Introduction: The Renters' Rights Act and the Compliance Conundrum
The introduction of the Renters' Rights Act (RRA) has sent ripples through the UK lettings sector, with both landlords and letting agents grappling to understand their new obligations. Recent reporting by Letting Agent Today highlights a dangerous gap: many landlords assume their agent is handling RRA compliance, while agents often wait for explicit instruction from landlords before taking action. This confusion risks costly breaches, fines, and reputational damage for both parties. In this article, we break down the RRA’s requirements, clarify where liability sits, and provide a practical division-of-duties checklist agencies can share with their landlords.
What Does the Renters' Rights Act Require?
The Renters' Rights Act, part of the wider Renters Reform agenda, aims to rebalance the relationship between tenants and landlords in England. Key provisions include:
- Ban on Section 21 'no fault' evictions
- Mandatory written tenancy agreements
- Stricter deposit and holding deposit rules
- Enhanced property standards and repair obligations
- New requirements for information provision to tenants
- Greater transparency in fees and charges
These changes build on existing legislation such as the Housing Act 1988, Tenant Fees Act 2019, and Homes (Fitness for Human Habitation) Act 2018. The RRA introduces new compliance touchpoints and documentation requirements, making it essential for both landlords and agents to understand their respective duties.
Where Does Liability Sit? Landlord vs Letting Agent
Under UK law, the landlord is ultimately responsible for ensuring legal compliance in their property. However, when a letting agent is appointed, the agent may take on some or all compliance duties, depending on the terms of their contract (typically a management or let-only agreement).
Key points to consider:
- Statutory liability: Certain obligations, such as protecting deposits in a government-approved scheme, always remain the landlord’s legal responsibility, even if delegated to an agent.
- Contractual liability: If an agent contractually agrees to handle compliance (e.g., serving prescribed information, issuing How to Rent guides), they may be liable for failures. However, landlords can still face enforcement action if their agent fails to comply.
- Joint liability: In some cases, both landlord and agent can be held jointly liable, especially where Trading Standards or local authorities are concerned.
This division is further complicated by the RRA’s new requirements, which often lack explicit guidance on who must act. As a result, clear communication and robust contracts are more important than ever.
Letting Agent Duties Under the Renters' Rights Act
Letting agents play a pivotal role in ensuring compliance with the RRA. Their duties typically include:
- Drafting and issuing compliant tenancy agreements
- Collecting and protecting deposits in line with RRA and existing deposit scheme rules
- Providing tenants with all required documentation (e.g., EPC, Gas Safety Certificate, How to Rent guide)
- Ensuring all fees and charges are transparent and RRA-compliant
- Managing repairs and maintenance to meet new property standards
- Keeping accurate records of all compliance actions
However, agents must not assume landlords want them to handle every aspect of compliance. Many agents now use AI-powered inventory software to streamline documentation and evidence compliance, but explicit instruction from the landlord is still essential.
Landlord Responsibilities: What Cannot Be Delegated?
While agents can manage many compliance tasks, landlords retain ultimate responsibility for:
- Ensuring the property is legally let and meets all safety standards
- Registering and licensing the property where required (e.g., HMO licensing)
- Responding to enforcement action or legal proceedings
- Providing agents with accurate information and authority to act
- Reviewing and approving all compliance documentation
Landlords should not assume that appointing an agent absolves them of liability. If an agent fails to comply, landlords may still face fines or be unable to regain possession of their property.
Division-of-Duties Checklist: A Practical Tool for Agencies
To avoid confusion and ensure robust compliance, letting agents should provide landlords with a clear division-of-duties checklist. Here’s a template agencies can adapt:
- Tenancy Agreement: [Agent/Landlord]
- Deposit Protection: [Agent/Landlord]
- Prescribed Information to Tenant: [Agent/Landlord]
- How to Rent Guide Issuance: [Agent/Landlord]
- Gas Safety Certificate: [Agent/Landlord]
- EPC Provision: [Agent/Landlord]
- Property Licensing: [Agent/Landlord]
- Maintenance and Repairs: [Agent/Landlord]
- Inventory and Check-in/Check-out: [Agent/Landlord]
- Tenant Communications: [Agent/Landlord]
- Record Keeping: [Agent/Landlord]
Both parties should sign and date the checklist, and it should be reviewed annually or whenever legislation changes. This approach is endorsed by ARLA Propertymark and the NRLA as best practice.
Best Practice: Communication, Contracts, and Technology
To minimise risk and ensure RRA compliance:
- Review agency agreements to ensure all compliance duties are clearly allocated
- Communicate regularly between landlord and agent, especially when legislation changes
- Use technology such as property inventory apps to document compliance and share records securely
- Stay informed via updates from ARLA Propertymark, NRLA, and Trading Standards
- Train staff on the latest RRA requirements and compliance processes
Proactive management and clear documentation are the best defences against enforcement action and disputes.
Conclusion: Clarity Is Key to RRA Compliance
The Renters' Rights Act marks a significant shift in the UK lettings landscape, with new compliance challenges for both landlords and letting agents. The key to avoiding costly mistakes is clarity: clear contracts, explicit division of duties, and robust communication. By adopting best practice checklists and leveraging technology, agencies and landlords can protect themselves and deliver a better experience for tenants.
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