The Renter’s Rights Act is now officially law, and while the biggest changes won’t bite until May 1, 2026, the clock is already ticking. Agents have a short but crucial window to get ahead of how lettings will work once the new rules bed in.
Key takeawaysBefore diving into the details, here’s what letting agents need to know:
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When Section 21 disappears, and every tenancy becomes periodic (rolling) by default, the old fixed-term cycle goes with it. That shift will change the rhythm of your renewals, how you justify your fees, and the conversations you’ll have with landlords. And because those rolling tenancies rely even more on clarity and consistency, your Terms of Business (ToBs) become the main reference point of what you can charge and what you’re responsible for.
If your agreements haven’t been looked at for a while, chances are they don’t reflect the world you’ll be operating in next year. That’s why now is the ideal moment to revisit them, refresh them, and ensure they continue to protect your revenue, your team, and your legal responsibilities.
In this blog, we’ll break down what’s changing, the risks of leaving your landlord ToBs untouched, and why you need to start reviewing them. 👇
The Terms of Business are the formal contract that defines the service agents provide, the fees they charge, and the responsibilities that sit with both agents and the landlord. In practice, it keeps expectations clear and ensures your service is understood correctly by your customers and legally defensible.
When these terms become out of date, you risk:
A comprehensive Terms of Business protects your income and clarifies your responsibilities. Reviewing it now can prevent disputes later and ensure your revenue model remains fair and defensible. Here are seven reasons to take a fresh look:
Lettings legislation has tightened considerably in recent years, and most agencies are operating in a far more compliance-heavy environment than when their current Terms of Business were drafted. Requirements around safety, property conditions, transparency, damp and mould, and record-keeping have all stepped up.
This creates two immediate issues. First, you may be carrying out work that isn’t properly captured or protected in your agreement. Second, vague or outdated clauses can leave your team taking on responsibilities the business never intended to shoulder.
Reviewing your ToBs ensures they accurately reflect:
With the Renters’ Rights Act introducing periodic tenancies, revenue cadence is changing. Rather than a traditional one-off annual charge, landlords will expect their fees to align with the new tenancy structure: rolling and periodic.
If your ToBs still assume a fixed 12-month tenancy or rely on an upfront yearly fee, they may quickly become outdated and, in some cases, non-compliant. If your ToBs don’t reflect this shift, it may lead to:
Updating your ToBs lets you transition cleanly to monthly management fees, ensuring your revenue is transparent and justifiable.
Over time, most agencies end up doing far more than their original ToBs ever anticipated. These are often a long list of extras that have quietly slipped into the day-to-day. Chasing rent arrears, drafting Section 8 notices, managing licensing renewals, arranging pre-tenancy compliance, fielding ad-hoc landlord queries and so on. If it's not managed, the list can grow exponentially.
But if those services aren’t captured in your ToBs, you can’t charge for them, defend them, or protect your team as expectations creep.
Refreshing your ToBs gives you the chance to formalise what your team already does and ensure your service descriptions reflect the reality of day-to-day management. If your team is spending time on it, it deserves a place in the agreement.
With the Renters’ Rights Act comes a whole wave of updates for the private rented sector. A quick hygiene check of your ToBs can help you spot where things have quietly fallen out of date. The key areas worth paying particular attention to:
Many agencies have long-standing landlords who are still operating on rates agreed years ago. These agreements are often set at levels that no longer reflect today’s workload or compliance demands of modern lettings. In some cases, those legacy fees are so low that the agency is barely breaking even.
The Renters’ Rights Act provides you with a natural, legitimate moment to tidy this up. If you’re reviewing your Terms of Business anyway, it’s entirely reasonable to bring older agreements in line with the rates you’d offer any new landlord today.
Landlords are becoming more aware of their growing responsibilities – and many are actively seeking additional support. This creates a natural moment for you to broaden your service offering and formally introduce new compliance-aligned services. You might consider including:
Reviewing ToBs gives you a perfect excuse to pick up the phone and check in with landlords without it feeling salesy. With many landlords unsure about what the Act actually means for them, they’ll welcome a clear, informed update, and that conversation often opens the door to stronger relationships.
A ToBs review creates space to:
Updating your ToBs is essential to protect your revenue and your team. But you can’t simply bolt on extra clauses for the sake of it; anything you include must be something you can genuinely deliver. This is where Goodlord helps.
Goodlord gives you the tools to modernise, issue, and manage your agreements properly, while supporting the additional services you may want to introduce as part of your ToBs refresh.
Revisiting your ToBs is an opportunity to protect your income, update your product portfolio, strengthen your landlord relationships, and get ahead of the sweeping changes the Renters' Rights Act will bring. With clear communication and a modernised approach to fees and responsibilities, agencies can turn what feels like a mandatory review into a genuine commercial advantage.
Goodlord helps make that transition smooth and future-proof. From issuing updated agreements to collecting digital signatures and supporting additional services you may want to introduce, it provides you with the framework and tools to update your ToBs with confidence and keep them that way.
Most agencies only review them after a significant legislative change, which is already too late. Best practice is every 12-18 months, or whenever new legislation meaningfully affects fees, responsibilities, or tenancy structures.
If your agreements are out of date, all landlords need updated ToBs, not just new instructions. A phased rollout is fine, but the important part is ensuring every landlord you manage is operating under compliant, accurate terms.
They can, but most won’t if the changes are clearly explained and tied to legislative updates. Where there is pushback, it’s usually because:
While it is entirely within a landlord’s rights not to sign your ToBs, you should also know your own value. Remember, working together to reach an understanding that works for both parties should be the goal of any discussion you have with your clients.
The Renters’ Rights Act is the most transformative piece of legislation to hit the Private Rented Sector in decades. If you refuse to adapt with it by not updating your ToBs, you risk:
Goodlord will keep copies of your ToBs in a central location, so you can access them whenever needed. We would, however, always advise Goodlord customers to keep a copy of their most important documents on a local backup.
Yes. Goodlord includes automated reminders for key tenancy and compliance milestones.
For many agents, this functionality is a major reason they choose to adopt Goodlord when refreshing their Terms of Business. The platform helps ensure nothing is missed, reduces the administrative burden on your team, and provides clear evidence of the ongoing value delivered through your management service.
These reminders also strengthen your position during renewal conversations, help maintain legal compliance across your portfolio, and demonstrate a proactive, professional approach to landlord management.
This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information.