7 Steps to Becoming a Residential landlord in London

Landlords

Posted in Jul 28 , 2020

7 Steps to Becoming a Residential landlord in London

There are a number of reasons people become residential landlords. Often, it’s because someone wants to do more with their savings and sees property as a sound investment with a regular income. It might also be that a person becomes an accidental landlord after inheriting a property or moving into a house with a partner.

Here are seven things to think about when becoming a landlord.

1. Set-up costs

Finances matter, the numbers have to stack up. If you’re going to obtain a buy-to-let mortgage, the lender needs to know about your income, and what rent you hope to achieve. They have to ensure that you can cover the costs. You’ll probably have to pay for surveys too so they can be sure the house is worth what you think it is. Then there are the legal fees and the search costs. Many law firms who specialise in conveyancing will be able to give you an early indication of what your final bill will be.

2. DIY or use a lettings agency

You could manage the property yourself, and many do as it helps to reduce costs, but you should decide what is best for you. Do you want to use a lettings agency to find you a tenant and arrange the initial agreements? You can then keep on top of things for yourself. Or would you rather hand over all the management to the agency? This will certainly reduce the pressures on you, but will come at a cost as the agency will take a fee for doing this.

3. Insurance

When you are renting out a property, you should obtain landlords insurance. This is because a home insurance policy will not cover you for what you need, and also because the right insurance will protect you, your property and your tenant. If you’re taking out a mortgage to buy the property, your lender will insist that you have insurance. The costs of insurance will vary depending on the level of cover, such as personal liability, contents cover and buildings cover, and loss of rent cover. Speak with an insurer or a broker and be absolutely clear about what you need.

4. Furnished or unfurnished

Whether you rent out a property that is fully furnished or unfurnished is a decision you need to make early on. If you’ve inherited a property, then it might well be an easy decision. If this is the case, you might find this suits a potential tenant, and you will be able to get a better monthly rent. If you rent out a property unfurnished, obviously it means you don’t need to buy things for it. Some potential tenants prefer this as they can put their own furniture in and make it their home. Don’t forget; it’s best practice to get an inventory carried out as this will affect your insurance policy and could minimise disputes at the end of an agreement.

5. Paperwork

One of the top tips for being a landlord is to be well organised and up to date with paperwork from the start. It may seem daunting having a lot of documents, but organisation is key. Not only will this ensure you don’t fall foul of any legal responsibilities, but it should also mean that if any disputes arise, you know straight away where things are. (It’s also particularly useful when you’re doing your accounts or checking information).

6. Legals & Responsibility

There are certain legal obligations and responsibilities that need to be understood. These are in addition to the tenancy agreement that you and your tenant should be signing. For example, before a property is let, you’ll need an up-to-date Energy Performance Certificate for it. A gas safety certificate is required for each gas appliance in the property, each home has to have smoke alarms and a carbon monoxide detector and any appliances or furniture must meet the required safety standards. There are also rules about a tenant’s deposit and how it is kept in a Government-approved scheme. If you need help with any of these, we can advise you.

7. Right to rent checks

A relatively new aspect of renting out a property is the need to carry out a Right to Rent check. A landlord must, by law, check whether a potential tenant has the legal right to rent a property in the UK. Failure to carry out the required checks could result in hefty fines so if you do need advice, then contact us and we will be delighted to help.

For expert property advice and becoming a landlord, contact our team of professionals at Cribs Estates Ltd on 0203 441 1571 or email us info@cribsestates.co.uk.

Shared on social media

Comments

Enquiry form

Latest Blogs

Short Term Lodging London Guide for Landlords

London is among the world’s most visited cities, welcoming millions of tourists, professionals, and students every year. As a result, short-term lodging in London has become an effective way for landlords to earn high rental yields whilst keeping their properties occupied by renters. However, with recent changes to local laws and the upcoming 2026 licensing reforms, it has become necessary for landlords to manage it to remain legal and profitable. Here’s a helpful guide for you:The Rising Demand for Short Term Lodging in LondonIn the last few years, short-term lodging has made headlines in the rental market. According to data from the Office for National Statistics (ONS), more than 5 million guest nights were spent in short-term lets in London in 2023. This makes the capital one of the largest short-term rental markets in Europe.The demand is driven by multiple factors, including international tourism, local travelling, families seeking temporary residence, and students. Moreover, several platforms allow landlords to advertise their properties to a global audience. What Are The Legal Rules for Short Term Lodging?As per the Deregulation Act 2015, if you are a landlord offering short-term lodging in London, you are allowed to let your entire property for up to 90 nights per calendar year without applying for planning permission. If you exceed the limit, you will need to obtain approval from the local borough council, and any failure will result in heavy fines and restrictions. Boroughs such as Westminster, Camden, and Kensington & Chelsea have already introduced monitoring systems to identify properties breaching the rule.The UK government is already planning to introduce a national short-term let registry in 2026 to improve the safety and transparency standards. Landlords will have to register to let their properties. How To Stay Compliant?As a landlord, you must ensure:The property meets all gas and fire safety regulations.The property is properly insured for short-term guests.Booking records are kept to prove they have not exceeded the 90-day limit.They pay relevant income tax and, where applicable, council tax reclassification.What’s the Market Trend for 2025–2026?The short-term lodging market in London is continuously on the rise, according to data from the Greater London Authority (GLA). Around 3% of London's housing stock is used by short-term residents. The government plans to tighten regulations, so the market is expected to shift towards better options. Apartments or corporate lets are expected to dominate in 2026, whilst tenants are also averaging more stays, which will help landlords keep on track with bookings whilst staying under the 90-night legal limit. Benefits and Risks of Short Term LettingFor landlords, short-term lodging generates higher returns than long-term lets. It allows owners to use the property personally as well and adjust the prices seasonally. But the risk involves increased council laws, unpredictable rates, or potential property wear and tear that must be dealt with. The key is to find the balance through a reliable, local estate agent like Cribs Estates, which has years of experience managing lettings for its landlords. The Future of Short Term Lodging in LondonIn 2026, new laws and registration models will be introduced, so landlords need to prepare early. The focus will be on volume listings, quality, compliance, and well-managed short-term stays. Listings that are licensed and verified will appeal to more tenants, ultimately bringing more returns.Frequently Asked Questions1. Can I rent out my spare room without breaking the 90-day rule?Yes. The 90-day limit applies only to entire properties. If you’re renting out a spare room whilst living in the same property, you’re usually exempt, but you must still follow safety and tax rules.2. Do I need a licence for short term lodging in London?Currently, you only need a licence if your borough requires it or if you exceed the 90-day limit. However, from 2026, a national registration scheme will make it mandatory to register all short-term lets.How Cribs Estates Supports Landlords?At Cribs Estates, we help landlords at every step, including property marketing and guest vetting, compliance checks, and maintenance.We stay up to date with the latest council and government regulations, ensuring your property remains fully compliant under the 90-day rule and upcoming 2026 licensing laws.By combining local market expertise with professional management, Cribs Estates helps you maximise your rental income. Whether you’re letting a studio or a serviced apartment in Central London, we ensure your property is handled with care and precision.

Freehold Property for Sale in London: Buyer’s Guide 2026

If you are on a hunt for freehold property for sale in London, then you are not alone. With so much attention on leasehold reforms and ground rent issues in recent years, many buyers now prefer the freedom and long-term security that comes with freehold ownership.Whether you are a first-time buyer, a family looking for a forever home, or an investor seeking stable returns, understanding what freehold means and how it benefits you is the key to making a wise decision.What Does Freehold Mean?In simple terms, when you buy a freehold property, you own both the building and the land it stands on. There is no time limit on ownership, meaning the property is entirely yours until you choose to sell it.This is different from leasehold, where you only own the property for a set number of years and must pay ground rent and service charges to the freeholder. Most houses in London are freehold, whilst the majority of flats are leasehold due to shared land and maintenance responsibilities.Why Buyers Prefer Freehold PropertiesHere are a few reasons why freehold homes are so popular:You save hundreds, sometimes thousands of pounds every year.You can renovate, extend, or modify your home (subject to planning permission).Freehold homes usually keep their value well over time.Buyers see freehold as a safe investment, making future sales simpler.Freehold vs Leasehold: What the Numbers Say?According to government data for 2024, there are around 4.8 million leasehold dwellings in England, accounting for about 19% of the housing market. Around 91% of flats are leasehold, compared with only 7% of houses.This means freehold houses are becoming increasingly valuable, especially in London, where land is limited. The same report shows that the share of leasehold houses has fallen from 8% in 2021–22 to 7% in 2023–24, proving that more buyers are now seeking full ownership.Where to Find Freehold Homes in LondonFreehold properties can be found across London, but they are more common in suburban areas and parts of Outer London. Neighbourhoods like Wimbledon, Finchley, Ealing, Croydon, and Bromley are popular for freehold houses, offering good transport links and family-friendly communities.In Central London, freehold properties are rarer and often come at a premium price due to limited space and heritage restrictions.Buying a Freehold PropertyThe process of buying a freehold home in London is similar to other purchases but involves a few extra checks. Here’s what you should expect:Start by viewing properties and making an offer through your estate agent.Your solicitor will confirm the freehold title, boundaries, and planning permissions.A property survey ensures the building is in good condition, whilst your lender confirms the mortgage.Once contracts are exchanged and funds transferred, you officially become the freeholder.The Cost of Buying Freehold Property in LondonThe prices of freehold properties vary depending on location, property type, and condition. In 2025, the average freehold house price in London ranges from £500,000 to £1.5 million, with premium areas like Kensington and Hampstead reaching several million pounds.Investment Opportunities in Freehold HomesFreehold houses make excellent investment options for landlords and developers. With London’s population still growing and the rental market in high demand, owning a freehold gives investors greater flexibility.You can choose to let the property as a single-family home, convert it into flats, or even develop the land in the future (subject to permissions). This freedom makes freehold properties a key part of many investors’ portfolios.Common Questions About Freehold Properties1. Is freehold always better than leasehold?Usually, yes, because it offers full ownership and no ongoing ground rent. However, leasehold flats can be more affordable and easier to maintain in some cases.2. Can flats be freehold?It’s rare, but some small blocks of flats share a “share of freehold” agreement where all owners jointly hold the freehold title.3. Are freehold homes easier to sell?Yes. Buyers often prefer them because they don’t have to worry about lease extensions or landlord restrictions.How Cribs Estates Can HelpAt Cribs Estates, we help buyers, investors, and landlords find the best freehold properties for sale in London. Our experienced team offers full support from property search to valuation, negotiation, and purchase completion.We also guide investors on which areas deliver the best returns and can manage your property if you decide to rent it out. With years of experience in the London property market, we ensure a smooth, transparent, and rewarding buying experience.

How Much Are Letting Agent Fees for Landlords in 2026

It’s rewarding to let property in London, but it also involves time and effort, and responsibility. This is where the letting agents come in and handle everything for you in the market, including tenant screening, rent collection, and maintenance. But the common question is: how much are letting agent fees for landlords? If you are planning to rent your property this year, we have compiled a fee structure to help make your investment worthwhile. Let’s start with:What Are Letting Agent Fees?Letting agent fees are the charges landlords pay for professional help in managing their rental properties. These fees vary depending on the level of service you choose, from a simple tenant finding package to complete property management.In 2026, fees may vary slightly between agents and locations, but most London agencies, including Cribs Estates, let their clients know in advance. The aim is to ensure landlords know exactly what they’re paying for without any surprise charges later.What are the types of Letting Agent Services?There are three main types with separate costs: Tenant-Find OnlyFor landlords who want to manage their properties themselves, the agents will help them with advertising the property, handling enquiries, arranging visits, and securing tenants. They also help with preparing tenancy agreements and typically charge 8–12% of the annual rent (one-time fee).Rent Collection ServiceAgents help find new tenants and manage rent payments each month. They are responsible for ensuring timely rent and chasing after late payments, and handling payment-related issues. The typical fee is 10–14% of monthly rent.Full Property ManagementThis is the most widely used option for landlords who want to focus on other portfolios but don’t have the time to handle all tasks. The agents handle all tasks, including finding tenants and collecting rent, as well as managing repairs, inspections, and legal compliance. The typical fee in 2026 is 12–18% of the monthly rent.What’s Included in Letting Agent Fees?Whilst costs may vary, a good letting agent should offer a comprehensive package that covers:Professional property marketing on major portals.Tenant referencing and background checks.Right to Rent and ID verification.Preparing tenancy agreements and legal documents.Rent collection and deposit protection.Routine inspections and maintenance coordination.Handling tenant issues and renewals.Some agents may also offer additional services, such as rent guarantee insurance or inventory management, for a small extra fee.What Affects Letting Agent Fees in 2026Several factors can influence how much you pay:Central London properties usually attract higher fees due to demand and complexity.HMOs and luxury properties often need more management time.Full management packages naturally cost more than tenant-find only.As the rental market in London stays strong in 2026, some agents may slightly adjust their fees to match demand.Why Paying for a Letting Agent Is Worth It?You don’t have to deal with tenant calls, repairs, or legal updates.Agents ensure your property meets all compliance requirements, including gas safety, electrical checks, and deposit rules.Agents have access to quality tenants through screening and referencing.Professionals know how to ensure minimum void duration. Frequently Asked Questions1. Can landlords still charge tenants admin fees in 2026?No. The Tenant Fees Act bans most tenant fees in England. Letting agent fees are only charged to landlords, not tenants.2. Are letting agent fees tax-deductible?Yes, landlord letting fees are classed as allowable expenses and can be deducted from your rental income when filing taxes.3. How can I compare letting agent fees?Always check what services are included. Some cheaper options might not cover inspections or maintenance, which can cost you more later.How Cribs Estates Helps Landlords in 2026At Cribs Estates, we understand that every landlord’s needs are unique, whether you manage a single flat or several rental properties. We aim to make the letting process simple, transparent, and profitable by onboarding local resources from the area. We offer flexible services, from tenant-find only to full property management, so you can choose the level of support that suits you best. Our pricing is clear and fair, with no hidden costs, so you always know exactly what you’re paying for and why.

HMRC MTD Self-Employed Landlords 2026: Complete Guide

MTD, known as Making Tax Digital, is a strong initiative taken by HM Revenue and Customs to move the tax reporting fully digital. After April 2026, MTD will become mandatory for self-employed landlords with a combined annual income of £50,000 or more from property and self-employment. This means landlords will need to keep their financial records digitally and send quarterly updates to HMRC rather than submitting a single annual tax return. The goal is to make tax reporting easier, more accurate, and less dependent on paperwork. If you own rental properties or are self-employed, it’s important to understand how these new rules affect you. Who Must Comply from April 2026 From 6 April 2026, MTD for Income Tax Self-Assessment will apply to: Self-employed landlords earning over £50,000 a year A year later, in April 2027, it will apply to those earning £30,000 or more. Landlords with incomes below this threshold will be brought into the system at a later stage, although HMRC has not yet confirmed when this will be. If you are a landlord who owns multiple properties, remember that the threshold is based on total income, not per property. For example, if you earn £30,000 from your freelance work and £25,000 from rental income, your combined total is £55,000, meaning you must follow MTD rules from April 2026. What MTD Means for Self-Employed Landlords Under MTD, you will need to: Keep digital records of your property income and expenses using MTD-compatible software (like QuickBooks, Xero, or FreeAgent). Send quarterly updates to HMRC summarising your income and expenses. Submit an End-of-Period Statement (EOPS) at the end of the tax year to finalise your figures. File a Final Declaration to replace the old Self-Assessment tax return. Preparing Your Property Business for MTD The best time to start preparing for MTD is now! You can begin by: Using digital accounting software that HMRC approves. Separating business and personal finances, so property income and expenses are easy to track. Keeping receipts and invoices digitally, either scanned or through an app. Checking your total income to see if you fall under the £50,000 threshold. Planning quarterly updates, ensuring your records are complete and ready for each submission. Common Pitfalls and How to Avoid Them Other common issues include: Missing quarterly deadlines. Not keeping all property income records in one place. Joint ownership complications: each owner must report their share separately. Using software that is not MTD-ready. Property Income and MTD: What Counts Your property income includes: Rent received from residential or commercial tenants. Income from furnished holiday lettings in the UK or abroad. Any service charges or additional payments received from tenants. However, landlords who let properties through a limited company will not be affected by MTD for Income Tax. They must continue to file through Making Tax Digital for VAT or Corporation Tax instead. The Cost of Compliance The cost of switching to digital records varies depending on the software and level of support you choose. Many MTD-compatible software options start at £10-£30 per month, offering automatic syncing with bank accounts, rent payments, and expense tracking. For landlords with multiple properties, this investment can save significant time and reduce errors that could otherwise lead to penalties. How Cribs Estates Can Help At Cribs Estates, we understand that property management is not just about finding tenants; it’s also about staying compliant and stress-free. Our landlord support services include organised rent collection, digital record-keeping, and property expense tracking that make tax reporting simpler. We work closely with trusted accounting partners to ensure landlords have access to the right tools and advice for MTD compliance. Whether you have one rental or a whole portfolio, we’ll help you prepare for the 2026 changes so your property business runs smoothly. Our team also ensures that all documentation, from tenancy agreements to maintenance costs, is recorded accurately, making quarterly reporting easier when MTD becomes law. FAQs on HMRC MTD Self-Employed Landlords 2026 1. Does MTD apply if I only rent out one property?Yes, if your total income from all sources, including self-employment, exceeds £50,000 from April 2026. 2. Do I still need to file a tax return?You’ll no longer file a single annual Self-Assessment. Instead, you’ll submit quarterly updates and a final declaration through MTD-approved software. 3. Can my letting agent help with MTD?Yes. Agents like Cribs Estates can support digital record-keeping and provide reports that make quarterly updates easier.

Property search

Residential Lettings

Residential Sales

HMO

Commercial Sales Commercial Lettings

Price

Min price

Max price

Number of Bedrooms

Min bedrooms

Max bedrooms

Find properties