The rules have changed, and for letting agents, getting things wrong could prove expensive. Here are ten mistakes every agency should be avoiding.
The lettings industry has never been short of legislation, but 2026 has taken things to another level.
With the Renters' Rights Act 2025 introducing major changes from 1 May 2026, letting agents across England have had to rethink how they advertise properties, select tenants, manage tenancies and advise landlords.
And while much of the attention has focused on tenant rights, there's another side to the story.
Letting agents are now operating in an environment where outdated practices, poor administration and simple misunderstandings can create serious financial and reputational risks.
At DSS Select, we believe the best approach is straightforward: understand the rules, treat applicants fairly and make sure your systems are fit for purpose.
Here are ten mistakes worth avoiding.
1. Continuing to Rely on Section 21 Notices
For years, Section 21 was a familiar route for landlords wanting possession of their property.
That's changed.
Since 1 May 2026, Section 21 no-fault evictions have been abolished for assured tenancies in England, subject to transitional arrangements for notices served before that date.
Landlords must now rely on valid possession grounds under Section 8.
For letting agents, this means understanding which grounds apply, what evidence is required and the correct notice procedures.
The mistake: Assuming possession can be recovered simply because a landlord wants the property back.
Our advice: Review possession procedures and seek specialist advice before serving notices.
2. Using Outdated Tenancy Agreements
Fixed-term assured shorthold tenancies have been replaced by assured periodic tenancies.
Existing qualifying tenancies converted automatically, while new agreements must reflect the updated framework.
Agents should also have dealt with the statutory information requirements for existing tenancies by the relevant deadline.
Continuing to issue outdated agreements or relying on unenforceable clauses can create unnecessary disputes.
Our advice: Review your tenancy templates, internal procedures and landlord guidance.
3. Getting Rent Increases Wrong
Increasing rent is no longer simply a matter of sending a letter or agreeing a new figure.
For assured periodic tenancies, landlords must follow the revised Section 13 procedure, generally giving at least two months' notice using the prescribed Form 4A.
Increases are restricted to once a year, and tenants can challenge proposed rents above market levels.
For agents managing large portfolios, keeping accurate records of previous increases is essential.
Our advice: Maintain a rent review diary and check the statutory requirements before issuing notices.
4. Refusing Applicants Because They Receive Benefits
This is one of the most important changes for letting agents.
Since May 2026, blanket discrimination against prospective tenants receiving benefits or those with children has been unlawful.
That includes automatically rejecting applicants because they receive Universal Credit or Housing Benefit.
Yet some agencies may still be operating with outdated instructions or screening procedures.
At DSS Select, we've long believed that prospective tenants should be assessed on their individual circumstances, affordability and suitability, rather than assumptions about their income.
Receiving housing support doesn't automatically make someone an unsuitable tenant.
Our advice: Review advertisements, landlord instructions and applicant screening procedures. Apply fair, consistent affordability assessments.
5. Encouraging Rental Bidding
In a competitive rental market, it was once common for applicants to offer more than the advertised rent.
That's no longer permitted.
Agents must advertise a specific asking rent and cannot invite, encourage or accept offers above that figure.
Even where an applicant voluntarily offers more, accepting the higher amount can breach the rules.
Our advice: Train negotiators and ensure advertised rental prices are accurate before marketing begins.
6. Asking for Too Much Rent in Advance
Requesting several months' rent upfront has traditionally been used by some agents when applicants have unusual income arrangements or limited referencing history.
The new rules place strict limits on rent in advance.
Agents cannot request or accept rent before the tenancy agreement is signed. Further restrictions apply to payments before the tenancy begins.
This makes it especially important to assess affordability properly rather than relying on large advance payments.
Our advice: Update referencing procedures and payment policies to reflect the new legislation.
7. Automatically Rejecting Requests for Pets
The days of automatically saying "no pets" are over for assured tenancies covered by the new rules.
Tenants have the right to request permission to keep a pet, and landlords must consider those requests reasonably.
There are circumstances where refusal may be justified, but agents should not dismiss requests without proper consideration.
A landlord's personal preference alone may not be sufficient.
Our advice: Establish a clear procedure for recording pet requests, discussing them with landlords and responding within the required timescales.
8. Failing to Keep Proper Compliance Records
Property compliance has always mattered, but stronger enforcement makes good record-keeping even more important.
Gas safety certificates, electrical inspections, EPCs, licensing requirements and deposit documentation all need careful management.
An agency might have arranged the necessary inspection, but if the paperwork cannot be located when required, that creates another problem.
Our advice: Keep a central compliance register with renewal dates, supporting documents and a clear audit trail.
9. Ignoring the Next Wave of Reforms
One mistake would be assuming that everything changed in May and the job is finished.
Further reforms are being introduced in stages, including the new private rented sector property registration system and a landlord ombudsman.
These developments will bring additional responsibilities as their requirements come into force.
For busy letting agencies, preparation is considerably easier than trying to catch up after a deadline.
Our advice: Follow official government updates and plan changes to your systems before new requirements become mandatory.
10. Failing to Adapt How You Source Tenants
Perhaps the biggest commercial mistake is continuing to operate exactly as before.
The rental market is changing, and so are the expectations placed on agents.
Agencies need to demonstrate fair tenant selection, effective referencing and a willingness to consider a wider range of suitable applicants.
For some agents, this means reviewing traditional assumptions about tenants receiving housing support.
There are working families and other responsible applicants receiving Universal Credit who may meet a landlord's affordability and suitability requirements.
At DSS Select, our approach is to help connect letting agents and landlords with prospective tenants receiving housing support, giving agents additional opportunities to find suitable matches.
It's not about lowering standards.
It's about widening the market while maintaining professional standards.
The Cost of Getting It Wrong
Breaches of certain provisions of the Renters' Rights Act can lead to civil penalties of up to £7,000, with higher penalties of up to £40,000 for specified serious or repeated breaches.
But financial penalties aren't the only concern.
There's also the cost of complaints, lost management instructions, damaged landlord relationships and time spent resolving avoidable disputes.
For independent letting agents, those consequences can be particularly difficult.
The solution isn't necessarily employing more staff or making the business more complicated.
It's having reliable systems, knowledgeable people and the right specialist partnerships.
The DSS Select Perspective
At DSS Select, we believe the lettings industry works best when landlords, agents and prospective tenants are treated fairly and given access to accurate information.
Good letting agents already understand the importance of protecting their landlords' interests.
But protecting those interests also means staying compliant, considering applicants fairly and recognising opportunities in parts of the rental market that may previously have been overlooked.
The Renters' Rights Act shouldn't simply be viewed as another administrative burden.
It's also an opportunity to review outdated practices, improve efficiency and build a stronger, more professional lettings business.
The agents who adapt won't just avoid costly mistakes. They'll be better placed to win landlord confidence and grow.
Working With DSS Select
If you're a letting agent looking to broaden your tenant reach while maintaining control over your landlord relationships and applicant selection, DSS Select offers a specialist tenant-matching platform.
We help connect letting agents and landlords with prospective tenants receiving Universal Credit and Housing Benefit, supporting a more informed and inclusive approach to lettings.
Discover how DSS Select can complement your existing lettings business.
Register your agency at www.dssselect.co.uk.
DSS Select — Connecting Landlords, Letting Agents and Tenants.
Disclaimer: This article provides general information about the Renters' Rights Act in England as at October 2026 and does not constitute legal advice. Agents should check the latest government guidance and obtain professional advice where appropriate.
