Landlords may need to prepare for a turbulent and potentially very costly ride once the Renters’ Rights Bill becomes law, as non-compliance could incur significant financial and even criminal penalties, a financial expert has warned.

Debt recovery manager at Coles Miller solicitors, Eric Holt (main image, inset) says fines and penalties could be imposed for a wide variety of breaches, such as threatening to evict, not serving proper notices, discrimination, harassment, poor housing conditions, refusing tenants to rent a property if they have children, and unreasonably refusing to allow tenants to keep pets at the property.

While there are already some laws in place to deal with these matters, failure to comply may be dealt with more swiftly and more seriously, he says. Criminal penalties are also proposed and could result in summary convictions, a criminal record and unlimited financial penalties.

Meanwhile, proposed reforms to extend Section 8 eviction grounds may come with higher evidential burdens, which could lead to lengthy and costly litigation. The Bill, particularly the abolition of Section 21 notices, will undoubtably cause strain on the court system due to the additional hearings required to repossess a property under Section 8.

Overloaded

Increased waiting times and an overloaded court system may delay, frustrate and cause landlords to incur additional financial losses while tenants remain in their properties, says Holt.

“It may be prudent to ensure that you review your tenancy documentation and are ready to be proactive by taking steps to put your house in order,” advises Holt.

“You will need to plan ahead and prepare for inevitable long delays while the courts deal with backlogs of work, and most importantly take steps to ensure that you do not allow yourself to be subjected to any of the substantial penalties that may be imposed or put yourself in a position where criminal proceedings may be brought against you.”