What happens when Section 21 is no longer there?

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No-fault
evictions:

With the
confirmation that the no-fault Section 21 process is to be abolished,
in the December Queen’s Speech, comes the realisation that
landlords and letting agents will need to prepare for a new regime.

Details are sketchy at the moment but a good deal of information, and the general direction of travel, can be gleaned from the government’s guide, “A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants”

PayProp, the company
that handles automated transactions and reconciliation for landlords
and agents on its web platform, is advising landlords and letting
agents to think now about updating their documentation and procedures
prior to the introduction of the new system.

Neil Cobbold, Chief
Operating Officer of PayProp

“…agents (and
landlords) need to think about the ways they can help to reduce the
frequency of evictions. Encouraging good relationships between
landlords and tenants is all-important, as is staying on top of
repairs and facilitating good communication between both parties.”

“Rent arrears
are one of the most common reasons for evictions, so agents can help
landlords to keep them to a minimum by sending automated emails and
text messages – which are proven to be more effective when it comes
to chasing rent payments. Using technology and automation will be
crucial for agents to stay on top of constantly changing industry
regulation and legislation,” thinks Mr. Cobbold.

Whilst its too early
to develop detailed paperwork, agreements and notices incorporating
the new regime, it’s not too early to start to put procedures in
place which are robust enough to deal with situations that as a last
resort may develop into a pressing need to evict.

In future, all
evictions, and most of these involve rent arrears, will revolve
around having good evidence to convince a court that the situation
may not be resolvable in any other way. Either serious rent arrears –
and these should never be allowed to become too serious – or
persistent delays in paying rent, will have to be adequately
evidenced if they are to succeed.

The other two major
reasons why an eviction may, unfortunately, have to be resorted to,
include damage to the premises, or anti-social behaviour.

In the case of the
former, a regular inspection regime is important, following on from a
good independent inventory taken at the commencement of the tenancy.
Where a damage claim is likely, a follow-up end-of-tenancy check-out
inventory is a must.

Where anti social
behaviour is concerned, and indeed with any form of dealing with
tenants, the landlord or agent should keep a detailed diary of
events, recoding everything that is said, and copies of all
communications. Verbal communications should always be followed up in
writing, and should be readily available in the tenancy file.

The courts are
interested in one thing and one thing only: facts. Hearsay and
opinions will get you nowhere, so all evidence presented must be in
some form of documentation, whether this be letters, emails,
contemporaneous diary entries, police reports, witness statements,
inspection reports, photographs and full inventories.

With the prospect of
having to prove given tenant behaviours against what is said will be
a revised set of grounds for possession, landlords and agents should
be getting ready now with their new and existing tenancies.

Forewarned is forearmed, so being prepared for the worst, in the unlikely event it may happen – by far most tenancies end normally with the tenant giving notice – means that you are protecting your investment even though the convenience of Section 21 has been taken away.

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