It can sometimes seem as if landlords and tenants are standing on opposite sides of a huge chasm. Both parties need the help of the other to bridge the divide, but neither quite knows how to go about it.
As ever, the divisions are highlighted by press coverage.
"No children, no pets"
Currently, neither private landlords nor lettings agencies are prohibited from placing adverts that specify either "no children" or "no pets" or, frequently, "no children and no pets". This is despite concerns that women are more affected by such blanket bans than men - and that this could amount to indirect discrimination under the Equality Act 2010. As yet, despite a number of cases brought with the support of Shelter, this possibility has not yet been satisfactorily tested in the courts, perhaps because those it most affects are less likely to have the financial resources to bring a case. In any event, it's an issue that may soon find itself under parliamentary scrutiny.
Political concern, understandably, centres mostly around families, particularly lone mothers, who are unable to find rental homes. However, the predicament of would-be renters who are also pet owners is also very real. Although many landlords have long been reluctant to allow tenants to have pets, the issue is now exacerbated by new rules on deposits. In England, a government-imposed cap on the deposit that a landlord can request appears to have resulted in more landlords than ever deciding against accepting pets. Their concerns are understandable, especially if the deposit taken might not be sufficient to remedy any damage.
BBC researchers compared online lettings portals that allow landlords to check boxes indicating their willingness to rent to people with children and / or pets with portals where letting agents posted details of properties for rent. They concluded that online portals where landlords could indicate their preferences were likely to have higher numbers of properties that didn't welcome children or pets (or both) than portals where letting agents posted the details.
On the face of it, this might seem to suggest that people with children or pets who are looking for a rental property should avoid portals with listings posted by landlords. However, there's nothing to stop a landlord waiting until later in the letting process before explaining that children or pets are unwelcome. And, indeed, anecdotal evidence suggests that this is a tactic that tenants come up against frequently.
The National Residential Landlords Association
The National Residential Landlords Association is quoted by BBC as recognising "the importance of pets to many tenants" and suggesting that bans on children were "the actions of a minority of rogue landlords". However, as we already mentioned, anecdotal evidence obtained from those on the coalface of the hunt for a rental home might suggest otherwise.
Clearly, this leaves many renters in a difficult position. At a time when rental properties are in short supply, landlord-imposed bans on children or pets are an additional and unwelcome hurdle. Some may seek the support of the Property Ombudsman, which will mediate between parties and help them reach agreement, especially as the Property Ombudsman's own code of conduct states that blanket bans on renting to families with children are unacceptable due to their disproportionate effect on women. However, an information gap undoubtedly exists, and some would-be tenants will be unaware of the Property Ombudsman's stance and the potential support it offers.
While some landlords may shrug and decide that it's not their problem, many, if not the majority, are more sympathetic. On a purely utilitarian basis, of course, at some point, the balance may shift in favour of tenants if more rental properties come onto the market. However, many landlords will subscribe to the humanitarian argument: that there is an obligation to ensure that everyone who needs one can find a suitable home. The difficulty comes if renting to a particular person or persons involves an unacceptable level of financial risk for the landlord.
Rising costs and falling returns: how landlords can align their concerns with those of tenants
Just as rents are increasing for many tenants, landlords are also affected by rising prices. Mortgage interest rates are causing difficulty for many and, unsurprisingly, more and more landlords are choosing to cut their losses and get out of the rental market while they can. Uncertainty over sold property prices and the long-term capital value of a rental portfolio may be an additional driver. However, in an effort to retain their property portfolio, some landlords may consider looking for longer term tenants, which often means families.
Although rental returns are often highest when a property is let out to several unrelated individuals or perhaps to young professionals without children, both categories have the potential to be more transient than a family with children.
The desire for a stable long-term home and the need to remain near specific schools, and perhaps the support provided by local family and friends drives many parents to look for a long-term rental home. From the point of view of a landlord, a tenant who has expressed a wish to stay in the property for the long term may be more likely to look after the place more carefully. Then, of course, there's the point that a long-term tenant means no financially-worrying void periods.
If the case for encouraging landlords to comply with both the spirit and the letter of the law and not discriminate against tenants with children is clear, the position in relation to pets is hazier. Nevertheless, pet ownership continues to rise in the UK, and as more people spend more of their lives living alone, the importance of pets to the nation's well-being will grow.
While a landlord may worry about the impact a pet could have on their property, all else being equal, comparable homes - whether owner-occupied or rented out - generally fetch similar sold property prices regardless as to whether or not the previous occupant had a pet. Moreover, it's worth remembering that potential legislative reforms may mean a landlord must accept a tenant's pet unless the request is unreasonable. Currently, landlords may request pet references or ring-fence part of the deposit to deal with any damage. In the future, they may be able to insist on pet insurance to ensure they are covered in the event of a scratched door, ruined carpet and so forth.
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