What is a Guaranteed Rent Scheme and Is It Right for You?
November 2, 2024
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TL;DR
The Renters Rights Act has changed how landlords let private rental properties in England from 1 May 2026. For landlords worried about voids, arrears, tenant issues and reduced control, a guaranteed rent scheme with a long-term commercial lease can offer a more stable route to fixed rental income.
What’s in This Article:
- What changed under the Renters Rights Act
- Why the changes matter to landlords
- How the Renters Rights Act affects landlord certainty
- Why guaranteed rent is becoming more attractive
- How commercial leases can reduce landlord risk
- What landlords should do next
- FAQs about Renters Rights Act
- Final thoughts and next step
Introduction
The Renters Rights Act matters to landlords because it changes the way private rented properties are let, managed and recovered in England. From 1 May 2026, landlords face a different rental landscape, including the end of Section 21 no-fault evictions and changes to tenancy structures. For landlords who want more certainty, guaranteed rent may now be worth serious consideration.
Many landlords are not looking for more complexity. They want reliable rent, fewer problems and a clear long-term plan for their property.
That is why 2026 is a good time to review whether traditional letting still suits your goals.
What Changed Under the Renters Rights Act?
The Renters Rights Act introduced major changes for landlords in England.
Key changes include:
- Section 21 no-fault evictions removed
- Most private rented tenancies moving to periodic arrangements
- Tenants having more flexibility to leave
- New rules around rent increases
- More formal landlord paperwork requirements
- Stronger compliance expectations
- Greater pressure on landlords to manage risk properly
The government has confirmed that the Act changed how landlords let private properties from 1 May 2026.
This does not mean landlords cannot continue renting properties. However, it does mean landlords need to understand how the rules affect income, possession, planning and risk.
For the official government overview, visit:
https://www.gov.uk/guidance/renters-rights-act-an-overview-for-landlords/
Why the Changes Matter to Landlords
The changes matter because many landlords used to rely on fixed-term tenancies, Section 21 notices and traditional letting structures to manage risk.
Now, landlords need to think more carefully about:
- How secure their rental income is
- What happens if rent is missed
- How long it may take to regain possession
- Whether they can manage tenant issues confidently
- How rent increases should be handled
- Whether traditional letting still fits their plans
For some landlords, this creates uncertainty.
For example, a landlord with one property may rely on the rent to cover a mortgage. If arrears build up, the impact can be immediate. A landlord with multiple properties may face even more pressure if several issues happen at the same time.
In our experience, landlords do not usually object to fair rules. What concerns them is uncertainty.
How the Renters Rights Act Affects Landlord Certainty
The Renters Rights Act affects landlord certainty because it changes some of the tools landlords previously used to manage tenancy risk.
Under the new system, landlords need to be more prepared, more compliant and more organised.
This can affect:
- Cash flow planning
- Exit planning
- Rent review planning
- Property management processes
- Tenant communication
- Legal and compliance confidence
For landlords who enjoy active management, this may be manageable.
However, for landlords who are tired of dealing with tenants, arrears, repairs and constant changes, the new environment may feel like another reason to step back from traditional private letting
Why the Renters Rights Act is making landlords review their options
The Renters Rights Act is making landlords review their options because many property owners now want more predictable income with less direct tenant risk.
Common landlord concerns include:
- “Will my income become less predictable?”
- “What happens if tenants stop paying?”
- “Will it be harder to regain possession?”
- “Will I spend more time on compliance?”
- “Is traditional letting still worth the stress?”
These questions are important.
A landlord does not need to panic, but they do need to plan.
Why Guaranteed Rent Is Becoming More Attractive
Guaranteed rent is becoming more attractive because it gives landlords a more stable income structure.
With Citywide Housing, suitable landlords can benefit from:
- Guaranteed rent
- Market rents paid
- No voids
- No arrears
- No repairs
- No tenant issues
- 3 to 5 year commercial leases
- Longer-term options where suitable
This can be useful for landlords who want to keep their property but reduce direct involvement.
Instead of relying on traditional private letting, landlords can lease their property under a commercial arrangement and receive agreed monthly rent.
That means the landlord can move away from many of the day-to-day problems that make property ownership stressful.
For more information, visit:
https://www.citywidehousing.co.uk/guaranteed-rent/
Traditional Letting vs Guaranteed Rent After the Renters Rights Act
The difference between traditional letting and guaranteed rent has become more important in 2026.
| Area | Traditional Letting | Citywide Housing Guaranteed Rent |
|---|---|---|
| Income | Depends on tenant payment | Agreed monthly rent |
| Voids | Possible | No voids |
| Arrears | Possible | No arrears |
| Repairs | Often landlord concern | No repairs |
| Tenant issues | Can involve landlord | No tenant issues |
| Lease length | Usually less predictable | 3 to 5 year commercial leases |
| Landlord involvement | Often active | More hands-off |
| Risk management | Landlord-led | Lease-based structure |
For landlords who want to stay active in private letting, traditional renting may still work.
For landlords who want predictable income and fewer problems, guaranteed rent can be a stronger option.
How Commercial Leases Can Reduce Landlord Risk
Commercial leases can reduce landlord risk by giving the property owner a longer-term agreement with clear rent expectations.
Citywide Housing commonly works with 3 to 5 year commercial leases. Depending on the property and agreement, some leases may be extendable.
This can help landlords avoid:
- Repeated tenant turnover
- Regular re-letting periods
- Income gaps
- Arrears stress
- Day-to-day tenant problems
- Repair disruption
- Short-term uncertainty
For many landlords, the appeal is simple. They keep the property, but remove much of the daily stress.
This is especially helpful for landlords with:
- HMOs
- Blocks of flats
- Family houses
- Self-contained flats
- Larger rental portfolios
- Properties in high-demand areas
What Landlords Should Do Next
Landlords should review their position carefully after the Renters Rights Act.
Useful steps include:
- Review your current tenancy agreements.
- Check your compliance documents are up to date.
- Understand the new rules around possession and rent increases.
- Review your exposure to arrears and void periods.
- Calculate your actual annual income after costs.
- Consider whether you still want active tenant management.
- Explore guaranteed rent if you want fixed income and less stress.
This is not only about legal compliance. It is also about whether your property still works for you as an investment.
If your property is becoming too stressful, a guaranteed rent scheme may be worth considering.
What Properties Can Citywide Housing Consider?
Citywide Housing may consider a range of property types, depending on location, condition, compliance and housing demand.
These may include:
- HMOs
- Blocks of flats
- Family houses
- Self-contained flats
- Larger residential properties
- Properties suitable for supported housing use
Citywide Housing works across key regions including West Yorkshire, South Yorkshire, Greater Manchester, Lancashire, Humberside and the North East.
Before any lease is agreed, the property will need to be assessed. If works are needed, the landlord can be advised before handover.
For landlord information, visit:
https://www.citywidehousing.co.uk/landlords/
Why 2026 Is the Time to Reduce Landlord Risk
The rental market has changed. Landlords now need to think carefully about stability, compliance and long-term income.
For some landlords, the right answer will be to continue with traditional letting.
For others, the better option may be to move towards:
- Fixed rental income
- No voids
- No arrears
- No repairs
- No tenant issues
- A longer-term commercial lease
- Less day-to-day involvement
A property should support your financial goals, not create constant stress.
If your property still has strong demand but you no longer want the daily pressure, Citywide Housing may be able to help.
FAQs About Renters Rights Act
The Renters Rights Act is legislation that changed how private rented properties are let in England from 1 May 2026. It introduced major changes around tenancies, possession, rent increases and landlord responsibilities.
Yes. The government has confirmed that Section 21 no-fault evictions have been removed for existing and new tenancies from 1 May 2026.
No. Landlords can still rent out properties, but they need to follow the new rules and understand how the changes affect tenancy management, possession and rent planning.
Why are landlords considering guaranteed rent after the Renters Rights Act?
Conclusion: Landlords Need Certainty in 2026
The Renters Rights Act has changed the private rental landscape in England. For landlords, this means it is more important than ever to understand risk, protect income and decide whether traditional letting still fits their goals.
Citywide Housing offers a practical alternative for suitable landlords through guaranteed rent, no voids, no arrears, no repairs, no tenant issues and 3 to 5 year commercial leases.
If you own an HMO, block of flats, family house or suitable rental property, speak to the Citywide Housing team today for a free property assessment.
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