The Renters' Rights Act 2025: What It Means for Landlords and How to Plan Ahead

The Renters' Rights Act 2025: What It Means for Landlords and How to Plan Ahead

The Renters' Rights Act 2025 comes into force on 1 May 2026, bringing some of the most significant changes to the private rented sector in decades. The legislation is designed to improve security for renters, and with it comes a new set of responsibilities and considerations for landlords to plan around.

If you're a private landlord wondering how to adapt, you're not alone, and there are options worth exploring.

One increasingly popular route is securing guaranteed rental income through a management agreement with a serviced accommodation company.

Here's a straightforward look at what's changing and why some landlords are choosing to take a different approach to letting their property.

What's Changing Under the New Rules

Fixed-Term Tenancies Are Being Replaced by Rolling Agreements

From 1 May 2026, assured tenancies will no longer have fixed end dates. All tenancies will become rolling periodic agreements, typically month-to-month. This gives tenants greater long-term security, which is the intention of the legislation.

For landlords, it does mean that planning ahead, for a sale, a refurbishment, or a change in circumstances, requires more forward thinking and potentially longer lead times than before.

A New Framework for Ending Tenancies

Section 21 notices are being abolished. Going forward, landlords will need a specific legal ground to seek possession, such as rent arrears, antisocial behaviour, or an intention to sell or move a family member into the property. These grounds must be evidenced and followed through the courts if necessary.

This is a more structured process, and one that landlords will need to factor into how they manage their properties and plan for the future.

Rent Increases Follow a New Process

Existing rent review clauses become unenforceable after 1 May 2026. Landlords must use a statutory process: one increase per year, at least two months' written notice using Form 4A, and increases must be in line with open market rates.

For landlords managing costs and planning their income, understanding this process early is important.

An Alternative Worth Considering

For landlords who want more certainty over their income and their property, a management agreement with a serviced accommodation company offers a different model entirely, and one that sits outside the scope of the Renters' Rights Act.

Predictable, Guaranteed Income

With a management agreement, the SA company guarantees you a fixed monthly income for the duration of the contract, regardless of occupancy. That means consistent cash flow without the uncertainty of void periods or payment delays.

Clear Contract Terms

Because the agreement is between you and a company rather than an individual assured tenant, the contract operates on commercial terms with a defined duration. This gives you greater clarity over timelines and forward planning.

Fully Managed, Hands-Off

The SA company handles all day-to-day operations, guest management, cleaning, maintenance coordination, and compliance. You have one professional point of contact and significantly less to manage on your end.

Properties Kept to a High Standard

Serviced accommodation companies maintain properties to a consistently high standard as a core part of their business. Regular cleaning, routine inspections, and proactive upkeep are all part of the service.

Is This the Right Move for You?

A management agreement with a serviced accommodation company tends to suit landlords who:

• Want reliable, guaranteed income without the day-to-day admin
• Are planning ahead and want greater certainty over their property's future
• Own a well-presented property in an area with business or corporate demand
• Are looking to simplify their approach to letting in light of the changing legislative landscape

The Bottom Line

The Renters' Rights Act marks a genuine shift in how the private rented sector operates. For landlords, adapting to the new framework takes planning, and for some, it's prompting a rethink of how they let their property altogether.

A management agreement with a serviced accommodation company is one option that's gaining traction, offering income security, simplicity, and a clear contractual framework.

For landlords in Bedford looking for a smarter way to let their property, we'd love to help. Get in touch with us today to find out whether your property is suitable and what income you could achieve.

*This blog post is for general information purposes only and does not constitute legal advice. Always seek professional guidance regarding your specific circumstances.*