Part of the Estate Agent Software Guide
Estate Agents May 2026 12 min read

The Renters' Rights Act Is Live: What Your Lettings Software Needs to Handle Now

The Renters' Rights Act came into force on 1 May 2026. Section 21 "no-fault" evictions are abolished. All tenancies are now periodic. Rent bidding is banned. Letting agents must serve an official Information Sheet to every existing tenant and guarantor by 31 May 2026, with fines starting at £4,000 for failure. This guide covers what changed, what your software needs to do about it, how the main platforms are adapting, and where lettings systems still have gaps.

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25,665
Estate agency businesses in England affected by the Act
31 May
Deadline to serve the Information Sheet to all existing tenants
£7,000
Maximum fine per failure to serve the Information Sheet

What Changed on 1 May 2026

The Renters' Rights Act 2025 received Royal Assent in September 2025. Phase 1 came into force on 1 May 2026. The changes are immediate and apply to both new and existing tenancies. For letting agents, the operational impact is significant across several areas. For a broader comparison of how the main lettings platforms handle the Act, see our lettings software comparison. This article focuses on what your system needs to do right now.

Section 21 Abolished

No-fault evictions are gone. Landlords can no longer end a tenancy without giving a valid reason. All possession proceedings now require a Section 8 ground: rent arrears, antisocial behaviour, landlord sale, landlord occupation, or redevelopment. Your system needs to track which Section 8 grounds apply to each tenancy and manage the notice periods for each ground (which vary from two weeks to four months depending on the reason).

All Tenancies Are Now Periodic

Assured Periodic Tenancies (APTs) replace Assured Shorthold Tenancies (ASTs) as the default. Fixed-term tenancies are abolished. Every existing fixed-term AST converted automatically to a periodic tenancy on 1 May 2026. The maximum rent period is one month.

This is the change with the largest software impact. Systems that track tenancies by fixed-term end date, that trigger renewal workflows 60 or 90 days before expiry, or that calculate renewal fees based on fixed-term cycles, need fundamental restructuring. There are no fixed terms to renew. There are no renewal fees to charge. The tenancy runs indefinitely until the tenant gives two months' notice or the landlord obtains possession through a valid Section 8 ground.

Rent Bidding Banned

Letting agents must advertise a specific rent figure for each property. They cannot invite, encourage, or accept offers above the advertised price. This applies to the agent's own advertising and to any third-party platforms where the property is listed. If your system generates offer forms that allow prospective tenants to propose a different rent figure, that functionality needs to be removed or modified.

Advance Rent Capped at One Month

Landlords and agents can no longer require more than one month's rent in advance. Any clause in a tenancy agreement that requires rent in advance beyond the relevant rental period is unenforceable. For agencies that routinely collected two, three, or six months' rent upfront (particularly for tenants without UK credit history), this changes the onboarding workflow and the financial risk model.

Revenue impact: renewal fees are dead. Renewal fees accounted for approximately 27% of letting agency revenue nationally (37% in London). With all tenancies now periodic and no fixed terms to renew, this revenue stream has ended. Agencies need to find operational efficiency elsewhere. Software that reduces admin time per tenancy, automates compliance tasks, and improves landlord retention is now directly tied to margin.

The Information Sheet: What You Must Do by 31 May 2026

The government published an official Information Sheet that must be served on every tenant and guarantor with an existing assured or assured shorthold tenancy that was entered into before 1 May 2026. The deadline is 31 May 2026.

Who Must Serve It

If a landlord uses a letting agent to manage the property, the agent must serve the Information Sheet to the tenant. This obligation applies even if the landlord has already served a copy separately. Both the landlord and the managing agent have independent obligations.

How It Must Be Served

The Information Sheet can be served digitally or on paper. However, the government has explicitly stated that emailing or texting a link to the PDF does not count as valid service. You must send the actual document (as an attachment or a physical copy), not a link to the government's website. Your system needs to generate or attach the document and deliver it directly, with a record of delivery.

Penalties for Failure

The civil penalty for failing to serve the Information Sheet starts at £4,000 for a first breach and can reach £7,000. Each failure counts separately, so an agency managing 200 tenancies that misses the deadline faces potential aggregate exposure of £800,000 to £1.4 million. The penalty applies per tenancy, not per agency.

What Your Software Needs to Do

  • Identify all existing tenancies where the original agreement was entered into before 1 May 2026
  • Generate or attach the official Information Sheet as a document (not a link)
  • Deliver it to every named tenant and guarantor on each qualifying tenancy
  • Record proof of delivery with a timestamp, so you can demonstrate compliance if challenged
  • Flag tenancies where delivery has not been completed before the 31 May deadline

Goodlord has confirmed it will automatically issue the Information Sheet to all live tenancies within its platform, provided the tenancies were added before the last week of April 2026. If your tenancies are not in Goodlord (or if you use a different system that has not automated this), you need a manual or semi-automated process in place now.

Periodic Tenancies: The Operational Shift

The move from fixed-term to periodic tenancies is not just a legal change. It restructures how a letting agency operates day to day. Every workflow that was built around the fixed-term cycle (renewals, rent reviews, fee invoicing, landlord reporting) needs to be reconsidered.

What Disappears

  • Renewal workflows. There is no fixed term to renew. Tenancy continuation is automatic.
  • Renewal fee income. With no renewals, there are no renewal fees.
  • Break clause tracking. Fixed-term break clauses no longer exist. Tenants can give two months' notice at any time.
  • End-of-tenancy date fields. Periodic tenancies have no end date. Systems that rely on an end date for reporting, arrears tracking, or landlord notifications need a different trigger.

What Replaces It

  • Rent review scheduling. Landlords can increase rent once per year using a Section 13 notice (two months' notice required). Your system needs to track when rent was last reviewed and when the next review is permitted.
  • Tenant notice tracking. Tenants must give two months' written notice. Your system needs to log when notice was received, calculate the end date, and trigger checkout workflows.
  • Section 8 ground management. Possession now requires a valid ground. Your system should track which grounds are available for each tenancy and manage the specific notice period for each ground.
The reporting challenge. Many agency reporting tools calculate portfolio metrics using fixed-term end dates: "tenancies expiring this quarter," "renewal conversion rate," "average tenancy length." With periodic tenancies, these metrics either disappear or need new definitions. Agencies that rely on portfolio-level reporting need to ensure their system can report on tenure duration, rent review cycles, and notice activity without referencing fixed-term dates.

Rent Bidding and Advance Rent: System Changes Needed

Rent Bidding Compliance

The ban on rent bidding affects the listing and offer process. If your system includes any functionality that allows prospective tenants to propose a rent figure (an "offer" field, a bidding interface, or a field for "proposed rent" that differs from the advertised figure), that functionality must be disabled or removed. The advertised rent is the rent. Any deviation upward is a breach.

For agencies that feed listings to Rightmove, Zoopla, and OnTheMarket, the advertised rent on the portal must match the rent in your system. If your system allows manual overrides at the offer stage, check that the override cannot exceed the advertised figure. For more on how portal feeds work, see our Rightmove and Zoopla integration guide.

Advance Rent Cap

Your onboarding and tenancy creation workflows need to enforce the one-month advance rent cap. If your system calculates a "move-in cost" that includes more than one month's rent, the calculation needs updating. Deposits (capped at five weeks' rent under the Tenant Fees Act 2019) remain separate and are not affected by the advance rent cap.

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The PRS Database: What Is Coming in Late 2026

Phase 2 of the Renters' Rights Act introduces the Private Rented Sector (PRS) Database, expected to launch in late 2026. Every private landlord in England must register themselves and their rental properties. The database will record property details, EPC ratings, gas safety certificates, EICR status, and enforcement history.

What This Means for Letting Agents

Letting agents will be prohibited from advertising or managing a property on behalf of an unregistered landlord. This is not optional. If you market or manage a property for a landlord who has not registered, you face the same penalties as the landlord.

An unregistered landlord cannot serve a valid Section 8 possession notice. Since Section 21 is already abolished, this means an unregistered landlord has no legal mechanism to regain possession of their property at all. Any agent managing that property is exposed to complaints, enforcement action, and reputational damage.

Penalties

Non-compliance penalties start at £7,000 for a first offence and rise to £40,000 for repeated breaches. Providing false information carries penalties of up to £30,000. Rent repayment orders of up to 24 months' rent can be imposed on non-compliant landlords.

What Your Software Needs to Handle

When the PRS Database goes live, your system needs to verify landlord registration status before listing or managing a property. This means either a manual check workflow (with compliance flags and audit trails) or, ideally, an API integration with the government's database that automatically validates registration when a property is onboarded. No major CRM has announced this integration yet, because the database's technical specifications have not been published. But agencies should be planning for it now.

How Existing Lettings Software Is Responding

The major lettings platforms have announced updates, but the depth and completeness of those updates varies. Here is what we know as of May 2026.

Platform Info Sheet Periodic Tenancy Rent Bidding PRS Database
Goodlord Auto-issued to live tenancies Updated workflows Not confirmed Not yet
MRI (Sales & Lettings) Not confirmed Bulk conversion tool for existing tenancies; new tenancies auto-periodic Not confirmed Not yet
Alto Via Goodlord integration Updates announced Not confirmed Not yet
Reapit Via Goodlord AppMarket Updates announced Not confirmed Not yet
Street.co.uk Via Goodlord integration Updates announced Not confirmed Not yet

The pattern is clear: most platforms are relying on Goodlord for the Information Sheet compliance, and several have announced periodic tenancy updates. But no platform has confirmed how it handles the rent bidding ban at the offer stage, and no platform has PRS Database integration (because the database does not exist yet).

The Goodlord dependency. A significant proportion of the UK lettings market relies on Goodlord for compliance automation. Goodlord integrates with Alto, Reapit, and Street.co.uk, among others. If your agency does not use Goodlord (or uses a CRM without a Goodlord integration), the Information Sheet distribution and periodic tenancy conversion may fall back on manual processes.

The Full Compliance Checklist

Whether you use an off-the-shelf platform or a bespoke system, your lettings software needs to handle the following as of 1 May 2026:

Requirement Deadline What Your Software Must Do
Information Sheet 31 May 2026 Identify pre-1 May tenancies, generate/attach the official document, deliver to all tenants and guarantors, record proof of service
Periodic tenancy management Already live Convert existing fixed-term records to periodic, remove renewal workflows, track Section 13 rent review dates, manage tenant notice periods
Section 8 ground tracking Already live Record applicable possession grounds per tenancy, manage varied notice periods per ground, generate Section 8 notices
Rent bidding prohibition Already live Prevent offers above advertised rent, ensure portal feed figures match system figures
Advance rent cap Already live Enforce one-month maximum on move-in rent calculations
PRS Database verification Late 2026 Verify landlord registration before listing or managing; flag unregistered landlords; block non-compliant properties

When Bespoke Software Makes Sense

Most agencies with a modern CRM (Alto, Reapit, Street) and a Goodlord integration will meet the basic compliance requirements through platform updates. For single-branch agencies with straightforward lettings portfolios, off-the-shelf systems handle this well.

Bespoke software becomes the better option in specific scenarios:

  • Agencies managing large portfolios without Goodlord. If your current CRM does not integrate with Goodlord and you manage hundreds of tenancies, automating the Information Sheet distribution, periodic conversion, and compliance tracking requires custom workflows. Building these into your existing system (or building a purpose-built compliance layer) avoids the manual overhead of processing each tenancy individually.
  • Mixed-use agencies with non-standard workflows. Agencies that handle commercial lettings alongside residential, or that manage HMOs, serviced accommodation, or holiday lets as part of a mixed portfolio, often find that off-the-shelf platforms force them into a residential-only workflow. The Renters' Rights Act applies to assured and assured shorthold tenancies specifically. A bespoke system can distinguish between tenancy types and apply the correct compliance rules to each.
  • Agencies that need PRS Database integration from day one. When the PRS Database launches, agencies that want automatic landlord verification built into their property onboarding workflow will need an API integration that no off-the-shelf platform has built yet. A bespoke system can be ready to connect as soon as the government publishes the database's technical specifications.
  • Agencies that have lost renewal fee income and need operational efficiency. With 27% of revenue gone (37% in London), the commercial case for reducing per-tenancy admin cost is stronger than it has ever been. A bespoke system built around your actual lettings workflow, with automated compliance, integrated AML checks, and streamlined reporting, can close the gap that renewal fees used to fill.

The Renters' Rights Act does not just change what lettings software needs to do. It changes the economics of running a lettings agency. The agencies that adapt fastest will be the ones whose systems match their new reality, not the old one.

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