As a new landlord, you want to begin advertising your property for rent. With parts of Southwark commanding some of London’s highest rental yield, and a steady stream of tenants vying for rental properties in Elephant and Castle, Borough and the surrounding areas, finding tenants is a priority – but first, you must get to grips with your duties.
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Renting out property can be a complex business, fraught with regulations, so what are a landlord’s legal responsibilities – and how can you stay on top of them? It’s important to absorb and understand all the information about a landlord’s responsibilities on the government website.
Legislation relating to the private rental sector frequently changes, so you must keep up-to-date with new laws and regulations.
Read our informative guide for more information about the primary landlord responsibilities for those renting in London and the rest of the UK.
Before you start looking at finding tenants, an important detail to check is whether you will require a property licence, as this could be a legal requirement. Renting out a property without the right licence can result in fines of up to £30,000, so this cannot be overlooked.
Different local councils have varying rules for property licences, you should check the local authority’s website to see what the rules are and this is also where you can submit an application.
These are the types of licence schemes that operate in the following south east London boroughs:
Mandatory HMO licensing – A mandatory licence is required for all large HMOs (Houses in Multiple Occupation) where at least five tenants live, forming more than one household. Fee: £1,365.10 plus £105 per letting above five.
Additional HMO licensing – An additional licence is required for smaller HMOs with three or four tenants sharing facilities, for properties which do not meet the mandatory HMO rules. Fee: £1,365.10
Selective licensing – There are four selective licensing designations which require licenses for privately rented properties in the following wards:
The cost of a selective licence is £945.
Mandatory HMO licensing – A mandatory licence is required for all large HMOs where at least five tenants live, forming more than one household. Fee: £500 but with discounts for accreditation or early bird applications.
Additional HMO licensing – An additional licence is required for smaller HMOs with three or four tenants sharing facilities, for properties which do not meet the mandatory HMO rules. Fee: £500 but with discounts for accreditation or early bird applications.
Selective licensing – From July 2024, a selective licensing scheme has been in place. There are three selective licensing designations which require licenses for privately rented properties in the following wards:
The selective licensing fee is £640.
Mandatory HMO licensing – A mandatory licence is required for all large HMOs where at least five tenants live, forming more than one household. Fee: £508.50 per letting up to five lettings, then £305.10 per extra letting.
Additional HMO licensing – An additional licence is required for smaller HMOs with up to four tenants sharing facilities. Fee: £508.50 per letting up to five lettings, then £305.10 per extra letting.
Selective licensing – Private rented properties in the following wards require a selective licence:
A selective licence fee is £872.59.
By law, you must supply your tenant with the following documents;
Failure to provide these documents could land you in breach of the law and mean that any Section 21 notice is invalid until the issues have been rectified.
The law states that private landlords in England, including those who sub-let or take in lodgers, must ensure prospective tenants have the right to be in the country. This means landlords must check the identity of everyone over 18 and expected to occupy the property. These right to rent checks are one of the landlord’s legal obligations in the UK, but you may pass them to a letting agent as part of a written agreement.
To carry out right to rent checks, you must check your tenant’s documents, which can include the following:
To find out more, visit the Government website.
Whilst a written agreement is not legally required, you and your tenant should sign a written tenancy agreement. You must ensure the terms of the tenancy are fair, and they must comply with current rental laws. Your assured shorthold tenancy agreement should include the following:
Landlords are legally responsible for certain types of repairs and maintenance in a rental home, including:
On top of gas and electricity, plumbing and structural maintenance, the legal duties of landlords may include fixing or replacing white goods. You must maintain fridges, washing machines and cookers, but only if supplied by the landlord and included in the landlord inventory and tenancy agreement.
You must also ensure the property is safe and habitable throughout the tenancy, free from health hazards or risk of injury. If the tenant believes you haven’t fulfilled your responsibilities, they can take you to court. But what are landlords’ legal responsibilities for making a home safe and habitable? Areas covered by this legislation include:
As a responsible landlord, you must ensure all standards are met to ensure the property is safe for your tenants. As the landlord of a House in Multiple Occupation (HMO), you must demonstrate that the property meets current safety standards for rentals to obtain your licence, including:
Whilst the tenant is responsible for reporting any safety concerns to the landlord, you must investigate and fix these promptly. If you fail to take action, your tenants can make a complaint to the local authorities.
All UK landlords need an EPC to rent out their property to inform the tenants of its energy efficiency. Landlords should get an EPC before marketing the rental property by appointing an accredited assessor for an inspection. Your letting agent and tenants must receive a copy of the EPC report. The certificate provides an energy efficiency rating between A and G and is valid for 10 years.
You must meet Minimum Energy Efficiency Standards (MEES), which state that renting a property with an EPC rating below E is unlawful.
The government is set to raise the minimum rating to C by 2030 to lower the nation’s carbon emissions.
Landlords are required to meet the Gas Safety (Installation and Use) Regulations 1994, which apply to gas boilers and water heaters, gas cookers and pipework, and gas fires. To meet the gas safety rules for rental properties, all gas installations, repairs and the annual gas safety check covering all rooms must be carried out by a Gas Safe registered engineer to avoid problems (you can check the Gas Safe Register to verify their credentials).
During the annual inspection, the engineer will check that the gas supply and appliances are safe in all the property’s rooms. You must provide tenants with a Gas Safe registered engineer’s certificate at the start of the tenancy and after each check.
Since April 2021, an Electrical Installation Condition Report (EICR) is required by all landlords of privately rented properties. The new regulation requires landlords to have their properties inspected by a qualified electrician at least every five years.
They must obtain a report from the person carrying out the inspection and give a copy to the tenants. If the inspection identifies remedial work, landlords must ensure the work is carried out within 28 days and obtain written confirmation that the issue has been resolved.
During the inspection, the electrician will assess fixed electrical installations such as electric showers, extractor fans, light fittings and switches, plug sockets, fuse boxes and wiring. An EICR does not cover electrical appliances that aren’t fixed.
PAT Testing
While it’s not a legal requirement, it is best practice to test all portable electrical appliances like fridges, cookers, washing machines and tumble dryers. Checked appliances should have a portable appliance test (PAT) sticker on the plug, showing the dates of the most recent test and when it’s next due.
Landlords can be fined and imprisoned if they don’t follow fire safety rules for appliances and the property’s electrical wiring. All upholstered furniture you provide must be fire resistant, in accordance with the Furniture and Furnishings (Fire Safety) Regulations 1988.
This means you must fit a smoke alarm on each floor, plus carbon monoxide detectors in any room with a fuel-burning appliance (e.g. a wood-burning stove, coal fire or gas fire). You also need to follow solid fuel burning guidance, such as sweeping and maintaining flues. Make sure tenants have access to escape routes and that these are kept clear.
There are even stricter fire regulations for HMO landlords, or for property managers of high-rise, residential buildings. So, if that’s you, it is best to check the local council website for detailed guidance here and here.
Landlords have clear obligations to safeguard tenants’ deposits on assured shorthold tenancies. Since April 2007, the law has required landlords in England and Wales to protect tenancy deposits by placing them in approved tenancy deposit protection (TDP) schemes.
The three government-approved TDP schemes which landlords can join are:
You can decide which you choose, but you must inform your tenant within 30 days of receiving their deposit which TDP scheme has been used.
You aren’t obliged to take a security deposit from your tenant, but it is advisable. While most tenants are responsible and will look after their home well, tenants’ deposits give you a safety net in case damage is caused to the property or furnishings.
As of 1 June 2019, the Tenant Fees Act limits security deposits to the equivalent of five weeks’ rent.
Since 2018, General Data Protection Regulations (GDPR) have given people more control over how their data is used, and as a landlord, you’re classed as a data controller.
But what is a landlord legally responsible for – and how can you ensure you comply with data regulations? Landlords are responsible for handling their tenants’ personal information appropriately and lawfully and are obliged to comply with GDPR. You can read the Government’s GDPR rules in detail on their website.
Landlords are advised to make background checks on potential tenants, including requesting copies of bank statements, proof of income and references from previous landlords.
You can seek references from their employer or an alternative professional if your prospective tenant hasn’t rented before. Always check that their landlord or employer references are genuine.
Rent guarantee insurance covers landlords should their tenants fail to pay their rent. It is not a legal requirement to take out rent guarantee insurance, but you should consider it if you rely on your rental income to pay the mortgage on a buy-to-let property. For rent guarantee insurance to be valid, you must have undertaken thorough background checks on your tenants.
Once you rent a property to a tenant, it becomes their home, and you cannot legally enter the premises whenever you like. If you need access to the property to conduct an inspection or repair, you should give your tenants at least 24 hours’ notice. They have the right to refuse your entry. In a genuine emergency, such as fire, flood or a smell of gas, you may enter without permission.
All landlords have to adhere to the National Trading Standards Estate and Lettings Agency Team (NTSELAT) guidance by providing detailed information in property listings.
Rolled out in 2022 and 2023, the rules state that landlords have to state the monthly rent, details of tenure, type of property and construction, utilities, number and usage of rooms, and parking provision, building safety, planning permissions, restrictive covenants, and local flood risks and proposed developments.
Landlords also have to be aware of their tax liabilities. While landlords don’t generally pay council tax on rental property, they will have to watch out for Capital Gains Tax (CGT) if they sell up.
Capital gains tax is payable when selling a second property, with a CGT rate of 18% for basic rate taxpayers and 24% for higher rate taxpayers. There is a personal tax-free allowance of £3,000 per year.
When purchasing a property, stamp duty tax will apply, with second properties incurring a 5% surcharge on top of the standard stamp duty rates.
Landlords also have to declare and pay income tax to HM Revenue and Customs (HMRC), especially when considered in combination with any other income from other work. Landlords will have to register as self-employed, and submit tax returns each year. Equally, if you’re an overseas landlord, you will have to follow the stipulations of the non-resident landlord scheme.
Your tenants are responsible for keeping up with their rent and bills, avoiding antisocial behaviour, and keeping the property in good condition. Tenants should avoid upsetting the neighbours with excessive noise or nuisance.
Normal wear and tear is part of life, but tenants are liable for the damage they or their guests cause and are solely responsible for their personal possessions. Make your expectations clear in tenancy agreements to avoid doubt or confusion.
The Renters’ Rights Bill recently became law (now the Renters’ Rights Act 2025), bringing multiple new obligations for landlords. The new regulations provide greater protection of rights for tenants, including landlords have to comply with the Decent Homes Standard requirements for housing conditions, as well as meeting new timeframes for dealing with damp and mould. Â
There are changes to eviction processes, including the abolishment of Section 21 no fault evictions and landlords must consider reasonable requests for tenants to keep pets. There are stricter rules around rent increases, which will be limited to one increase per year that must be fair, in line with the local rental market.
Carbon monoxide alarms must be installed in rooms with a solid fuel burning appliance (except gas cookers).Â
Yes, under the new Renters’ Rights Bill, landlords cannot unreasonably refuse pets. Landlords are not allowed to take a separate pet damage deposit but can deduct damage costs from the tenant’s deposit.Â
If you discover that a tenant is subletting, you must follow the correct legal eviction procedures by serving a Section 8 noticeand if the subletting has resulted in the property being defined as an HMO, apply for a Temporary Exemption Notice.Â
Yes, harassment of tenants can lead to prosecution. Inspections should be conducted every 3 to 6 months, with tenants provided with 24 hours written notice prior to the visit.Â
The landlord is still required to meet legal obligations such as conducting repairs and the tenancy remains valid for remaining tenants.Â
Yes, landlords are required to make reasonable adjustments for tenants with disabilities such as providing a flashing/vibrating smoke alarm for hearing impaired tenants. However, they are not legally obliged to make physical alterations such as adapting bathrooms or installing ramps.Â
For monthly or weekly periodic tenancies, landlords must provide at least one month’s notice of rent increases.Â
Preparing to rent out a property in Lower Marsh, Shad Thames or the surrounding areas? If you are new to being a landlord in the SE1 area of central London, we can offer advice on the expectations. Please contact us to learn more about the services we offer landlords.
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