South Devon’s Independent Letting Agents

7 Mistakes You’re Making with the 2025 Renters’ Rights Bill (and How to Fix Them Before It’s Too Late)

The Renters’ Rights Bill is set to revolutionise the private rental sector, and it’s coming sooner than many landlords realise. Expected to take effect in early 2026, this legislation represents the biggest shake-up of rental law in decades. Yet many property owners across Devon & Cornwall are still operating under outdated assumptions that could land them in serious trouble.

At Your Home Let Devon, we’re seeing landlords make the same critical mistakes over and over again. These aren’t just minor oversights – they’re fundamental misunderstandings that could cost you thousands in penalties, lost rental income, and legal headaches once the new rules kick in.

The good news? There’s still time to get it right. Here are the seven most dangerous mistakes we’re seeing, and exactly how to fix them before it’s too late.

Mistake 1: Still Banking on Fixed-Term Tenancies

This is the big one. The Renters’ Rights Bill completely abolishes assured shorthold tenancies (ASTs) and all fixed-term arrangements. Every single tenancy will become periodic from day one – that means monthly rolling contracts with no natural end point.

Even if you’ve got fixed-term tenancies already signed and sealed, they’ll automatically convert to periodic arrangements once the Bill becomes law. Your carefully planned six or twelve-month agreements? Gone.

How to fix it: Start transitioning your mindset and your business model now. Instead of thinking in terms of fixed periods, you need to focus on building long-term relationships with quality tenants. Review your tenancy agreements and start drafting periodic versions. Consider how this affects your cash flow planning – you’ll need to be much more strategic about tenant selection since you can’t rely on natural break points to make changes.

Mistake 2: Charging Hefty Advance Rent Payments

We do not see this in the Devon market but for those landlords who routinely ask for six, nine, or even twelve months’ rent upfront. Under the new Bill, this becomes illegal – you’ll only be allowed to take one month’s rent in advance, full stop.

This isn’t just a guideline; it’s a hard legal limit. Charge more than one month upfront and you’re breaking the law.

How to fix it: Immediately audit your advance rent policies. If you’re currently advertising properties with higher advance requirements, change those listings now. Start developing alternative security measures – better tenant screening, guarantor requirements, or improved referencing processes. The key is building confidence in your tenant selection without relying on excessive financial barriers.

Mistake 3: Planning to Use Section 21 Evictions

Section 21 “no-fault” evictions are being scrapped entirely. No more serving two months’ notice and getting your property back without having to justify why. Instead, you’ll need to use Section 8 grounds – and that means providing legitimate reasons backed by proper evidence.

The reformed Section 8 process covers situations like rent arrears, anti-social behaviour, or genuine need to sell or move into the property yourself. But you’ll need to prove your case, and the procedural requirements are much stricter.

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How to fix it: Start building your documentation systems immediately. Keep detailed records of all rent payments, tenant communications, and any issues that arise. If a tenant breaches their agreement, document everything in writing. Get familiar with the different Section 8 grounds and understand what evidence you’ll need for each scenario. The better your records, the stronger your position if you ever need to regain possession.

Mistake 4: Ignoring the New Rent Increase Rules

With all tenancies becoming periodic, Section 13 notices will be your only way to increase rent – and you can only serve these once per year. This is a massive change from the current system where many landlords build rent increases into new fixed-term agreements or use break clauses to renegotiate terms. We can assure you this is nothing new to our agency, we have always had an ANNUAL Rent Review Policy, which our landlords & tenants all approve of.

How to fix it: Develop a strategic approach to rent reviews. Make sure your initial rent levels are appropriate because you’ll have limited opportunities to adjust them. Plan any increases carefully, considering market conditions and the annual restriction. Keep detailed records of comparable properties and market rates to support any rent increase applications.

Mistake 5: Cutting Corners on Property Standards

The Bill introduces the Decent Homes Standard across all rental properties. This isn’t just about meeting current legal minimums – it’s about ensuring properties are genuinely fit for purpose and well-maintained.

We’re seeing too many landlords still operating on a “fix it when it breaks” mentality. Under the new regime, delayed maintenance can trigger tenant complaints to the ombudsman, result in enforcement action, and seriously damage your reputation in the new regulatory database.

How to fix it: Shift to proactive maintenance scheduling. Regular inspections, prompt responses to repair requests, and staying ahead of potential issues will be essential. Consider the cost of prevention versus the risk of penalties, lost rental income, and damaged relationships with tenants. A well-maintained property isn’t just compliance – it’s good business.

Mistake 6: Discriminatory Tenant Selection

The Bill explicitly prohibits discrimination against tenants receiving benefits or those with children. It also prevents landlords from unreasonably refusing tenants with pets. These practices might be common in today’s market, but they’ll be illegal violations once the legislation kicks in.

How to fix it: Review your tenant selection criteria thoroughly. Remove any blanket bans on benefit recipients or families with children. Develop reasonable pet policies rather than outright refusals – consider factors like property suitability and pet deposits rather than automatic rejections. Train anyone involved in your lettings process on these requirements and document legitimate reasons for any tenant rejections based on permitted criteria like affordability or references.

Mistake 7: Underestimating the New Regulatory Framework

The Bill creates a comprehensive landlord ombudsman system and establishes a private rented sector database. This isn’t just bureaucratic box-ticking – it’s a fundamental shift towards much greater oversight and accountability.

Tenant complaints that might have been handled informally in the past will now go through formal dispute resolution processes. Your compliance history, property standards, and tenant relationships will be tracked and potentially made visible to future tenants.

How to fix it: Start operating as if you’re already under scrutiny. Improve your record-keeping systems, ensure all communications with tenants are professional and documented, and build processes that can withstand regulatory review. Understand that the relationship between landlords and tenants is becoming much more formalised and regulated.

The Bottom Line: Act Now, Not Later

The window for preparation is narrowing fast. While the Bill hasn’t received Royal Assent yet, the core provisions are clear, and implementation is expected in early 2026. That might seem like plenty of time, but it’s not – especially if you’ve got multiple properties or complex letting arrangements to reorganise.

The landlords who adapt their practices now will be the ones thriving under the new rules. Those who wait until the last minute will find themselves struggling with compliance issues, facing penalties, and losing out to more prepared competitors.

At Your Home Let Devon, we’re already helping property owners across the region prepare for these changes. The rental market isn’t disappearing – it’s evolving. The question is whether you’ll evolve with it or get left behind.

Don’t wait until it’s too late. The mistakes we’ve outlined aren’t just theoretical risks – they’re real pitfalls that could seriously damage your property investment returns. Start making these changes today, and you’ll be ready to succeed under the new regulatory landscape.

The future of letting in Devon & Cornwall depends on professional, compliant, and tenant-focused property management. Make sure you’re part of that future.

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