Landlords concerned about repossessing properties from problem tenants

Landlords are already reporting problems with regaining possession of properties from tenants just months after the Renters’ Rights Act came in.

The findings come after Section 21 “no-fault” evictions were abolished as part of the rental reforms in May.

Section 8 notices are now the only legal means for landlords to regain possession of their properties, requiring clearly defined grounds.

A snap poll of 250 landlords by lettings platform Goodlord found one in four have since reported challenges regaining possession of properties from problem tenants.

Meanwhile, two in five landlords have adopted more cautious tenant vetting procedures to avoid repossession issues and almost one in 10 are investing more in tenant retention to avoid turnover.

According to the findings, half of landlords have noticed an increased compliance burden as a result of the legislation, with a further 29% affected by higher compliance and insurance costs.

A quarter report higher letting agent fees since 1 May, and one in 10 have experienced longer void periods between tenancies.

Nishma Parekh, director of referencing at Goodlord, said: “These findings point to a market where getting tenant selection right the first time is more critical than ever, given how much harder it has become to reverse a bad match once a tenancy begins.

“Our fraud report made it clear that landlords were already facing a costly problem before the Renters’ Rights Act came in.

“Now that possession is harder to secure when things go awry, the cost of signing the wrong tenants has only gone up. It's little wonder thorough vetting has become the priority for landlords.

"Against this backdrop, landlords and agents need better referencing tools and clearer guidance to manage risk at the point of application, not just at the point of dispute.

“If landlords lose confidence in the system, it will have knock-on effects for agents and the tenants they serve."