Introduction: The End of Fixed-Term Tenancies
On 1 May 2026, the landscape of private renting in England will fundamentally change. Under the Renters’ Rights Act, all existing and new assured shorthold tenancies (ASTs) will automatically convert to periodic assured tenancies. This seismic shift means fixed-term tenancies will be abolished, with all tenancies running on a rolling, month-to-month basis. For letting agents, this change brings both challenges and opportunities—especially around renewals income, notice handling, student lets, and fee structures. This article explores what letting agents need to know and how to adapt for success in the new era of periodic-only lettings.
What Are Periodic-Only Tenancies?
Periodic tenancies are rolling agreements, typically renewing every month, rather than being set for a fixed term (such as 6 or 12 months). Under the new rules, all ASTs will become periodic by default, with no option for fixed terms. This is designed to give tenants greater flexibility and security, but it also means agents and landlords lose the certainty and structure of fixed-term contracts.
Key Changes Under the Renters’ Rights Act
- All ASTs become periodic: No new fixed-term contracts from 1 May 2026.
- Notice periods: Tenants can give two months’ notice at any time; landlords must follow new, stricter notice rules.
- Student lets: No fixed academic-year contracts; student tenancies also become periodic.
- Renewals: Traditional renewal processes and associated fees are no longer applicable.
Impact on Letting Agent Renewals Income
One of the most significant impacts for letting agents is the loss of renewal fees. Historically, agents have relied on renewal commissions when tenants sign a new fixed-term contract. With the end of fixed-term tenancy agreements, this revenue stream disappears. Agents must now rethink their business models and fee structures to remain profitable.
Strategies for Replacing Renewal Income
- Enhanced management services: Offer premium property management packages, including compliance checks, maintenance coordination, and tenant support.
- Tenant find and onboarding: Focus on upfront fees for tenant sourcing, referencing, and inventory services.
- Ongoing support fees: Introduce monthly or annual management fees that reflect the continuous nature of periodic tenancies.
- Value-added services: Provide additional services such as rent guarantee insurance, legal support, or property inspections.
Notice Handling: New Rules and Best Practices
With periodic-only tenancies, notice periods become more fluid. Tenants can leave with two months’ notice at any time, while landlords face stricter grounds and longer notice periods under the new legislation. This increases the unpredictability of tenancies and requires agents to be proactive in managing notice and void periods.
Best Practices for Notice Management
- Regular communication: Maintain open lines with both tenants and landlords to anticipate potential moves.
- Automated reminders: Use technology to track notice periods and prompt action well in advance.
- Void management: Develop strategies to minimise voids, such as pre-marketing properties and maintaining a pool of prospective tenants.
- Legal compliance: Stay up to date with the latest notice requirements under the Renters’ Rights Act and ensure all documentation is accurate and timely.
Student Lets: Adapting to Periodic Tenancies
Student accommodation is particularly affected by the abolition of fixed terms. Traditionally, student lets have operated on 12-month contracts aligned with the academic year. From May 2026, these will also become periodic, allowing students to leave with two months’ notice at any time.
Challenges for Student Landlords and Agents
- Unpredictable turnover: Students may leave mid-year, creating unexpected voids.
- Marketing cycles: The traditional summer marketing rush may be disrupted.
- Group tenancies: Managing joint tenancies becomes more complex if one student leaves early.
Solutions for Student Letting Agents
- Clear communication: Set expectations with both students and landlords about the new rules.
- Flexible contracts: Consider individual tenancies rather than joint tenancies to reduce complications.
- Proactive marketing: Maintain a year-round marketing strategy to fill rooms quickly as they become available.
- Inventory management: Use a property inventory app to streamline check-ins, check-outs, and mid-tenancy inspections, ensuring compliance and reducing disputes.
Restructuring Fees and Landlord Communications
With the loss of renewal fees, agents must review their fee structures and ensure landlords understand the value of ongoing management. Transparent, regular communication is essential to maintain trust and demonstrate expertise in navigating the new legal landscape.
Fee Structure Recommendations
- Monthly management fees: Charge a consistent monthly fee that covers all aspects of property management, including compliance, maintenance, and tenant support.
- Menu of services: Offer optional add-ons such as inventory services, rent collection, and legal support.
- Performance-based incentives: Consider bonuses for minimising voids or achieving above-market rents.
Landlord Communication Tips
- Education: Provide regular updates on legislative changes and their implications.
- Proactive advice: Help landlords understand the benefits of professional management in a more flexible, tenant-friendly market.
- Transparency: Clearly explain new fee structures and the value provided.
- Compliance assurance: Highlight your expertise in keeping properties compliant with the Renters’ Rights Act, EPC regulations, and other legal requirements.
Staying Compliant: Legal and Regulatory Considerations
The shift to periodic-only tenancies brings new compliance challenges. Letting agents must ensure all processes, documentation, and communications align with the Renters’ Rights Act and related legislation. This includes:
- Adhering to new notice periods and grounds for possession (Section 8, as Section 21 is abolished)
- Ensuring deposit protection and prescribed information are up to date
- Maintaining accurate, up-to-date inventories and property condition reports
- Staying informed on guidance from ARLA Propertymark, NRLA, and Trading Standards
Conclusion: Embracing the New Normal
The abolition of fixed-term tenancies marks a new era for the private rented sector in England. While the changes present challenges—particularly around renewals income, notice handling, and student lets—they also offer opportunities for letting agents to innovate, streamline operations, and deliver greater value to landlords and tenants alike. By restructuring fees, embracing technology, and maintaining clear communication, agents can thrive in the world of periodic-only lettings.
Book a Demo: Future-Proof Your Inventory Management
Ready to streamline your property management for the new era of periodic tenancies? Book a demo of our property inventory CRM today and discover how our platform can help you stay compliant, reduce disputes, and deliver exceptional service to landlords and tenants. Contact us now to future-proof your agency!