Renters’ Rights Act 2026: The Practical Reality for Landlords (So Far)

The Renters’ Rights Act is one of the most significant changes to the private rented sector in a generation. The headlines are everywhere but the law on paper is only half the story. The real question for landlords and agents is practical: what does this actually mean day-to-day, and how do you adapt and keep compliant, without exposing yourself to unnecessary risk?

As an owner of a small Nottingham-based letting agency Notts Relocate we have spent the last few months implementing the changes. Rather than just another article talking law, we wanted to share some of the practical reality and what’s changed, how tenants have responded, share some of the templates/documents we have created and systems we have taken to ensure the landlord’s fair interests are still being met, whilst being complaint.

Tenancy Changes: Less Notice, More Voids & Marketing.

Perhaps the biggest change is the end of fixed-term Assured Shorthold Tenancies. Under the new system, tenancies are two months ongoing Assured Periodic Tenancies (APT) In practical terms, this means tenants are no longer tied into traditional six month contracts:

• We’ve already had several tenants use the 2 Month’s Notice provisions to leave earlier than the fixed term and we are now busier from a marketing perspective.
• A voluntary question has been added to the application form to ask the tenant how many months are they intending to stay? It is legal (in the event of two applications) to choose the person who wants to be more long term.
• The RRO has lead more tenants disregarding notice periods in general in 2026.
• Overall we have already seen some losses from voids and increased marketing costs to fill rooms. It is likely all landlords will experience this, especially on HMOs where turnover naturally occurs.
• There is little else that can be practically done other than accept we are going to be busier and ensure the tenant is satisfied with the property.

Removal of Section 21 & Increased Use of MCOL / CCJ Procedures

The removal of Section 21 has significantly changed how landlords deal with arrears. Shortly after the Renters’ Rights Act came in, we had a tenant who stopped paying rent. Under the new rules, we had to wait until the arrears hit three months before serving a Section 8 Notice which then was another 30 days, creating a long and costly delay.

After repeated failed attempts to discuss payment, it became clear the tenant had no intention of engaging. We then launched a parallel debt claim using Money Claim Online (MCOL) litigation, which is perfectly lawful. Once the tenant understood that a CCJ could affect everything from future rentals to mobile phone contracts and credit applications, they quickly became keen to negotiate a surrender to avoid legal action.

That experience changed our company policy. Where serious arrears arise, Section 8 and MCOL/CCJ procedures will now run side by side. We have also introduced full credit checks for all applicants, including HMO rooms, on the basis that tenants with clean credit files will be keen to avoid a CCJ.  Use of the MCOL / CCJ / litigation procedures I can see becoming much more widespread in lettings as a way to encourage tenants to negotiate. As always, the problem tenant is better off prevented than cured, which links well to the next section.

Referencing Criteria and Enhanced Referencing

The new rules have also reinforced the importance of reinforced but objective referencing to avoid discrimination. One of the key provisions of the act is DSS tenants cannot be declined and it must be based on income criteria.  Careful tenant selection at the outset is increasingly important. The key changes we have made.

• We now accept DSS tenants but they must pass affordability criteria. We have taken two DSS tenants so far who passed due to being on PIP and Universal Credit.
• We have published an objective criteria document online that all applicants must pass which also will be published clearly and staff trained on it to avoid discrimination as the fines are large.
• All tenants including DSS must have two clean references. If not we show less digression and we are increasingly using of guarantors are being used where perfect references are not present (even for a landlord reference)
• In practice DSS/All tenants with a good record will probably get accepted but overall the new stringent criteria means that many teannts will need guarantors which will lead to more voids however we would rather have an empty room, than a problem.

Rent in Advance & Guarantors Usage Increasing

Another practical change concerns rent in advance. The legislation has significantly restricted the use of large upfront rent payments. As a result, we are increasingly relying on guarantors where additional security is required. Many other agents and landlords we know are increasing using guarantors to overcome this issue.

Pets – Limited practical changes in HMOs & Leasehold Flats.

Pet requests must now be considered reasonably which we do. Pets can still be reasonably declined in HMO due to concerns over allergies or other occupier’s preferences. We have implemented a policy where all other HMO occupiers must all agree in writing as it their home and the pet must be suitable for a HMO room which rules out many pets. For apartments many leasehold apartments have terms in the headlease which prohibit it, a legal basis for declining it. In blocks where we are the Freeholder, many pets would be accepted (provided it is not an Alligator!) so only in Freehold blocks would we argue the law makes really significant changes.

Rent Increases

Rent increases are generally limited to once per year using the statutory Section 13 Process. We would never put rent up by more times than once a year so there are little practical changes other than a higher risk of challenge which is creates issues as whilst it goes to Tribunal the tenant can pay the old rent. The tenant does have to pay out Tribunal fees though which means in practice there is some friction.

The biggest change that you might have missed…

The biggest change may not actually be the Renters’ Rights Act itself. The real transformation is technological. Due to AI tenants effectively have access to a virtual barrister in their pocket, available 24 hours a day at no cost. Artificial intelligence can explain legislation, review possession notices, and weaponise minor landlord errors. In practical terms, every decision, notice, rent increase and possession claim should be made on the assumption that it will be scrutinised immediately by an AI tool giving lawyer quality advise. On a practical level it means that every aspect of your business needs to be compliant. Given that Council Housing Teams can now turn up unannounced under the RRO and have significant fines available to them, professionalism has never been more important.

Our Updated Documents

To help both landlords and tenants understand the practical implications of the new rules, we have updated the following documents:

• Renters Rights Act Training
• Rental Criteria & Referancing – May 2026
• The_Renters__Rights_Act_Information_Sheet_2026
• APT (FLATS) – New Contract Template
• APT (FLATS) – New Contract Template

Conclusion

The legislation is still new and many landlords and tenants are understandably uncertain about how it operates in practice. Overall the evidence is the underlying business will remain solid for professional operators. Increased voids are likely due to people leaving within 2 months and enhance referencing. Overall profitability has and will fall, mainly due to increase void and marketing costs.

It does however have a silver lining. Market rent (especially on HMOs) was been falling slightly in 2026, but there is now evidence they have stabilised.  A slow start to 2026 has now become busy with us taking on many tenants who have been served notice due to the new law. May 2026 has been one of our busiest letting months in a long time.

For the compliant landlords the rental levels will rise in time as more stock gets sold off and the long list of increased costs have to be passed on. Tenants should be careful for what they wish for. It’s the oldest and most obvious rule in economics, the end user of a product has to pay for it…