Want to become a residential landlord? Here is how to start the right way

What does being a landlord involve? 

The day-to-day responsibilities of being a landlord include: 

• Tenant management – finding tenants, responding to their complaints or queries and ensuring they pay their rent on time. 
• Repairs – that faulty boiler or leaking tap needs to be fixed.
• Compliance – legislation affecting landlords is vast and has been added to by the recent Renters Rights Act. 

There are differences to your everyday landlord duties depending on whether you manage your property directly or use a letting agent. Letting agents take on many of the responsibilities of finding and managing the tenants and organising repairs, but they will take up to 20% of the rental income to do so. 

What legal requirements must I meet? 

Tenancy agreements are mandatory for tenancies of three years of more but advisable for all tenancies to protect your legal rights and your property.  

You must put your tenant’s deposit into a Government-approved deposit protection scheme within 30 days of receiving the money. 

Certifications are essential for gas (if your property has gas connection), electrics, fire safety and energy efficiency. You need to give your tenant a copy of the gas safety record and EPC certificate when they move in, ensure electrical items are tested and safe, have working smoke alarms and carbon monoxide detectors fitted and follow all other fire safety regulations.  

If you intend to let your property as a house of multiple occupancy (HMO), you may need a licence to do so. 

• England and Wales – all large HMO landlords (property housing five or more people from two or more households) need a licence, and some local authorities require licences for smaller HMOs too 
• Scotland – all landlords need to be licenced and not just HMO landlords 
• Northern Ireland – all HMO landlords need a licence 

The Renters Rights Act provisions have begun in phases. From 1st May 2026, non-fault evictions will be banned, so it will be harder to evict tenants unless they are in rent arrears or you are selling the property.  

Rules under the Housing Health and Safety Rating System (HHRS) will be strengthened so that Category 1 hazards that are not fixed will face fines from spring/summer 2026 

Do the maths: what financial planning should I do? 

In the past, mortgage interest was fully deductible for landlords, but this has been replaced with a 20% tax credit. Consider this if you are looking at the affordability of buy-to-let mortgages or you may not set your rent sufficiently high to make a profit. 

Making Tax Digital for income tax begins for landlords with qualifying income above £50,000 from 6th April 2026. If you are just starting your business, you will be within the self-assessment tax regime at least for the first tax year.  

Announced at the Autumn Budget 2025, income tax rates for property income will go up by 2% (compared to standard income tax rates) from April 2027. This means the basic, higher and additional rates will be 22%, 42% and 47%. 

For more on other taxes specific to landlords, see our article here. 

Research typical rental yields in your local market and what you can expect to earn from types of property in your chosen location. 

You’ll also need to build in the cost of various insurance policies – landlords’ buildings insurance, owners’ liability insurance, loss of rent insurance and contents insurance for furnished lets. 

How do I find and screen tenants? 

If you choose to manage your tenancies personally, you will need to consider: 

• Where to advertise your property. 
• How to conduct tenant interviews, referencing and credit checks. 
• Whether you are offering the property furnished. 

It is important to note further parts of the Renters Rights Act being introduced from 1st May 2026 may affect the way you screen tenants. You will not be able to discriminate against tenants with children or who pay their rent from welfare benefits, and you cannot turn down pets without reason or explanation.  

How do I set myself up for long-term success as a landlord? 

Building good landlord-tenant relationships. 

Keeping timely and accurate business records - using digital bookkeeping and accounting tools will help. TaxAssist offers Hammock. 

Know when to call in professionals like property managers, accountants and tradespeople 

Understand the standard of finish and fit out needs to match your market - if you over-spec you will waste money but if you underspend you may find it hard to fill 

How TaxAssist Accountants can help landlords  

TaxAssist Accountants has a wealth of experience dealing with landlords. Contact us today on 020 3988 0580 or use our online form to arrange a no-cost initial consultation. 

Last updated 8 Jan 2026 | First published 8 Jan 2026

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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