How the Renters’ Rights Act could affect your rental income

What would you do if your tenant stopped paying?

From 1st May 2026, some of the most significant changes under the Renters’ Rights Act will come into force.

All tenancy agreements will transition to Assured Periodic Tenancies, Section 21 will be abolished, and regaining possession of a property is likely to become more challenging for landlords.

But what happens if your tenant stops paying the rent?
Under the new rules, a tenant must be three months in arrears before a landlord can serve notice—an increase from two weeks to a full month under the current system.
In practice, this means a tenant could owe you four months’ rent before you are legally able to take action.

To regain possession, landlords will then need to apply for a court order. Some may choose to manage this process themselves, but with ongoing court delays and the risk of
errors in the application, this can significantly extend the period of non-payment, with no guarantee of possession.

Others may decide to instruct a solicitor. While this may reduce the risk of mistakes, court delays remain just as likely and legal costs can quickly escalate—all while rent arrears continue to build.
Even once possession is granted, landlords may find that recovering the outstanding rent is highly unlikely, leaving them out of pocket.

It doesn’t have to be that way.

How can we help?
As part of our managed and rent collection services, we can also offer Rent Protection as an optional bolt-on.

Rent Protection provides landlords with a policy that covers rent arrears right up to possession, while also paying all associated legal costs during a claim. In the event of
a non-paying tenant, this can protect your income and potentially save you thousands of pounds.

In addition, we manage the entire claims process on your behalf, removing the stress and time involved in dealing with insurers or solicitors. We’ve supported many of our landlords across Bournemouth and Poole through situations where Rent Protection has helped cover rent arrears and legal costs while possession was ongoing

The legal cover is not limited to rent arrears alone. Should further legal issues arise with a tenant during the tenancy, these may also be covered under the policy.

Subject to certain conditions, most tenancies are eligible, including many that are already in place, with prices starting from £36 per month.

What should landlords do next?
If you’d like to understand how the upcoming changes under the Renters’ Rights Act could affect your rental income, or whether Rent Protection may be appropriate for your
property, we’re always happy to have an informal conversation and talk you through the options available.

Please contact us on 01202 554470.