1. Understand your legal obligations

Even if you use a letting agent, you remain legally responsible for compliance. The buck stops with the landlord.

It is vital that you understand your legal obligations, especially as the Renters' Rights Act will introduce new offences that can result in civil penalties. Some will give the right for tenants to apply for rent repayment orders of up to two years' rent.

Use reliable sources such as gov.uk, landlord associations or reputable websites to understand your legal obligations as a landlord.

Some councils impose an additional layer of legal obligations by requiring landlords to obtain a licence. It is an offence to let an unlicensed property, even if you do not know that the scheme has been introduced. Set a reminder every six months to check your local authority's website to see if they are planning to introduce selective licensing in your area.

2. Keep your finances in order

It is important to keep accurate financial records. Not only to help you keep tabs on how your business is faring, but also for taxation purposes.

A separate bank account for your landlord business makes tracking income and expenses simpler. It will smooth the transition to Making Tax Digital as you will not need to keep excluding personal transactions if you use accounting software for your quarterly submissions.

Make a habit of uploading copies of receipts and invoices into accounting software as you go. If you do not use accounting software, you can save copies of receipts in electronic folders on your computer or laptop.

3. Build financial resilience

Put money aside regularly for future repairs and tax bills. A good rule of thumb is to allow around 10% of gross rent for routine maintenance and another 10% for major repairs such as replacing a boiler.

Having a contingency fund can also help tide you over during void periods.

4. Stay organised

Organisation is key to professionalism.

Set calendar reminders two months before your gas safety certificate and Electrical Installation Condition Report (EICR) are due to expire.

Keep an electronic folder for each property with insurance documents, safety certificates, tenancy agreements and inventories. After conversations with tenants or agents, send a short email summary confirming what was agreed. This will be invaluable if a dispute arises later.

5. Choose tenants carefully

Careful tenant selection underpins a successful tenancy. As well as carrying out professional referencing, with a detailed credit check, it is worth speaking to their previous landlord, who may be more forthcoming than their current landlord.

If possible, meet prospective tenants yourself before making the final decision. If your letting agent conducts the referencing, ask them to share the report with you (provided you're registered with the Information Commissioner's Office and have a Data Protection Notice in place).

6. Carry out regular inspections

Regular inspections help identify maintenance issues early. Describe them as "maintenance visits". This emphasises that the purpose is to keep the property in good condition, rather than to "check-up" on the tenants.

Carry out maintenance visits for single lets with long-term tenants every six months or so. Be aware that some landlord insurance requires checks every three months. A house in multiple occupation (HMO) tends to have more frequent inspections, depending on the number of tenants.

7. Review rents little and often

If landlords do not increase rent during a period of inflation, it is the same as decreasing rent in real terms.

Modest annual increases are usually better for both landlord and tenant than large, irregular ones. Review rent each year and aim to track inflation.

When the Renters' Rights Act comes into force, it will be compulsory for landlords to use the statutory Section 13 process to increase rent. This will involves sending a completed Form 4 to the tenants at least two months the rent increase.

8. Manage rent arrears proactively

Rent arrears can be stressful for both landlord and tenant. Keep tabs on rent payments and follow up on missed rent payments quickly. Early empathetic intervention can help the tenant and prevent arrears from escalating.

Get in touch with our friendly and knowledgeable team for more information.

Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.