is a must for the chocolate addicts among us. We highly recommend their famous hot chocolate with a double chocolate chip cookie sandwich chaser!

Arnos Vale Cemetery

Walk off the choc this Easter in Bristol! Set over 45 acres and full of amazing nature trails, we think, as do many others, that this Victorian garden cemetery is one of Bristol’s best-kept secrets. Grab yourself a coffee to warm the cockles as you roam around this fascinating, alternative walking route.

Brunel’s SS Great Britain

Fancy some seriously retro dining? Inspired by the menu during SS Great Britain’s voyage to Australia in 1861, step onboard this Bristol landmark to enjoy some traditional Victorian puddings in the First Class Dining Saloon.

Tobacco Factory Sunday Market

This community market takes place beside the Tobacco Factory every Sunday, and with amazing food, craft and local produce stalls, there really is something for everyone. Plus, you’re still walking around and working off the chocolate… https://tobaccofactory.com/whats-on/sunday-market/

Why are landlords setting up companies for their rentals?

Over the last few years, landlords have been hit with new tax rules and costs from additional legislation, which can really start to eat into the return on investment. A lot of landlords are looking at ways in which they can reduce some of these outgoings. More and more are creating a company rather than owning the property directly. A GetGround poll in 2022 saw 75% of UK landlords have had at least one property within a limited company. This is often to help the landlord make savings on things like tax efficiency.

Is setting up a company a good option for you?

Well, it’s not quite as simple yes or no answer. It’s certainly not something you should jump into without working out whether it’s a viable and worthwhile option for you. For some, it can make a significant difference in the return they get from their investments. Whereas others can go through all that work for no gain whatsoever, or even be out of pocket.
Landlords on higher rate tax are taxed on their property earnings before their monthly mortgage repayment (if they have one). They do get a tax credit of 20% but that’s less than half the benefit pre-2020.
Having your rental properties within a company means you can continue to pay the buy-to-let mortgage before tax is deducted.
The benefit of holding within a company will be seen even more if you recently re-negotiated your mortgage deal or are about to. With rates much higher than 12 months ago, the amount you pay back per month will be higher when spread over the same payback period.

Is it all positive?

Well, no, with a company comes additional responsibilities and costs – hence why it’s worth doing the groundwork: –

• Mortgage rates – available company rates tend to be slightly higher than a standard buy-to-let mortgage available to yourself.
• Stamp duty – Already own the property? Transferring it into company ownership is seen as a sale – so you’ll be subject to the 3% surcharge on top of the usual stamp duty rates.
• Capital gains tax – yes, you’ll have to pay this if you are a higher rate (or above) taxpayer, and the value has gone up by more than your £12,300 annual CGT allowance (28% tax on the balance). More info on the gov website.

Our Chairman Jack’s thoughts: –

Obviously, if you don’t own the property already then you’ll avoid the last 2 providing you purchase it via the company. We asked Jack for his thoughts:-

“The Bristol rental market has changed a lot since I opened The Letting Game back in 2009. In particular, the changing health and safety requirements, changing economic climate and tightening legislation. The demands on a landlord’s finances and time have never been higher (shameless plug – we can help with this!) But, that’s not to say that it can’t still be financially and personally rewarding.

My view on setting up a company is that the more properties you own the more likely it will be of benefit to you. If you only own one rental or are turning your current property into a rental then work through the numbers. There is a good chance it won’t stack up, particularly with the stamp duty. If you own a wider portfolio, then I am seeing more and more people go down this route. I know it’s not always exciting, but I really would get a spreadsheet out and work it through before jumping in, and always consult with your accountant.”

Preparing your Bristol property to rent

Whether you’ve inherited a property, moved in with your partner, or purchased an investment property, becoming a landlord can feel daunting. There are a lot of things to consider, and a letting agency like ours can help you navigate some of these. But in the meantime, we’ve pulled together information on some of the things you’ll need to think about before it becomes a Bristol rental.

Firstly, are you allowed to rent the property to a tenant?

Do you own the property, or have you got a mortgage on it? If it’s a standard homebuyer’s mortgage, then you’ll need to get permission from your provider to rent it out. It’s likely that you’ll need to switch to a buy-to-let mortgage.
If the property is a leasehold, then you’ll also need to get permission from the freeholder. You should be able to get this from the building’s management company.

Legal obligations

Whilst this might not be the most exciting section, there are a number of legal requirements to meet. To begin with, it’s the landlord’s responsibility to provide a safe & healthy environment for their tenants. Not an exhaustive list but here are some things you’ll need to make sure you have in place:-

• Electrical Installation Condition Report (EICR) undertaken and re-inspected a minimum of every 5 years.
• Included electrical appliances and smaller plugin items regularly checked.
• You must have a Gas Safety survey undertaken annually by a Gas Safety engineer (assuming you’re connected to gas mains.)
• Smoke alarms and carbon monoxide detectors must be installed in the property. The alarms must be checked on day 1 of each new tenancy and replaced in accordance with the manufacturer’s guidelines.
• There are new Fire Safety regulations that affect certain property types – Fire Safety Regulations 2022.
• All properties require an Energy Performance Certificate (EPC) to market it. Also note that the properties can’t usually be rented out if they fall within bands F and G.
• Furniture and furnishings will need to comply with Fire Safety regulations.
• Licensing – If you turn your property into a ‘house of multiple occupancy’ (HMO), there will be other licensing considerations. This is something we’ll help steer Bristol landlords on, but you can find information on the properties local council website; Bristol City Council or South Gloucestershire Council.
• Providing your tenants with a safe and healthy living environment is your responsibility. Making sure it’s hazard, damp and mould free, with basic amenities like clean water falls under Health and safety regulation; Gov.uk has more information.

Preparing the property physically

Is the property in a good condition?
Repairs or improvements that will affect the standard of living e.g. ventilation to reduce risk of damp/mould, are easier to do in an empty property. Are all the facilities, appliances, electrics, plumbing etc. working? – if there is a knack to flushing the toilet, it’s probably time to get it fixed!

Is the property presentable?
Clean and well-presented properties will be easier to let than one that feels neglected. In general make sure the property is of a good standard; fixtures and fittings in a good state, no dirt, mould or damp signs throughout the property is important. Making it more marketable, and the tenant is obliged to hand back the property in the same condition. Please note wear and tear will be expected.

Is it showing off the potential?
Every tenant will have their own taste. A well-decorated property with neutral colours is likely to have wider appeal than decorating to your own tastes. Clean, neutral, modern spec homes will usually rent as long as the valuation is right. We can help you with that!

Some other landlord considerations

• Landlord Insurance – If you have a mortgage the provider will probably require you to have building insurance in place. Even if they don’t it’s a sensible step to protect your investment. There is also contents insurance, home emergency cover and legal expenses to consider.
• Protecting deposits – we aren’t going into the tenant side in this article. However, it’s worth pointing out that you are legally obliged to protect a tenant’s deposit within a government-approved scheme.
• Your legal obligations as a landlord are ever-changing, it’s important to stay on top of these.
• HMRC – Yes a rental property is income so you’ll need to declare this via self-assessment.

There are a lot of things to consider when becoming a landlord, but it can be really rewarding. Plus there are people like ourselves that can make it easier for you.

Renters Reform Impacts for Bristol Landlords

The discussions on the Renters Reform have been going on for years, but it is finally here (well, sort of!). The bill had its “first reading” on the 18th of May and will be debated in its “second reading” soon. It will take a little time for the bill to get through the Westminster process and into law. Once it reaches Royal Assent (rubberstamped) there will be a phased approach to some elements of the bill.

Pre-tenancy considerations: Furnished or Unfurnished?

It often feels tempting to go for a furnished option, you don’t have to fork out for a bed, sofas, dining tables…the list goes on. However, furnishing a home is much more cost-effective than it used to be. If you’re low on budget but would prefer to start your own furniture collection, you can look at local buy-and-sell sites like Gumtree to find some bargains. And, as always, you can find most staple pieces at a fairly affordable price in Ikea. 

Unfurnished properties tend to be decorated in a more neutral way, so you have more scope to make it your own with decorative pieces and furniture choices. But, if you’re going for a furnished option whether due to needing a shorter tenancy or it being a student let, fear not. Keep reading for ideas on how to inject some personality without a lick of paint.

Firstly: Communicate with your landlord or lettings agency

Most rental agreements have rules in place and you should not carry out alterations to the property without your landlord’s permission. However, many landlords are quite happy for long-term tenants to replace things like curtains and light fittings providing they are replaced with the original fittings when you move out.

Some landlords are happy for you to paint rooms a different colour, especially if it improves the overall look of the property or the colour you use remains neutral for future tenants – but always get permission before cracking open the tins and brushes!

Storage

If you need extra storage but your landlord doesn’t want you to drill into the walls, you can work around it.

There are plenty of freestanding storage units like bookshelves, TV units and even coffee tables with drawers for the living area. For your bedroom, you could add a blanket box or trunk. Any local or national DIY/homewares store will have a multitude of storage solutions, so if you’re a keen shopper, take a day out to explore and find your best option.

Artwork, Wall Hangings, Mirrors, and Stickers

If the property has existing picture hooks, get some artwork or wall hangings to personalise the space – just be wary of heavy items! This can be a great opportunity to visit markets and different areas of Bristol  – finding cool pieces that local artists have created can also help you feel more like you belong in your new area, and supports the local community.

A great way to liven up plain walls is to apply removable wall stickers which can be easily removed at the end of your tenancy without leaving a mark on the walls.

Rent and deposit terms explained

As an agency we believe in being crystal clear and open. As part of this we like to cut through the jargon to make sure our tenants and landlords understand all the typical rents and deposit terms.

Inventory

Picture this—documenting every nook and cranny of a rental property’s condition and contents. This detailed document serves as a handy reference, helping us avoid any disputes by capturing the state of things right from the get-go. We use a 3rd party to ensure confidence in the impartiality.

Inventory Clerk

Our meticulous wizards! These skilled professionals conduct thorough inspections, documenting every detail of the property’s condition and contents to create a comprehensive inventory.

Check-In

The grand moment when we hand the tenants the keys to their new Bristol home. Making sure that everything is as it should be, IDs have been checked and any final details have been ironed out before the move-in.

Check-Out

The farewell, where the tenant moves out and we assess the property’s condition against the initial inventory. We aim for a smooth transition and ensure both landlord and tenants are dealt with fairly.

Inventories and Check-In/Check-Out Reports

Capturing the details, protecting all parties! Inventories and check-in/check-out reports document the condition of the property at the beginning and end of the tenancy. We conduct thorough inspections and provide detailed reports for the benefit of both landlords and tenants.

Fair Wear and Tear

Fair wear and tear refers to the natural deterioration of a property or its contents that occurs over time through normal usage, exempting tenants from responsibility for repair or replacement.

Dilapidations

Wear and tear or something more? Dilapidations refer to damages or disrepair to a property beyond normal wear and tear, which the tenant may be responsible for repairing or compensating the landlord.

End of Tenancy Cleaning

A fresh start for everyone! End-of-tenancy cleaning involves a thorough cleaning of the property. We can facilitate professional cleaning services, ensuring the property is left in good condition for the next occupants.

Professional Cleaning

Gleaming homes for happy tenants! Professional cleaning involves bringing in experts to ensure the property sparkles before new tenants move in or after they vacate, creating a fresh and welcoming environment.

Void Period

A void period is the time between tenancies when a property is unoccupied. We work tirelessly to minimise void periods and ensure a smooth transition from one tenant to the next.

Renters Reform Impacts for Bristol Landlords

The discussions on the Renters Reform have been going on for years, but it is finally here (well, sort of!). The bill had its “first reading” on the 18th of May and will be debated in its “second reading” soon. It will take a little time for the bill to get through the Westminster process and into law. Once it reaches Royal Assent (rubberstamped) there will be a phased approach to some elements of the bill.

South West Australia reforestation

South West Australia is one of only 35 globally significant biodiversity hotspots. These are classed as regions that have a high number of plant and animal species found nowhere else in the world. These account for 90% of all species on earth. It’s important these areas are protected to ensure their survival and restoration; the South West Australia project is located within a biodiversity hotspot.
It’s a reforestation project that is grown on degraded land that no longer supports viable farming practices. In a region where over 90% of the land has already been cleared, this project is helping to return the environment to its origins, planting more than 60 native tree and shrub species which are matched to the environment.

Biodiversity and Wildlife

This project encourages native animals and plants that have vanished or been pushed to the brink of extinction in the region to return and breed, such as Malleefowl, Bush Stone-curlew, Carnaby’s Cockatoo, Western Spiny-tailed Skink and the Woylie (Brush-tailed Bettong), as well as over 30 species of conservation-significant native plants.

Uruguay reforestation on degraded land

Located in the heart of Uruguay, this project turns land that has been used as beef cattle grazing for over 300 years, into sustainably managed forests. About 80% of Uruguayan land is used for cattle ranching and this has contributed to the degrading of the natural vegetation.
This project converts some of this land into forest plantations, for obtaining high-value, long-life timber products and for capturing and storing large amounts of carbon dioxide.
Planted forests will remove carbon dioxide from the atmosphere and store it. Over the 60-year initial lifespan of the project, it aims to remove 7,644,973 tonnes of carbon dioxide from the atmosphere.

Natural Forests and Bio-diversity protected

About 8.6% of Uruguay is forested. According to the World Conservation Monitoring Centre, Uruguay has 659 known species of amphibians, birds, mammals, and reptiles, 2.3% of which are only native to the area and 5.6% threatened. To achieve its climate goals and preserve its valuable habitats, Uruguay must take measures to preserve and grow the country’s forests. It has to keep the balance between the demand of the industry for wood, climate and environmental protection. Projects like this can help Uruguay successfully master this challenge.

Nicaforest reforestation project

If you want to read about another of the Carbon Neutral projects we’ve supported then why not have a read of our previous Nicaforest reforestation blog.