Renters’ Rights Act: Legal risks and support for landlords

While the reforms do not apply to commercial leases, customers who have residential let properties may still be affected.

In practical terms:

• Purely commercial landlords are unlikely to see material change
• Customers with mixed portfolios or residential properties need to understand how the new rules may affect possession, rent recovery and compliance requirements.

Longer possession timelines (residential only)

With Section 21 removed for residential tenancies, possession must now go through the court system using defined legal grounds.

This typically means:

• More documentation and evidence required
• Greater reliance on the courts
• Longer timescales before regaining possession

For customers with residential properties, having the right processes in place from the outset is now essential. Commercial lease arrangements remain governed by existing contractual and legal frameworks.

Increased exposure to rent arrears risk (residential only)

Where residential tenants fall into arrears, landlords must now:

• Follow a formal legal process
• Serve the correct notice
• Wait for court proceedings to progress

During this period, rental income may be interrupted, often for several months.

This risk is most relevant where:

• Residential units sit within a broader portfolio
• Income relies partly on assured or periodic tenancies

Many landlords are now reviewing how they protect income and maintain cash flow under the new regime.

Greater focus on compliance and record-keeping (residential only)

The new framework places increased emphasis on:

• Robust tenant referencing
• Accurate documentation
• Consistent tenancy management

Even small errors can delay possession or weaken a case.

For commercial property owners, existing lease governance remains unchanged. However, for mixed portfolios, residential compliance standards must now be carefully managed alongside commercial arrangements.

Legal expenses cover can make life easier for landlords, whether you rent out homes or commercial spaces.

It’s always been important to:

• Keep accurate records
• Follow the right legal steps
• Maintain clear documentation

The Renters' Rights Act has recently highlighted these points for residential landlords, but they’ve always been key, no matter who your tenant is.

Having expert legal help can give you confidence, especially when problems pop up. It can also save you time, money, and stress by preventing delays or mistakes.

The changing role of landlord support

Historically, landlords often relied on flexibility and speed, particularly in the residential sector.

The new framework shifts that balance towards:

• Structured legal expertise
• Process-led resolution
• Early intervention

In simple terms:

For residential tenancies, structured support and guidance are now essential.

This is less pronounced for commercial-only landlords but becomes increasingly important where portfolios include residential units.

Why legal protection matters more than ever

Under the new rules, the key challenge for residential landlords isn’t just tenant behaviour, but the time it takes to resolve issues. Legal processes must be followed carefully and rental income may be affected while cases progress.

For those with residential exposure, this highlights the value of legal expenses cover to manage the legal process.

How ARAG can support Zurich retail customers

Many customers are already reviewing their approach in light of the Renters’ Rights Act.

This creates a clear opportunity to ensure landlords with residential exposure within their portfolio have the right protection and support in place, while reassuring those with purely commercial property that their risks remain unchanged.

ARAG recognises that these reforms primarily affect residential tenancies within broader property portfolios. Zurich Retail customers with legal expenses cover have access to ARAG. This offers:

• Access to expert legal advice
• Support with possession and eviction processes
• Guidance on managing disputes and legal compliance

Customers can contact ARAG directly via the legal helpline included in their policy documentation.