For the first time ever, self-managing landlords may be legally required to become members of a redress scheme, as part of measures for a new Housing Complaints Resolution Service for the entire residential property market.
Landlords will have a choice to chose an Agency to manage their property on their behalf or they will need to become a member of a redress scheme. Self-managing Landlords that fail to become members of a redress scheme, will face a fine of up to £5,000, under the plans unveiled by the housing secretary, James Brokenshire.
From broken boilers to cracks in the wall, it is hoped that the new Housing Complaints Resolution Service will help dissatisfied tenants resolve disputes quickly.
The housing secretary says “the proposals I have announced will help ensure all tenants are able to access help when they need it, so disputes can be resolved faster, and people can get compensation where it’s owed.”
News that private landlords will be legally required to join a housing redress scheme has been welcomed by us here at Portland Estate Agents. Personally, I think this is a really positive step, not only giving protection to many renters in our area but also for recognising that being a Landlord (whether you have one or many properties) is a professional business. However there are concerns as it will be yet another cost and yet another layer of complexity for our Landlords.
No firm date has been set for the introduction of the new rules and as always we will make sure all of our Landlords are kept up to date.
If you currently manage your own rental properties, with all the recent changes in legislation and all the upcoming changes, it is very easy to fall foul of the rules. I already assist many self-managing Landlords who have got themselves into difficulties with tenants due to not following the correct procedures, I would urge those that may not fully understand what is required to use the services of a Managing Agent or risk heavy financial penalties.
If you would like to find out more about our Property Management Service, please contact me directly on 020 8451 9844 and I will be happy to go through everything in more detail.