According to a new study, the Right to Rent scheme is causing landlords significant stress and worry, especially in areas of the UK with a high number of immigrants.
A recent survey of 500 landlords found that Right to Rent is one of the top three causes of stress for over a third of buy-to-let landlords, ahead of dealing with bad tenants, tax and inland revenue, void periods, securing finance and dealing with tenant complaints. Only rent arrears and necessary repairs to their property were rated more stressful than the new Section 22 of the Immigration Act 2014.
Landlords are suffering the most in areas such as London and the South East, the West Midlands, the East of England and the North West where the immigration levels are highest. Research by the Residential Landlords Association (RLA) found that when Right to Rent came into force, a shocking 90% of landlords in England and Wales had not received any information from the government on their legal duties under the new set of laws. The research also found that 72% of the landlords did not understand their obligations and 44% will only rent to tenants who have documents that the landlord is familiar with. As of the 1st of February 2016, landlords or their managing agent are legally obliged to ensure their tenants have the right to stay in the UK. Those who do not risk being reported to the authorities and could face a fine of up to £3,000.
Landlords are also worried that they are paying over the odds for the additional reference checks which are required to ensure that they are compliant with the new legislation.
At City Living London, we will ensure that we complete the Right to Rent check for the initial term on any tenants for whom it is necessary. Our Right to Rent checks are carried out as part of our normal referencing process and do not involve additional costs to our clients or tenants. In addition, if a landlord takes up our Management service, we will ensure that you remain compliant throughout the course of the tenancy.
If you are interested in letting out your property and would like any advice or information about this recent legislation, please contact our Lettings Manager, Laurelin Taylor, on 020 7351 6100.