Rents can only be raised once per year, tenants can’t be removed for no reason and bidding on rentals will not be permitted – those are some of the proposed new rules under a government overhaul of tenancy policy. How will these affect your property?
Rent rise limits
If your tenant remains in your property, rent can only be raised once each year. However, if the tenant leaves you are able to increase to market rent when you advertise for your next tenant. This is not likely to cause many problems for owners or tenants.
Currently, tenants can be removed without a reason using a 90-day notice, while an issue like arrears means you can serve a 42-day notice to get them out. Under the new rules, there will be ways to remove ‘rogue tenants’, but no-cause cancellations will not be permitted. This shouldn’t provide too many problems; owners who want to move into their rentals may be affected.
Bidding for a rental will no longer be permitted. We don’t see a lot of this in the market right now and we don’t think it will have much of an impact on owners in general.
Pet ownership easier
Making it easier for tenants to own pets is part of a larger trend in this direction. We’re seeing more pet-friendly apartment buildings than ever. Although pets do tend to cause more damage, owners can also get higher rents and tenants often stay longer. This should be a win-win for good tenants.
The rules are likely to come into place in around mid-2020 at the earliest. We’ll keep you up to date with any definite changes that will affect your properties.