Changes to legislation coming into force from this October will affect many thousands of residential landlords as the terms of their letting agreements will automatically acquire assured shorthold tenancy (AST) status.

From 1st October, the annual rental threshold for ASTs will rise from £25,000 to £100,000 and this change means that many residential landlords in the UK (individuals as well as corporate entities) will need to take action to comply with AST rules.

If they have not already done so, landlords who are affected by the change should:

· Protect any deposits paid by tenants by registering them with a government approved Tenancy Deposit Scheme and provide their tenants with information about the scheme

· Be aware of the different (and lengthier) procedures which need to be followed to obtain possession of premises

· Be prepared for trickier negotiations about rent, as opportunities may arise for tenants to challenge the rental determination before an independent assessment panel

Patricia Mellody, a property litigation lawyer at law firm Osborne Clarke, said:

"Landlords really need to be aware of these changes and take steps to comply with their obligations relating to tenancy deposits sooner rather than later. Undesired and unnecessary consequences can be avoided if action is taken now."