5 Costly Mistakes Landlords Are Making Right Now

Mistake 1: Ignoring the Mandatory Information Sheet Requirement

Many independent landlords do not realise that the Renters’ Rights Act brought in new rules for existing tenancies. The most important is the legal requirement to give all current tenants the official, unchanged four-page Information Sheet from the Ministry of Housing, Communities and Local Government (MHCLG).

The statutory grace period for this landlord obligation ended on 31 May 2026. Self-managing landlords who failed to deliver this document now face an instant civil penalty of up to £7,000 per tenancy… not per property. Local authorities are actively enforcing this rule, meaning forgetfulness is no longer an acceptable excuse; it is an immediate financial liability.

Crucially, standard compliance mistakes are compounding the risk. Simply emailing your tenants with a link to the Government Website page is legally invalid. The new legislation requires that you either print the exact document or send the official PDF as a direct electronic attachment to each named tenant.

If you missed the deadline or sent the information the wrong way, you must fix it right away. Download the official PDF from GOV.UK and send it using a method that provides proof of delivery, such as a digital receipt or proof of postage.

To protect all your properties from council action and Rent Repayment Orders (RROs), book a Comprehensive Portfolio Compliance Audit with Crown Luxury Homes today.

Mistake 2: Falling Foul of the Rental Bidding and Upfront Rent Bans

In the past, landlords with high-demand properties in sought-after areas, or tenants without a UK credit history, often used financial strategies that are no longer valid. They might accept higher rent offers during bidding or ask for six months’ rent upfront. These practices are now strictly illegal under the new rules.

The new legislation completely outlaws rental bidding. Landlords and letting agents must publish a single, transparent asking price that serves as the legal maximum. Inviting, encouraging, or simply accepting a penny above this advertised rate carries a local council civil penalty of up to £7,000.

Also, you can now only ask for one month’s rent in advance before a tenancy starts. Even if a tenant offers a large sum to secure the property, accepting it breaks the law, makes the agreement invalid, and can result in heavy fines.

To fix this, update your tenant onboarding process right away. Stick to set marketing prices and use thorough background checks instead of asking for large upfront payments.

To check your current leasing process and protect your investment from council action or Rent Repayment Orders (RROs), book a Comprehensive Portfolio Compliance Audit with Crown Luxury Homes today.

Mistake 3: Delaying Action on Property Maintenance and Mould Hazards

Landlords can no longer treat property maintenance as a low priority. In the past, small issues like damp or electrical faults could wait until the next inspection. Now, with new enforcement rules from 22 June 2026, local authorities can fine you up to £7,000 right away if you do not fix what are classed as serious Category 1 hazards.

There is no longer any option for landlords to delay necessary repairs and maintenance. Councils are inspecting properties faster than ever, and the deadlines they issue for fixing damp, mould, or electrical problems are very strict. If you do not act quickly, you could receive a penalty notice or even have to repay up to 12 months’ rent if a tenant applies for a Rent Repayment Order (RRO).

To avoid these risks, switch to a proactive maintenance plan. Carry out structural checks now, focusing on good airflow, effective heating and insulation to retain heat and prevent damp before it starts.

If you think your properties might not meet these strict new rules, act now. Book a Comprehensive Portfolio Compliance Audit with Crown Luxury Homes to catch maintenance problems early and protect your investments from expensive council action.

Mistake 4: Relying on Defunct “Rent Review Clauses”

Trying to raise rents informally by email or using old rent review clauses in older tenancy agreements is now a big risk. Many landlords still think these clauses allow for yearly rent increases, but under the current law, all standard rent review clauses became invalid on 1 May 2026.

If you try to use an invalid clause or make an informal agreement, you are breaking the law. Now, you can only raise rent once a year by giving tenants a formal notice (Form 4A) with at least two months’ warning. If a tenant challenges the increase, you must show the new rent matches open-market rates.

If you collect an invalid rent increase, you expose yourself to a RRO, which could force you to repay thousands of pounds in back-dated rent.

To fix this, review all upcoming rent increases and use the correct Section 13 legal process. To make sure your rent changes are legal and protected from challenges, book a Comprehensive Portfolio Compliance Audit with Crown Luxury Homes today.

Mistake 5: Attempting to Enforce Fixed Terms or Invalid Break Clauses

You may believe that you can keep a tenant on a fixed term or use an old break clause to force an eviction, but this is now a serious legal mistake. The standard assured shorthold tenancy no longer exists. Section 21 has been abolished, and all tenancies are now ongoing, rolling tenancy agreements with no set end date.

The rules have changed. Tenants can now leave at any time by giving you two months’ notice. Landlords cannot end a tenancy without a valid reason. You must now use the updated Section 8 grounds, such as selling the property or moving back in, and go through the courts.

If you try to enforce old, fixed terms or use invalid notices to remove a tenant, it constitutes unlawful harassment and can lead to large council fines and RROs.

To adjust, focus on keeping tenants happy instead of relying on strict contracts. If tenants have problems with your property, they are more likely to leave. To keep your portfolio stable, book a Comprehensive Portfolio Compliance Audit with Crown Luxury Homes today and make sure your letting strategies match the new legal rules.

Protect Your Portfolio with Crown Luxury Homes

Keeping up with the fast changes in housing laws in 2026 needs expert help. Managing your properties using outdated templates can quickly lead to council action, hefty fines, and Rent Repayment Orders. There is no room for mistakes, but protecting your assets does not have to be stressful.

Crown Luxury Homes offers thorough, proactive management designed for today’s legal environment:

• Algorithmic Legal Compliance: We keep track of every legal change for you. Our advanced systems automatically send all required information sheets and legal notices, ensuring nothing is missed.
• ARLA Propertymark Protection: As fully regulated professionals, we provide complete administrative and financial security, protecting your portfolio from tribunals and enforcement action.
• Preventative Asset Management: We fix maintenance issues before they become serious council problems. Our 24/7 maintenance team quickly handles small issues, protecting your investment and helping you keep good tenants.

Do not wait until you get a non-compliance notice. Contact Crown Luxury Homes today to book your Comprehensive Portfolio Compliance Audit and fully protect your investments from penalties.