New rental laws mean many tenants will, from next month, automatically have formal Assured Shorthold Tenancies - This is a move that will push extra responsibilities onto Landlords and Agents with hefty fines if they do not comply.
Until now many tenants paying more that £25,000 a year (about £2085 per month) fell outside the AST classification, but from October 1st the threshold will be increased to £100,000.
From that date onwards any individual tenant paying up to £100,000 for an apartment or house that is their main residence automatically gets AST status and at this point the Landlord must:
The new law applies across the UK but it will affect us locally in such places as Sandbanks, Branksome Park ad Canford Cliffs to name a few. Many Homes in Multiple Occupation (HMO) may also be affected.
Any Landlord with Tenants in situ, and without a Lettings specialist, will face a particular struggle with this new legislation.
The regulation has been strongly opposed by the Lettings industry but the new Government is going ahead and it will apply retrospectively; therefore existing tenancies will have to abide by this ruling as well as those new deals after 1st October.
The Government stresses that this new regulation will offer better protection to Tenants, but Lettings specialist say that from experience it may lead to more disputes.
Whatever the pros and cons once the new measures come into effect anyone found flouting the rules will face drastic consequences - ignorance is no excuse !
Until a Landlord complies, he or she faces a huge fine and will not be able to serve notice on the Tenants to leave the property and gain possession.
This will affect all Landlords, especially those that do not live locally or who live abroad, for them there is only one sensible solution and that is to use a lettings specialist who has expierience of using this system.
