What is the 'Right to Rent'? | Crown Luxury Homes

What is ‘Right to Rent’?

Right to Rent is a UK government policy mandating that landlords verify the immigration status of all prospective tenants before granting a tenancy. Introduced in 2016, this legal requirement aims to prevent individuals without the right to reside in the UK from accessing the private rental sector.

In essence, Right to Rent shifts the responsibility of immigration checks from the government onto landlords. Before this policy, tenant referencing and signing an Assured Shorthold Tenancy agreement (AST) were the primary steps in the rental process. Now, landlords or their letting agents must also verify the prospective tenant’s immigration status by examining their passport and any relevant immigration documents.

Failure to comply with Right to Rent can result in significant penalties for landlords, including fines and criminal charges. Therefore, understanding and adhering to this policy is crucial for all landlords in the UK rental market.

Why Was ‘Right to Rent’ Introduced?

The Right to Rent policy was introduced as part of the Immigration Act 2014, reflecting the government’s ongoing efforts to deter illegal immigration and protect the UK housing market. By requiring landlords to verify the immigration status of their tenants, the government aims to prevent those without the right to reside in the UK from accessing housing.

While the effectiveness and fairness of this approach have been debated, the Right to Rent policy remains a legal requirement for all landlords in England.

What is involved in ‘Right to Rent’ Checks?

To comply with the Right to Rent policy, landlords are legally obligated to:

Conduct checks on all adult tenants: This includes obtaining original identification documents from individuals aged 18 or over who will live at the property, regardless of whether they are named on the tenancy agreement.
Understand acceptable documents: Landlords must familiarise themselves with the government’s list of acceptable documents, which includes passports, permanent residence cards, and various UK immigration documents.
Verify document authenticity: Landlords are responsible for verifying the authenticity of the provided documents, either in person or through a video call. Digital scans or copies are not sufficient.
Make and retain copies of documents: Landlords must make copies of all verified documents and keep them for the duration of the tenancy and one year after the tenants vacate the property.
Conduct follow-up checks for time-limited documents: If a tenant’s right to rent is based on a time-limited document (such as a visa), landlords must conduct follow-up checks before the document expires to ensure continued compliance.

By fulfilling these responsibilities, landlords can ensure compliance with the Right to Rent policy and avoid potential penalties.

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Tenant Responsibilities

To comply with the Right to Rent policy, tenants must provide their landlord or letting agent with the necessary documents to prove their legal right to reside in the UK. These documents typically include:

A valid passport or national identity card
A biometric residence permit
A permanent residence card
Other immigration documents specified by the government

Tenants must present original documents for inspection in person or through a video call. Digital copies or scans are not accepted. By cooperating with their landlord and providing the necessary documents, tenants can facilitate a smooth and efficient rental process.

Conducting the Check

To conduct a Right to Rent check, landlords must first request that the prospective tenant present their original identification documents. This can be done either in person or through a live video call. It is crucial to examine the documents carefully, ensuring they are valid and belong to the individual in question.

Once the documents have been verified, landlords should make precise copies of each document. These copies must be kept securely for the duration of the tenancy and for one year afterwards. Recording the date the check was conducted is also essential, as this indicates compliance with the Right to Rent policy.

Compliance and Penalties

To ensure ongoing compliance with Right to Rent regulations, landlords are advised to:

Regularly update checks: For tenants with a time-limited right to rent, conduct follow-up checks before their documents expire.
Utilise government resources: The government provides comprehensive guidance and resources on Right to Rent, including lists of acceptable documents and online checking services.
Stay informed: Keep abreast of changes to the Right to Rent policy or relevant immigration laws to ensure continued compliance.

Non-compliance with Right to Rent carries severe penalties, including potential imprisonment for knowingly renting to illegal tenants. Landlords can also face unlimited fines for renting to those they had “reasonable cause to believe” lacked the right to rent.

These fines vary depending on the accommodation type and if it is a first offence. Reasons for fines range from failing to conduct checks to accepting false documents. Landlords must provide evidence of Right to Rent checks to avoid liability if investigated.

Expert Insights into the ‘Right to Rent’ Market

According to data from the National Residential Landlords Association (NRLA), the Right to Rent policy has had a notable impact on the UK rental marketWhile landlords are highly aware of the policy, with 92% reporting knowledge of the scheme, there remain challenges in ensuring full understanding and compliance.

One significant trend is a growing reluctance among landlords to let properties to individuals without a British passport. The NRLA data reveals that 44% of landlords are less likely to consider such tenants. This sentiment extends to those with limited time to remain in the UK (53% of landlords) and EU or EEA nationals (20% of landlords).

These findings suggest that the Right to Rent policy may create barriers for specific tenants, potentially impacting rental demand and demographics. As the regulatory landscape evolves, landlords must stay informed and adapt their practices to ensure compliance and maintain a fair and accessible rental market.

Professional Advice

Property management professionals emphasise the importance of vigilance and thoroughness when conducting Right to Rent checks. Discerning genuine documents from fraudulent ones can be challenging, and seeking verification when uncertain is always recommended.

Additionally, maintaining a non-discriminatory approach is paramount. All prospective tenants should be treated equally, regardless of their nationality or background, ensuring fairness and upholding the spirit of the law.

Meticulous record-keeping is another crucial aspect of compliance. Comprehensive records of all checks, especially for those with time-limited rights, provide a safeguard against unintentional lapses. Regular reviews of these records ensure that your property and tenancy agreements remain legally compliant.

Real-life accounts

Landlords and tenants alike have shared their experiences with Right to Rent, offering valuable insights for others navigating the process.

A London-based landlord successfully implemented a digital system for storing and managing tenant documents, streamlining the Right to Rent check process and reducing the risk of errors.
A letting agent in Manchester developed a comprehensive tenant onboarding process that includes clear guidance on Right to Rent requirements. This process results in smoother tenancy starts and increased tenant satisfaction.
A tenant in Birmingham shared their positive experience with a landlord who clearly explained the Right to Rent process and respected their privacy throughout the check.

These examples highlight the importance of clear communication, efficient processes, and a respectful approach when dealing with Right to Rent checks. By learning from others’ experiences, landlords and tenants can navigate the policy more effectively and ensure a positive rental experience for all parties involved.

Conclusion

The Right to Rent policy is an integral aspect of the UK rental market. It requires landlords to verify the immigration status of their tenants. While this may present some challenges, understanding and complying with the policy is crucial for all landlords

Landlords can ensure a smooth and legal tenancy process by conducting thorough checks, keeping accurate records, and staying informed about any changes to the law. Tenants, too, play a vital role in this process by providing the necessary documentation and cooperating with their landlords.

Staying informed and diligent about Right to Rent checks is a legal requirement and a best practice for responsible landlords. By prioritising compliance, landlords can avoid potential penalties, protect their investments, and contribute to a fair and accessible rental market.