How to become a landlord: a step-by-step guide for first-time landlords

Becoming a landlord in England in 2026 means more paperwork than it did a few years ago. The Renters’ Rights Act changed how tenancies work from 1 May 2026, and a new landlord database opens from December 2026. None of it is difficult, but the order matters. This guide walks through the steps for England. Scotland and Wales have their own rules, covered in our landlord compliance checklist.

Costs to budget for before your first let

Most of the set-up costs are small compared with the rent, but they add up. Typical UK ranges, before any repairs:

These are typical market ranges, not quotes. Prices vary by region, and London and the South East are usually higher. Licence fees, where they apply, are set by your council and vary widely.

Step 1: Sort out your mortgage

If the property has a residential mortgage, ask your lender for consent to let before you advertise. Letting without consent can breach your mortgage terms.

If you are buying a property to let, you would normally need a buy-to-let mortgage. Speak to a mortgage adviser if you are not sure which applies.

Step 2: Check the lease and get landlord insurance

If the property is leasehold (most flats are), read the lease. Some leases restrict subletting or require the freeholder’s permission.

Next, sort out insurance. Ordinary home insurance usually doesn’t cover a let property, so you will normally need landlord insurance. Check your mortgage offer too, as lenders often set insurance conditions. See how much landlord insurance costs for typical prices.

Step 3: Check whether you need a licence

Ask your council, or check its website, whether your property needs a licence:

• Mandatory HMO licence: if 5 or more people from 2 or more households will share facilities.
• Additional licensing: some councils also license smaller HMOs, typically 3 or 4 people from 2 or more households.
• Selective licensing: some councils require every privately rented home in a designated area to be licensed, even a single family let.

Fees are set locally. Letting without a required licence can lead to an unlimited fine on prosecution, a civil penalty of up to £40,000, and a Rent Repayment Order of up to 24 months’ rent.

Step 4: Get your safety certificates before the tenant moves in

Tenants must get a copy of the gas record and the EICR before they move in, and be shown the EPC. Typical costs are in our guides to EICR cost, gas safety certificate cost and EPC cost.

Step 5: Register on the PRS Database

England is launching a Private Rented Sector Database. It opens region by region from 15 December 2026, and every region must be registered by 14 November 2027. The fee is £65 per property per year, pro-rated during the rollout. You will need to upload your gas safety record, EICR and EPC, and once you have a registration number it must appear in your adverts.

If your region hasn’t opened yet, you can’t register yet. See our PRS Database guide for the dates.

Step 6: Advertise and choose a tenant

The Renters’ Rights Act changed the rules on advertising and choosing tenants:

• State an asking rent. Rental bidding is banned, so you can’t invite or accept offers above the advertised rent.
• No blanket bans. You can’t refuse tenants just because they have children or claim benefits. Adverts saying “No DSS” or “no children” are not allowed.
• Right to Rent checks. Check that every adult who will live in the property has the right to rent in England, before the tenancy starts. A new Code of Practice took effect on 1 October 2026. People with an eVisa can only prove their right to rent through the Home Office online service.
• Referencing. You can reference tenants, but you pay for it. The Tenant Fees Act stops you charging tenants. Typical prices are in our tenant referencing cost guide.

Right to Rent fines are up to £10,000 per occupier for a first breach and up to £20,000 for a repeat breach.

Step 7: Set up the tenancy

From 1 May 2026, every new tenancy in England is an assured periodic tenancy. There are no fixed terms and no section 21 notices.

• Put it in writing. The tenancy must be in writing and include prescribed information, such as your name and address, the rent and when it is due, the deposit, repair responsibilities and which bills the tenant pays.
• Rent in advance is capped at 1 month, and can only be taken once the agreement is signed.
• Deposit cap: 5 weeks’ rent if annual rent is under £50,000, or 6 weeks’ if it is £50,000 or more. A holding deposit is capped at 1 week’s rent.
• How to Rent guide: this has been withdrawn and is no longer required.

Step 8: Protect the deposit

Protect the deposit in a government-approved scheme within 30 days of receiving it, and give the tenant the prescribed information within the same 30 days. The three schemes in England are the Deposit Protection Service, mydeposits and the Tenancy Deposit Scheme.

If you don’t, a court can order you to pay the tenant 1 to 3 times the deposit.

Step 9: Your duties during the tenancy

• Repeat checks: gas safety every 12 months and EICR at least every 5 years.
• Repairs: you are responsible for the structure, exterior and key installations, and the home must be fit for human habitation.
• Rent increases: at most once a year, using a section 13 notice with at least 2 months’ notice. Tenants can challenge an increase at the First-tier Tribunal.
• Pets: if a tenant asks to keep a pet, you must consider the request and reply within 28 days. You can’t unreasonably refuse.
• Ending a tenancy: you can only regain possession using the grounds in section 8. Our Renters’ Rights Act guide covers the main grounds and notice periods.

Changes still to come include membership of a new landlord ombudsman (expected in 2028), the Decent Homes Standard for private rentals (from 2035) and Awaab’s Law (no date yet).

Step 10: Tax

This section is general information, not tax advice. An accountant can tell you how the rules apply to you.

• Register for Self Assessment. If you need to, tell HMRC by 5 October after the end of the tax year in which you first had rental income. Tax years run from 6 April to 5 April.
• Property allowance. If your gross rental income is £1,000 or less, the £1,000 property allowance applies.
• Mortgage interest. Individual landlords don’t deduct mortgage interest from rental income. Instead they get a tax credit at the basic rate.
• New property income rates. From 6 April 2027, property income will be taxed at 22%, 42% and 47%, and relief for finance costs will be given at 22%. These rates are set for England and Northern Ireland. Scotland and Wales are expected to set their own property rates.

Making Tax Digital

If your qualifying income (gross self-employment plus gross property income, before expenses) is above the threshold, you must keep digital records and send quarterly updates to HMRC using compatible software.

Keep your dates in one place

Once the tenant is in, the main risk is letting a certificate lapse. Run your property through the landlord certificate checker to confirm what applies, then set up free certificate reminders for each expiry date.