They say when the tide goes out, you can see who’s been swimming naked.
That’s what the Renters’ Rights Bill is about to do for landlords.
If you’ve been running a tight ship, which many HMO Landlords already are, there’s nothing to worry about in my view. In fact, this bill is an opportunity to raise your game even higher and stand out in a market that’s heading towards greater professionalism.
The bill is currently in the House of Lords, and we’re expecting it to get Royal Assent by late 2025 or early 2026. It’s a big shake-up, but if you’re serious about being a professional landlord, it’s a shift that should excite you.
The main changes that caught my eye that I’ll be discussing today include:
- scrapping Section 21 no-fault evictions,
- introducing periodic tenancies,
- extending the Decent Homes Standard to private rentals,
- creating a Private Renters’ Ombudsman, requiring landlords to register on a national database, and
- banning blanket bans on tenants with children or benefits.
These changes demand more engagement, but they also reward those of us who treat property as a business and not just a supplementary income with some occasional tenant management to do.
Let’s start with the abolition of Section 21, which allows landlords to evict tenants without giving a reason. Under the new rules, this will be abolished, meaning you’ll need a valid reason to regain possession, like persistent rent arrears, anti-social behaviour, or deciding to sell. This will be issued via a Section 8.
For the full list, it’s here.
For HMO landlords, where managing multiple tenants is already a juggling act, this highlights the need for robust processes. Keep good records, vet tenants properly, and run your HMOs professionally, and this change won’t keep you up at night.
Keep up with the market with rental increases if that’s your sticking point and get the refurbishment right so that the property will attract good tenants now, and in 5 years.
Futureproof your investment from the outset with quality fixtures and fittings and well considered extra features and you’ll attract and keep the best tenants.
Periodic tenancies are another big change. No more fixed-term contracts—tenants can leave, as long as they give two months’ notice.
At first glance, this might seem unsettling, but when you break it down, it’s not a bad thing at all for HMO landlords. Here’s how I see it…
Tenants in HMOs often move more frequently, around the 18-24 month mark as they progress in life anyway, so periodic tenancies are more common in HMO. They meet a partner, climb the career ladder, or save enough to buy or rent their own place. That’s already baked into the strategy.
You’re not dealing with tenants staying for five years, and the property slowly falling behind market rent as happens a lot in the single let market. Turnover allows landlords to keep in line with market prices, and HMOs aren’t a ‘forever home’ so tenants naturally move on anyway.
This is why aiming for the top of the market is so important, to cut down on voids, and there’s a lot of pricing safety below you to climb down through should you need to without your property becoming unprofitable. Vet your tenants well, set high standards at the property for cleanliness and being considerate so tenants stay longer, and charge premium rents.
When you attract tenants who value quality, this change won’t hurt you. The good ones will want to stay, and when they buy a dog and move in with their partner, you’ll be ready to do a quick bit of decoration, dress and remarket the room, and get another great tenant nice and quickly.
The Decent Homes Standard will now apply to private rentals, requiring properties to meet higher quality thresholds like effective heating, proper insulation, and safety standards.
For HMO landlords this is all pretty standard anyway. The standard is already way higher in most cases than a typical rental property as it’s all new and built to regs. Plus, if you’re setting each room up with their own individual heating controls, the property is going to need to be insulated properly as part of that, so compared to the house next door which doesn’t have newly insulated walls and ceilings and an old boiler your tenants are going to be better off than a typical homeowner.
If you’re already investing in high-end finishes, fire safety measures, and energy efficiency during your build phase, you’re likely ahead of the curve.
And that’s not to mention fire safety is a building control item when you submit plans for your scheme anyway, so we’re not worried about it coming in with the bill. We already need to have it covered for licensing and compliance anyway.
Properties that meet a high standard are easier to let and retain tenants for longer, so it’s less of a burden and more of a way to future-proof your portfolio.
Then there’s the Private Renters’ Ombudsman, which will give tenants a free, independent way to resolve disputes. For landlords, it’s a reason to double down on tenant engagement and proactive maintenance.
Respond to issues quickly, keep detailed records, and you’ll rarely, if ever, need to deal with the ombudsman. This isn’t about making life harder for landlords—it’s about encouraging professionalism. The ones who’ll struggle here are the landlords who already ignore tenant concerns.
The landlord registration database is another step towards centralising compliance and making the sector more professional and transparent.
Every landlord will need to register and demonstrate they’re meeting their legal obligations.
For HMO landlords who are already dealing with licensing requirements, this shouldn’t feel like a huge change. In fact, it’s an opportunity to stand out as a professional operator.
You’re already compliant and keep good records and documentation, so this is a way to shout about it. Almost like putting a 5 star food hygiene rating on your restaurant. Just adds to the pile of evidence you already have that speaks to quality.
Tenants are increasingly looking for landlords they can trust, and being registered is one more way to show you’re serious about what you do.
We live in a world of Amazon Reviews and community forums where we are all peer reviewed and everything is scrutinised. This just makes it more ‘front and centre’, and good landlords that care, or have an agent that cares, will rank highly.
Finally, the ban on blanket bans—no more refusing tenants just because they have children or are on benefits.
While this won’t affect us as HMO Landlords as we’re restricted to single occupancy etc, it’s a reminder to focus on individual suitability.
Good tenants come in all forms, and your vetting process should focus on reliability and compatibility rather than arbitrary exclusions. Having a quality product that attracts attention, or having a letting agent with a good reputation is key to driving tenants towards your ads, and actually turning up to a viewing.
If you have a choice, this isn’t a problem. If your property isn’t attracting the tenants you want, or in enough volume, that’s always the landlord’s responsibility, and can almost always be solved by implementing some changes at the property, either with a mini-scheme of works at the property or more hands on management to make sure the standards you expect of tenant behaviour are up to where you need them to be so that the new tenants coming in aren’t put off.
Final thoughts
What does all of this mean for HMO landlords in Kent? The short version: the industry is shifting, but the changes are rewarding landlords who take property seriously. The Renters’ Rights Bill isn’t here to punish you—it’s here to professionalise the sector and weed out the tired landlords who give the rest of us a bad name by ignoring tenant concerns and operating sub-par housing.
If you’re running high-quality HMOs and keeping your standards high, you’ll continue to thrive.
The changes in the RRB are still below the standards of many of the HMOs on the market and removal of the ability to evict tenants so you can charge more rent and get rid of a complainer, is a good thing in the long run I think.
The tenants you likely want will always value a well-maintained, well-managed property, and they’ll pay a premium for it. For those of us treating property as a business, this bill is simply another reminder to stay sharp, stay professional, and keep doing what we’re already doing.
But here’s the thing—you don’t have to navigate all of this alone. Your strength as an investor is in setting the vision, growing your portfolio, and building generational wealth. You don’t need to be the one keeping up with every piece of legislation or dealing with tenant disputes directly.
That’s where having the right team makes all the difference. At Pineapple-Group, we specialise in sourcing, refurbishing, and delivering high-quality HMOs that unlock the full potential of HMO investing across the SE of England. Whether you’re starting out or expanding your portfolio, we help you build wealth through properties designed to perform, with award nominated Return On Investment.
Our in-house letting agency, Pineapple-Living, is the key to keeping your investment running smoothly. It’s built specifically for HMO landlords, with all of the things we wanted as HMO investors ourselves, offering hands on management, frequent tenant engagement, and proactive solutions that maximise your returns and protect your time.
Our mission is that you enjoy landlording again.
If you already have, or aspire to own HMOs in Kent, now is the perfect time to adapt to the new landscape and thrive.
Let’s talk about how these changes might impact your portfolio, and we’ll be glad to share the strategies we use to stay ahead, and turn the Renters’ Rights Bill into an opportunity for growth.
