The Renters' Rights Act has fundamentally changed the way landlords in England must operate, and if you're setting up a new tenancy from 1st May 2026, the rules are significantly different from what many of us are used to. We've put together this practical guide to walk property investors like you through every step of establishing a compliant Assured Periodic Tenancy (APT) — so you can let with confidence and avoid the steep civil penalties that now apply.
What Is an Assured Periodic Tenancy and Does It Apply to You?
An Assured Periodic Tenancy is now the default tenancy type in England. If you're letting a residential property to a human being who uses it as their primary home, and they have exclusive possession — whether of a room in an HMO or the whole property — then you almost certainly have an APT on your hands, regardless of what you choose to call the agreement.
The only situations where an APT doesn't apply include properties with rent above £100,000 per year or a very low rent, purpose-built student accommodation, lodger arrangements where the landlord lives on site, and older Rent Act tenancies. For the vast majority of buy-to-let landlords, the APT is now the only game in town.
This matters enormously for our readers who are actively growing a portfolio. Whether you're sourcing your next investment through a platform like PropertyAlert.uk or managing existing stock, understanding the APT framework is no longer optional — it's a legal requirement.
Core Compliance Obligations Before the Tenancy Begins
Before you even think about marketing a property, there are foundational compliance obligations to tick off. Whilst the Renters' Rights Act hasn't dramatically overhauled these, there are important nuances to be aware of.
You'll need to ensure the property is correctly licensed — check your local authority's website for mandatory or selective licensing requirements. You must also register with the Information Commissioner's Office (ICO) and have a data privacy notice in place, as handling any applicant information triggers data protection obligations.
On the certificates front, you'll need a valid Energy Performance Certificate (EPC) rated at least E, a Gas Safety Certificate (CP12), an Electrical Installation Condition Report (EICR), and PAT testing for any portable appliances. A Legionella risk assessment is required — though this is typically low risk if you have a combi boiler — alongside a fire safety risk assessment. Smoke alarms must be fitted and working on every storey, and carbon monoxide alarms are compulsory in any room containing a fixed combustion appliance, including boilers, gas cookers, and wood-burning stoves.
One notable change: the How to Rent checklist was revoked on 1st May 2026, so you no longer need to serve that document.
The New Rules for Marketing, Referencing and Accepting a Tenant
This is where the Renters' Rights Act introduces the most significant new obligations — and where the civil penalties bite hardest.
When marketing your property, you must include the proposed rent in every listing or advert, even on informal channels like Facebook. Failing to do so carries a civil penalty of up to £7,000. You must also include all material information that prospective tenants need to make an informed decision. Critically, you cannot discriminate against applicants who receive benefits or who have children — again, breaching this rule risks a £7,000 penalty.
Once you've identified a preferred candidate, do not accept any offer above your advertised rent. The ban on rental bidding is strictly enforced, with — you guessed it — a civil penalty of up to £7,000. You may take a holding deposit from one applicant only (capped at one week's rent), and once that's received, you must stop showing the property to others. Right to rent checks and referencing must be completed before proceeding, and you'll need to consider whether a guarantor or rent guarantee insurance is appropriate for your circumstances. If you do require a guarantor, their Deed of Guarantee must be properly executed and witnessed as a deed before you sign the tenancy agreement.
If you're handling conveyancing on a purchase ahead of your first let, it's also worth using a reliable online conveyancing service — Muve is a strong option for landlords looking for efficient, transparent completions.
Signing the Assured Periodic Tenancy Agreement
When it comes to actually entering into the tenancy, there are new compulsory requirements that apply to all new tenancies from 1st May 2026. Before signing, tenants must receive — in writing — a comprehensive set of prescribed information covering the details of all parties, the full tenancy terms, how the tenancy can be ended, safety and compliance information, and a summary of tenant rights. The simplest approach is to incorporate all of this into your APT agreement itself, rather than serving it as a separate written statement.
One crucial point: your agreement must not contain a fixed term. Including one will attract a civil penalty of up to £7,000. If you're still using an old Assured Shorthold Tenancy template, it will not be compliant — you need a purpose-built APT agreement for all new lets.
Ask the tenant to sign the agreement first, and only countersign once you've received the executed Deed of Guarantee from any guarantor. Once the agreement is signed, you may collect the first month's rent as an "initial rent" payment ahead of the tenancy start date — this is the only circumstance in which you can contractually require rent before the rental period begins.
Staying Compliant as a Landlord Investor
The Renters' Rights Act represents one of the most significant overhauls of the private rented sector in a generation. The compliance checklist is longer, the penalties are real, and the margin for error is slim. But for well-prepared landlords, the fundamentals of successful property investment remain unchanged — identifying the right property, in the right location, at the right price.
Start your property search at PropertyAlert.uk