The Renters’ Rights Act 2025: The Compliance Burden Landlords Are Underestimating

The Renters’ Rights Act 2025 is not simply about the abolition of Section 21. It is a fundamental shift in how tenancies are created, managed, reviewed and ended.

Many landlords we speak to are aware that “something is changing” but very few know the exact details which surprises me and far fewer understand what day-to-day compliance will actually look like. The detail matters:

From 1 May 2026 landlords will need to operate within an entirely new framework, one that is document-led, evidence-led and enforcement-backed.

The key message isn’t: “You can’t manage your own property.” It’s: “You can manage it, but only if you understand the rules as well as someone whose job it is to know them.”

And most self-managing landlords simply don’t have the time to:

  • Monitor legislative updates

  • Implement Mandatory Compliance Correctly

  • Track statutory deadlines

  • Understand tribunal process

  • Maintain defensible audit trails

The risk isn’t incompetence. The risk is underestimating complexity.

In speaking with several self-managing landlords this week, it became clear that while many (but not all) are aware of the Renters’ Rights Act in principle, some of the specific compliance requirements, including the obligation to serve the prescribed information to tenants by 31st May 2026 - are not yet known and certainly were not yet widely understood. If you are a self-managing landlord, this is something you should be aware of. A lack of understanding in this area highlights a significant knowledge gap that could expose you to unnecessary risk.

The seriousness of this requirement alone should not be underestimated. It is the first step. Failure to serve the notice by the deadline may result in a civil penalty of up to £7,000, with the government’s recommended starting point set at £4,000. This is a substantial financial risk arising from what is, in effect, an administrative compliance step.

If you are unfamiliar with this fundamental first step, it is worth reflecting on what other aspects of compliance you may not yet be aware of. The regulatory landscape is becoming increasingly complex, and any knowledge gap can carry significant financial and legal consequences. It may therefore be prudent to consider whether full professional management would better protect both your property and your position as a landlord.

In the current enforcement climate, overlooking requirements of this nature is likely to be costly.

The Insurance Analogy

You don’t take out insurance because you expect something to go wrong.

You take it out because if it does go wrong, the consequences are expensive.

Our Professional management is regulatory insurance.

It protects you from:

  • Procedural mistakes

  • Missed notices

  • Incorrect rent increases

  • Poor record-keeping

  • Enforcement penalties

The cost of management is predictable.

The cost of getting it wrong is not.

As explained previously the Renter’s Reform Act follows Three Phases. In this blog I’m detailing Phase 1. The three phases and key dates can be found via a previous blog - Click Link

Phase 1 of 3

1. Every Tenancy Becomes Periodic

There will be no fixed terms. Existing tenancies convert. New tenancies must comply with prescribed structure requirements.

This means landlords must:

  • Ensure tenancy agreements reflect the new legal framework

  • Remove clauses that will no longer have legal effect

  • Understand when tenants can serve notice

  • Understand when possession grounds apply and when they don’t

An outdated agreement or incorrect clause will not just be “void” - it may trigger financial penalties.

2. Rent Increases Become Technical

Rent reviews will no longer operate through contractual clauses.

Instead:

  • A statutory process must be followed

  • A prescribed form must be used

  • Strict notice periods apply

  • Tenants can challenge increases at Tribunal - Yes they can take you to a First Tier Tribunal

If a landlord increases rent incorrectly, the notice may be invalid and any attempt to rely on it later could fail.

This is no longer about simply “sending an email.”

It is about serving compliant documentation with a clear audit trail.

3. Prescribed Information Must Be Served

Existing tenants must be served the government’s new information notice within a defined period.

Failure to serve this correctly may result in civil penalties of up to £7,000.

Serving it incorrectly may have the same consequence.

And “I didn’t realise” will not be a defence. You will also have to have proof that it was served. If it’s not recorded - it simply didn’t happen.

4. Discrimination and Pet Requests Must Be Evidenced

Under the new rules:

  • Refusal of applicants must be objectively justified

  • Benefit recipients and families are protected

  • Pets are presumed permitted unless reasonably refused

It is no longer enough to make a decision, landlords must record why the decision was made and demonstrate it was reasonable. You must also respond within a certain time frame.

A poorly worded email could be interpreted as discriminatory.

Without detailed records, how would you defend that?

5. Inspections and Record-Keeping Become Critical

With Section 21 gone, possession will rely heavily on evidence:

  • Rent arrears history

  • Anti-social behaviour documentation

  • Inspection reports

  • Communication records

  • Proof of service

If your records consist of scattered emails, text messages and handwritten notes, you may struggle to satisfy a court.

Digitalisation of the court process means judges will review uploaded documents. Poor scans, missing pages or inconsistent records will be exposed early.

6. Enforcement Is Increasing

Local Authorities now have:

  • A statutory duty to enforce

  • Enhanced investigatory powers

  • The ability to issue Civil Penalty Notices

  • Increased Rent Repayment Order thresholds

Enforcement funding has increased. Systems are being digitised. Specialist Legal Firms are being appointed. The direction of travel is clear.

The regulatory environment is becoming proactive, not reactive.

The Risk of Accidental Non-Compliance

Most landlords are not rogue.

The risk is not deliberate wrongdoing.

The risk is:

  • Missing a deadline

  • Using an outdated form

  • Failing to evidence and record service

  • Misunderstanding rent increase rules

  • Refusing a pet without properly documenting reasoning

  • Forgetting to upload data to the new Property Portal

  • Assuming “it’s fine because I’ve always done it this way”

Under the new regime, small administrative errors can have disproportionate consequences. This is just Phase 1.

Why Self-Managing Is Becoming Risky

Self-management used to be about time and convenience.

It is now about regulatory exposure.

Managing a tenancy under the Renters’ Rights Act requires:

  • Legislative awareness

  • Structured compliance systems

  • Time-stamped document service

  • Recorded inspections

  • Ongoing training

  • Tribunal familiarity

  • Enforcement understanding

A spreadsheet does not log service evidence.
An email folder does not provide audit trails.
A diary reminder does not ensure statutory compliance.

Professional management is no longer simply about collecting rent and arranging repairs.

It is about protecting landlords from regulatory risk.

Why Professional Management Matters More Than Ever

As accredited professionals, we:

  • Receive ongoing legislative training

  • Monitor regulatory updates before they take effect

  • Use CRM systems that log, date and audit correspondence

  • Track compliance deadlines automatically

  • Record inspection evidence properly

  • Serve documentation correctly

  • Maintain defensible audit trails

Most importantly — we remove uncertainty.

The Renters’ Rights Act is not designed to make landlords fail. But it will penalise those who do not adapt. If you are unsure whether your current systems would withstand scrutiny under the new framework, now is the time to review them.

The question is no longer “Can I manage this property?” It is: “Can I manage it compliantly?”

If you would like to discuss how your current processes measure up, we are happy to provide a confidential compliance review.

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Renter’s Right Act - The New Grounds For Possession