A Practical Guide for First-Time Landlords in London

Becoming a landlord in London can be a strong long-term investment — but it’s also more regulated, competitive, and complex than many first-time landlords expect. Getting things right from the start can save you stress, money, and legal trouble later.

This guide walks through the essentials every new London landlord should understand before letting out a property.

1. Understand Your Legal Responsibilities Early

Before you advertise a property, you must meet a number of legal obligations. These apply across England, but enforcement is particularly active in London boroughs.

At a minimum, you must:

• Provide a valid Energy Performance Certificate (EPC) (currently E or above)

• Carry out an annual Gas Safety Check

• Ensure Electrical Safety Reports (EICR) are in place

• Install working smoke alarms and carbon monoxide alarms

• Protect the tenant’s deposit in a government-approved scheme

• Provide the tenant with the How to Rent guide and prescribed information

Missing even one of these can invalidate a future eviction or lead to fines.

2. Check Whether Your Property Needs a Licence

Many London landlords are caught out by licensing rules.

Depending on the borough and property type, you may need:

• Selective licensing (even for single-family homes)

• Additional licensing for certain HMOs

• Mandatory HMO licensing for larger shared properties

Licensing rules vary by council and change frequently. Letting without the correct licence can result in large penalties and rent repayment orders.

3. Set the Right Rent (Not Just the Highest One)

London’s rental market moves fast, but overpricing is one of the most common mistakes new landlords make.

A realistic rent should consider:

• Current local demand (street-by-street, not just postcode)

• Property condition and furnishings

• Tenant profile you want to attract (families, sharers, professionals)

• Void periods and long-term stability

A slightly lower rent with a reliable tenant often outperforms chasing the maximum possible figure.

4. Choose the Right Type of Tenancy

Most London landlords use an Assured Shorthold Tenancy (AST), but it’s important to understand what this means in practice — especially with ongoing changes to rental law.

You should be clear on:

• Fixed-term vs periodic tenancies

• Break clauses

• Rent review clauses

• How future possession works under current and upcoming legislation

Poorly drafted agreements are a major source of disputes.

5. Plan for Repairs, Maintenance, and Compliance

Being a landlord isn’t passive — especially in London.

You’ll need to budget and plan for:

• Ongoing maintenance and emergency repairs

• Annual safety checks

• Council inspections (especially in licensed properties)

• Wear and tear between tenancies

Many first-time landlords underestimate both the cost and the time involved.

6. Decide Whether to Self-Manage or Use an Agent

Some landlords enjoy managing their own property. Others quickly realise they’d rather not deal with:

• Late-night repair calls

• Rent arrears

• Compliance paperwork

• Difficult conversations with tenants

A good local letting agent can:

• Ensure legal compliance

• Handle tenant communication

• Reduce voids

• Protect you during disputes or possession proceedings

If you do use an agent, make sure they are transparent on fees and clear on what is (and isn’t) included.

7. Think Ahead About Possession and Exit Plans

Even if everything starts well, circumstances change.

You should understand:

• How possession works under current law

• What can invalidate an eviction notice

• How long court processes can take

• Your long-term plan: hold, refinance, or sell

Having an exit strategy doesn’t mean you expect problems — it means you’re prepared.

You may also find it useful to read our detailed guide on evicting tenants, which explains the process, risks, and common mistakes landlords make.

Final Thoughts

Starting out as a landlord in London is absolutely doable — but it rewards preparation. The most successful landlords treat it as a business, not a side project.

If you’re unsure about licensing, compliance, rent levels, or whether your setup is legally sound, getting advice early is far cheaper than fixing problems later. At Aziz Property Group, we regularly help first-time landlords navigate the London rental market with clarity and confidence.

Read more about our property management services.