The New Landlord Starter Guide: Your First Buy-to-Let, Step by Step

Becoming a landlord in 2026 is more rewarding — and more regulated — than ever. Between the Renters' Rights Act, Section 24 tax rules, Making Tax Digital, and a stack of safety certificates, there's a lot to get right from day one. This guide walks you through your first buy-to-let from initial sums to your first tenant, and ties together everything in our tax, compliance and Renters' Rights guides.

This covers England. Scotland, Wales and Northern Ireland have separate rules.

Step 1: Do the maths before you buy

A property that "washes its face" on rent alone can still lose money after tax and costs. Before you commit, model:

• Rental yield = (annual rent ÷ property price) × 100. Compare gross and net (after costs).
• Costs to budget: mortgage interest, letting/management fees (often 8–12% +VAT if managed), insurance, maintenance (budget a % of rent), void periods, ground rent/service charges, and accountancy.
• Tax drag: remember Section 24 — if you're a higher-rate taxpayer with a mortgage, you can't deduct interest, only get a 20% credit. Run your numbers after tax, not before.
• Up-front costs: deposit, SDLT including the 5% additional-property surcharge, legal fees, survey, and any refurbishment.

Step 2: Sort financing and ownership structure

• Buy-to-let mortgages differ from residential: bigger deposits (often 25%+), interest-rate stress tests, and rental-cover requirements. Use a whole-of-market broker.
• Personal name vs. limited company? A company avoids Section 24 and deducts mortgage interest in full, but company BTL mortgages are usually pricier, and moving existing personal property into a company triggers CGT and SDLT. There's no universal "right" answer — get accountant advice on your numbers. (See our Landlord Tax Guide 2025/26.)
• Insurance: you need landlord (not standard home) insurance — buildings cover is usually essential and lenders require it.

Step 3: Get the property legal and safe

Before a tenant moves in, you must have:

See our Landlord Compliance Checklist for renewal cycles and penalties.

Step 4: Find and reference a tenant — the 2026 way

The Renters' Rights Act changed the rules of letting. From 1 May 2026:

• Advertise at a fixed rent — you cannot accept bids above the asking price.
• No big up-front rent demands — you can ask for a maximum of one month's rent in advance after signing.
• No blanket bans on tenants with children or on benefits.
• Right to Rent checks on every adult occupier before the tenancy starts.
• Reference the tenant (affordability, employment, previous landlord) and consider a guarantor where appropriate — still permitted, applied fairly.

Step 5: Set up the tenancy correctly

• Tenancies are now periodic assured tenancies with no fixed term — fixed-term ASTs were abolished on 1 May 2026.
• Use a compliant, up-to-date tenancy agreement (e.g. from the NRLA or a solicitor).
• Protect the deposit in an approved scheme (DPS, TDS or mydeposits) and serve the prescribed information within 30 days.
• Give the tenant the current 'How to Rent' guide, the EPC, and the gas safety record.
• Take a thorough, dated inventory with photos.

Step 6: Manage the tenancy and your money

• Rent increases: only once every 12 months, via the statutory Section 13 process with two months' notice. No more frequent hikes.
• Repairs: respond promptly; Awaab's Law is being extended to the PRS, setting legal timeframes to fix serious hazards like damp and mould.
• Possession: Section 21 "no-fault" eviction is abolished — to regain possession you must use a valid Section 8 ground (e.g. arrears, sale, moving in) and usually prove it in court. Keep meticulous records.
• Pets: you can't unreasonably refuse a pet request; have a fair process.
• Bookkeeping: track all rent and expenses from day one. If your gross property (plus self-employment) income exceeds £50,000, Making Tax Digital for Income Tax applies from April 2026 — you'll file quarterly using compatible software. Even below the threshold, clean digital records make your tax return painless.

Step 7: Stay registered and compliant going forward

• PRS Database: registration becomes mandatory region by region from 15 December 2026, with a three-month window per region. You'll log your details, properties and safety records and pay £65 per property per year. Find your region's deadline.
• PRS Ombudsman: membership becomes mandatory when the scheme launches (expected ~2028).
• Diarise every renewal: gas (yearly), EICR (5-yearly), EPC (10-yearly), insurance, and your Section 13 anniversary.

First-buy quick checklist

• Modelled net yield after tax and costs
• Budgeted SDLT including the 5% surcharge
• Secured a BTL mortgage and chosen ownership structure with advice
• Arranged landlord insurance
• Gas, EICR, EPC, smoke & CO alarms all in place
• Checked whether an HMO/selective licence is needed
• Right to Rent checks completed
• Advertised at a fixed rent, took no more than one month in advance
• Used a compliant periodic tenancy agreement
• Deposit protected + prescribed info within 30 days
• Issued How to Rent, EPC and gas record
• Set up digital bookkeeping (MTD-ready)
• Diarised all renewal and Section 13 dates
• Watching for PRS Database registration

5 key takeaways

1. Run the numbers after tax. Section 24 and the 5% SDLT surcharge can turn an apparent profit into a loss — model net, not gross.
2. Get every safety certificate before move-in. Gas, EICR, EPC, alarms — no exceptions, big penalties.
3. Let the 2026 way: fixed asking rent, no bidding, max one month in advance, no blanket bans.
4. Section 21 is gone — you'll need a valid Section 8 ground and good records to regain possession.
5. Keep digital records from day one — for MTD, for your accountant, and for the upcoming PRS Database.

Lettfolio gives first-time landlords one place to track properties, tenants, rent, expenses and every compliance deadline — built around the new Renters' Rights rules and MTD. Start free at lettfolio.uk.

Sources

• GOV.UK — Renting out your property (landlord responsibilities)
• GOV.UK — How to Rent guide (must be served at the start of a tenancy)
• GOV.UK — Stamp Duty Land Tax (higher rates)
• GOV.UK / HMRC — Section 24 finance-cost relief and Making Tax Digital for Income Tax
• GOV.UK — Tenancy deposit protection and Right to Rent
• NRLA — Renters' Rights Act and tenancy resources

Verified June 2026. Rules, rates and phase-2/3 dates can change — always check current GOV.UK guidance.

Related guides

• The complete UK landlord compliance checklist — every legal certificate and duty for your first let, with renewal frequencies.
• The UK landlord tax guide 2025/26 — how your new rental income will be taxed, with a worked example.