Renters Rights Bill already causing ‘early surrender agreement’ hassle

Propertymark past president Greg Tsuman has warned that the Renters Rights Bill is already causing challenges in the private rental sector, particularly due to early surrender agreements. These agreements allow tenants to leave fixed-term contracts prematurely without paying rent for the remaining period.

Tsuman highlights that many renters mistakenly believe the Bill is already law, leading to increased use of these agreements. While the legislation aims to provide tenants with more flexibility—allowing them to leave with two months’ notice—landlords will have to justify reclaiming their properties. This change may result in higher costs for landlords, potentially driving many out of the rental market and reducing the availability of rental properties.

He urges landlords to approach early surrender agreements cautiously before the law changes, emphasizing the risks involved, including fines and financial losses. Tsuman also warns that the Tenant Fees Act 2019 restricts landlords from charging exit fees, creating further complications.

Ultimately, he advises landlords to document agreements carefully and include clauses addressing post-surrender conduct to mitigate potential disputes.