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🏠 The Renters’ Rights Act: What Landlords Need to Know and How to Stay Protected

By Houseshare Heroes | October 2025


The Renters’ Rights Act is the biggest shake-up to the UK rental sector in decades and it’s set to change the way every landlord operates.


With fixed-term tenancies being abolished, new pet ownership rights, and restrictions on how landlords can choose tenants, the balance of power is shifting firmly towards renters.


At Houseshare Heroes, we’re already building systems to ensure our landlords stay compliant, profitable, and fully protected. Here’s everything you need to know.


⚖️ What the Renters’ Rights Act Means for Landlords


The Renters’ Rights Act (RRA) expected to come into effect in Spring 2026 aims to make renting “fairer and more secure.”


In practice, that means:


  • All tenancies will now start as periodic (rolling) tenancies there will be no fixed terms.

  • Section 21 “no-fault” evictions are being abolished.

  • Landlords must join a redress scheme and register on a new PRS database.

  • Tenants gain new rights around keeping pets, challenging rent increases, and ending tenancies with just two months’ notice.


⏰ Tenants Can Now Give Notice on Day One


Yes, you read that correctly. Under the new law, a tenant can move in and immediately give two months’ notice to leave.


Here’s how it works:


  • The tenancy starts on day one (say, 1st March).

  • The tenant serves notice the same day.

  • The tenancy ends on 1st May the earliest lawful end date.


That means a landlord could spend hundreds of pounds setting up a tenancy (advertising, referencing, inventory, admin), only to have the tenant leave after just eight weeks with no guaranteed minimum term to recover those costs.


'This is the single biggest change and risk introduced by the Renters’ Rights Act.'


💣 The Financial Impact on Landlords


Here’s a realistic breakdown of what this could mean for single let landlords:

Setup Task

Average Cost

Tenant sourcing & referencing

£400–£600

Inventory & check-in

£100–£150

Compliance (certs, cleaning, admin)

£150

Total upfront cost

£700–£1,000+


If a tenant gives notice on day one, you’ll pay these costs again in just two months’ time eating directly into your profit margin.


For HMO landlords, the impact is multiplied by the number of rooms and the admin load that comes with frequent turnover.


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🏘️ Pet Ownership in Shared Houses (HMOs)


Under the new rules:


  • Landlords can’t unreasonably refuse a tenant’s request to keep a pet.

  • Requests must be answered within 28 days.

  • You can’t charge higher deposits or require pet insurance.


However, for shared houses (HMOs), landlords have valid grounds to refuse based on:


  • Other tenants’ allergies, phobias, or health conditions

  • Shared kitchen, lounge, or garden space where pets can’t be safely contained

  • HMO licence, insurance, or mortgage prohibiting pets

  • Reasonable health and safety concerns


In those cases, a written refusal with evidence of your reasoning is fully compliant with the law.

💡 Houseshare Heroes Tip: We’re introducing a “Pet Request Policy” for all managed HMOs, balancing fairness, compliance, and household wellbeing. This means landlords can stay on the right side of the law without upsetting existing tenants.

💷 “Professional Tenants Only”? Be Careful How You Phrase It


The RRA and the Equality Act 2010 make it illegal to reject someone simply because they:


  • Claim housing benefit or Universal Credit

  • Have children

  • Have a service animal


But that doesn’t mean you can’t maintain standards.


You can still:


  • Require affordability checks and references

  • Request guarantors

  • Advertise as “suitable for professionals” if it reflects lifestyle compatibility (quiet household, shared working routines, etc.)

  • Comply with mortgage or insurance clauses restricting tenant types (this remains a lawful exemption)

💡 Houseshare Heroes Tip: We will review every landlord’s mortgage, license, and insurance to make sure your tenant criteria are compliant and defensible.

🔌 Lifestyle Clashes in HMOs: What the Law Doesn’t Fix


The RRA may protect tenants’ rights, but it doesn’t prevent household friction. In HMOs, mixed lifestyles for example, working professionals and tenants on benefits who are home all day often cause:


  • Unequal gas and electric usage

  • Conflicts over cleanliness or noise

  • Disputes about visitors, cooking times, or hygiene


These aren’t discrimination issues they’re management realities.


💡 Houseshare Heroes Tip: We include “fair usage” clauses in all tenancy agreements and monitor utilities using smart meters to prevent excessive use or household tension.

🧱 How to Protect Your Investment Under the RRA


The end of fixed terms doesn’t mean the end of control but landlords will need to adapt.


Here’s how to protect your income:


✅ Screen Smarter


Ask new applicants how long they intend to stay and check their rental history. A short-term mindset often reveals itself early.


✅ Use “Intention to Stay” Clauses


While not legally binding, these clauses set clear expectations and help reduce casual churn:

“The tenant confirms their intention to occupy the property for at least six months.”

✅ Offer Stay Incentives


Reward longer stays with small benefits like a discounted rent after 6 months, or a complimentary deep clean after 12 months.


✅ Automate Re-Letting


Digital onboarding, e-signatures, and online inventories reduce the cost and time of frequent move-ins and move-outs.


✅ Budget for Turnover


Hold one month’s rent per property as a turnover buffer to absorb short-notice exits without stress.


✅ Protect with Rent Guarantee


Rent Guarantee and Legal Protection policies cover missed rent and repossession costs essential under the new regime.


🧩 Quick Summary

Change

Impact

How Houseshare Heroes Protects You

Tenants can give notice on Day 1

Higher churn risk

Long-stay screening & incentive plan

No fixed terms

Unpredictable cash flow

Automated re-let & tenant pipeline

Pet requests

Compliance pressure

Written refusal process for HMOs

Housing benefit inclusion

Legal grey area

Affordability-based selection

Lifestyle conflicts

Increased complaints

Smart meters & fair usage clauses

PRS & redress registration

More admin

Full compliance handled for you

🦸‍♂️ Houseshare Heroes: Keeping Landlords Covered


At Houseshare Heroes, we understand that these changes could feel daunting especially when you’ve worked hard to build a steady, profitable portfolio.


That’s why we’ve already created our Renters’ Rights Act Landlord Protection Plan, designed to ensure these changes don’t affect your bottom line.


We’re introducing:


  • A digital tenant stability tracker

  • Long-stay screening and loyalty programs

  • Automated re-let and compliance systems

  • Integrated rent guarantee and legal cover options

  • A full RRA Readiness Audit for all landlords under management


So, while others are worrying about lost income, our landlords will be ahead of the curve fully compliant and financially secure. Thinking of investing in HMO's but don't know where to start check out our FREE HMO Training Series: www.houseshareheroes.co.uk/free

 
 
 

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