The UK private rented sector is one of the most regulated in Europe. First-time landlords who treat a rental property as a passive investment quickly discover that compliance failures are expensive: fines up to £30,000 for unlicensed HMOs, penalty orders of 1–3 times the deposit for non-protection, and civil penalties of up to £7,000 per breach for right to rent failures.
This guide covers every obligation you must meet before — and during — a tenancy in 2026, including the fundamental changes introduced by the Renters' Rights Act 2025 that abolished Section 21 notices and changed how all new tenancies must be structured from 1 May 2026.
Step 1 — Choose the right tenancy agreement
From 1 May 2026, all new residential tenancies in England must be granted as Periodic Assured Tenancies (PATs) — you can no longer offer a fixed-term assured shorthold tenancy to a new tenant. The key changes are:
- No fixed end date — the tenancy runs month-to-month (or week-to-week if rent is paid weekly) indefinitely
- Tenants can end the tenancy by giving 2 months' written notice at any time
- Landlords can only end the tenancy by serving a valid Ground 1–8 notice (no longer Section 21)
- The tenancy agreement must reflect the new periodic structure — old AST templates are not compliant
- LetSafe's Periodic Assured Tenancy Agreement (updated May 2026) is RRA-compliant and covers all mandatory clauses
Step 2 — Gas safety certificate (CP12)
Before any tenant moves in, you must have a valid Gas Safety Record (CP12) issued by a Gas Safe registered engineer. The rules are:
- Annual inspection required — the certificate must be renewed every 12 months
- A copy must be given to the tenant before they move in (or within 28 days of the annual renewal)
- Keep records for 2 years
- Failure is a criminal offence with an unlimited fine and potential imprisonment
- Only Gas Safe registered engineers can carry out gas safety checks — verify the engineer's registration at gassaferegister.co.uk
Step 3 — Electrical Installation Condition Report (EICR)
Since April 2021 (England), all private rented properties must have a valid EICR. Requirements:
- EICR must be carried out by a qualified electrician and rated 'Satisfactory'
- Valid for a maximum of 5 years (or less if specified by the inspector)
- A copy must be given to the tenant before move-in and to any local authority that requests one
- Any 'Code 1' or 'Code 2' observations must be remedied within 28 days (or a shorter period if specified)
- Penalty for non-compliance: up to £30,000
Step 4 — Energy Performance Certificate (EPC)
All rented properties in England must have an EPC with a minimum rating of E (a minimum of C is proposed for 2028 for new tenancies). Rules:
- EPC must be obtained before the property is marketed
- A copy must be given to the prospective tenant at the earliest opportunity
- EPC is valid for 10 years
- Properties rated F or G cannot legally be let — this is a Minimum Energy Efficiency Standards (MEES) breach
- Exemptions exist for listed buildings and certain other property types — apply via the PRS Exemptions Register
Step 5 — Deposit protection
If you take a tenancy deposit (up to 5 weeks' rent for annual rent under £50,000), it must be protected within 30 days:
- Choose one of three government-approved schemes: DPS, MyDeposits, or TDS
- Protect the deposit AND serve the prescribed information within 30 days of receiving it
- Prescribed information must be given to every tenant and any guarantors
- Failure: tenant can claim 1–3× the deposit as a penalty in court
- Re-protect the deposit if the tenancy terms change materially — the 30-day clock restarts
Step 6 — Right to rent check
All landlords in England must check that every adult tenant (and any permitted occupier over 18) has the right to rent in the UK:
- Check passport or other acceptable documents before the tenancy starts
- Use the Home Office's online share code service for tenants with biometric residence permits or settled/pre-settled status
- Keep copies of documents for 12 months after the tenancy ends
- Repeat checks may be required for tenants with time-limited right to rent
- Failure: civil penalty up to £7,000 per occupier (first breach) or £20,000 (repeat breach)
Step 7 — Smoke and carbon monoxide alarms
As of 1 October 2022 (England), landlords must:
- Install at least one smoke alarm on every storey of the property
- Install a carbon monoxide alarm in every room with a fixed combustion appliance (including gas boilers) — not just solid fuel
- Test alarms at the start of each tenancy
- Repair or replace alarms that are not working — within 28 days of the tenant reporting the fault
- Penalty for non-compliance: local authority can impose a £5,000 civil penalty
Step 8 — How to Rent guide
Before the tenancy starts, you must give the tenant the current version of the government's 'How to Rent' guide:
- Download the current version from gov.uk — the version changes periodically
- Give it to the tenant at the start of the tenancy or when a new version is published during the tenancy
- It can be provided as a link to the online PDF or as a printed copy
- Serving an outdated version or failing to serve it at all affects Section 8 possession proceedings (pre-RRA) and your compliance record
- Post-RRA, serving prescribed documents including the How to Rent guide remains a requirement for lawful notice service
Step 9 — HMO licensing (if applicable)
If you are letting a property to 5 or more people from 2 or more separate households, it is likely an HMO requiring a mandatory licence:
- Mandatory HMO licensing applies in England for properties with 5+ occupants from 2+ households
- Additional licensing schemes cover smaller HMOs in many local authority areas — check with your council
- Selective licensing applies to all privately rented properties in designated areas regardless of HMO status
- HMO licences impose additional conditions: room sizes, management standards, fire safety requirements
- Operating an unlicensed HMO: up to £30,000 civil penalty plus rent repayment orders
Step 10 — Landlord registration (Scotland and Wales)
In Scotland and Wales, private landlords must register with the relevant authority:
- Scotland: All landlords must register with their local council via the Scottish Landlord Register before letting — letting without registration is a criminal offence
- Wales: Landlords must be registered with Rent Smart Wales and either be licensed themselves or use a licensed agent
- England: There is currently no national landlord register in England, though it was included in the Renters' Rights Act and is expected to launch in late 2026
- Northern Ireland: Landlords must register their tenancies with the Northern Ireland Housing Executive (NIHE)
Frequently asked questions
Do I need a tenancy agreement to be a landlord?+
Yes — while oral tenancy agreements are technically enforceable, they are very difficult to prove and leave both parties exposed. All landlords should use a written tenancy agreement. From 1 May 2026, new tenancies in England must be Periodic Assured Tenancies — old fixed-term AST templates are not compliant. LetSafe provides a fully RRA-compliant Periodic Assured Tenancy Agreement.
Can I manage my own rental property without an agent?+
Yes, in England there is no legal requirement to use a letting agent (though in Wales you must use a licensed agent if you are not yourself licensed with Rent Smart Wales). Self-managing landlords must ensure they comply with all legal requirements themselves — ignorance of the law is not a defence.
What is the maximum deposit I can take?+
For properties in England with annual rent under £50,000, the deposit cap is 5 weeks' rent. For annual rent of £50,000 or more, the cap is 6 weeks' rent. Taking a higher deposit is an offence. The Tenant Fees Act 2019 also prohibits most other fees from tenants.
Can I still use a fixed-term tenancy in 2026?+
No — from 1 May 2026, all new residential tenancies in England must be Periodic Assured Tenancies (no fixed end date). You cannot legally offer a new fixed-term AST to a new tenant. Tenancies granted before 1 May 2026 continue under the old terms until they end or are renewed.
Do I need to declare rental income to HMRC?+
Yes — all rental income is taxable. You must declare it via Self Assessment if you are a higher-rate taxpayer or if your total income from property is more than £1,000 per year (the property income allowance). Mortgage interest relief is restricted to the basic rate of income tax for residential landlords. Consult a tax adviser for advice specific to your situation.