Buy to let is still one of the most popular ways to invest long-term in the UK. It can offer steady rental income and the chance for your property to grow in value. But in today’s changing rental market, there is a lot more to success than simply buying a place and finding a tenant. In particular, the upcoming Renters’ Rights Bill (RRB) introduces a range of legal changes that will significantly impact landlords, particularly those entering the sector for the first time. This guide outlines eight essential steps for new and aspiring landlords in England to succeed in buy-to-let. From investment goals and property selection to tenant relationships, each step includes practical tips, expert advice, and key resources to help you get started the smart way.
Step 1: Set your investment goals
It is important to know your investment goals before setting up your buy-to-let strategy, as these will impact your decisions on everything from the type of property you buy to how you manage it.
Tips:
- Start by identifying your primary objective: Are you aiming for rental income, long-term capital growth, or a combination of both? If income is your priority: look for high-yield areas where rental demand is consistent. If you’re focused on capital growth: target locations with strong price appreciation potential, often emerging commuter zones or regeneration areas
- Decide who will manage the property: Self-management gives you control but demands time, knowledge, and availability. Agents charge fees but can take the burden off your plate, read our choosing a letting agent guide to learn more
- Identify your exit strategy: Will you hold the property long-term for pension income, sell when the market peaks, or pass it down to family? Knowing this upfront can help guide your decisions
Expert insight – Paul Shamplina, Head of Landlord Action:
“Buy to let is still a worthwhile investment and demand for rental properties is stronger than ever. But landlords need to be professional and comply with private rented sector legislation. I would always advise first-time landlords not to try navigating the minefield of rules and regulations alone, but to appoint a reputable agent to reduce the stress and, most importantly, to make sure you’re compliant. With more and more regulations coming down the line, it’s harder now for landlords to manage a property than ever before. My advice to landlords is always to understand that they are running a business and must put a price on their time.”
Understanding your investment goals can be difficult, that’s why we've created a buy to let investment guide,to help you figure out what you want and how to get there. Sign up to become a Total Landlord member to stay up to date with the latest landlord news, insights, and legal changes, so you’re always one step ahead.
Step 2: Understand the financials
A successful buy to let investment starts with a solid understanding of the numbers. From upfront costs to ongoing expenses, knowing what to expect financially will help you avoid cash flow problems and keep you compliant with HMRC and lenders.
Tips:
- Account for upfront and ongoing costs: The initial purchase price is just the start. Don’t forget to budget for repairs, insurance, letting agent fees, council tax during any vacant periods, and even travel expenses for managing your property
- Understand tax liabilities and allowable expenses: Rental income is taxed as part of your income tax, and you must declare your profits through a self assessment tax return. Section 24 of the Finance Act no longer allows landlords to deduct full mortgage interest from rental income. Instead, a basic rate (20%) tax credit is applied. Learn more on tax from our landlord tax guide
- Explore mortgage products and affordability checks: As a landlord, you’ll need a buy to let mortgage, not a standard residential one. These are designed for rental properties and come with different lending criteria.
Learn more in our buy to let mortgage guide
Key things to consider:
- Interest-only vs repayment: Many landlords choose interest-only for lower monthly payments and better cash flow, but this means repaying the loan at the end of the term. Repayment mortgages have higher monthly costs but fully pay off the loan by the mortgage’s end, leaving no outstanding debt
- Lender stress testing: Most lenders will require your rental income to exceed mortgage repayments by 125–145%, even at higher stress-test interest rates
- Fixed and tracker rates: Consider interest rate risks and future refinancing options. A fixed-rate mortgage keeps your payments the same throughout the term, providing certainty regardless of interest rate changes. Tracker rates usually start lower but can go up or down with the Bank of England base rate, which means your payments might increase over time
Don’t let unexpected costs or risks catch you out. Get an award winning landlord insurance quote online today or call 0800 634 3880 to discuss your insurance needs.
Step 3: Know your responsibilities
Being a landlord in England is not just about providing a home it’s about fulfilling legal and ethical responsibilities. The law requires landlords to meet property standards, respect tenant rights, and stay up to date with evolving legislation. With the Renters’ Rights Bill (RRB) set to transform the private rented sector, understanding your duties has never been more critical.
Tips:
- Learn the basics of landlord licensing and legal requirements: Before letting a property, you need to make sure it meets the legal standards for rented homes. That means having an up-to-date Energy Performance Certificate (EPC) rated E or higher, completing an annual Gas Safety Certificate, and arranging a five-yearly electrical installation condition report (EICR). While mandatory licensing applies to larger Houses in Multiple Occupation (HMOs), many local councils now run selective or additional licensing schemes that apply to standard rental properties in designated areas. You must check with your local authority to find out whether your property needs a licence before you let it
- Keeping up with legal change: The Renters’ Rights Bill will significantly reshape the private rented sector in England. Key proposals include:
- The abolition of Section 21 'no fault' evictions, meaning landlords will need to rely on specific grounds to regain possession
- Creating a single system of periodic tenancies
- Stronger rights for tenants to request to keep pets, with limited grounds for refusal
- A Private Rented Sector Ombudsman to handle tenant complaints and drive accountability
- Use compliant tenancy agreements and protect deposits on time: One of the most common failures among new landlords is mishandling tenancy deposits. By law, you must protect the deposit in a government-approved scheme (such as mydeposits) within 30 days of receiving it and serve the tenant with prescribed information
Expert quote Sean Hooker, Head of Redress, Property Redress:
“The legal landscape is changing fast. Landlords need to stay ahead of new rules under the Renters' Rights Bill to avoid enforcement and reputational damage. It's about professional standards, not just ticking boxes.”
Compliant landlords are trusted landlords. By taking the time to understand and follow your legal obligations, you’ll not only reduce your risks you’ll also create a more stable, positive experience for your tenants. Whether you’re managing a single property or building a growing portfolio, having the right insurance in place is essential. At Total Landlord, we understand the unique needs of landlords and will keep you informed on industry changes, such as the Renters’ Rights Bill.”
Step 4: Choose the right location and property
Once you’ve defined your investment goals, the next critical step is choosing the right location and property. The success of your buy to let investment often hinges on these two decisions: where you buy and what type of property you invest in.
Tips:
- Know your market: Start by researching rental yields and tenant demand across different areas. High-yield areas, often found in northern cities, university towns, or regeneration zones, can offer strong returns, but may come with increased management needs or tenant turnover. Look at what types of tenants are common in your target area. Are they students, young professionals, families, or retirees? Each group has different expectations when it comes to property features, amenities, and location
- Choose the right type of property: Each property type comes with different maintenance demands, rent expectations, and tenant profiles. Be realistic about how much time and money you're willing to invest in the property itself. Homes that require substantial refurbishment may offer better purchase value, but they also come with delays, unexpected costs, and greater risk. If you're new to buy to let, a property in good condition and ready to rent might be a safer and faster route to income
- Evaluate local infrastructure and amenities: Proximity to transport links, employment hubs, schools, universities, and local shops all influence how desirable a rental property is. For instance, young professionals often look for easy access to train stations or public transport, while families may prioritise school catchment areas and green space
Choosing the right location for your property is important. It’s about understanding local trends, tenant needs, and long-term value. Doing your research now will help you build a property portfolio that performs well for years to come.
Step 5: Market your property and find the right tenants
Once your property is ready to rent, the next step is finding the right tenants and that starts with effective marketing. A well-presented listing, combined with a solid screening process, helps you attract reliable renters who respect your property and pay rent on time.
Tips:
- Photography matters: Invest in good lighting and take high-resolution images that highlight your property’s best features, especially kitchens, bathrooms, and outdoor space
- Write a compelling listing: Describe the property clearly, including key features, nearby transport links, local amenities, and any added benefits like off-street parking or a garden
- Advertise in the right places: Use online platforms and consider working with a letting agent if you want support managing viewings and enquiries
- Reference tenants thoroughly: Tenant selection is one of the most important decisions you’ll make as a landlord. A well-referenced tenant can reduce the risk of late payments, property damage, or disputes
- Use a formal referencing process to check employment status, income, credit history, and previous landlord references. Our referencing checklist outlines each step to help you carry out the process thoroughly and with confidence
- Request proof of income or payslips to make sure the tenant can comfortably afford the rent
- Ask the right questions during viewings to know whether the tenant’s needs and expectations match what your property offers
- Consider welcoming pet: While some landlords are understandably cautious, being open to pets particularly with responsible tenants can widen your applicant pool and reduce void periods
Finding the right tenant starts with presenting your property professionally and choosing applicants with care. Total Landlord Insurance offers an pet damage protection add-on, which covers damage caused by pets, giving landlords peace of mind while still being able to meet the evolving demands of the rental market. For more guidance on how to attract the right renters, take a look at our rental property marketing guide, which covers the step-by-step process of advertising your property effectively.
Step 6: Get the tenancy off to a good start
The start of a tenancy is one of the most important moments in a between a landlord and tenant relationship. From providing the right documents to clearly outlining expectations, first impressions may influence the entire tenancy.
Tips:
- Provide a professional tenant welcome pack: Include practical information such as contact details, appliance manuals, emergency procedures, the cost of rent, and how to report maintenance issues. This sets the tone for a well-managed tenancy and supports good communication from day one. Use our tenant welcome pack guide as a helpful tool to create your own
- Use clear tenancy agreements: Your tenancy agreement should be easy to understand and legally compliant. It must outline key terms, including rent due dates, notice periods, and responsibilities for utilities, repairs, and property maintenance
- Protect the deposit within the 30-day legal timeframe: You must protect the tenant’s deposit using a government-approved scheme like mydeposits and provide the information within 30 days. Failure to do so can lead to legal penalties and affect your ability to regain possession
- Communicate expectations from the start: Set clear expectations around property care, rent payments, repairs, and communication methods. A transparent, respectful relationship helps prevent disputes and encourages tenant cooperation
Expert quote – Suzy Hershman, Resolution Department Lead, mydeposits
“A well-prepared tenancy gets everything off on the right foot. Clear communication, signed agreements, and deposit protection are the foundations of a positive relationship – and help avoid issues down the line.”
Starting a tenancy smoothly is just one part of being a successful landlord. Total Landlord Insurance offers comprehensive cover to safeguard your investment throughout the tenancy lifecycle. Get an award winning landlord insurance quote online today or call 0800 634 3880 to discuss your insurance needs.
Step 7: Manage your property like a pro and make sure you have landlord insurance
Good maintenance, clear communication, and efficient rent collection will help prevent problems before they escalate, keeping your tenancy running smoothly. At the same time, having the right landlord insurance in place provides vital protection against unexpected costs such as property damage, legal disputes, or rent arrears.
Tips:
- Regular inspections and maintenance scheduling: Conduct routine property checks to identify and resolve issues early, preventing costly repairs later. Keep a maintenance schedule to make sure appliances, heating systems, and safety equipment are regularly serviced. See our property management guide for practical advice
- Keep written records and open communication: Log all communication, inspections, and payments. Transparent documentation builds trust and helps resolve disputes. Use email or management software to stay organised
- Use rent protection and legal expenses: Rent arrears can significantly impact your cash flow, while legal disputes can be costly and time-consuming. Rent protection insurance covers lost income if tenants default on payments, and legal expenses insurance helps cover the costs of eviction proceedings or legal advice
Expert quote – Steve Barnes, Associate director, Total Landlord Insurance
“Proactive management and the right insurance aren’t just safety nets, they’re essential tools for protecting your property and your peace of mind.”
Step 8: Review and plan for the long term
Treat your property investment like a business. Managing your portfolio with a long-term mindset helps you adapt to market changes and maximise returns.
Tips:
- Track key metrics: Monitor your net yield, return on investment (ROI), and capital growth regularly to assess performance
- Refine your strategy: Use your data to adjust rents, reduce costs, or improve property standards. Read our landlord business plan guide to find out more
- Think ahead: Consider refinancing to release equity, diversifying into new locations or property types, or planning your exit strategy based on personal goals like retirement or inheritance planning
Becoming a successful landlord takes more than purchasing property. It requires professionalism, preparation, and planning at every stage from setting goals and choosing the right property to managing tenancies and protecting your long-term investment. With growing regulation in the private rented sector, particularly with the introduction of the Renters’ Rights Bill, landlords must stay informed and proactive. Building strong tenant relationships, maintaining legal compliance, and protecting your property are all part of running a professional rental business.
That’s why choosing the right insurance partner matters. Total Landlord Insurance, rated 4.8 on Smart Money People, offers award-winning cover tailored specifically for landlords. Our in-house claims team understands the unique challenges of the private rental market and is here to support you when you need it most. Plus, with added cover options like pet damage protection and legal expenses and rent protection, you can tailor your policy to suit your property and your peace of mind. And because we’re powered by Total Property, you also benefit from our deep expertise across the entire tenancy lifecycle from deposit protection with mydeposits, to redress with Property Redress, to legal support through Landlord Action.
