"The Renters' Rights Bill Part 2" - Periodic Tenancies: A New Era for Landlord-Tenant Agreements

One of the biggest shifts under the Renters’ Rights Bill is the abolition of fixed-term Assured Shorthold Tenancies (ASTs). Instead, all tenancies will become periodic by default, meaning they will roll on month-to-month until the tenant chooses to leave or the landlord gains possession under legal grounds.

This change is designed to give tenants greater flexibility, but it raises concerns for landlords about increased void periods, loss of control over tenancy length, and potential income uncertainty. So, what does this mean in practice? Let’s break it down.

What’s Changing?

❗️ End of Fixed-Term ASTs

• Previously, landlords could offer 6 or 12 month fixed-term tenancies for security and financial planning.
• Under the new law, all current and future ASTs will automatically convert to, or start as periodic tenancies.

❗️ No Minimum Tenancy Term

• Tenants can serve notice to leave at any time, provided they give two months’ notice, from the rent due date.
• This means landlords may face more frequent turnover, potentially increasing void periods.

❗️ Greater Tenant Flexibility

• The government argues this change will allow tenants to move more easily if properties are in poor condition or if their circumstances change.
• However, it also removes security for landlords who prefer long-term stability in their rental income.

Implications for Landlords

⚠️ Increased Void Periods & Uncertainty

• With tenants able to leave at any time, landlords may struggle to plan for occupancy and rental income.
• There is a greater risk of short-term lets, where tenants leave before landlords recoup costs like tenant find fees and maintenance.

⚠️ Loss of Renewal Revenue

• Many landlords (and other agents) rely on renewal fees from fixed-term agreements.
• With rolling tenancies, renewals disappear, and landlords must adapt to a new approach for rent adjustments and contract management.

⚠️ More Frequent Admin & Tenancy Management

• Landlords will need to process tenant notices and re-market properties more often.
• The move also increases the risk of gaps between tenancies, leading to lost rental income.

⚠️ Stronger Tenant Relationships Needed

• With tenants having greater control, landlords must focus on good communication and tenant satisfaction to encourage longer stays.
• Offering well-maintained properties, fair rent, and responsive management will be key to reducing turnover.

How Landlords Can Adapt & Protect Themselves

✅ 1. Encourage Longer Tenancies with Incentives

• While tenants can leave with two months’ notice, landlords can encourage longer stays by offering:
• Competitive rent prices.
• Well-maintained properties.
• Flexible but fair agreements (e.g., small rent discounts for tenants who stay beyond a year).

✅ 2. Improve Marketing & Tenant Selection

• If turnover increases, landlords will need a solid marketing strategy to quickly fill vacancies.
• High-quality tenant screening becomes even more critical—finding reliable tenants is key to long-term stability.

✅ 3. Stay Proactive with Notice Management

• Landlords need clear processes for tracking notice periods and quickly re-listing properties to minimise voids.
• Using a professional management service ensures that tenant transitions are handled efficiently.

✅ 4. Consider a Managed Service to Handle Turnover & Compliance

• More frequent tenant changes mean more paperwork, checks, and compliance risks.
• A fully managed service can handle tenancy transitions, ensuring landlords stay legally compliant while reducing admin burdens.

How We Can Help

We know that uncertainty is a big concern for landlords under these changes. Our fully managed service makes the transition seamless—handling tenancy agreements, tenant retention strategies, and compliance so you don’t have to.

• We ensure your properties remain occupied with reliable tenants.
• We take care of all admin and compliance changes on your behalf.

Want expert guidance on navigating periodic tenancies? Contact us today and see how we can help secure your rental income and keep you compliant!