The Hidden Value of Using a Letting Agent Under the Renters’ Rights Act

Being a landlord in 2025 isn’t what it used to be. With the passing of the Renters’ Rights Act, the private rental sector is undergoing a significant shift, not just in terms of regulation, but in the day-to-day practicalities of managing a rental property.

Many landlords are now asking themselves whether it’s still worth it. But here’s the truth: with the right support, owning a rental property can still be a highly worthwhile investment, and that’s where a letting agent, particularly under a Full Management service, proves invaluable.

Let’s explore how letting agents add hidden (and sometimes not-so-hidden) value to landlords’ portfolios, especially in light of the new reforms.

Understanding the Renters’ Rights Act: What’s Changed?

The Renters’ Rights Act introduces sweeping reforms that affect every landlord in England. These include:

• All tenancies becoming periodic — no more fixed-term assured shorthold tenancies (ASTs)
• Abolition of Section 21 ‘no-fault’ evictions — all evictions must now go through Section 8, with valid grounds
• Annual rent increase restrictions — only one increase per year, with at least two months’ notice
• New minimum housing standards — homes must meet the Decent Homes Standard
  
• Mandatory registration with a new Landlord Database
• Stricter enforcement from local authorities, with fines of up to £40,000 for breaches

You can read the government’s full guide to the legislation here:
https://www.gov.uk/government/publications/guide-to-the-renters-rights-act/guide-to-the-renters-rights-act

What does this mean for landlords? More red tape, more responsibility, and a greater risk of costly mistakes. Especially for part-time or accidental landlords, who are not prepared for this level of involvement.

The Real Benefits of Using a Letting Agent

Letting agents are often seen as just “middlemen” but in 2025, they’re more like risk managers, advisors, and personal assistants rolled into one. Here’s what a good letting agent does to protect your property and your peace of mind:

1. Expert Tenant Sourcing & Vetting

• Full referencing, affordability checks, guarantor requirements, and credit history analysis
• In today’s market, this step is crucial with no-fault evictions removed — taking every step to choose the right tenants is essential
• At Bright Star Lettings, we go one step further by matching tenants to landlords’ long-term goals — not just filling a vacancy

2. Compliance, Sorted

• Navigating EPCs, EICRs, Gas Safety Certificates, Right to Rent checks, and now the Renters’ Rights reforms
• We stay on top of deadlines, legal updates, and licensing — so you don’t have to
• Our landlords are automatically advised if legislative changes affect their property

3. Rent Management & Legal Rent Increases

• With rent now only legally adjustable once per year (with strict notice periods), the timing and approach matter
• We advise on fair market rents and handle formal notices to tenants in line with Section 13 of the Housing Act
• Avoid under-pricing your property or breaching rent cap rules

4. Property Maintenance & Repairs

• Ongoing maintenance keeps tenants happy and properties in line with Decent Homes Standard
• We coordinate trusted local trades (or your preferred contractors), manage invoices, and ensure urgent issues are addressed quickly

5. Buffering Landlord-Tenant Relationships

• A letting agent becomes your ‘bad cop’, stepping in to handle late rent, disputes, or difficult conversations
• Particularly useful in situations involving unauthorised pets, property damage, or the end of tenancy disputes
• Maintains a professional distance and protects your peace of mind

Why Now Is Not the Time to Go It Alone

With the Renters’ Rights Act now in force, landlords face greater risk exposure:

• Increased financial penalties — up to £40,000 for repeat breaches
• Mandatory redress scheme membership
• Rent repayment orders (up to 24 months of rent) for non-compliance
• Expanded rights for tenants (e.g. to challenge rent increases or keep pets)

Even experienced landlords can fall foul of the rules unintentionally. And for those who self-manage, keeping up with legal updates and documenting everything properly is a massive time burden.

That’s why many landlords are choosing to outsource — not to avoid the work, but to avoid the risk.

What Makes Bright Star Lettings Different?

At Bright Star Lettings, we don’t just “tick the boxes.” We offer something most agencies don’t:

Pick & Mix Letting Services

From as little as £75 + VAT ( From January) for an individual service, you choose exactly what you need — whether it’s just help with tenant find, or ongoing compliance management. Ideal for hands-on landlords who just want a little support.

Full Management for Complete Peace of Mind

• Setup fee: £300+VAT (from January)
• Monthly management: 5% of rent
• Includes all tenant communications, rent collection, inspections, maintenance coordination, legal notices, and more

With over 100 fully managed properties and 150 tenants across Torbay, Teignbridge and the South Hams, our Full Management service is trusted by portfolio and part-time landlords alike.

Sue’s Expertise

Our lead advisor Sue is often called in to rescue complex tenancies or problem properties. Whether it’s navigating a tricky eviction, rescuing a neglected home, or securing a quality tenant for a difficult property, Sue has become the go-to for landlords who want results.

Is Full Management Right for You?

Ask yourself:

• Do you have the time to deal with tenant emails, maintenance, inspections, and legal changes?
• Are you confident in managing legal notices, rent disputes, and tenancy exits?
• Can you keep on top of compliance deadlines for each property?
• Do you want to be on call for every tenant issue — even the minor ones?

If you hesitated on any of the above, Full Management might be the smart choice — or at least worth a conversation.

Next Steps: Protect Your Investment

With the Renters’ Rights Act bringing in the biggest private rental reforms in decades, there’s never been a better time to rethink your property strategy.

Whether you want full support or just a little help, Bright Star Lettings is here to guide you through it.

👉 Book your free market appraisal  or call us on 01803 226400 to speak with Sue and the team.

Let’s take the stress off your plate — and help your property reach its full potential.