Landlord guide

Landlords are legally required to ensure that the property meets certain health and safety standards. This includes making sure the property is free from serious hazards, such as damp, gas leaks, or electrical faults. 

Landlords must keep the property in a good condition and carry out necessary repairs. This includes maintaining the structure of the property (walls, roof, windows, etc.) and ensuring all systems (e.g. heating, plumbing, electrical) are working properly. 

Landlords must have an annual gas safety check and provide tenants with a gas safety certificate. 

The landlord must provide a written tenancy agreement that outlines the terms and conditions of the tenancy, including rent, duration, responsibilities, and any special conditions. 

If the landlord collects a deposit, it must be protected in a government-approved tenancy deposit protection scheme. The deposit must be returned at the end of the tenancy, minus any deductions for damages or unpaid rent. 

The landlord sets the rent amount, which must be in line with the market rate. 

If the landlord wishes to increase rent during the tenancy, they must follow a legal process.  

Landlords must ensure that their tenants have the legal right to rent in the UK – this is called the Right to Rent.  

Different types of property appeal to different types of tenant. Flats often attract young professionals, couples or sharers. In contrast, larger houses may appeal to families seeking long-term rentals. 

Houses in multiple occupation (HMOs) can be rented out per-room to tenants who share a kitchen, bathroom and living areas. 

In general, properties in sought-after areas or near amenities like transport links, schools, and shops usually attract more interest. 

The property's condition is crucial. A well-maintained property commands a higher rental price and minimises future repair costs.  

You can’t usually let a property owned on a residential mortgage – you need a buy-to-let mortgage. These tend to require bigger deposits and have higher interest rates. 

It’s important to make sure the figures add up when working out your buy-to-let finances. In some cases by using borrowed capital to fund your purchase, you can increase your return on investment by investing in numerous properties.  

Novice landlords should take both financial and professional advice before buying their first rental property. 

Before you start letting, you’ll need to be make sure the property is habitable and well maintained.  

Look around the property and identify areas that need repairs or upgrades. This might include fixing leaks, repainting walls or updating old electrical systems.  

Consider cost-effective improvements that add value such as installing energy-efficient windows or upgrading the heating system.  

Prepare the property for viewings by deep cleaning carpets and ensuring all appliances work. You might also stage the property with furniture.  

As a landlord, you’ll have various legal responsibilities. In some areas, you’ll need to register as a landlord with your local council. If you own a HMO, you will usually need a license. 

Income from rent must be declared to HMRC and will be taxed. You may also be eligible for certain tax deductions.  

Landlord insurance is a specialised type of insurance designed to protect landlords and their rental properties. It covers a range of risks and potential problems that a landlord might face while renting out a property. It is not mandatory but it can be a good idea as it can help safeguard your investment. 

This type of insurance is different from standard home insurance, as it specifically addresses the needs of landlords renting to tenants.  Policies vary but the key components of landlord insurance include: 

• Buildings insurance 

• Contents insurance 

• Loss of rent insurance 

• Liability insurance 

• Rent guarantee cover 

• Legal expenses insurance 

• Accidental damage cover 

• Property owner’s liability insurance 

• Home emergency 

An Assured Shorthold Tenancy (AST) is the most common type of tenancy agreement in the UK for renting residential properties.  

It is a legal contract between a landlord and a tenant that outlines the terms and conditions of the tenancy, such as the length of the tenancy, rent payments, and the responsibilities of both parties.  The agreement provides a framework for both the landlord and the tenant, ensuring that their rights and obligations are clear. The AST should include details such as  

• Names of both landlord and tenant(s) 

• Fixed term or periodic tenancy 

• Tenant's security of tenure 

• Rent payments 

• Rights and responsibilities of the landlord 

• Rights and responsibilities of the tenant 

• Notice periods 

• Deposit protection 

• Clauses about pets, smoking and subletting 

• The property’s Energy Performance Certificate (EPC) 

Landlords can either find and vet tenants themselves or hire a letting agency to do the work for them.  Either way, to find the right tenants you’ll need to: 

• Advertise your property  

• Interview potential tenants 

• Conduct affordability checks 

• Obtain references 

• Carry out credit checks 

Being a landlord means ongoing work managing the property. This will include: 

• Regular maintenance: Make sure the property is well-maintained and in good condition, addressing any repair issues quickly.  

• Routine inspections: Conduct inspections (typically every 6 to 12 months) to ensure everything is in good shape and that tenants are taking care of the property. 

• Respond to tenant concerns quickly: If tenants report issues or maintenance needs, attend to them in a timely manner. 

Rules for landlords change constantly – so make sure you stay up to date on the following: 

• Right to Rent 

• Energy Performance Certificates 

• Deposit protection schemes 

• Renters’ rights 

• Health and safety regulations 

When it comes time to end a tenancy, it’s important to follow the correct procedure. This means:  

• Giving your tenant the correct notice period 

• Inspecting the property 

• Returning the deposit, with any deductions being fair and justified 

• Following legal eviction processes 

Tenants can end an AST by providing the required notice. For a fixed-term agreement, this is usually at the end of the term unless a break clause allows earlier termination. In a periodic tenancy, the tenant must give at least one month's notice. 

The landlord can end the tenancy using either a Section 21 notice (for a no-fault eviction), or a Section 8 notice (for tenant breach, such as unpaid rent). 

However, Section 21 evictions will be banned when the Renters’ Rights Bill becomes law later in 2025 (it’s currently going through Parliament). This will make it more difficult to evict tenants. 

After a tenancy has ended, the landlord will need to transfer utilities and council tax back into their name until a new tenant moves in.