11. Tenant & Letting Setup
Setting up a tenancy correctly is where compliance meets day-to-day operation. Get the process right and you have a clean, defensible tenancy; get it wrong and you can lose money, time, and — under the new rules — the ability to regain possession. This module is the practical companion to the legal framework in Module 10.
11.1 Before you market the property
Everything must be in place before a tenant moves in:
- Valid gas safety certificate, EICR, working smoke/CO alarms, and an EPC (Module 10).
- A decided, advertised rent figure — remember bidding wars are banned, so you can't accept above the advertised price.
- Your written statement of terms ready to give the tenant before the tenancy begins.
11.2 Referencing and tenant selection
Thorough referencing protects the whole investment: affordability checks, employment/income verification, previous landlord references, and credit checks. You must not discriminate against tenants with children or on benefits — assess every applicant on the same objective affordability criteria. Rent guarantee insurance is worth considering, especially now that possession takes longer.
11.3 The move-in process
A clean move-in is a sequence, and the order matters:
| Step | Detail |
|---|---|
| Right to Rent check | Verify every adult occupier's status before the tenancy starts |
| Written statement of terms | Provide before the tenancy begins (replaces the old fixed-term AST) |
| Protect the deposit | In an approved scheme within 30 days; max five weeks' rent; serve prescribed information |
| Inventory & check-in | Detailed, photographed condition record — signed by the tenant |
| Provide key documents | Gas certificate, EPC, and required government information |
Skipping or fumbling any of these — especially deposit protection — can invalidate a future possession claim, so treat the checklist as non-negotiable.
11.4 Managing the ongoing tenancy
Under periodic tenancies, day-to-day management changes in a few important ways:
- Rent reviews: increases only via a Section 13 notice, once a year, with at least two months' notice.
- Repairs: respond promptly and keep records — condition standards and repair timescales (Awaab's Law) are tightening, and good records support any future possession claim.
- Pet requests: you can't unreasonably refuse; you may require pet insurance.
- Communication & records: log rent, messages and maintenance. Evidence is now central to possession.
11.5 Self-manage or use a letting agent?
| Self-manage | Letting agent (full management) | |
|---|---|---|
| Cost | Your time only | 10–15% of rent + VAT (Module 5) |
| Compliance burden | Entirely yours to track | Handled — but verify they actually do it |
| Control | Full | Less direct |
| Best for | Local, hands-on, one or two properties | Distant properties, busy owners, HMOs |
Given how much compliance now affects possession, many landlords use an agent specifically to keep the paperwork watertight — but you remain legally responsible, so choose a good one and check their work.
Module summary: Have every certificate and the written statement ready before marketing, advertise a fixed rent (no bidding), reference every applicant fairly, and run a disciplined move-in: Right to Rent, written terms, deposit protected within 30 days inside the five-week cap, and a signed inventory. Manage with records-first discipline — rent reviews once a year via Section 13, prompt repairs, reasonable pet requests. Whether you self-manage or use an agent, the legal responsibility stays with you.
Educational information only — not legal advice. Tenancy rules are set nationally and locally and are changing under the phased rollout of the Renters' Rights Act. Verify current requirements on GOV.UK, with your local council, or with a qualified professional before acting.