How will Letting Agents be spending the next 45 Days?
From the time of reading this Blog, letting agents will have 45 days to prepare for the implementation of Phase 1 of the Renters’ Rights Act 2025. As the 1st May 2026 approaches, letting agent will be putting the final touches to their Strategic Action Plan - many of whom we work with have done so already. So what should the focus be?
Change Management
Remember, this seismic shift in the private rented sector does not rely on the press of a button, it is far more complex and detailed. The law is the law but the practical elements, implementation, detail and a clear understanding of the impact of change must be a priority laid out in a manageable plan.
Time is of the Essence - a great phrase which is heavily loaded and for those who are not prepared for 1st May 2026 will crate a sense of panic. Why will time be of the essence? Firstly, there is a huge amount of information to navigate - just the guides and statutory documents published by government will need to read and understood. Set time aside for this purpose with the team so that when landlords, tenants, guarantors, etc ask questions, they can be answered.
Secondly, the Renters’ Rights Act 2026 puts in place statutory time frames, not dissimilar to the Housing Act 2004 (Tenancy Deposit Protection), Housing Act 1988 (1996) (Section 21), Deregulation Act 2015 (Section 21 (Form 6A), Tenant Fees Act 2019 (Holding Deposit) and a whole raft of safety regulations. Th reason behind these time-frames is to ensure compliance and to set boundaries to ensure that key deadlines are met.
For example, the Information Sheet must be served from 1st May 2026 with the deadline / cut off of 31st May 2026. When the Private Rented Sector Database is launched time-frames to be ‘database compliant’ will be in place; Awaab’s Law will also require landlords to meet time-frames in relation to disrepair.
The government will be publishing statutory documents for landlords and of course, letting agents to use. Once the Information Sheet, Written Statement of Information & Terms, updated Section 8 (Form 3A) and Section 13 (Form 4A) are published, time needs to be set aside to read and familiarise the whole of the letting team with these documents.
Relying on CRM systems and PropTech to streamline and speed up processes is great, however, questions surrounding the purpose of these documents, how they are served, consequences of non-compliance, need to be answered and that remit sits with the negotiators, valuers, property management team and in some respects directors and decisions makers.
Understanding penalties for non-compliance and the new regulatory powers granted to Local authorities in England must be at the forefront of of the letting agents mind. If the letting agent does not act as ‘gatekeeper’ for the landlord, then who will? The letting agent has a Duty of Care and Duty of Skill to ensure landlords remain compliant and any possible risk is minimised. The fee charged by a letting agent to manage a rental property is a drop in the ocean compared to a Rent Repayment Order (RRO).
Terms of Business and Fee Structures form part of the letting agents’ business model and now is the time to rethink the services that are offered to landlords. Elevating what a letting agent can do for their landlords will become clear as the Renters’ Rights Act 2025 unravels.
Communicating with a Proactive Approach will demonstrate that processes, systems and a strong action plan is in place to take the Renters’ Rights Act head on.
Newsletters, blogs, webinars, and correspondence will inform landlords, tenants and guarantors of what is on the horizon and how these changes are being handled will reassure them they are in excellent hands. Focus on the positive, there is too much negativity which is getting landlords down, tell them just how you will support them at a team of significant change.