🏠 The Renters’ Rights Bill: Why Student Landlords Might Just Have the Edge

The Renters’ Rights Bill is shaking up the private rental sector, and while headlines might focus on challenges, there’s plenty of silver lining for student HMO landlords who know how to play their cards right. Let’s unpack why this Bill could actually work in your favour, especially if you’re in the student market.

🔄 Rolling Tenancies, Flexibility Without the Hassle

One of the biggest talking points is the end of fixed-term ASTs. That’s sent shivers down the spine of many residential landlords who rely on predictable tenancies to manage cash flow. But here’s the good news:

👉 For student HMO landlords with joint liability tenancies, you’re often dealing with groups who move in and out together, aligned with the academic year. Even with rolling tenancies, student groups usually stick to the same cycle.

👉 Lords’ amendments mean that Ground 4A now applies to all student lets, not just PBSA. This gives you the right to regain possession at the end of the academic year, which is a huge win for those relying on the September-to-June cycle.

So, while residential landlords might face unpredictable move-outs, student landlords can still plan around the academic year with confidence.

💸 Advance Rent Cap, Less of a Blow Than It Sounds

Yes, the Bill introduces a cap on advance rent, limiting it to one month’s rent upfront. But in the student HMO market, most landlords rely on joint liability agreements with UK-based guarantors (often parents), so rent collection is more secure.

👉 Most students budget termly or monthly anyway, and with parents often underwriting payments, the risk of arrears is generally lower than in single-tenant residential lets.

👉 For international students who might traditionally pay upfront, universities and letting agents are already adjusting practices, meaning you can still cater to them with the right support structures in place.

🏢 HMO Landlords vs. PBSA, Playing on the Same Field

Purpose-Built Student Accommodation (PBSA) might look flashy, but let’s not forget that the Bill requires them to sign up to government codes of practice to keep their fixed-term contracts. That levels the playing field a bit.

👉 HMO landlords already work under licensing frameworks, and many are well ahead on safety, compliance, and management.

👉 The Bill’s amendments extending Ground 4A to 1- and 2-bed student properties mean smaller HMOs are no longer at a disadvantage compared to PBSA.

📈 Rent Increases and Tribunals, Still Room to Move

Yes, rent increases are capped to once a year, but that’s already a common practice in the student market. Most landlords review rent annually between tenancies.

👉 With joint liability tenancies, you’re dealing with one group and one rent increase per property, making management simpler than in single-family lets where tenants come and go at different times.

👉 Tribunals exist as a safeguard, but given that many student rents are benchmarked against the local student market, disputes are less likely.

🛑 Section 21 vs. Section 8, Academic Calendar Remains Key

The abolition of Section 21 (no-fault eviction) might spook some landlords, but remember:

👉 Section 8, combined with Ground 4A, still allows you to regain possession at the end of the academic year.

👉 With joint liability, you can serve notice on the whole group rather than dealing with multiple individual tenants, simplifying the process.

🏚️ Decent Homes and Awaab’s Law, A Good Thing for Good Landlords

Student HMO landlords already operate under strict licensing standards, so most of you are ahead of the game.

👉 The extension of Awaab’s Law, requiring rapid repairs for serious hazards like mould, reinforces best practice, and let’s be honest, most professional HMO landlords already handle repairs promptly.

👉 This levels the playing field against rogue landlords who might otherwise undercut rents with subpar properties.

🎓 Why Student Landlords May Have an Advantage

✅ Predictable Cycles: Academic-year tenancies still align well with the Bill’s rolling tenancy model.
✅ Joint Liability: One group means one rent increase, one notice period, and one rent collection process.
✅ Ground 4A: Thanks to Lords’ amendments, student landlords can regain possession at year-end, retaining control over turnover and summer voids.
✅ Compliance Leaders: HMO landlords often already meet the highest safety and quality standards, meaning less adjustment to new regulations.
✅ Community Vibe: Students typically prefer group living with friends, which keeps tenancy churn lower than in the single-family market.

🔊 Final Thoughts

The Renters’ Rights Bill is undoubtedly a game-changer, but for student landlords with well-run HMOs, it’s not all doom and gloom. In fact, you might just find you’re better placed to thrive under these new rules than your residential landlord peers.

Stay proactive, update your tenancy agreements, brush up on your knowledge of Ground 4A, and ensure your compliance game is strong. With the right strategy, student landlords can continue to offer a fantastic living experience for tenants and a reliable, well-managed investment for themselves.

Let’s embrace the change and keep building the best student accommodation the East Midlands has to offer!