As of today, the penalties that landlords could incur for non-compliance with right-to-rent regulations have seen a substantial rise.
Initially set to be implemented in January 2024, the hike was delayed to February 13th, 2024.
This escalation in fines comes as a part of the Home Office’s broader efforts to combat illegal immigration in the UK.
Under the Immigration Act 2014, landlords are obligated to verify the immigration status of any potential tenant prior to the commencement of their lease.
What are the updated Right to Rent penalties?
For an initial violation of the right-to-rent rules, the fines have increased from £80 per lodger and £1,000 per occupier to £5,000 per lodger and £10,000 per occupier.
The penalties for subsequent violations have also seen a significant increase, with fines rising from £500 per lodger and £3,000 per occupier to £10,000 per lodger and £20,000 per occupier.
Given these changes, it is now more crucial than ever for landlords to verify the immigration status of potential tenants to avoid a civil penalty from the UK government.
If Reeds Rains fully manages your rental property, we will conduct thorough vetting and referencing of all potential tenants, including right-to-rent checks, before they sign a tenancy agreement.
How can landlords screen their tenants?
To prevent leasing your property to undesirable or illegal tenants, landlords should adhere to referencing guidelines.
These guidelines should include:
- Verifying identity through documents such as a valid driving licence or passport
- Obtaining a reference from a previous landlord
- Conducting a credit check
- Requesting proof of address through documents like utility bills or bank statements
- Acquiring a reference from their employer
Remember that all landlords must comply with data protection laws when gathering data for a rent check.
What are the Right to Rent checks?
Landlords must perform a right-to-rent check to confirm that the potential tenants are legally allowed to rent property in the UK.
A prospective tenant must have legal residency in the UK to have the right to rent.
This may necessitate a passport or immigration document or a ‘share code’ that enables landlords to verify an individual’s immigration status online.
More information can be found on the government webpage.
To avoid errors that could result in one of the newly increased fines, you should consider letting us fully manage your property.
We will carry out referencing and right-to-rent checks on your behalf to ensure they are done correctly.
Additionally, we will handle professional marketing, prepare the tenancy agreement for you, arrange maintenance for your rental property, conduct annual rent reviews, and more.
If you’re interested in learning more about how we can assist you with your let, schedule a free rental consultation with your local branch experts today.
Reeds Rains E-marketing Executive
