Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Landlords Raise Concerns Over Compliance Charges Linked to Renters’ Rights Act

Landlords have reported rising administration fees from letting agents for compliance work related to the Renters’ Rights Act. Recent discussions on landlord forums and social media have highlighted charges ranging from £200 to over £400 for updating paperwork linked to the new legislation.

The Renters’ Rights Act has introduced new obligations and compliance requirements for the private rented sector. Letting agents may need to update documentation, review tenancy processes, serve newly required information, and ensure systems comply with evolving legal requirements. For larger agencies, these changes may need to be applied across hundreds or thousands of tenancies, requiring significant time, training, and operational resources.

Agents also have their own regulatory responsibilities and may face consequences if compliance is not handled correctly. The article notes that the key issue is not whether agents can charge fees, but whether those fees are transparent, proportionate, and properly explained to landlords. Landlords should be informed about what specific work is being carried out, why it is necessary, whether the charge is covered by the existing agreement, how the fee has been calculated, and whether the cost is proportionate to the service provided.

Many existing management agreements do not specifically reference the Renters’ Rights Act, as the legislation and guidance have evolved recently. Agents are having to adapt systems and procedures quickly, often across large portfolios. Where substantial additional work is required, it is not unreasonable for agents to seek to recover some costs, but landlords expect clarity about the work and charges.

Problems tend to arise when landlords feel costs have appeared unexpectedly, explanations are vague, or fees seem excessive. The article emphasises that good communication is key, and agents should avoid vague descriptions such as “legislation update fee” or “compliance admin” without explaining what is included. A short breakdown of the work involved can help landlords understand the value of the service and reduce complaints.

Periods of significant legislative change create uncertainty across the sector, with landlords, agents, and tenants all trying to understand new obligations. In this environment, communication and transparency are especially important.