The Renters' Rights Act introduces further stringent rules for landlords with the creation of a Private Rented Sector Landlord Ombudsman Service, and a new Private Rented Sector Database.

Landlord Ombudsman 

Under the Act all private landlords and management agents will be legally required to join. The service aims to provide a fair, impartial and binding dispute resolutions process between landlords and tenants. 

Landlords will be expected to pay a “small” fee per property – further details to be confirmed. 

Ombudsman Enforcement 

Local authorities will have powers to enforce membership. Penalties include: 

• Up to £7,000 for initial failure to join;
• Up to £40,000 or criminal prosecution for ongoing or repeated non-compliance;
• Tenants may apply for repayment orders where landlords are not registered.

Private Rented Sector Database 

A new Private Rented Sector Database will be introduced, requiring all landlords to register themselves and their rental properties. The database will serve as a central hub with guidance and resources to support landlord compliance and be accessible by local councils for enforcement purposes; 

Landlords will be required to pay to register on the database, however the amount is to be confirmed. 

Enforcement 

Letting or advertising a property without being registered will be a breach of the law. 

Local councils can issue:

• Civil penalties of up to £7,000 for first offences; 
• Up to £40,000 and possible prosecution for repeated or ongoing breaches.

Ensuring Compliance

To help prevent disputes during a tenancy, landlords should ensure their properties meet all relevant legal standards. Its also important to document the property’s condition clearly at the start of the tenancy and update this as needed throughout. If any issues arise, maintaining open and clear communication with tenants is essential. 

Property offers a wide range of guidance, templates, and documents to assist landlords at every stage of the tenancy. These resources can be accessed here:

New Tenancy Forms, Letters and Checklists for Residential Landlords

Residential Tenancy Compliance Documents