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As the reforms approach, landlords need to focus on what to do next, says Nicola Goldie, head of strategic partnerships & growth at Aldermore.
The Renters’ Rights reforms have been widely discussed across the industry.
By now, most landlords are familiar with the main headlines: the removal of Section 21, the move to periodic tenancies and changes to rent increases.
As May approaches, the focus is shifting from understanding the changes to preparing for them in practice.
Landlords have been here before. Over the past decade, the sector has adapted to significant shifts, from changes to tax relief and the stamp duty surcharge to tighter affordability rules. Each time, the market has adjusted.
The Renters’ Rights Act will have an impact, and some landlords may choose to exit. But for many, this will be another step in the ongoing evolution of the sector – and those who prepare early will be best placed to navigate it.
Here are five practical steps landlords can take now to make sure they’re ready.
One of the most useful starting points is to set out what needs to happen and when.
Landlords should identify key dates linked to the reforms, including what needs to be in place from 1 May and what actions are required for existing tenancies by 31 May.
For student landlords, there are also specific notice requirements (Ground 4A) that should be given by 31 May to maintain the usual academic letting cycle.
It’s also a good opportunity to line those dates up with mortgage renewals and build a timeline for your client’s individual circumstances.
If borrowing is due to be reviewed in the next six to 12 months, it may be worth considering whether any refinancing or restructuring should happen before further changes take effect.
The removal of Section 21 will change how landlords manage risk.
While possession will still be possible under strengthened Section 8 grounds, the process is likely to be more structured and, in many cases, slower.
If there are any concerns around arrears, behaviour or tenancy arrangements, it will be easier to deal with these now than once the new system is in place. With Section 21 due to be removed from 1 May, 30 April is the last date notice can be served, so landlords have a limited window to act under the current rules.
Under the new system, rent increases will follow a more structured process and will usually be limited to once a year.
Tenants will also be able to challenge increases they think are above market levels, which could introduce delays.
For landlords, that makes it important to review current rental income. If rents have fallen behind the market, it may be harder to adjust them once the new rules are in place under the formal Section 13 process. That could have a direct impact on affordability and how comfortably mortgage payments are covered.
There are also practical steps landlords need to take to ensure everything is set up correctly.
This includes making sure tenancy arrangements reflect the new framework and that tenants receive the right information at the appropriate time.
For existing tenancies, landlords will need to provide the government’s Renters’ Rights information sheet by 31 May, and this must be shared as a document rather than simply linking to it. Where tenancies are based on verbal agreements, these will also need to be formalised in writing.
Landlords should also review how properties are advertised and let, with new rules on pricing, upfront rent and tenant selection coming into force from May.
For some landlords, this will involve working closely with letting agents to make sure everything is ready ahead of the deadline.
It’s also worth making sure records are up to date and easy to access. A new Private Rented Sector database will be introduced, which will require landlords to register properties and upload key documents, including safety certificates, EPCs and deposit protection.
This is also a good time for landlords to review the financial position of their portfolio.
Rising costs, potential investment in property standards and changes to tenancy rules all affect how a portfolio performs.
Some landlords may need to invest in improvements to meet future standards or maintain rental demand. Others may want to reassess parts of their portfolio where returns are tighter or future costs are harder to justify.
This is where borrowing decisions come into play.
If mortgages are coming up for renewal, it may be worth considering whether refinancing, raising capital or restructuring borrowing could help support those plans.
Taking a portfolio-wide view, rather than looking at each property individually, can also open up more flexible options, such as Aldermore’s multi-property mortgage.
The Renters’ Rights Act represents a big shift, but it’s part of a longer trend of change across the private rented sector.
What matters now is how landlords respond. Those who are proactive – getting timelines in place, reviewing tenancies and aligning their finances – will be best placed to manage the impact.
Brokers are part of that process. By helping landlord clients stay on top of the changes, signposting them to reliable guidance such as the government’s Housing Hub and supporting them to make informed decisions about their portfolios, you can add value at a time when it matters most.