Property managers and landlords face significantly greater enforcement and evidential risks under the Renters' Rights Act, with maximum civil penalties now reaching £40,000 and rent repayment orders increasing from 12 to 24 months' rent, according to RICS.
With the removal of Section 21, the relationship between landlords and tenants has shifted and increased the importance of detailed record-keeping, landlords and agents must now work with the new Section 8 notice and its 37 grounds for possession, while tenants can pay £47 to challenge a rent increase.
Angela Kelly MRICS, lettings director at Hurford Salvi Carr, said: “The higher evidential burden means that property managers should think carefully before moving towards possession.”
Pet requests also require a formal process. Property managers should respond within 28 days RICS state, with an additional seven days available when further information is required. If no response is provided within the required period, consent is deemed to have been given.
RICS said the higher evidential burden means managers should retain time-stamped inspection reports, emails and messages, notes of telephone calls and contractors' reports. This evidence could become particularly important in possession cases, rent challenges and disputes over responsibility for deterioration or disrepair.
Licensing compliance is another growing risk. RICS warned that holding the necessary licence is no longer sufficient, with fines, civil penalties and rent repayment orders increasingly arising where landlords hold a licence but breach individual conditions. Requirements can include tenant references, portable appliance testing, emergency contact information and recycling arrangements, and can vary between councils and licence types.
Local authorities also have wider investigatory powers and, with 24 hours' notice, may attend business premises to inspect and potentially seize records including emails, WhatsApp messages, documents and computers.
RICS said property managers should therefore move towards continual risk assessment, stronger record-keeping and regular reviews of compliance processes as enforcement activity increases.
