Landlords given inspection warning over removal of ASTs

The Renters Reform Bill’s proposal to replace Assured Shorthold Tenancies with rolling ‘periodic’ lets could put landlords’ properties at risk, it’s been claimed.

Inspection service NoLettingGo’s managing director Nick Lyons says: “With ASTs there is a tenancy timescale in place from the start – 6, 12, 24 months – whatever it may be. Under that system, it was easy for landlords and agents to organise check-in, mid-term and check-out inspections.

“If all lets revert to periodic, then they will have to keep track of the tenancy duration and decide how often they might want to check on their properties to ensure tenants are taking reasonable care of them.”

Lyons says that because a periodic tenancy will end only when the tenant wants to leave - unless the landlord satisfies certain criteria to evict - it’s possible that years could pass between the beginning and end of a tenancy.

Without a strict inspection regime to ensure the properties are being properly cared for, Lyons fears disrepair could build up during such long tenancies.

“If a property isn’t monitored regularly, the owner runs the risk that it will deteriorate significantly. Problems like damp and mould – which might be relatively simple to rectify if spotted early - might end up being expensive to repair if early warning signs are missed” he adds.

The Renters’ Reform Bill was introduced in May this year and has just completed line-by-line scrutiny by MPs at its so-called Committee Stage. 

For many its most controversial proposal is the removal of Section 21 evictions, although this measure has been put on hold until reform of the courts process: however, Lyons says a move towards longer tenancies presents a less obvious risk to landlords.

He comments: “Never has a professional inventory and regular inspections been so important for landlords. If there is no detailed, accurate and reliable record in place at the beginning of a tenancy, how can landlords establish any form of deterioration beyond wear and tear and therefore seek redress through one of the deposit schemes?

“Higher mortgage rates and tougher affordability criteria have made it difficult for would-be buyers to get a foot on the property ladder so they are staying longer in rented properties.

“To protect their investment, landlords should put regular inspections in place to support the detailed, professional inventory which the tenant must sign before they move in.”

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