How to become a landlord

If you’re embarking on a new endeavour as a landlord, you’ve got a lot to look forward to – but also a lot of to consider. To help you on your journey, we’ve pulled together this beginner’s guide on how to become a landlord.

As the saying goes: location, location, location. The first thing you want to decide is the area you’d like to purchase your buy-to-let property.

First, it’s useful to think about how you’d like to manage the property. If you’re planning to manage it yourself, you’ll obviously want the property to be local.

If you’re open to purchasing a property that’s not local, here’s what you’ll need to think about: do tenants want to buy property in that area? Have you researched the areas that have good rental demands and yields? It’s also worth thinking about capital gains, which show how much the property’s value could grow over time.

How much rent are you going to charge? This figure is known as ‘rental yield’, and it’s useful to know how to calculate as it can help you decide how much rent to charge – and to monitor how well your investment is doing.

How to work out rental yield:

1.     Divide annual rental income by property value

2.     Multiply the figure by 100

The figure you get is your rental yield as a percentage. Or you can use an online calculator to do the job.

There’s a few different ways you can buy a buy-to-let property. You might want to buy the property in your name or through a special purpose vehicle (SPV) limited company.

It’s also worth bearing in mind that the legislation on mortgage relief has recently changed for buy-to-let properties. The changes mean that landlords who do buy the property in their own name can’t deduct their mortgage expenses from their rental income. As of 2026, landlords who purchase using this route will now receive a tax-credit that works out as 20% of their mortgage interest payments, whereas before higher-rate taxpayers would effectively receive a 40% tax relief.

If you do decide to buy through a company, bear in mind that your tax responsibilities will work differently and may be more complex as a result. Instead of paying income tax on your rental income, you’ll need to file taxes for your business and pay corporation tax on your profits.

It’s natural to feel unsure about licences when you’re starting out as a landlord as the rules can vary quite a bit – depending on where you live and the type of property you’re renting.

As of 2025-2026, many councils have expanded selective and HMO licensing schemes. Some boroughs now require licences for most rented home, and over 70 councils operate additional HMO licensing for smaller properties. You’ll want to ensure to check your local authority’s current scheme before letting a property¹.

The rules can be confusing, but what you can rely on is this: no matter what type of licence the property requires, you’ll be asked to complete some forms to show that you’re a ‘fit and proper person’. This is just to help keep tenants safe and protect you as a landlord.

The rules for landlords aren’t always straightforward. They differ between counties and tenancy type. Doing your research first can save you a lot of stress later.

To keep you and your tenants safe, there are a few essential certificates you’ll need:

Energy performance certificate (EPC). A rented property should have a valid EPC rated E or above to meet the Minimum Energy Efficiency Standards (MEES)². Properties that don’t meet the standard risk a fine of £5,000, so it’s worth getting this in place early on.

• Electrical safety certificate. You’ll also need an Electrical Installation Condition Report (EICR) every five years. A qualified electrician will check things like wiring, sockets, fuse boxes, and fixed appliances to make sure everything is safe. If anything needs immediate attention, they’ll make it safe before leaving.

• Gas Safety Certificate. Before any new tenants move in, you need to arrange a gas safety inspection with a Gas Safe engineer. You’ll need to give your tenants a copy of the certificate before their tenancy begins, and the check needs to happen every year.

• Fire safety checks. Landlords need to ensure the property meets all fire safety requirements, including working smoke alarms, heat detectors, fire-safe escape routes, and regular inspections where required. Also, from 2026, landlords need to comply with Awaab’s Law, which enforces strict deadlines for identifying and fixing issues like damp and mould.

• Legionella Risk Assessment. A trained professional needs to also carry out a Legionella Risk Assessment to make sure the water system in the property is safe.

Finding the right tenant can feel like a big step, and it’s normal to feel daunted at first. Marketing your property well takes time, effort, and resources, but it’s worth it in the end if it means attracting the right people.

When you’re marketing your property, good-quality photos, clear descriptions and well-placed listings can make all the difference. If you aren’t nearby or can’t host viewings yourself, you’ll also need to decide who will show potential tenants around.

So, you’ve found tenants who are a good fit for your property. Great! What now?

From 1 May 2026, tenancy rules are changing under the Renters’ Rights Act. All new and existing assured shorthold tenancies will convert to periodic tenancies, and Section 21 ‘no‑fault’ evictions are being abolished. This means that:

• Landlords will need valid grounds under Section 8 to regain possession

• Rent can only be increased once per year with a Section 13 notice, and tenants can challenge unfair increases

• Rights around pets, anti‑discrimination and property standards are strengthened

Once your new tenants are ready to move in, there are a few important steps to take to stay compliant, and create a smooth relationship from the get-go.

• Tenancy checks – Make sure your tenants can comfortably afford the rent, and arrange a guarantor if necessary (common with students or young renters)

• Tenancy agreements – Provide a clear agreement outlining everyone’s responsibilities

• Inventory – Create a complete inventory of your property’s items and their condition before getting your tenants to sign it

• Deposit protection – Take the deposit and register it with one of the official government schemes. At the end of the tenancy, if necessary, you can request deductions for damage

• Property information pack – Share helpful details about the property, appliances, and how to report repairs. Many landlords also include the government’s How to rent checklist for clarity and peace of mind

• Accounts – Keep accurate records of all received rental income and expenses, which will make your tax return much easier later on

Want some support on your journey to becoming a landlord? We’d love to chat.

Click here to learn more.

Source

https://www.gov.uk/guidance/renting-out-your-property-guidance-for-landlords-and-letting-agents

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement, in the case of specific problems, we recommend that professional advice be sought.