Essential checklist for accidental landlords in the UK
July 16, 2025
Not everyone sets out to become a landlord. For many, it happens by chance through inheriting a property, buying a property in your child’s university town, moving in with a partner, relocating for work, or struggling to sell a home in a sluggish market.
These individuals are known as accidental landlords. While letting out a property can offer financial benefits, it also brings legal, financial and practical responsibilities that should not be underestimated.
In England, 45% of landlords owned one rental property, representing twenty-one percent of tenancies. A further 38% owned between two and four rental properties, representing thirty percent of tenancies.
This guide is designed to help accidental and small landlords in the UK understand their obligations, reduce risk and manage their properties with confidence. Whether you intend to rent for a short period or plan to hold on to the property longer term, following these steps will help you stay compliant and protect your investment.
1. Understand your mortgage obligations
The first step for any accidental landlord is to review the terms of the mortgage on the property. Most residential mortgages do not permit renting the property out without prior permission from the lender. If you proceed without notifying them, you risk breaching the mortgage agreement, which could result in penalties or even repossession.
In some cases, your lender may offer ‘consent to let’, which provides temporary permission to rent out your home. This is often suitable for landlords who intend to let the property for a limited time. For longer-term arrangements, switching to a buy-to-let mortgage may be necessary. This will likely involve different interest rates, criteria and fees, but will put you on the correct footing legally.
For reference, according to the Office for National Statistics, average UK monthly private rents rose to £1,339 in the year to May 2025, representing a 7.0 per cent increase, while average house prices climbed 3.5 per cent to £265,000 over the year to April 2025.
2. Update your insurance cover
A standard buildings and contents policy for homeowners does not cover rental activity. As soon as you decide to let out your property, you must switch to landlord insurance. This specialised cover protects against risks specific to renting, such as tenant-related damage, loss of rental income, liability claims and legal expenses.
Even if you are renting to someone you know, it is essential to have adequate insurance in place. If something goes wrong, your existing policy may not pay out if you failed to declare the change in use.
3. Get to grips with legal requirements
Landlords in the UK must meet a wide range of legal obligations. Failing to comply with these can lead to fines, bans and even criminal charges. Some of the most important include:
Tenancy deposit protection: If you take a deposit, it must be placed in a government-approved scheme within 30 days. You must also provide the tenant with specific information, known as the ‘prescribed information’, about where the deposit is held.
Gas safety: You must arrange an annual inspection by a Gas Safe registered engineer and provide the certificate to your tenant.
Electrical safety: From 2020, landlords in England must have electrical installations inspected at least every five years by a qualified person. You must give a copy of the report to tenants and retain it for future use.
Energy Performance Certificate (EPC): Your property must have an EPC rated at least ‘E’ before it can be let. You must give a copy of the certificate to tenants at the start of the tenancy. In Wales, you must give a copy of the EPC to the contract-holder before the occupation date begins, in line with the Renting Homes (Wales) Act 2016.
Smoke and carbon monoxide alarms: You must install at least one working smoke alarm on each floor and a carbon monoxide alarm in any room containing a solid fuel appliance. You must check these alarms are working on the day the tenancy begins.
In addition, you must carry out a Right to Rent check before renting to anyone aged 18 or over in England, even if they are not named on the tenancy. This involves verifying the tenant’s identity and immigration status.
4. Decide whether to use a letting agent
Many accidental landlords choose to use a letting agent to handle tenant finding, referencing and legal paperwork. This can be especially useful if you live far from the property, are short on time, or feel uncertain about the process.
Letting agents typically charge between 8% and 15% (up to 20% in London) of the monthly rent for full management, or a one-off fee for tenant-find services. This can reduce your profit.
If you choose to self-manage, make sure you fully understand your legal responsibilities, stay on top of compliance tasks and remain accessible to your tenants. You can use property management software or property management apps like August.
5. Prepare the property to let
Before listing your property, take the time to prepare it properly for tenants. Clean it thoroughly, ensure all appliances and fittings are in safe working order, and consider whether any repairs or improvements are needed. A well-presented property is more likely to attract reliable tenants and achieve a better rental return.
It is also advisable to prepare a detailed inventory. This should record the condition and contents of the property, ideally supported by photographs. Both you and the tenant should sign this at the start of the tenancy. A good inventory can make resolving disputes far easier if damage occurs.
6. Choose the right tenants
Finding the right tenant is one of the most important steps in successful property letting. Always carry out proper referencing, which includes credit checks, employer verification, previous landlord references and identity confirmation. Even if you are renting to friends or family, a formal process will protect both parties and avoid misunderstandings.
Make sure the tenancy agreement is clearly written and includes all the key terms, such as the rent amount, payment schedule, duration of the tenancy, responsibilities for maintenance, and notice periods. In most cases in England, you will be using an assured shorthold tenancy (AST), which remains the standard format. In Wales, however, all rental agreements have now been replaced with a standard occupation contract under the Renting Homes (Wales) Act 2016, which simplifies and unifies previous tenancy types.
7. Stay on top of repairs and maintenance
As a landlord, you are legally responsible for maintaining the structure and exterior of the property, as well as installations for water, gas, electricity, heating and sanitation. Respond promptly to repair and maintenance requests and keep a record of all work carried out. If you manage your rental through August, this process becomes much easier as everything is securely recorded in one place, and both you and your tenant are kept informed through timely notifications, reducing the risk of misunderstandings or delays.
Regular inspections can help you identify issues before they become major problems. With appropriate notice, typically 24 hours, you have the right to enter the property to carry out inspections or maintenance. Aim to strike a balance between protecting your investment and respecting your tenants’ privacy.
8. Understand the tax implications
Rental income is subject to income tax and must be declared on your self-assessment tax return. You can deduct certain allowable expenses, such as letting agent fees, repairs, insurance premiums, mortgage interest (within current restrictions), and utility bills paid by you as the landlord.
If you eventually sell the property and it has increased in value, you may be liable for Capital Gains Tax (CGT). There are various reliefs available, particularly if the property was once your main residence, but it is worth seeking advice from an accountant to understand your position.
HMRC takes a keen interest in undeclared rental income, so even if you are only renting temporarily, it is essential to get your tax affairs in order.
9. Keep good records
Being organised is a key part of being a responsible landlord. Keep detailed records of rent payments, correspondence with tenants, safety certificates, repairs, expenses and insurance documents. If you are ever challenged, having clear records will make it much easier to defend your actions. This challenge could come from your tenants, the local council or HMRC.
That’s where August comes in. Our platform is built to help landlords stay effortlessly organised, especially if letting wasn’t part of the original plan. August stores all your key documents in one place, from safety certificates and tenancy agreements to rent tracking and maintenance records, so you can always find what you need, when you need it.
10. Plan for the unexpected
Even the best tenants can fall into difficulty. Changes in employment, illness or relationship breakdowns can result in rent arrears or a need to end the tenancy early. You should always have a contingency fund to cover void periods, emergency repairs or legal costs. A good rule of thumb is this should be around 10–15% of annual rental income to cover unexpected costs.
If your property brings in £1,339 per month, here’s how the contingency fund calculation would look:
Annual income = £1,339 × 12 = £16,068
10% of £16,068 = £1,606.80
15% of £16,068 = £2,410.20
It is also a good idea to consider rent guarantee insurance, which can protect your income if a tenant fails to pay. This is especially worth exploring if you rely on the rent to cover your mortgage.
Finally, consider what your long-term intentions are. Will you keep the property as an investment? Do you plan to move back in? Or is this a temporary arrangement until the market improves? Your answers will shape how you approach decisions such as refinancing, repairs and tenant selection.
And finally
Becoming an accidental landlord can feel daunting at first, but with the right knowledge and support, it can be both manageable and rewarding. The most important thing is to treat it seriously. Even if you did not intend to become a landlord, you now have legal responsibilities and a duty of care to your tenants.
If you are feeling overwhelmed, you're not alone. We've built August to be a simple, all-in-one platform designed to help landlords stay organised, compliant and in control. From tracking safety certificates and managing documents to guiding you through the key steps of managing a tenancy, August removes the guesswork and makes it easier to manage your property properly.
By understanding your obligations, keeping good records, maintaining the property properly and building respectful relationships with your tenants, you will put yourself in a strong position to succeed. Whether this is a short-term arrangement or the beginning of a longer-term investment journey, a professional approach will make all the difference.
Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.
