Renting out a property for the first time involves a series of decisions and legal steps, many of which start long before a tenant moves in. Unlike selling a property, renting out a property means entering into an ongoing relationship, with responsibilities that continue throughout the tenancy and even after it ends.
This guide sets out what a first-time landlord in England needs to consider and how to manage a tenancy once it is underway. It also reflects the Renters' Rights Act 2025, which introduced significant changes to how tenancies work from 1 May 2026.
Checking the financial and legal basics
There are several practical steps to complete when considering letting your property. If you have a residential mortgage, you'll usually need your lender's permission to rent it out, either through Consent to Let or by switching to a buy-to-let mortgage. You'll also need landlord insurance, as standard home insurance does not cover rented properties, and you should understand how rental income is taxed and reported to HMRC. If the property is leasehold, check the lease for any restrictions on subletting or requirements to notify the freeholder or management company before granting a tenancy.
Preparing the property
Once the groundwork is in place, the property should be ready for occupation. Complete any outstanding repairs, thoroughly clean the property and test any appliances that will remain. If you're letting it furnished, prepare a detailed inventory with photographs to record its condition. You'll also need a valid Energy Performance Certificate (EPC), which is required before the property can be marketed. Foxtons can arrange for an EPC to be carried out on your behalf, contact us to find out more.
Meeting legal and safety requirements
Before a tenant moves in, landlords must meet several legal obligations, including:
- Obtaining an annual Gas Safety Certificate where applicable.
- Ensuring the electrical installation has been inspected within the last five years and providing the report to tenants.
- Installing smoke alarms on every storey and carbon monoxide alarms where required.
- Carrying out Right to Rent checks and keeping a record of the results.
- Protecting any tenancy deposit in a government-approved scheme within 30 days and providing the required information to the tenant.
Understanding the Renters' Rights Act 2025
The Renters' Rights Act 2025 introduced major reforms that apply to all new tenancies from 1 May 2026. Section 21 'no-fault' evictions have been abolished, new tenancies are periodic rather than fixed term, and rent can generally only be increased once a year using the Section 13 process. Properties must be advertised at a fixed rent, and landlords cannot invite or accept offers above that amount. It is also unlawful to refuse a tenancy or treat an applicant less favourably because they have children or receive benefits. These changes affect tenancy agreements, rent reviews and the process for regaining possession, so they should be understood before letting.
Setting the rent and finding a tenant
Setting the right rent involves researching comparable properties in the local area and taking account of the property's condition and any furnishings included. A written tenancy agreement should clearly set out the rent, deposit, notice provisions and each party's responsibilities. Before agreeing a tenancy, landlords should carry out referencing, including credit, employment and previous landlord checks where appropriate, alongside the required Right to Rent checks. Selection criteria should be applied consistently to every applicant.
Managing the tenancy
Once the tenancy begins, landlords are responsible for keeping safety certificates up to date, responding to repair requests within a reasonable timeframe and following the correct legal process for any rent increases. Keeping clear records of certificates, inspections, correspondence and any notices served can also help if a dispute arises.
Some landlords choose to manage the property themselves, while others appoint a letting agent to handle marketing, tenant referencing, rent collection, maintenance and legal compliance. For many first-time landlords, professional management can provide reassurance while they become familiar with their responsibilities.
Next steps
Renting out a property for the first time requires careful planning, but preparing properly before advertising can help avoid problems later. By understanding your legal obligations and the changes introduced by the Renters' Rights Act 2025, you'll be well placed to manage a successful tenancy from the outset.
Foxtons can help you navigate this process and let your property efficiently. From rental valuations to full property management services, we are here to help you every step of the way.
Source: This article is informed by Foxtons expertise in the London lettings market and its knowledge of the legal, financial and practical considerations involved in letting a property. If you have any questions on this article, ask a Foxtons expert.
