Letting agents should prepare for a rise in mid-tenancy tenant swaps as the Renters’ Rights Act shifts the rental market towards periodic tenancies, according to deposit protection scheme Mydeposits.
The legislation removes fixed-term tenancy agreements, eliminating the defined breakpoints that agents have traditionally used to reset tenant responsibilities, manage deposits and formally conclude lettings.
Without these natural endpoints, tenant changes within ongoing tenancies are expected to become more frequent, requiring agents to manage transitions without the structure of formal check-ins and check-outs.
Management challenges
While tenant swaps have been common in houses in multiple occupation (HMOs) and flatshares, Mydeposits anticipates the practice will become more widespread across the rental sector.
Tim Frome, Head of Government Schemes at Mydeposits, said: “The removal of fixed terms changes the rhythm of tenancy management. Agents are used to working with a clear endpoint where responsibility is agreed and documented.”
The shift comes as landlords exit the rental sector amid regulatory pressures, with over 250,000 former rental homes listed for sale in a year.
Agents will need to choose between treating each tenant swap as a complete tenancy reset or continuing with the original inventory. The first option offers clarity but increases administrative costs and workload, while the second requires stricter documentation controls.
Dispute risks
Frome stressed that simply having a check-in report on file will not be sufficient. “It is not enough for a check-in report to exist. Incoming tenants must have access to it, understand it, and explicitly agree to it,” he said.
Without documented agreement from incoming tenants, agents face increased risk of disputes over when damage occurred and which tenant is responsible. Frome noted that conflicts are not limited to landlord-tenant relationships, with disagreements between tenants themselves also common in shared accommodation.
The changes add to broader challenges facing the sector, as the property sector debates upfront information requirements under evolving regulations.
Mydeposits recommends that agents establish clear processes to ensure incoming tenants formally accept existing inventories, with documented evidence of agreement to reduce dispute risks as tenancy changes become more routine.