What does the Renters' Rights Act mean for landlords with 3 to 5 properties?

What are the main changes?

Here's the plain English version. The rules apply in England, and some parts are being brought in over time, so always check the latest government guidance or speak to a specialist before acting.

• No more Section 21: you can't end a tenancy without a reason, and you'll need to use a Section 8 ground such as selling, moving family in or arrears
• Rolling tenancies: fixed terms are replaced by periodic tenancies
• Tenants can leave with two months' notice at any time
• A landlord database: landlords will need to register themselves and their properties
• An ombudsman: tenants get a new route to complain about landlords
• Rent increases are limited to once a year, through a formal process tenants can challenge

Why does it hit smaller landlords hardest?

If you've got 3 to 5 properties, you're big enough for this to matter and usually too small to have a team dealing with it. Property is probably a wealth builder for you, not your job. You've got work, a family and a life, and now more admin and less control on top.

The control point is the big one. Tenants can leave on two months' notice, but you can't easily get the property back. It's a one way door. If you want to sell, or a family member needs somewhere to live, it's slower and less certain than it used to be. We cover that in more depth in Section 21 has gone.

What are landlords actually doing about it?

From the conversations we have, it tends to fall into three camps. Some are selling one or two properties, especially those with thin margins. Some are staying put with good tenants they trust, which is sensible. And some are switching part of their portfolio to short lets.

A short let isn't a tenancy, so most of these rules don't apply in the same way. Guests leave on their checkout date, and with Renzo, if you want out, the property comes back empty and ready to sell. Landlords typically earn 30% to 40% more than a buy to let with us, without extra work.

Should I switch my whole portfolio?

I wouldn't. Start with one property and test it, which is exactly what one of our landlords, John, did. Pick the one that's been the most trouble, or the one you'd most like control over. Keep a good long term tenant where you have one. Our honest Airbnb vs buy to let comparison will help you decide which property to try.

Do short lets have their own rules?

Yes. You still need gas, electrical and fire safety in place, the right insurance and a mortgage that allows short lets. One myth worth busting: the 90 night limit on whole home short lets is a London rule, not a national one. Renzo tracks compliance and books certificate renewals before they're due. See our guide on whether your property is suitable for the full list.