The business of being a landlord

An introduction to Suzanne Smith: from lawyer to landlord

Before becoming a landlord in 2019, I worked as a solicitor in the life sciences industry for 25 years. I became a landlord when I rented out a flat I already owned, which makes me an "accidental landlord", in common with about one third of landlords.

After a few years relying on letting agents to find tenants, I switched to doing it myself using online platforms. I have always managed my rental properties myself.

I now have portfolio of four Victorian houses in Kent with long-term tenants. I sold my accidental landlord flat as the service charge doubled, which made it uneconomical for me to keep.

I've gone through a steep learning curve as a landlord. In 2022 I started The Independent Landlord to share what I was learning, so I could make detailed practical guidance available to other landlords for free. The Independent Landlord has since grown to reach tens of thousands of landlords each week through a blog, YouTube channel, free weekly newsletter and a membership.

Upcoming changes in the private rented sector

The private rented sector in England is going through unprecedented change with the Renters’ Rights Act 2025 set to overhaul the tenancy system when it comes into force, which is likely to be sometime in 2026. Also, Making Tax Digital (MTD), the government’s tax digitisation programme, will start rolling out in April 2026 for unincorporated landlords, and changes to the minimum energy efficiency standards for landlords are on the horizon.

It is becoming increasingly complex to be a landlord. Yet only a small proportion of landlords are “professional”: 83% of landlords in England own fewer than five rental properties, and 45% have just one. 1 Yet this complexity affects everyone, from the “accidental landlord” with a single property to those with larger portfolios.

To thrive in this environment, landlords need to treat their rental properties as a business and take a professional approach.

All this change may feel overwhelming, and The Mortgage Works have asked me to share practical tips to help landlords adapt and thrive in this changing landscape.

What is the business of being a landlord?

At its simplest, landlords receive rent for providing homes for people to live in. But this is far from the "passive income" of putting money in a savings account, because renting out property involves risk, responsibility and regulation.

Being a landlord is a business and like any business, it needs to generate a sustainable return to remain financially viable. As we never know what long-term capital growth will be, the rental income should cover the costs, including tax, to break even.

It is a business that is heavily regulated. Rental properties must meet minimum standards and landlords need to provide certain documentation and information at the start of the tenancy, and throughout the tenancy. The Renters' Rights Act will introduce many additional obligations for landlords.

In any business, having happy customers is the key to long-term sustainable success. It's no different for landlords, and the Renters' Rights Act will not change this.

Tenants are our customers, and happy customers are good for business: they stay longer, take better care of the property and reduce costly void periods.

A well-maintained property offered at a reasonable rent attracts the best tenants. Once they move in, providing a high-quality service with good communication and prompt attention to repairs make all the difference.

Showing tenants you care is an important part of making them feel valued and keeping them happy. It is easier to do this if you self-manage, but you can still do this even if you use letting agents for property management.

For instance, you can accompany their agents on inspections with the agents at least once a year to check that the property is in good order, and chat to the tenants to see if they are happy with the service the letting agents are providing.

8 practical tips for your landlord business

Here are 8 practical tips to help you navigate the change ahead for your landlord business:

1. Understand your legal obligations

Even if you use a letting agent, you remain legally responsible for compliance as the buck stops with the landlord.

It is vital that you understand your legal obligations, especially as the Renters' Rights Act will introduce new offences that can result in civil penalties, and some will give the right for tenants to apply for rent repayment orders of up to two years' rent.

Use reliable sources such as gov.uk, landlord associations or reputable websites to understand your legal obligations as a landlord.

Some councils impose an additional layer of legal obligations by requiring landlords to obtain a licence, and it is offence to let an unlicensed property, even if you do not know that the scheme has been introduced. Set a reminder every six months to check your local authority's website to see if they are planning to introduce selective licensing in your area.

2. Keep your finances in order

It is important to keep accurate financial records, not only to help you keep tabs on how your business is faring, but also for taxation purposes.

A separate bank account for your landlord business makes tracking income and expenses simpler. It will smooth the transition to MTD as you will not need to keep excluding personal transactions if you use accounting software for your quarterly submissions.

I make a habit of uploading copies of receipts and invoices into my accounting software as I go along. If you do not use accounting software, you can save copies of receipts in electronic folders on your computer or laptop.

3. Build financial resilience

Put money aside regularly for future repairs and tax bills. A good rule of thumb is to allow around 10% of gross rent for routine maintenance and another 10% for major repairs such as replacing a boiler or repairing a chimney.

Having a contingency fund can also help tide you over during void periods.

4. Stay organised

Organisation is key to professionalism.

Set calendar reminders two months before your gas safety certificate and Electrical Installation Condition Report (EICR) are due to expire.

Keep an electronic folder for each property with insurance documents, safety certificates, tenancy agreements and inventories. After conversations with tenants or agents, send a short email summary confirming what was agreed. This will be invaluable if a dispute arises later.

5. Choose tenants carefully

Careful tenant selection underpins a successful tenancy. As well as carrying out professional referencing, with a detailed credit check, it is worth speaking to their previous landlord, who may be more forthcoming than their current landlord.

If possible, meet prospective tenants yourself before making the final decision. If your letting agent conducts the referencing, ask them to share the report with you, provided you're registered with the Information Commissioner's Office and have a Data Protection Notice in place. See this blog post for more details on data privacy (opens in a new window).

6. Carry out regular inspections

Regular inspections help identify maintenance issues early. I prefer to describe them as "maintenance visits", as this emphasises that the purpose is to keep the property in good condition, rather than to "check up" on the tenants.

I carry out my maintenance visits for my single lets with long-term tenants every six months or so, although be aware that some landlord insurance requires checks every three months. HMOs tend to have more frequent inspections, depending on the number of tenants.

7. Review rents little and often

If landlords do not increase rent during a period of inflation, it is the same as decreasing it in real terms.

Modest annual increases are usually better for both landlord and tenant than large, irregular ones. I review rent each year and aim to track inflation while keeping slightly below market levels.

When the Renters' Rights Act comes into force, it will be compulsory for landlords will have to use the statutory Section 13 process to increase rent. This will involves sending a completed Form 4 to the tenants at least two months the rent increase.

8. Manage rent arrears proactively

Rent arrears can be stressful for both landlord and tenant.

Keep tabs on rent payments and follow up on missed rent payments quickly. Early empathetic intervention can help the tenant and prevent arrears from escalating.

Bringing it all together

The most effective landlords take a business like approach, while remembering that they're in the business of providing homes for people to live in. This makes being a landlord a very special sort of business, which comes with special responsibilities.

What we do and how we go about it matter to our tenants, their quality of life and their mental health.

Being fair, reasonable, compliant and professional will help you maintain a sustainable business as a landlord.

More like this to come...

In the meantime, you can explore our range of industry insights and articles that simplify complex regulation, and help you to understand your important role as a landlord.