How to become a landlord

Decide what you are buying and who will own it

Set out the intended tenants, local rental demand, property condition and your management capacity. Compare personal and company ownership with an accountant and solicitor before choosing the purchaser. Moving an existing property into a company is not just a change of name and can bring tax, legal and finance costs.

Check finance, permissions and a realistic budget

If a mortgaged home is going to be let, obtain the lender’s permission or discuss a suitable buy-to-let arrangement before letting. Check any lease restrictions and insurance requirements too. A mortgage product does not establish that the proposed letting is lawful.

Budget for purchase tax, legal work, initial repairs and a cash reserve. Ongoing figures should allow for mortgage payments, agents, insurance, maintenance, safety checks, service charges, tax and periods without rent. Gross yield leaves many of these costs out. Stress-test a lower rent, a void period and a higher refinance rate.

Check local licensing and the property’s use

Ask the local council whether selective or additional licensing applies to the address, as well as HMO licensing and planning requirements. A shared home may be an HMO even when it does not meet the national large-HMO threshold. Do not rely solely on the estate agent’s description or the previous owner’s use.

Prepare the safety and energy file

For relevant English lettings, arrange annual gas safety checks by a Gas Safe registered engineer where required, and electrical installation inspections at least every five years or sooner if the report requires. Complete necessary remedial work and provide the required records.

Have the required smoke and carbon monoxide alarms fitted, tested and maintained. Keep the property safe, deal with hazards and establish a repairs process. Properties covered by domestic minimum energy rules in England and Wales generally need EPC E or a valid registered exemption; check future changes separately when planning improvements.

Use the current tenancy rules

England’s main Renters’ Rights Act tenancy reforms took effect on 1 May 2026. In-scope assured lettings operate on a periodic basis, and new section 21 notices are no longer the route to possession. Advertise a rent and do not accept rental bids above it. Provide the required written tenancy information and use the proper process for rent changes and possession.

Do not use an old fixed-term AST template without checking it. The rules on advance rent, pets, tenant selection and notices require care. A managing agent or housing solicitor should confirm the agreement and procedures for the actual tenancy.

Set up the tenancy properly

Use a consistent, lawful referencing process and complete right-to-rent checks in England. Where deposit protection is required, protect the deposit and provide the prescribed information within the statutory 30-day period. Check deposit and permitted-payment limits before collecting money. Record the condition and inventory at handover.

Choose who manages the day-to-day work

If using an agent, agree the service, fees including VAT, repair approval limits, emergency cover, inspections, rent handling and how they report arrears. Ask which duties they carry out and what evidence you will receive. Appointing an agent does not remove the need to understand your responsibilities.

If self-managing, keep a rent ledger, a dated maintenance log and a reliable contact route. Respect the tenant’s home and access rights. Keep personal records secure and collect only what you need.

Keep the money and records organised

Rental income may need reporting to HMRC. Keep invoices and separate income, running costs, borrowing and capital improvements for the accountant. Mortgage capital repayments and reserve transfers are not simply deductible expenses. Tax treatment differs between individuals and companies; obtain advice on your own position.

Questions before you start