Becoming a landlord involves more than finding tenants and collecting rent. You’ll need to choose the right property, work out the costs, understand your landlord responsibilities and keep up with the rules. This guide covers the key steps, from buy-to-let mortgages and tax to safety checks, tenancy agreements and managing your property.
"Becoming a landlord can feel like a big step, but you don’t have to know everything from day one. Most of our successful landlords started out just like you, by asking questions, doing their homework, and taking things one step at a time. Get your finances right from the start, understand what's expected of you, and the rest tends to fall into place. That's exactly what we're here to help with."
Rachel Geddes
Strategic Lender Relationship Director
How to be a landlord?
Put simply, being a landlord means letting out a property you own in return for rent. You might buy a property specifically to rent out, or you may already own a home you’re thinking of letting.
There’s more to it than just collecting the rent though. You’ll have legal duties, financial responsibilities and a property to look after. But you don’t have to figure everything out at once. This guide takes you through the main few things to consider before you get started.
Becoming a landlord in the UK
The rules around housing is different depending on where you live in the UK. This means England, Scotland, Wales, and Northern Ireland all have different housing and tenancy laws.
This table uses figures from the government's English Housing Survey and shows how households in England’s private rental sector have grown over the past 15 years.
Private rented sector: the figures | |
Growth in households, 2008-09 to 2023-24 | Up 52% |
Households in the sector, 2008-09 | 3.1 million |
Households in the sector, 2023-24 | 4.7 million |
Share of all households in England | 19% |
Position among tenures | 2nd largest (behind owner-occupied) |
Key benefits of being a landlord
There are two main reasons people choose to become landlords:
Rental income. Letting a property can give you a regular monthly income. It could add to your salary or pension pot. For some landlords, rental income can become their main source of income as their portfolio (list of owned properties) grows.
Selling at a higher value. Property tends to increase in value over time. So you could benefit from this increase in value when you eventually sell, on top of the rent you've collected along the way.
How to become a landlord: choosing the right property
To attract a tenant, you need to think like one. Whether you already own a property or are looking for one, ask yourself “Who is likely to rent here, and what will they be looking for?”
Families: Larger homes close to schools, parks and transport links.
Young professionals: Smaller properties with good public transport and easy access to shops, restaurants and workplaces.
Students: Properties close to universities or the city centre.
Have a sneaky look at similar properties to see what does well in your area. Look at how long properties stay advertised. Is there a strong demand for the type of home you are considering?
Think about the property itself
Things to ponder over:
The number and size of bedrooms
The condition of the property
The cost of repairs and improvements
Energy efficiency
Parking and outside space
Transport links
Local shops, restaurants, bars
Whether it is furnished or unfurnished
A property in good condition and a well-connected area may be a simpler place to start than a major renovation project.
If you're unsure what is good value, a local surveyor can help you assess the property before you buy.
Compare rental yields
Rental yield means the amount of rent you could earn from the property's value. It can help you compare properties and see whether the figures work. Here’s how you work it out.
Gross rental yield = annual rent ÷ property price × 100
For example, £15,000 annual rent on a £250,000 property gives a 6% gross yield.
There’s no single “good” yield, as your actual return will also depend on mortgage costs, maintenance, insurance, tax and other expenses.
Financial things to think about as a landlord
Getting your finances right is one of the most important parts of learning how to be a landlord.
The numbers need careful thought through, as mortgage rates, tax and other landlord costs can all affect your returns.
Before you fall in love with a property, work out whether the rental income is likely to cover the costs, you don’t want to be losing money on your property!
Choosing a buy-to-let mortgage
Unless you’re buying in cash, you’ll usually need a buy-to-let mortgage. If your property already has a residential mortgage your lender might offer short-term consent to let. But this usually won’t cover a long-term rental.
It’s smart to sort out your mortgage early. A mortgage broker can help you understand your options before you start looking for a property.
Buy-to-let mortgages work a little differently to residential ones in a few important ways:
Rental income: Lenders focus on whether the expected rent comfortably covers the mortgage, rather than just your salary.
Larger deposit: You’ll typically need at least 25% of the property value, which is generally more than a standard mortgage.
Interest-only: Many buy-to-let mortgages are interest-only. You’ll need a plan to repay the full amount if you choose to sell.
Higher rates and fees: Buy-to-let deals often cost more than residential mortgages.
Different lender criteria: Rules and pricing vary. A mortgage in principle can help you understand your budget before viewing properties.
Use our Mortgage Repayment Calculator to find out how much your mortgage payments are likely to be based on interest rates and terms
Paying tax
When it comes to tax, this is what you’ll need to pay:
Income tax: You’ll need to declare your rental income and pay tax on your taxable profits. Making Tax Digital rules may also require you to keep digital records and send updates to HMRC.
Stamp Duty: If you’re buying an additional property you’ll pay a surcharge on Stamp Duty (England/ Northern Ireland), Land Transaction Tax (Wales) or Land and Buildings Transaction Tax (Scotland).
Capital Gains Tax: You may have to pay CGT if you sell the property for a profit, depending on your situation.
For all of this, you should speak with an accountant in order to get the specialist tax advice that they offer.
Use our Stamp Duty calculator for a rough estimate.
Setting your rent
Getting the rent right is important. Too high and your property could stay empty. Too low and you could miss out on income.
Once again, a good first step is having a sneaky check to see what similar properties in your area are charging and review local listings regularly. A letting agent can also advise on a realistic rent.
Factor in your costs, but remember that the market determines what tenants are willing to pay.
Rules on rent increases vary across England, Scotland, Wales and Northern Ireland, so make sure you know what the rules are where you live.
Learning about landlord duties and responsibilities
Your most important job as a landlord is simple: make sure your tenant has a safe, well-maintained home. There are some legal duties you’ll need to stay on top of too.
If the property has gas appliances, arrange an annual safety check with a Gas Safe registered engineer. Give your tenants the required gas safety record.
Make sure the electrical system and appliances you provide are safe. You must arrange the electrical safety checks and give tenants the relevant report.
Fit smoke alarms on each storey and carbon monoxide alarms where required. Keep escape routes clear and make sure any furniture you provide meets fire safety standards.
An Energy Performance Certificate (EPC) rates a property’s energy efficiency from A to G. It is valid for 10 years.
Most privately rented properties in England and Wales need an EPC rating of at least E. Check the EPC before buying, as you may need to pay for improvements to meet the required standard.
Taking a deposit comes with some paperwork. You must protect it in a government-approved scheme within 30 days (28 days in Northern Ireland).
Landlord registration is required in Scotland, Wales and Northern Ireland. Currently, most landlords don’t need to be registered in England, but this will change when new laws come into effect on 15th December, 2026.
In England, landlords and letting agents must legally check every adult tenant's right to live in the country. Different rules apply elsewhere in the UK.
Use a clear, up-to-date written agreement covering the rent and both parties’ responsibilities. Tenancy contracts differ across the UK:
England: Assured periodic tenancy
Scotland: Private Residential Tenancy
Wales: Standard occupation contract
Northern Ireland: Private tenancy agreement.
The Renters' Rights Act: what it means for landlords
If you’re becoming a landlord in England, you need to understand the Renters’ Rights Act. It came into force on 1 May 2026 and changed some of the basic rules around renting out a property.
The headline changes are:
No-fault evictions have ended
Most tenancies are now rolling
Rent increases are limited
Rental bidding is banned
The changes can feel like a lot to take in, particularly for first-time landlords. A letting agent can help you understand the rules.
Managing your rental property
Once you have tenants, you’ll need to decide how hands-on you want to be. You can manage the property yourself or pay a letting agent to do some or all of the work for you.
Depending on the service you choose, an agent can handle:
Finding tenants
Tenant referencing and credit checks
Setting and collecting rent
Contracts and tenancy agreements
General property management and maintenance
Property inspections
Moving tenants in and out
If you're new to being a landlord, a letting agent’s expertise can be valuable while you find your feet.
Five top tips for being a good landlord
Being a good landlord isn't just about ticking boxes. It’s about treating your tenants fairly and looking after their home.
Be responsive. If something goes wrong, acknowledge it and deal with it as quickly as you reasonably can.
Keep the property in good repair. Fixing small problems before they become major ones can save money in the long run.
Respect your tenant's privacy. Follow the rules about entering the property and give the required notice.
Be clear about money. Make sure tenants know when rent is due and keep accurate records.
Treat tenants fairly. Apply your policies consistently and follow anti-discrimination rules.
Thinking about taking the plunge? Before you make an offer on a rental property, it’s worth knowing what you could borrow and whether the numbers work for you. A mortgage broker specialising in buy-to-let can talk you through your options, help you get a mortgage in principle and make sure you're ready to take the next step.
Ready to chat? Our advisers are ready to call you back today. The first chat costs nothing and is totally free of obligation.
Something to bear in mind...
Frequently asked questions
To become a landlord, you’ll need to find a suitable property and work out your budget and mortgage options. You’ll also need to understand your legal duties, find tenants and set up the tenancy. Finally, you’ll need to decide whether to manage the property yourself or use a letting agent.
Not necessarily. A landlord with one property may only need to spend a few hours managing it during a quiet month. But repairs, tenant changes and unexpected problems can take more time.
Using a letting agent can reduce the day-to-day work.
Possibly. Check your mortgage terms first. A standard residential mortgage may not allow you to rent out your home without your lender’s permission.
You should also check your buildings insurance, lease terms if the property is leasehold, and any other rules that may apply.
If you plan to move out and rent out your home, speak to your lender or a buy-to-let mortgage broker before you make any plans.
here is no set deposit amount. Each lender has its own rules. The deposit you need can depend on the property, expected rent, your finances and the mortgage deal.
A larger deposit means you borrow less. But don’t put every penny into the property. Keep some cash aside for repairs, fees and unexpected costs.
No. You can manage a rental property yourself, provided you comply with the relevant legal requirements.
But make sure you understand what you are responsible for before deciding to go it alone.
An HMO is a home in multiple occupation. It is shared by at least three people from more than one household. They share facilities such as a kitchen or bathroom. Some HMOs need a licence, and your local council may have extra rules.