A more deliberate approach to letting

With the Renters’ Rights Act now in force in England, landlords need to think carefully about pricing, applicant checks and the financial risks of a tenancy.

The practical emphasis is shifting: set a rent you can stand behind, make consistent decisions on applicants, and plan for the full life of the letting.

Set the rent accurately from the outset

The rental bidding ban makes the asking price a firm starting point. A landlord or agent must advertise a specific rent and cannot invite, encourage or accept an offer above it. That makes the initial valuation more important: the rent should reflect comparable local properties, condition, specification and current demand, while taking account of the landlord’s costs.

If the property is advertised too high, it may sit empty; if it is advertised too low, the landlord cannot use bidding to recover the difference. A careful rental assessment before marketing gives applicants a clear figure and helps avoid a preventable void.

Choose applicants using clear, consistent checks

With section 21 no-fault possession abolished for assured tenancies, landlords have a stronger reason to make a sound decision before a tenancy begins. Checks can include identity, right to rent, credit and affordability information, previous landlord references and evidence that the proposed occupiers can meet the rent.

The process should be fair and consistent. Landlords must not refuse an applicant because they have children or receive benefits. Affordability should be assessed on the applicant’s full circumstances, applying the same criteria to different sources of income. A stable tenancy is more likely when expectations, property condition and responsibilities are clear from the beginning.

Plan for a rolling tenancy

Most assured tenancies in England now run on a periodic basis, without a fixed end date. Tenants can leave by giving the required notice, while landlords need a statutory ground and the correct process to recover possession. This makes forward planning more useful than relying on a fixed-term end date.

Landlords should budget for possible changes of occupier and keep the property well maintained. Rent increases also need to follow the statutory process: generally, no more than once a year, using the prescribed notice and giving at least two months’ notice. A tenant can challenge a proposed increase above the open-market rent.

Treat company lets as a separate risk assessment

A company named as tenant can create a different legal and practical arrangement from a tenancy granted to an individual. Before agreeing, check the company’s identity and financial position, who is authorised to sign, who will occupy the property, and who is responsible if rent or other obligations are not met. Consider whether director support or other security is appropriate.

The right documentation depends on the proposed structure and occupation. Take tailored advice before signing; do not assume that a company let follows the same rules as an ordinary residential tenancy.

Check rent guarantee cover is actually in place

Rent guarantee insurance can form part of a landlord’s risk planning, but a quotation or application is not the same as cover being in force. Check the policy wording, eligibility rules, referencing requirements, exclusions, excesses and claims conditions, and confirm the start date with the insurer or broker before relying on it.

Keep the completed referencing and policy documents together. If a condition has not been met, or the policy has not been purchased and started, the expected protection may not be available when it is needed.

Keep a realistic reserve and get support where needed

Landlords should allow for repairs, compliance work, insurance costs, gaps between tenancies and the possibility of delayed rent or a claim. There is no single reserve figure that suits every property; the appropriate amount depends on the property, its condition, borrowing and the landlord’s wider finances.

An experienced letting or management agent can help with marketing, applicant checks, records, rent collection and day-to-day maintenance. Appointing an agent does not remove a landlord’s legal responsibilities, so agree clearly what the agent will handle and keep oversight of key decisions.

A sounder way to let

The new framework rewards preparation. Realistic pricing, documented and even-handed checks, a clear understanding of the tenancy structure and a proper financial buffer can help landlords make decisions with greater confidence. Hermens Property can advise on rental assessments, tenant selection and ongoing management.

To discuss letting or managing a property, contact Hermens Property at Info@hermens.co.uk or call 01932 544346.

This article provides general information about private residential lettings in England, not advice on an individual tenancy. The rules applicable to company lets and unusual arrangements require separate consideration.

Further reading

• Renters’ Rights Act: overview for landlords — GOV.UK
• Repossessing your privately rented property after 1 May 2026 — GOV.UK
• Renters’ Rights Act 2025 — legislation