Why Landlords Should Consider Rent and Legal Protection Now
Rent and legal protection is designed to protect landlords against the non-payment of rent and the professional costs of possession proceedings simultaneously. With the Renters’ Rights Act coming into force in May 2026 is now the right time to consider it?
Every landlord will fear their tenant not paying rent. If a tenant stops paying rent, rent protection ensures you continue to receive an agreed level of rental income. The benefits of rental income protection are straightforward, helping to maintain cashflow and reduce the impact of arrears. But the legal protection is just as valuable for landlord’s, reducing unexpected expenditure and the hassle of dealing with difficult and time-consuming possession proceedings.
Its popularity has increased in recent years as rents have increased, regulation has tightened and possession routes have become more complex. But The Renters’ Rights Act provides a further reason for landlord to consider this protection for existing and new tenancies. The new legislation abolishes section 21 notices, provides a new tenancy structure and affects the grounds and notice periods for ending tenancies. In relation to tenancy arrears, the level of arrears required to serve a notice to end a tenancy, changes from two months of arrears to three months of arrears and the notice period also increases from two weeks to one month.
The changes will realign the risk posed to some landlords, but this protection will help to ensure that their investment property remains viable. With the new legislation effective from 1st May many landlords are taking action now to commence protection for their existing tenancies. This may be for an individual property, selected properties within their portfolio or upon each property that they own. If you are a landlord, it is the right time to consider how these changes may affect you and the financial and personal piece of mind provided through rental and legal protection.
If you would like to find out more about the Renters’ Rights Act affects you speak to a member of our team, simply call Mundys on 01522 556099.