The Renters’ Rights Bill is coming soon with major changes to the way this sector operates.
Everything will be under scrutiny, all the way down to your tenancy agreements themselves. If your tenancy templates haven’t been reviewed recently, you could be unintentionally operating outside the bounds of compliance—leaving both your agency and your landlords exposed to legal risk.
In this step-by-step guide, we’ll take you through the exact actions that letting agents and landlords alike need to take to make sure your tenancy agreements are fit for purpose under the new legislative landscape. From abolished notice clauses to updated deposit terms, now is the time to act.
Why you should be reviewing your tenancy agreements urgently
It’s hard to overstate the breadth of changes that are coming from the Renters’ Rights Bill. Almost every aspect of the industry is going to be impacted and one of the biggest areas of risk lies in continuing to use outdated tenancy agreements. For instance, purporting to grant a tenancy for a fixed term would attract a financial penalty of up to £7,000.
Most agreements currently in circulation are built around assumptions that are no longer valid (or soon won’t be). Whether it’s referencing Section 21, including rigid fixed-term clauses, or omitting information about property standards, agents and landlords need to adapt.
“A non-compliant tenancy presents a far greater risk with these changes. With better informed, more empowered tenants, agents and landlords will have greater expectations on them to keep up and keep compliant,” notes Carrie Alliston, Head of Partnerships at HomeLet.
Step 1: Remove any Section 21 language
Under the new bill, Section 21 ‘no fault’ evictions will be abolished. That means any clause referring to a landlord’s ability to terminate a tenancy without reason, typically at the end of a fixed term, will be of no effect and should be removed or reworded.
Action steps
- Replace blanket termination clauses with clear references to Section 8 eviction grounds, which will be expanded under the bill.
- Consider adding language that outlines mutual break clauses or tenant surrender procedures instead.
The goal is to make sure that tenants understand the ways in which their tenancy can end legally, keeping all parties educated and compliant.
Step 2: Future-proof fixed term tenancy clauses
The Bill proposes a move to periodic tenancies by default. That removes the standard six- or twelve-month fixed terms commonly used today. This change is designed to give tenants greater flexibility and security, but it also affects how agents and landlords plan tenancies. In order to navigate it cleanly, it’s best to start re-thinking the way your tenancy planning works.
Action steps
- Update templates to reflect periodic tenancy structures.
- Make sure termination conditions are clearly outlined under the new framework.
Step 3: Revisit deposit and holding fee clauses
While deposit caps and deadlines have been in place since the Tenant Fees Act 2019, the Bill reinforces expectations around transparency and fairness. It also strengthens tenant protections when agents or landlords fail to comply. This means that these deposits will still be permitted, but using clear language around processes and expectations will keep landlords, letting agents and renters happy.
Action steps
- Make sure your agreement clearly states important information like:
- How the deposit will be protected
- When it will be returned
- On what grounds deductions may be made
- How the deposit interacts with any pet insurance and potential damages
- Confirm that your holding deposit clause aligns with updated guidance. This is particularly important to review around refund triggers and the timeframe for tenancy agreement signing.
Step 4: Review notice periods for both parties
Notice periods under the new Bill are expected to become more tenant-friendly. In many cases, landlords will be required to provide longer notice when ending a tenancy under revised Section 8 grounds.
Action steps
- Take the time to understand what those new notice periods are and how they could impact your planning.
- Remove or amend any outdated language that allows for short-notice terminations.
- Clarify tenant obligations around giving notice. These are typically one month for periodic tenancies which will be the default going forward.
- Make sure that whatever service methods you use (email, post, in person, etc.) are up to date and legally valid.
Step 5: Include mandatory ombudsman and dispute information
Under the new Renters’ Rights Bill, letting agents and landlords will be required to join an approved ombudsman scheme. This gives tenants a formal process for lodging complaints and your tenancy agreement should acknowledge this so that your agreement is seen to be fully transparent.
Action steps
- Ensure the landlord is a member of the Private Rented Sector Landlord Ombudsman Service.
- Include the name and contact details of the ombudsman service in the tenancy agreements.
- Set expectations by clearly outlining dispute resolution timelines and escalation steps.
Step 6: Build in flexibility for ongoing change
This Bill is substantial, but it’s not the end of legislative changes and more detail will follow with the introduction of regulations. It’s also possible that there will be more changes in the future as the rental landscape evolves.
Action steps
- Add a “legislative compliance” clause allowing the agreement to be interpreted or amended to align with future statutory changes.
- Consider referencing that both parties will act in good faith to update terms if legal requirements shift during the tenancy.
Top tip: Don’t forget your templates
A lot of letting agents rely on template agreements stored in their CRM or internal platform. If you only update one version and forget the one auto-generated by your tech, you risk reintroducing non-compliant language by accident.
Work with your technology partners, like HomeLet, to update any automated tenancy templates so they are compliant with the Renters’ Rights Bill.
Always compliant, always easy: Vision+ for letting agents
With so many moving parts, keeping tenancy agreements compliant is a full operational challenge. And that operation is getting tested in a big way with this new Bill. But it’s situations like this where Vision+, developed by Let Alliance and HomeLet, can really shine.
How Vision+ can help:
The HomeLet goal is to help our customers provide a smooth, compliant start to every tenancy. Our Pre-Tenancy journey enables our Letting Agent Partners to instruct the deposit payments, serve mandatory documents and create tenancy agreements and customise the clauses within them, submit the contracts for e-signatures - all within the same Vision+ platform.
We are continually updating our system for our customer’s benefit. Any Letting Agent who partners with us can be confident it is compliant and in line with current legislation.
What does our Pre-Tenancy functionality include?
- Pre-vetting tenants
- Creating draft Tenancy Agreements
- Payment prompts for tenancy deposits and first month’s rent
- Serving mandatory legal documents
- Creating reminders for document expiry dates
- Payment prompts for holding deposits
- Instructing e-signatures for Tenancy Agreements
- Creating Tenant Terms of Business templates
Vision+ is a system that works smarter, so that Letting Agents don't have to work harder.
Whether you’re managing a dozen properties or hundreds, Vision+ lets you focus on delivering great service. Using every advantage, like our software designed with agents like you in mind, is critical for managing change on a scale as large as the industry faces now.
The Renters’ Rights Bill is designed to create a fairer, more transparent rental market, that means letting agents and landlords have a lot of work to do now. Keeping off the back foot by managing your tenancy agreements is a vital first step. If it’s outdated, vague or non-compliant, it doesn’t just put your agency at risk. It could cost your landlords money and reputation too.
Want the peace of mind that comes with automated compliance and seamless CRM integration? Let’s talk Vision+.
Speak to our team today to make sure your tenancy agreements are ready for the road ahead.