New landlord rules include changes in eviction timelines, new security deposit restrictions, and mandatory education for landlords in some states. Landlords must stay informed of these changes to avoid potential legal and financial consequences.
From changes in eviction timelines to restrictions on security deposits, new laws can create legal and financial hassles for landlords who aren’t up-to-date.
In addition, some states now require landlord education courses to ensure they understand their responsibilities and tenant rights.
In this article, we’ll provide an overview of the new landlord rules and help you navigate these changes to avoid potential legal and financial trouble.
Why Are The New Landlord Rules Important?
The Recent Changes In The Landlord Rules And How They Affect Landlords
- Starting with the new Section 8 notices, the government has introduced a standardized template for serving eviction notices.
- The time period to serve a Section 21 notice on a tenant has been extended from two to four months.
- The government has also introduced a new licensing scheme, mandating all landlords of HMOs (houses in multiple occupations) to get a license.
- The scheme has been extended to now cover buildings that are occupied by more than four people from more than one household, with at least one shared facility (e.g. Kitchen, bathroom).
- Landlords may be fined for any serious offences including failure to comply with the above regulations or managing an unsafe or overcrowded property.
- The government has also enforced energy efficiency standards and landlords may be required to improve the energy performance of their property before renting it out.
Examples Of How Landlords Have Been Impacted By The New Rules
- Landlords now must issue a standardized template for terminating a tenancy, for tenants who have breached their contract and when possession is required.
- The longer time period for serving a Section 21 notice has reduced the flexibility of landlords who may need to sell their property or move back in.
- Hemos that fall under the new licensing scheme may have to incur additional costs with paperwork, application fees, and rental income.
- Landlords may have to pay for improvements to their property to reach the right energy efficiency standards.
- If landlords make expensive repairs or improvements, they may not recoup their investments if they have to sell their property quickly or if the market value is low.
What Are The New Landlord Rules?
The New Landlord Rules, Including Changes
Recent amendments to the landlord and tenant laws have brought about some significant modifications in the rental housing sector.
These new rules aim to ensure fair and just treatment of both tenants and landlords, minimizing disputes and confusion. Here are the three crucial areas of change:
Rent control policies
New laws provide tenants with more protection against unjustified rent hikes.
Rent increases must not exceed 5% plus the cpi (consumer price index) or 10%, whichever is less, in a year.
Landlords must also give tenants at least 90 days’ notice before any rental rate changes.
Security deposits
To guard against the misuse of security deposits, landlords must provide tenants with a conclusive statement of any deductions made from the deposit within 21 days of the termination of the lease.
This statement should list every item deducted, their prices, and an explanation of their purpose.
Termination of leases
Most landlords who want to end a lease must give tenants a 60-day eviction notice under the new law.
Under specific circumstances, such as nuisance or unlawful activity, the notice period can be much shorter.
A Closer Examination Of Each Of The New Rules With Explanations.
Rent Control Policies
- The annual rent increase calculations rely on the cpi (consumer price index) or 5% plus the cpi, with a maximum of 10%.
- Tenants must not suffer retaliation if they request a rent review from the landlord.
- The new rent increase rules only apply to residential tenancy agreements, not commercial arrangements.
- Rent control does not protect units constructed after 2018.
Security Deposits
- The legislation specifies that landlords cannot ask for more than a month’s rent as a deposit.
- The landlord must provide a checklist of problems and mandatory repairs upon the tenant’s arrival, with the tenant providing an opportunity to challenge the specifics.
- Under certain circumstances, landlords risk fines and damages up to $5000 for violating security deposit regulations.
- Deductions for ordinary wear and tear and cleaning are not available from security deposits.
Termination Of Leases
- Prior to the termination of a lease, landlords must provide renters with at least 60 days’ notice, except in certain unusual circumstances.
- Renters may legally exit a rental unit if the landlord violates the conditions of the lease.
- Terminating a tenancy agreement unjustly can result in a penalty of up to 12 months’ rent paid to the lessee.
Changes To Rent Control Policies
Rent control policies have been updated to enhance tenant protection. These changes limit rent increases and specify new annual rent increase notice requirements.
Let us look at the key points of the changes brought about in rent control policies.
Explanation Of Changes To Rent Control Policies
As a landlord, you should be aware of the latest rent control policies. Here are some of the significant changes:
Rent increase limits
Previously, landlords could increase rent on an annual basis without any restrictions.
However, the new rule mandates that landlords can only hike rent once a year and that too, by a limited percentage.
The rent increase limit varies from province to province. For instance, in british columbia, landlords can increase rent by 2.6% in 2022.
New annual rent increase notices
Landlords must now provide tenants with proper notice before increasing the rent. Previously, landlords could verbally inform the tenants about the rent hike.
This new rule ensures that tenants are informed well in advance and that they have proper notice before the rent increase.
Security Deposit Changes
New Restrictions Regarding Security Deposits And Their Return To Tenants
Getting an apartment on rent is not only an involved process but can also be costly for tenants who have to come up with a security deposit.
New security deposit laws have been introduced recently with changes aimed to provide more protection to tenants.
These changes ensure that the landlords are held accountable as they manage the security deposits.
The New Rules Regarding Interest On Security Deposits, and more
The new laws significantly impact the way landlords handle security deposits and highlight the rights of tenants when it comes to receiving their money back. Here is a breakdown of the major changes:
Interest in security deposits
Landlords are now required to pay an annual interest rate on security deposit, calculated from the day the deposit was paid.
Timelines for returning security deposits
Landlords must return the security deposit with interest, within a specific timeline.
They must return the deposit to the tenant within fourteen days of collecting the keys if they move out of the property or sixty days after they vacate the rental unit.
Use of security deposits for repairs
Landlords are only allowed to use the collected deposit funds for specific purposes such as rent owed, damages over and above reasonable wear and tear, or unpaid utilities when the tenant departs.
Any other reasons are not acceptable.
Termination Of Leases Changes
The Changes To The Eviction Process
Being a landlord is no easy feat, especially when there are changes to the laws that govern your industry.
One of the significant changes in this regard is the termination of leases. As a landlord, it is essential to stay informed of these changes.
Here’s what you need to know:
In the past, landlords could evict tenants without a specific reason for termination.
However, in light of the new rules, landlords must have just cause or specific reasons for ending the lease of a tenant.
The rules laid down now define the reasons for which a landlord can evict a tenant. Earlier, landlords could terminate a lease if the tenant caused disruption or engaged in illegal activities. However, that has now been expanded to include the following reasons:
- Non-payment of rent.
- Illegal activity in the rental unit.
- Committing an illegal act that affects another tenant or the landlord’s property.
- A breach of the tenancy agreement.
- Use of the unit for illegal purposes.
- End of employment or occupation of a unit by a caretaker.
The rules clarify that landlords cannot end a tenancy if a tenant complains to a public authority, such as social services or health and safety bodies.
Similarly, landlords cannot evict tenants who are exercising their rights under relevant legislation.
The New Restrictions On Evicting Tenants And Terminating Leases
The new landlord rules have also introduced restrictions on how and when landlords can evict tenants. Here’s what you should know:
- If a landlord wishes to end a tenancy, they must provide a written notice to the tenant. This notice must state the reason why the tenancy is ending.
- Landlords must give tenants a notice period of at least 90 days to vacate the rental premises, except in specific circumstances such as non-payment of rent.
- Landlords cannot evict tenants if the tenant has lived in the property for more than five years unless the landlord or the landlord’s family plans to move into the rental unit.
The government hopes that these new landlord rules will enhance tenant protection and enable tenants to assert their rights confidently.
This information will help you understand what you need to know to uphold these regulations while conducting your business as a landlord.
Frequently Asked Questions Of What Are The New Landlord Rules
What Are The New Landlord Rules Regarding Evictions?
Landlords must give six-month notice to tenants before starting the eviction process.
Can Landlords Increase Rent Whenever They Want?
No. Landlords can only increase rent during the renewal of the lease period.
Can A Landlord Refuse To Rent To Someone With A Criminal Record?
Yes, landlords have the right to reject rental applications based on criminal records.
What Are The New Laws Regarding Tenant Security Deposits?
Landlords must return security deposits within 7-14 days of the tenant moving out.
Conclusion
Embracing these new landlord rules, you can create a rental landscape that’s fair, transparent, and beneficial for all parties.
Be proactive and adapt your practices, ensuring you safeguard your assets, foster healthy tenant relationships, and remain on the right side of the law.
Reference
https://www.mass.gov/guides/the-attorney-generals-guide-to-landlord-and-tenant-rights