20 Things First-Time Landlords Must Consider Before Letting a Property

Becoming a landlord for the first time involves more legal responsibility than most people anticipate. Before you hand over the keys, you need to understand tenancy law, safety obligations, deposit protection, tax reporting and insurance requirements. Getting these wrong can result in fines, void tenancy agreements or even criminal liability.

Short Summary

Deposit protection is a legal requirement. You must register any deposit in a government-approved scheme within 30 days of receiving it or face a fine of up to three times the deposit amount.

Safety checks are not optional. Landlords must provide a valid Gas Safety Certificate, ensure all electrical installations are checked at least every five years, and ensure furniture meets the Furniture and Furnishings (Fire) (Safety) Regulations 1988.

Landlord insurance is separate from standard buildings and contents insurance. A standard home insurance policy will not cover you for rental activity; you need a specialist landlord policy covering loss of rent, legal liability and malicious damage by tenants.

Tax on rental income must be declared to HMRC via self-assessment. Since 2017, mortgage interest relief for individual landlords has been restricted to the basic rate of 20 per cent, which significantly affects higher-rate taxpayers.

1. Know your target tenant

Define who you want to attract before you buy or market the property. Student lets typically offer higher gross yields but come with higher wear, shorter tenancy terms and seasonal voids. Professional tenants are generally lower-risk. Families tend to stay longer. Your target market should inform the specification of the property, the location you choose and the price you charge.

2. Research lettings law thoroughly

Landlord and tenant law in England is governed primarily by the Housing Act 1988, the Tenant Fees Act 2019 and associated regulations. The Tenant Fees Act bans most upfront fees to tenants. Consult your local authority's housing department and consider joining the National Residential Landlords Association (NRLA), which provides guidance, template documents and legal support to members.

3. Set rent at the right level

Charge market rate rent for your area. Overpricing leads to voids; underpricing leaves money on the table and can make yields unviable after costs. Check current asking rents on Rightmove and Zoopla for comparable properties in your postcode. Build in an annual rent review clause to your tenancy agreement, but keep increases proportionate to avoid unnecessary turnover.

4. Screen tenants carefully

Tenant referencing checks a prospective tenant's credit history, employment status and previous rental history. Use a reputable referencing service such as Homelet, Rent4Sure or OpenRent's referencing tool. References from previous landlords and employers should be followed up personally rather than accepted at face value.

5. Use a proper tenancy agreement

An assured shorthold tenancy (AST) agreement is the standard form of tenancy for residential lettings in England. Use a professionally drafted template from the NRLA or a solicitor. Make sure the agreement reflects your specific property and terms. Do not issue keys or accept payment until the agreement is signed.

6. Protect the deposit legally

Deposits must be registered in one of three government-approved deposit protection schemes: the Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS). You have 30 days from receipt of the deposit to register it and provide the tenant with prescribed information about the scheme. Failure to comply can result in a fine of up to three times the deposit amount.

7. Meet all safety obligations

Legal requirement	Detail
Gas Safety Certificate	Annual check by a Gas Safe registered engineer
Electrical Installation Condition Report (EICR)	Every five years by a qualified electrician
Energy Performance Certificate (EPC)	Minimum E rating required to legally let
Smoke alarms	At least one on each storey
Carbon monoxide alarms	Required in rooms with a solid fuel appliance
Furniture fire safety	All soft furnishings must carry the required fire safety labels

8. Get the right insurance

Standard buildings and contents insurance does not cover rental activity. You need landlord insurance, which typically includes buildings cover, loss of rent during uninhabitable periods, liability insurance against claims by tenants or visitors, and optional legal expenses cover. Providers including AXA, Direct Line for Business and Simply Business offer landlord-specific policies.

9. Understand your tax obligations

Rental income must be declared to HMRC via self-assessment. You can deduct allowable expenses including letting agent fees, maintenance and repairs, landlord insurance, and some professional fees. Since April 2020, mortgage interest is no longer fully deductible; instead, you receive a 20 per cent tax credit on finance costs. This change significantly affects landlords who are higher-rate taxpayers.

Speak to an accountant who specialises in property before your first tax return. HMRC's guidance at gov.uk covers allowable expenses in detail.

10. Set up a standing order for rent

A standing order from the tenant's bank account to yours is more reliable than expecting manual payment each month. Unlike a direct debit, a standing order is controlled by the tenant and cannot be reversed by them after the fact. Build the expected payment date into your tenancy agreement.

11. Carry out a thorough inventory

A detailed written inventory with photographs, taken at the start of the tenancy and signed by both parties, is essential if you need to make a deduction from the deposit at the end. Without a signed inventory, deposit schemes will almost always side with the tenant in a dispute. Use a professional inventory clerk or a detailed template.

12. Give proper notice before inspecting

Landlords must give at least 24 hours' written notice before entering the property, except in a genuine emergency. Entering without notice is a potential breach of the tenant's quiet enjoyment rights and could give them grounds to pursue you legally or withhold cooperation on other matters.

13. Act promptly on repairs

You are legally required to keep the structure and exterior of the property in repair, and to maintain the supply of water, gas and electricity. Responding to repair requests slowly puts you in breach of your obligations under the Landlord and Tenant Act 1985 and can expose you to claims by the tenant or the local authority.

14. Do not discriminate unlawfully

The Equality Act 2010 prohibits discrimination against prospective tenants on the grounds of race, religion, sex, disability, pregnancy and several other protected characteristics. You cannot, for example, refuse to let to a tenant because of their nationality. However, you can apply financial criteria such as minimum income levels consistently across all applicants.

15. Consider using a letting agent

If you lack the time or confidence to manage the property yourself, a ARLA Propertymark-registered letting agent can take on tenant finding, referencing, rent collection and property management for a fee, typically 10 to 15 per cent of monthly rent for full management. Check the contract carefully for notice periods and what happens if the agent finds a tenant who then stays on after the initial term.

16. Keep thorough records

Maintain a file for each property containing the tenancy agreement, inventory, deposit protection certificate, safety certificates, all correspondence with the tenant, and records of all income and expenditure. A simple spreadsheet or dedicated landlord software such as Landlord Vision will make tax reporting much easier.

17. Have a plan for arrears

Agree in advance what you will do if rent is not paid. The standard process is to contact the tenant promptly, follow up in writing and then serve a formal notice if the arrears are not cleared. Evicting a tenant for rent arrears through the courts takes a minimum of several months and costs money. Rent guarantee insurance can cover lost income during this process.

18. Understand Right to Rent checks

Landlords in England are legally required to check that all adult tenants have the right to rent in the UK before the tenancy starts. This means checking identity documents and keeping copies. Failure to carry out these checks can result in a fine of up to £3,000 per tenant. The Home Office provides a guide to acceptable documents at gov.uk.

19. Plan for the end of the tenancy

Agree a check-out process in advance. Compare the check-out condition of the property to the original inventory and agree any deductions in writing with the tenant. Deductions must be justified and proportionate: fair wear and tear is not chargeable, but damage, excessive cleaning costs and unpaid rent are.

20. Know when to seek legal advice

Disputes about deposits, disrepair or evictions can escalate quickly. An NRLA membership includes access to legal advice. If a tenant refuses to leave at the end of a tenancy, you must use the court process to regain possession; attempting to change the locks or remove belongings without a court order is illegal, regardless of the circumstances.

Frequently Asked Questions

Do I need a licence to rent out a property?

Depending on the property type and location, yes. Houses in Multiple Occupation (HMOs) with five or more tenants sharing facilities require a mandatory licence from the local authority. Many councils also operate selective or additional licensing schemes for ordinary buy-to-let properties in certain areas. Check with your local authority before marketing the property.

How much tax will I pay on rental income?

Rental profit is added to your other income and taxed at your marginal rate: 20 per cent for basic-rate taxpayers, 40 per cent for higher-rate and 45 per cent for additional-rate. Since April 2020, you receive a 20 per cent tax credit on mortgage interest rather than deducting the full interest cost. An accountant specialising in property tax can model your specific position.

What happens if I sell a property I have rented out?

Capital Gains Tax (CGT) applies to any profit when you sell a rental property. The CGT allowance is currently £3,000 per year (2024-25). Gains above this are taxed at 18 per cent (basic rate) or 24 per cent (higher rate) for residential property. You must report and pay any CGT within 60 days of completion. Private Residence Relief may apply if you lived in the property at some point.

Can I evict a tenant without a reason?

From 2024, the Renters (Reform) Act in England is abolishing Section 21 "no fault" evictions. Once in force, you will need a specific ground from Schedule 2 of the Housing Act 1988 (such as rent arrears or wanting to sell the property) to recover possession. Check the current status of this legislation at gov.uk as it is being implemented in phases.

What is the minimum EPC rating required to let a property?

Currently E. Properties rated F or G cannot legally be let unless a valid exemption applies. The government has previously proposed raising the minimum to C for new tenancies by 2025 and all tenancies by 2028, but as of April 2026 the C-rating requirement has not yet been confirmed into law. Check current government guidance at gov.uk.