The Renters’ Rights Act: a threat or an opportunity?

The Renters’ Rights Act has changed the way landlords operate in England.

With Section 21 abolished and most tenancies now running on a rolling basis, landlords have less flexibility than before.

But does that necessarily mean it is bad news?

Not if you adapt.

The right tenant matters more than ever

Without Section 21, simply ending a tenancy without giving a reason is no longer an option.

That makes choosing the right tenant at the beginning of a tenancy increasingly important.

Rather than focusing purely on getting a property occupied quickly, you should consider:

Who is most likely to pay reliably, look after the property and stay long-term?

A good tenant can now be even more valuable than before.

Get your rent right from day one

Rental bidding is now prohibited, meaning landlords must advertise a specific asking rent and cannot encourage or accept offers above it.

With rent increases also subject to new rules, accurately pricing your property at the outset is more important.

Understanding your local market, prices of comparable properties and tenant demand can help you maximise income without overpricing yourself out of the market.

Adapt to what tenants want

Tenants now have greater rights around pets, while landlords cannot discriminate against applicants because they have children or receive benefits.

Instead of seeing these changes purely as restrictions, you can use them to widen your potential tenant pool.

Altering your property to accommodate more types of tenants can potentially attract more demand.

Become more organised

The consequences of getting things wrong are increasing.

Landlords need to understand the new possession grounds, follow the correct procedures, provide the required information and keep accurate records.

If you’re managing your property yourself, staying on top of legislation is becoming increasingly important. We will cover the specifics of these regulations in a future article.

For others, using a competent agent or property professional may be worth the cost.

Think long-term

Perhaps the biggest change is the shift in mindset.

The old model looked something like:

Find a tenant → collect rent → use Section 21 when you want the property back.

The new environment better suits this kind of strategy:

Find the right tenant → build a good tenancy → retain them.

For landlords, that could mean fewer void periods, less tenant turnover and more predictable rental income.

So, is the Renters’ Rights Act bad for landlords?

It certainly introduces additional rules and reduces some of the flexibility landlords previously had.

But those who respond by becoming more selective, more professional and more informed can still build successful rental portfolios.

In fact, when the cost of getting the wrong tenant increases, getting the right tenant becomes more valuable.

That is where we believe the future of renting is heading.