The squeezed landlord: protecting margin in the periodic tenancy era

The Renters’ Rights Act came into force on 1 May 2026. Much of the coverage has focused on the big, visible changes: the end of Section 21, the shift to periodic tenancies, and the ban on rental bidding wars. These are significant, but they are not, on their own, what will squeeze landlord margin. Propertymark Industry Supplier, Homebox, explains the potential impact of the less headline-grabbing changes in the legislation.

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The real pressure comes from three quieter changes that build on top of each other:

  • Rent increases are limited to once a year, via a Section 13 notice
  • Landlords cannot demand more than one month’s rent at a time
  • Most tenancies will become rolling periodic agreements, with tenants able to give two months’ notice at any point

Individually, none of these is catastrophic. Together, they reduce cashflow flexibility, remove upfront buffers, and make it harder to plan ahead.

The void problem nobody is talking about

This is the part that needs more attention.

Under the old system, landlords had a reasonable idea of when a tenancy would end. Fixed terms expired, renewals were negotiated, and voids could be planned. Marketing could begin early, handovers could be coordinated, and changeovers managed with some confidence. From May, that predictability reduces. A tenant can serve notice at almost any stage of the tenancy. The result is simple. Voids become harder to anticipate and, for some portfolios, more frequent. More voids, less notice, and less cashflow buffer to absorb them. That’s the squeeze. Across many portfolios, even a short void can cost several hundred pounds once council tax, utilities and admin time are factored in.

Every void period carries real cost:

  • Council tax usually becomes the landlord’s responsibility when the tenant leaves, depending on local authority rules
  • Standing charges on gas, electricity and water continue whether the property is used or not
  • Supplier admin, including meter reads and account changes, takes time that is rarely recovered
  • Deemed contracts can apply, often at higher default tariffs

Across a portfolio, these costs build quickly. Individually they may seem manageable. In practice, agents report that billing issues and missed notifications can take weeks to resolve, often costing more than the void itself. The good news is that many of these costs can be reduced with the right process in place.

1. Get utility notifications right, every time. At move-out and move-in, suppliers and the local authority need to be informed promptly. Delays lead to incorrect billing, disputes and avoidable cost. Handled manually, this is where time and money are lost. A consistent process, supported by automation where possible, reduces errors and cuts down admin.

2. Manage void-period utilities properly. Void periods often fall onto higher-cost energy arrangements. Services such as British Gas’s VoidCare are designed to help landlords and agents manage unoccupied properties and avoid unnecessary charges. These only make a difference if they are part of the usual process, not something done occasionally.

3. Check council tax every time. Council tax rules vary between local authorities. Some offer short exemptions. Others charge from day one. The only way to avoid unnecessary cost is to understand the rules for each property and apply for any exemption where available.

4. Take meter reads properly. Clear, timestamped photographs at move-out and move-in remain one of the simplest ways to prevent billing disputes. It is a small step that avoids a lot of follow-up work later.

The move-in experience is also often overlooked 

With periodic tenancies, tenants have more flexibility to leave. That makes the early experience more important. Tenants who move in smoothly and understand their bills are more likely to stay longer, which matters more when they can leave at short notice. Home setup services can help here. Giving tenants a single place to organise utilities, broadband and related services makes the process clearer and reduces early issues. The benefit is shared. The tenant gets a simpler start, the agent deals with fewer queries, and the landlord benefits from more stable occupancy.

The Renters’ Rights Act does not change the core cost of running a rental property. What it changes is how easily those costs can be recovered through rent. Landlords cannot rely on rent alone. They need to stop small costs building up between tenancies.

From May, more of a landlord’s margin will come down to how well they manage voids, handle changeovers, and deal with day-to-day admin. Those who focus only on the legislation will miss the point. The ones who do well will be the ones who tighten their processes and stay on top of the detail.

How Homebox helps

Homebox automates utility notifications at move-in and move-out, helping to reduce billing errors and delays. It also supports tenants at the start of the tenancy by giving them a single place to organise utilities and related services.

Each step is simple. Together, they help reduce admin, avoid unnecessary cost, and support a smoother tenancy from start to finish.

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Homebox: Utility bills management for agents and tenants

Allow your tenants to turn any home into a bills included home and never spend time dealing with void utility bills again.