One of the biggest practical changes landlords and agents now need to prepare for under the Renters’ Rights Act is the new tenant notice rules and the knock-on effect these could have on void periods.
Under the new legislation, tenants are able to give notice from day one of a tenancy. However, that notice must be two months, and importantly, this is not simply a clause within the tenancy agreement, it is a legal requirement.
While the intention may have been to soften the impact of tenants being able to leave at any stage of a tenancy, in reality the changes are already creating confusion for tenants and frustration for landlords.
Here, Emma Foreman, Operations & Lettings Director at Complete, explains what landlords should do next to prepare.
The Reality We Are Starting to See
A very common scenario is likely to be this:
A tenant finds a new property, pays a holding deposit, and assumes they only need to provide one month’s notice on their current home, simply because that has been the norm for many years. They are then informed that legally they must provide two months’ notice.
The problem? Many tenants simply cannot afford two sets of rent, council tax, utility bills, moving costs, and deposits all at once.
This creates a difficult position for everyone involved:
- The tenant becomes stressed and frustrated
- The landlord faces uncertainty over rent payments
- Relationships can quickly deteriorate
- The tenancy risks ending badly
Of course, landlords and tenants can mutually agree to a shorter notice period. However, many landlords may understandably be reluctant to do so.
Why?
Because if the property is re-marketed on the open market, any new incoming tenant is also likely to be tied into serving two months’ notice elsewhere. This naturally increases the likelihood of longer void periods than the industry has become accustomed to.
A Significant Shift for Landlords and Investors
For years, many landlords have worked on the assumption that a property would re-let within a matter of weeks, with void periods often kept to around four weeks or less.
That expectation now needs to change.
Under the Renters’ Rights Act, landlords and investors should begin planning financially and strategically for the possibility of two-month void periods becoming far more common. Any investor purchasing a new rental property, or landlord preparing to remarket an existing one, should now factor this into their calculations from the outset.
This is now a reality landlords and investors need to prepare for.
So, How Would We Manage This Situation?
In practice, our approach would be pragmatic rather than purely contractual.
If a good tenant approached us having already secured another property but unable to afford two months of overlapping rent and bills, we would likely advise the landlord to consider releasing the tenant on one month’s notice, in line with their rental payment period, and begin re-marketing the property immediately.
Why would we take this approach?
Because commercially, it often makes more sense. A cooperative and supported tenant is:
- More likely to continue paying rent in full
- More likely to leave the property in good condition
- More likely to allow access for viewings
- More likely to end the tenancy positively
Whereas forcing a tenant to remain liable for an additional month they cannot realistically afford may simply increase the risk of arrears, disputes, and unnecessary tension.
Yes, landlords may experience longer void periods than they have been used to historically. However, in many cases there is a better chance of securing a new tenant quickly than there is of recovering an additional month’s rent from an unhappy tenant already under financial pressure.
Final Thoughts
The Renters’ Rights Act is not just changing legislation, it is changing the way landlords will need to think about tenancy management, finances, and void periods moving forward.
The days of assuming a property will always re-let within a few weeks may be coming to an end.
Preparation, realistic expectations, and pragmatic decision-making will become more important than ever for landlords navigating this new landscape.
If you would like some more advice about the Renters’ Rights Act and how it affects you as a landlord, get in touch with the Complete team today.