Letting out your property can be a great way to earn extra income, build equity and make long-term investments work for you. However, becoming a landlord in the UK comes with serious responsibilities and legal obligations. Whether you’re letting out a flat, a house or a spare room, there are several important things to get right before you hand over the keys.
These ten essential tips will help you navigate the process, avoid common pitfalls and stay on the right side of the law.
1. Understand Your Legal Responsibilities
Before letting out your property, it’s vital to understand what the law expects from you as a landlord. From providing a safe and habitable living space to respecting your tenants’ rights, there’s a long list of duties to follow.
You’ll need to stay compliant with UK landlord laws, including rules around deposit protection, notice periods and access. A good place to start is the official guidance from Gov.uk on renting out a property.
2. Choose the Right Type of Tenancy Agreement
Most residential landlords in the UK use an Assured Shorthold Tenancy (AST). This offers flexibility while also protecting your rights as a landlord. Ensure the agreement clearly outlines rent, deposit terms, notice periods and any specific clauses, such as pet restrictions or maintenance expectations.
3. Get the Proper Landlord Insurance
Standard home insurance won’t cover rental activities. You’ll need dedicated landlord insurance, which typically includes cover for buildings, contents (if furnished), legal expenses and loss of rent. Many providers also offer rent guarantee insurance for added peace of mind. For a comparison of options, MoneySavingExpert offers a useful guide.
4. Inform Your Mortgage Lender
If your property is under a residential mortgage, you must inform your lender before letting it out. Some lenders require “consent to let”, while others may insist you switch to a buy-to-let mortgage. Failing to do this could breach your mortgage terms.
5. Ensure Your Property Is Legally Lettable
Your rental property must meet legal safety standards. This includes having a valid Energy Performance Certificate (EPC) rated E or above, annual gas safety checks, an Electrical Installation Condition Report (EICR) every five years, and working smoke and carbon monoxide alarms where required.
For a quick reference, see our Checklist for New Landlords.
6. Screen Your Tenants Carefully
Finding the right tenants is one of the most important steps. Use referencing services to check credit history, previous landlord references, and employment details. Don’t forget to carry out Right to Rent checks in line with government guidelines.
7. Set the Right Rent
Do some research to determine a fair market rent. Setting it too high can deter tenants, while too low could reduce your return. Check local listings on sites like Rightmove or Zoopla, and factor in your ongoing costs, such as maintenance and potential void periods.
8. Register the Tenancy Deposit
UK law requires landlords to register the tenant’s deposit in a government-approved Tenancy Deposit Protection (TDP) scheme within 30 days. Schemes such as the DPS, MyDeposits and TDS ensure the deposit is handled fairly. Failing to register it correctly could result in fines and legal issues if disputes arise.
9. Keep Detailed Records
Accurate record-keeping will help you stay organised, manage finances and resolve disputes. Keep copies of tenancy agreements, rent receipts, safety certificates and maintenance logs. Digital tools or apps designed for landlords can make this easier to manage.
For tech recommendations, check out our guide to the Best Apps for Landlords in the UK.
10. Understand Your Tax Obligations
Rental income must be declared to HMRC. You may be able to offset allowable expenses, such as letting agent fees, maintenance costs and insurance premiums. You’ll usually need to file a Self-Assessment tax return. For up-to-date information, visit the UK government’s page on tax and rental income.
Conclusion
Letting out your property can be a rewarding venture, but it requires preparation, attention to detail and compliance with UK regulations. By following these ten must-know tips, you can minimise risk, protect your investment and offer a safe and legal home for your tenants.
Ready to take the next step? Explore more of our property and landlord tips to make the most of your letting journey.