The Renter’s (Reform) Bill, which was laid before Parliament on 17 May 2023, will undoubtedly provide agents and landlords key challenges, including staying compliant and offering fairness to all tenants when it is eventually becomes law.
While the bill provides clarity on a number of proposals, including the abolition of Section 21 evictions, various provisions could be scrapped, or indeed, further regulations added as the bill progresses through Parliament.
Richard Murray, CEO of Veco, said: “Agents will be facing a host of new legal requirements under the new reforms, many of which can be overcome with streamlined processes, checks and up-to-date records. This is certainly the case with ‘conscious’ and ‘unconscious’ bias in tenant applications.
“For example, if 50 people want to apply for a property, agents will need to give each tenant ‘equal opportunity’ to apply for that property without any bias – conscious or otherwise. In practice, it will be very difficult for agents to give all applicants the exact same amount of time, energy and effort to process their application.
“As this example highlights, most agents will struggle with compliance, unless they have some sort of self-service platform to help them manage tenant applications. The major advantage of self service is that it will give each applicant the same opportunity, via a URL that houses the application process.
“By implementing a technological interface for tenant applications, agents can work towards potentially reducing conscious and unconscious biases in their tenant selection process and contribute to a more just and equitable housing environment.”
Carly Jermyn, CEO and Solicitor, Woodstock Legal Services, warns that even without the incoming reforms, landlords and managing agents need to be able to demonstrate a fair tenant selection process to avoid claims of unlawful discrimination in respect of any of the protected characteristics under the Equality Act 2010.
“This includes age, gender reassignment, being married or being in a civil partnership, being pregnant or on maternity leave, disability, race including colour, nationality, ethnic or national origin, religion or belief, sex and sexual orientation, he explained.
“With the proposed reforms this will become even more important. If claims are made against landlords, it is much easier for us to be able to help them (and distinguish a claim) if we can demonstrate, with evidence, that they have a carefully considered a fair selection process that has been followed stringently,” Jermyn added.
Veco’s Richard Murray provides some pointers on how agents can prepare themselves for the Rent Reforms in tenant applications:
+ Develop clear selection criteria: Establish objective and specific criteria for tenant applications, such as credit score, income-to-rent ratio, rental history, and references. Having transparent guidelines can help agents evaluate applicants fairly and avoid subjective judgments.
+ Standardise the application process: Use a standard application form for all potential tenants which will reduce the likelihood of making decisions based on non-relevant factors such as the tenant having pets, reputation of tenants, stereotyping of cultures, previous track records of tenants.
+ Offer equal opportunities to view properties: Provide equal access to property viewings to all interested applicants. Avoid favouring certain applicants by offering exclusive viewings or privileged access.
+ Conduct fair advertising: Ensure your marketing and advertising efforts are inclusive and reach a diverse audience. Avoid language or images that could imply preferences for specific demographics.
+ Blind application review: Consider using a blind application review process, where the agent doesn’t see personal information, such as the applicant’s name, gender, or race during the initial screening phase. This helps eliminate unconscious biases that may arise from such information.
+ Educate staff and stakeholders: Ensure that all staff involved in the tenant selection process, including property managers and real estate agents, are aware of fair housing laws and receive training on identifying and avoiding bias.
+ Use technology and automation: Implement technology-based tools to facilitate the initial screening process, which can help reduce human biases in the early stages of tenant selection.
+ Diversify the team: If possible, involve multiple individuals in the tenant selection process. Diverse perspectives can help identify and address potential biases.
– Document decision-making processes: Keep detailed records of the tenant selection process, including reasons for accepting or rejecting applicants. This documentation can be valuable in case any fair housing complaints arise.
– Monitor and review the process: Regularly evaluate your tenant selection process to identify any patterns of bias, or areas for improvement. Be open to feedback from applicants and make adjustments as needed.
– Partner with fair housing organisations: Collaborate with fair housing organisations or local agencies that promote fair housing practices. They can offer guidance and resources to ensure compliance with fair housing laws.
This is madness, you can’t decide who to reny your hard earned property to, also we are now responsible for the tenant’s condensation.
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Provide a transparent guideline for tenant selction. Yeah right. I want tenants who intend to stay a minimum of 2 years if possible. It costs the landlord at least a months rent + loads of hassle every time they move on.
If my transparent criteria said that guess what every prospective tenant would say?
I want tenants who will pay the rent, look after the property and not cause issues with neighbors.
We do our own tenant selection during viewings, our criteria is up to us. I could justify every decision to a court if required. Why does the government feel the need to impose views, rules and regulations all the time when it usually has the opposite outcome!
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I agree, this is going to be a really difficult challenge. There has been lots of talk about no fault evictions, but this is an area of the legislation that appears to be flying under the radar.
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How is reputation and previous track record non – relevant?
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We have collaborated with Woodstock Legal Services on this article, and ultimately case law will iron out any obvious issues with this legislation. But I agree, this should be relevant.
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More drivel from people who have no idea of the real world and have probably never let a property in their life, scaremongering for their own business interests.
So, 20 applicants whose names we should perhaps not take, and we have to go through all, ignoring so called non-relevant factors ( which are anything but non-relevant to a landlord). Whilst this is being done, more applications received further delaying the process. Once one is eventually chosen, we then go back to them to find they have picked another property elsewhere. Start again!
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This part of the legislation, for me, is ambiguous and therefore open to interpretation. As someone who works in the software industry, is a landlord, and rents to commercial tenants, I’m wondering how will we all deal with this? Ultimately our software clients will guide us, alongside the legislation and case law, and we’re suggesting that there are a number of things to consider. But I agree with you, the concept is flawed.
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My criteria for a tenant? Are they legally allowed to rent? Can they afford the bills and rent on the property? Will they look after it? Are they planning to stay long term? Those are the main criteria, and I go with the person who has the strongest ‘yes’ in all 4 categories.
When I have multiple applications, I then look at pets, length of time at employer, length of time at current address and so on.
I also take into account how they have been throughout the viewing and application process. If they have been rude, impatient and generally unpleasant, I am obviously less likely to select them if I have a more respectful applicant, as if I am going to have to deal with someone for the next 2-5 years, why would I knowingly subject myself to someone I know is going to be rude or aggressive?
As far as race, religion, culture, gender, orientation etc, I’m not sure it is physically possible for me to care less…
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Obviously the race card is an issue, should a landlord or agent fall fell of that law, but you have consciously been bias towards the others in eventually selecting a tenant. Where does it end?
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I’d call it ‘winnowing’ rather than bias, but it would be classed as biased! There will ALWAYS be a loser when you have more than one applicant for a property. We have to choose the best option based on the information in front of us, so that is what we do.
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All valid points.
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Ppets are going to be a really contentious issue with this legislation.
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Absolute nuts …. conscious and non-conscious bias, who dreamed that one up?
Every tenants referencing is bias from one application to another or you would have the ‘donkey and pin on its tail’ on scenario!
Who defines when it is or isn’t. Oh yeah the tenant who is declined over another.
You just can’t investigate this, let alone police it unless the landlord or agent comes out openly showing bias. Doesn’t the landlord have a right too, with a private contract?
Currently we receive over 170 (one received over 200 in 72hrs) enquiries for every single property we get to rent. Impossible to call everyone one of them before we start viewings, so we use an on-line app of our own to weed out those that will fail financial referencing etc or we would be like headless chickens. We have to make a decision on one applicant in the end, often with this volume of enquiries selected within 48hours. Next they will be telling us it needs to be marketed for two weeks!!!!
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We look at the best tenants for our landlords and those that are deemed will be the best fit for the property. We get far to many requests from completely unsuitable tenants who cant afford the rent. Its not our fault the rents are so high and there is lack of stock for people to choose from. As an agency we do not have time to go through every request that comes through, we do have the time to call every single person. We are not discriminating we are running a business. Again more intervention from people who have absolutely no clue how this works.
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It IS your fault rents are so high, don’t you know that Letting Agents are devil-spawn, only missing out on being the cause of All Evil because Landlords exist! You deliberately gouge money from poor tenants who have the God-given RIGHT to let their children and animals destroy a property and only have to pay rent when they feel like it!(Sarcasm very evident)
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Oooh bad hair day, lol. I agree its so infuriating with some tenants who want everything for no commitment, scam the system and will be the first to complain of bias. If they don’t, we all know who will be waiting in the wings to jump in for them.
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A well-known ‘charity’ that does absolutely nothing to help the homeless it pretends to defend, whilst actively making the situation worse so that they can justify their continued existence?
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Without funds and resources to be able to enforce some of the most simple legislation, I’d love to know who and how this would ever be policed!? However, Richard’s point of having a system in place that treats all enquiries the same is a sensible one.
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Thanks Kristjan, and yes, basically impossible to police, but keeping good records and having a consistent approach and process is a great start. However that is delivered.
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I don’t know about unconscious bias, but I have a very conscious bias when it comes to Veco’s Richard Murray, his advertorial and woke suggestions. These days block viewings are the norm and we ask tenants to provide proof of income in advance. We still have to take a conscious decision on which one to pick and if my subconscious bias plays a part, well tough!
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My favourite post so far. I’ve never been called woke before, I’m the wrong side of 45 and grew up in Leeds 🙂 I’m just highlighting something that I believe is going to cause challenges for us all, in whatever capacity. I hope it won’t, but experience tells me that this will just create more work for good agents.
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In fairness I can see this aligning well with the oligarchs’ kafkaesque vision for society, where an algorithm selects a subject based on a hierarchy of grievance score, and the citizenry feel compelled to dye their hair blue just to get a viewing. It will suit the corporations, who won’t need to make a profit, as they will be able to run a letting arm as a carbon offsetting exercise. But like many of the propagandised topics of late, it doesn’t mean we need to let it happen.
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