The Renters’ Rights Act is coming. Here’s what it really means for HMO landlords

The government has finally confirmed it: 1st May 2026 is the official commencement date for the first phase of the Renters’ Rights Act.

If you’re feeling a mix of “finally!” and “oh no… here we go”, you’re not alone.

This legislation brings the biggest shift in the private rented sector in almost 40 years, and right now, we’re all being asked to prepare without having the full set of documents, templates or guidance we need to do it properly.

So, let’s break down what’s happening, what it means for you as an HMO landlord, and what you should be doing now.

What’s changing on 1st May?

A lot is shifting straight away, and it will change how we manage tenants day-to-day. The biggest one is the end of Section 21, but there are several other rules coming in around rents, discrimination, and fixed terms.

In short: this is the beginning of a completely new tenancy system.

The Headlines:

• Section 21 is being abolished.
• Fixed-term tenancies are disappearing; everything will be periodic.
• Rent in advance rules will be tightened.
• Landlords can no longer:
  • Increase rent more than once a year.
  • Encourage bidding wars.
  • Refuse tenants because they’re on benefits or have children.
• Councils will be enforcing these rules with fines between £7,000 - £40,000.

What you need to do on 1st May

You’ll need to give all your current tenants an information leaflet explaining the new rules, but you won’t need to issue new tenancy agreements. That’s a common misconception.

New tenancies starting after 1st May will need to use the new periodic agreement, we’re just waiting on the Government to release the exact wording.

The Headlines:

• Hand all existing tenants the Government information leaflet (once it exists…).
• You do not need to reissue contracts for sitting tenants.
• All new tenancies will use the new periodic agreement.
• We’re still waiting for formal guidance on the wording of both documents.

What’s coming later? (phases 2 & 3)

Two more waves of change will follow. Phase 2 arrives later in 2026 with the Ombudsman and the database, and Phase 3 follows public consultation.

The Phases Explained:

Phase 2 – Late 2026:

• Mandatory Private Landlord Ombudsman
• National PRS Database (every landlord and every property)

Phase 3 – Date TBC:

• New Decent Homes Standard
• Updated HHSRS system
• Awaab’s Law applied to the PRS
• Tougher mould and damp timeframes

Where this leaves Section 21

You can still use Section 21 before 1st May, but it must be acted on quickly. If you serve one, you must get the possession claim into court by 31st July 2026, otherwise the notice dies.

From May onwards, everything moves to Section 8 grounds, no exceptions.

The Headlines:

• Section 21 is still usable for now.
• Court action must be filed by 31 July 2026.
• After that, it’s gone permanently.
• All future evictions will rely on Section 8.

Rents: Why you need to review them now

Because all tenancies will soon be rolling monthly, turnover is naturally likely to increase. That means your pricing needs to take account of higher churn and the single rent increase allowed per year.

It’s worth checking whether your rents still cover your running costs, especially as compliance demands continue to rise.

Recap:

• Review your rents before May.
• You’ll only be allowed one rent increase a year.
• We’re still waiting for the exact wording of the new process.
• Build in the potential for higher tenant movement.

A practical prep list you can start now

Even though we’re still waiting on the Government to release the full set of documents, there’s a lot you can be doing right now to make the transition smoother. Think of this as your “early action” list. These are the things that will put you ahead rather than scrambling once the new rules land.

And, truthfully, this is exactly why we created the HMO X Hub.

Every one of these preparation steps is something we support you with. Providing thorough training, tools, templated processes, expert guidance, and a community that’s already thinking ahead of the curve. Here’s what I’d recommend focusing on now:

1. Inspect your properties and deal with hazards early
   The new legislation will put even more emphasis on safety, damp, mould and repair responsiveness. Now is the perfect time to get proactive: walk every property, check compliance paperwork and fix anything that has been sitting on your list.
2. Refresh your referencing, onboarding and advertising processes
   The new rules around discrimination, fair selection and contract type mean your tenant-finding processes can no longer run on autopilot. Your referencing criteria, advert wording, house rules and move-in pack will all need reviewing.
3. Make sure your maintenance and complaints-handling systems are robust
   Under the new Act, complaint handling and repair responsiveness will be under the microscope. You will need a clear, trackable system in place, not just “fix it when tenants mention it.”
4. If you use a letting agent, check they are genuinely preparing
   Many agents are not yet ready for this legislation or are waiting for the secondary documents before acting. You need confidence now, not months from now. Ask them:

• • How are you preparing for the loss of fixed terms?
  • What is your plan for Section 8 once Section 21 goes?
  • How will you handle the new rent-increase rules?
  • What training have your team had on the Act?

5. Consider training on the new Act sooner rather than later
   This legislation will fundamentally change how HMOs operate, and landlords who understand the new system first will be far ahead of those who wait.

How the Hub helps you

Inside the Hub, you get the compliance checklists, audit templates, training modules, explainer videos and property-management workflows that make all this easier to put into practice. Whether you need help reviewing your processes, strengthening your maintenance systems, preparing questions for your agent or getting up to speed on the new Act, the Hub brings everything together in one place so you can stay compliant, confident and ahead of the change.

Final thoughts

Yes, this is a big shift, but HMO landlords already operate in a more regulated environment than most single-let landlords, which gives you a real advantage.

Your biggest strengths right now are preparation, good processes and staying informed. If you are proactive, this transition does not need to be chaotic.

If you want ongoing guidance, checklists, templates and updates the moment the Government releases the missing documents, you can join the Hub by clicking here. It is designed to help you stay ahead of the changes, not chase them.