Tenant swaps set to surge under rental reforms

Tenant swaps are expected to become a routine part of tenancy management as reforms reshape the private rented sector.

New insight from mydeposits warns that the shift to periodic tenancies under the Renters’ Rights Act 2025 will remove traditional fixed-term endpoints, increasing the frequency of mid-tenancy occupant changes.
The change is particularly relevant across shared housing, including HMOs and flatshares, where tenant turnover is already higher.

Without fixed-term agreements, agents will need to manage changes in occupancy within tenancies that continue indefinitely, rather than resetting contracts at defined intervals.

OPERATIONAL CHALLENGES

This creates new operational challenges around documenting property condition, assigning responsibility and managing deposits.

Agents will face a choice between carrying out full check-outs and check-ins for each swap, or relying on existing inventories, with both approaches carrying trade-offs in cost, risk and administration.

The report highlights a growing risk of disputes, particularly where responsibility for damage becomes unclear as tenants come and go.

Ensuring incoming tenants have access to and formally agree to existing inventory reports will become critical in reducing conflict.

The shift is also expected to increase complexity in shared households, where disagreements between tenants may become more common without clear documentation at each stage.

CLEAR RECORD KEEPING

Tim Frome (main picture, inset), Head of Government Schemes at mydeposits, says: “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. Without that, the focus shifts to how those responsibilities are managed as tenants come and go.”

He adds that robust processes and clear record-keeping will be essential as tenant swaps become more frequent under the new system.

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