The Renters' Rights Act Compliance Tripwire Guaranteed Rent Landlords Must Know Before June 2026

A Ticking Clock Most London Landlords Haven't Heard Yet

With just weeks to go until the 31 May 2026 deadline, a quiet but significant compliance requirement is catching London landlords off guard. Under the Renters' Rights Act 2025, every landlord with an existing assured tenancy must serve a prescribed Information Sheet on their tenants before 1 June 2026. Fail to do so, and you face a fine of up to £7,000 per tenancy.

You might be thinking: "My property is managed. Surely someone is handling this." And if you use a traditional letting agent, they probably are. But if your property sits within a guaranteed rent scheme, a rent-to-rent arrangement, or a lease-option structure, you may have a very real problem on your hands. Let us explain why.

What Is the Renters' Rights Act Information Sheet?

The Renters' Rights Act Information Sheet is a government-published document that must be served on every tenant holding an assured tenancy. It sets out tenants' rights under the new legislation, covering topics like the abolition of Section 21 "no-fault" evictions, new grounds for possession, rent increase rules, and the Ombudsman service.

The requirement applies to all existing tenancies as of the Act's commencement date. For new tenancies created after that date, the Information Sheet must be served at the start of the tenancy. For existing tenancies, the backstop is 31 May 2026.

This is not optional. Local authorities can impose a financial penalty of up to £7,000 for non-compliance, and the liability rests squarely with the "superior landlord," meaning the freeholder or head leaseholder who grants the tenancy. Not the operator. Not the sub-letter. You.

Why Guaranteed Rent Landlords Are Uniquely Exposed

Guaranteed rent (sometimes called rent-to-rent) is a popular strategy among London landlords looking for predictable income without day-to-day management hassle. Here is how it typically works:

1. You, the landlord, grant a lease or tenancy to a company (the operator).
2. The operator then sub-lets the property to occupiers, often as an HMO, serviced accommodation, or standard AST.
3. You receive a fixed monthly rent regardless of occupancy.

On paper, it sounds ideal. Guaranteed income, no void periods, no tenant calls at midnight. But in practice, this structure creates a compliance gap that is easy to miss.

The Compliance Gap Explained

Under the Renters' Rights Act, the obligation to serve the Information Sheet follows the landlord-tenant relationship. If your operator has sub-tenants on assured tenancies, you might assume the operator will handle compliance. But here is where it gets tricky:

• Many operators do not consider themselves "landlords" under the Act and may not serve the Information Sheet on their sub-tenants.
• Even if the operator does serve it, the superior landlord (that is you) may still have a direct obligation if the head tenancy itself is an assured tenancy.
• Some guaranteed rent agreements are structured as licences rather than leases, creating further ambiguity about who owes what to whom.

The net result? If the Information Sheet is not served on the right people, by the right person, before the deadline, the local authority comes knocking on your door. Not your operator's.

What Makes This Worse for Rent-to-Rent Arrangements

Rent-to-rent operators range from professional, well-capitalised companies to small outfits running on thin margins. In our experience at Airhosts, we regularly speak with landlords who have limited visibility into what their operator is actually doing inside the property, let alone whether compliance paperwork has been served.

If your operator is unresponsive, disorganised, or simply unaware of the new requirement, you are the one left holding the liability. And at £7,000 per tenancy, the maths can get painful very quickly, especially if the property has been converted into a multi-let.

The Broader Problem with Guaranteed Rent Schemes

The Information Sheet issue is just one symptom of a larger challenge with guaranteed rent and rent-to-rent models. Let us be honest about the pros and cons.

The Pros

• Predictable monthly income with no void risk
• Minimal landlord involvement in day-to-day management
• The operator handles tenant sourcing and property upkeep (in theory)

The Cons

• You lose control of your property and who lives in it
• Operators may not maintain the property to your standards
• Sub-letting can void your insurance or breach your mortgage terms
• Regulatory compliance often falls through the cracks (as we are seeing right now)
• Guaranteed rents are typically set well below market value to give the operator their margin
• If the operator goes bust, you inherit their tenants with no transition plan

For many London landlords, the "guaranteed" part of guaranteed rent starts to feel less reassuring once you factor in the hidden risks and the income you are leaving on the table.

A Simpler Path to Higher Returns

Here is something worth considering. If you own a property in London and you are weighing up guaranteed rent against other options, the short-term let market offers a compelling alternative that solves many of the problems outlined above.

With a professionally managed short-term let:

• You stay in control. The property remains in your name, with full visibility over bookings, guests, and income.
• Compliance is handled for you. A good management company takes care of every regulatory requirement, from the Renters' Rights Act Information Sheet to planning compliance, fire safety, and guest registration.
• Income is significantly higher. London short-term lets consistently outperform long-term rental yields, often by 30% to 60%, depending on location and season.
• You are not locked into a long lease. Unlike guaranteed rent schemes that tie you into 3 to 5 year agreements, short-term let management is flexible and responsive to market conditions.

At Airhosts, we manage short-term lets across London for landlords who want high-yield, hands-off income without the compliance headaches or loss of control that come with handing their property to a rent-to-rent operator.

What You Should Do Right Now

If you are currently in a guaranteed rent arrangement, take these steps before the 31 May 2026 deadline:

1. Check your agreement. Understand whether your head tenancy is classified as an assured tenancy and who has the legal obligation to serve the Information Sheet.
2. Contact your operator. Ask them directly whether they have served, or plan to serve, the Information Sheet on all sub-tenants. Get this in writing.
3. Serve the Information Sheet yourself. If there is any doubt, download the prescribed document from the GOV.UK website and serve it on your operator-tenant and, if possible, on any sub-tenants you are aware of. Keep proof of service.
4. Review your overall strategy. If this compliance scare has highlighted how little control you have over your property, it might be time to explore a better model.

The Bottom Line

Guaranteed rent can seem like the easy option, but as the Renters' Rights Act deadline proves, "easy" often means "someone else is supposed to handle it." And when that someone else does not, the fine lands on your doormat.

London landlords deserve a management solution that maximises income, keeps them fully compliant, and does not require them to chase an operator for basic paperwork. That is exactly what Airhosts delivers. We handle everything from Airbnb listings and guest management to cleaning, compliance, and dynamic pricing, so you earn more while doing less.

If you are a London landlord ready to move beyond guaranteed rent and unlock the true earning potential of your property, get in touch with the Airhosts team today. Your property is worth more than a below-market guaranteed rent cheque and a compliance headache. Let us prove it.