Top 4 Things That Landlords Need to Consider for 2022
During the upsurge of the COVID-19 pandemic, landlords were quite uncertain about what the future holds for the eviction process and how Brexit and this new problem will affect property investment. This also means that 2022 may be a very tricky year for the real estate industry, on the whole, especially rental properties.
Still, we’re going to do our best to introduce you to some of the top considerations for landlords who are planning on making the most of 2022:
1. Eviction Rules For COVID-19
Some temporary rules introduced amidst the COVID-19 pandemic meant that landlords had the power to not hand out long notice periods whenever they were starting eviction proceedings for tenants.
For instance, in Wales and England, landlords were required to provide six months’ notice except in circumstances where extreme actions were required. This included when tenants may have displayed some anti-social behavior, fallen behind on a minimum of six months in outstanding rents, or committed fraud. This rule was set in motion on 31st March 2021.
2. Possibility of Ending Section 21
In the last few months of 2019, the government had begun discussing the abolition of Section 21, which is a clause that allows property owners to end any ‘rolling’ tenancies with a notice of just two months and also without providing them with a genuine reason. Just a year later, Section 21 was still in place, and the Renters’ Reform Bill was delayed until after the pandemic finally subsided.
It is quite possible that we may be able to witness some news for this bill anytime soon, which is why all property owners should keep a lookout. Some other proposals featured in this bill include the replacement of security deposits along with a ‘lifetime’ deposit that moves everywhere with a tenant.
3. Stopping Mortgage Payment Holidays
If you find yourself struggling to keep up with your mortgages, or perhaps your tenants may be having problems making their rent on time, then you can always apply for a payment holiday for your mortgages until 21st March 2022.
The rules for these mortgage payments are as follows:
- If you have taken payment holidays since before the pandemic, you will be able to apply for a deferral for up to 6 months in total.
- If you have your first deferral in place right now or have resumed some of your payments after a deferral, then you can always apply for one more with a limit of 6-months.
- If you have already accounted for six months of deferrals, you will not be eligible for any further payments holidays. You will also have to ask for alternative support from any of your lenders.
4. No Stamp Duty Holidays
Landlords in Northern Ireland, Scotland, and England now have the benefit from the stamp duty cut rules introduced for investment in rental properties, and this came into effect after 31st March 2021. Landlords will still be liable to pay a surcharge of 3%, even though this will be on some temporarily low stamp duty rates.
Hopefully, the discussion above will help you define and refine your budget for the coming year and make it more profitable.
If you’re looking forward to apply the above for your rental property, you can always delegate the tasks to your property manager or hire the right professionals to take plan out the budget for you. This will leave you with more time to figure out how to serve potential tenants better, offering more affordability, more personalization, and authenticity as opposed to worrying about your safety.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can share some of your burdens.