Client Update: Preparing for the Renters’ Rights Act 2025 (RRA 2025)

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Following Royal Assent, the Renters’ Rights Bill is now established as the Renters’ Rights Act 2025 (RRA 2025). This legislation marks a significant shift in the private rented sector, and we are focused on ensuring your operations remain compliant from day one.

The first major implementation milestone, Phase 1 – Core Tenancy Reform, is set to take effect on 1 May 2026. We are pleased to confirm that development for the system-impacted elements of Phase 1 is complete, and we are progressing through final verification and testing.

Phase 1: Key Operational Changes and Yardi’s Solution

Phase 1 establishes the new foundation for rental tenancies, primarily impacting how new leases are initiated and managed. Our systems are prepared to manage these operational requirements in the following key areas:

1. Transition to Assured Periodic Tenancies (APT)

The RRA 2025 moves away from traditional fixed terms. Under the new legislation, all new tenancies will start as Assured Periodic Tenancies (APT), allowing residents to remain in the property indefinitely if tenancy terms are met.

  • Impact: Fixed terms are removed, and the Section 21 (‘no-fault’) evictions are abolished. Landlords must now rely on valid Section 8 grounds for repossession.
  • Yardi Solution: We have updated tenancy creation workflows to support the APT regime. For existing tenancies, our Bulk Conversion to Month-to-Month (MTM) functionality is available to efficiently transition applicable Assured Shorthold Tenancies (ASTs) to comply with the new regime from 1 May 2026.

Phase 1 introduces stricter controls on rent reviews to ensure fairness and transparency:

  • Rent may be increased only once every 12 months
  • A minimum two-month notice period is legally required for any increase
  • All increases must follow the updated Section 13 process
  • Yardi Solution: We have implemented comprehensive system controls, including frequency limits, strict notice-period logic, and supporting functionality for formal disputes management, ensuring all rent changes adhere to the new requirements

3. Rent in Advance – New Restrictions

The Act limits the financial burden on residents at the start of a tenancy:

  • Landlords and agents may request no more than one month’s rent in advance
  • Rent may only be collected after the lease has been formally countersigned
  • Yardi Solution: System validations now enforce the one-month limit at the point of tenancy creation, and payment schedule logic has been updated to align with the post-countersignature collection rule

Yardi Readiness and Implementation Timeline

We are on track to support your compliance requirements ahead of the legislative deadline.

MilestoneStatusTarget Date
Phase 1 System Development (APT, Rent Controls, Rent in Advance)CompleteQ4 2025
Internal Verification & QAIn ProgressQ4 2025 / Q1 2026
Client UATIn ProgressQ4 2025 / Q1 2026
Phase 1 Functionality ReleasePlannedQ1 2026
Legislative Go-Live DateMandatory1st May 2026

The necessary Phase 1 functionality is planned for release in Q1 2026, giving your teams ample time to train and prepare before the RRA 2025 goes into effect.

It is important to note that Purpose Built Student Accommodation (PBSA) properties that comply with government-approved codes (such as ANUK/Unipol) are anticipated to be exempt from the new tenancy regime.

We are dedicated to supporting your successful transition to the new regulatory environment. Please continue to monitor our communications for updates and reach out to your Technical Account Manager for any questions.