Self-Managing Your Rental Property

Self-managing saves you the 8-15% of rent an agent would charge, but you earn that saving by doing the legal and people work yourself.

"This guide provides general information about UK landlord tax obligations. It is not financial or legal advice. Tax treatment depends on your individual circumstances and may change. Consider consulting a qualified accountant or solicitor for advice specific to your situation."

1. Advertising and viewings

Where to advertise

• OpenRent: Free basic listing plus upgrade to portals. Their portal package is about GBP 29 for 4 months, with Rightmove as an optional extra (2025-26 pricing).
• Portals via OpenRent: Rightmove / Zoopla exposure without using an agent.
• SpareRoom: Good for rooms and HMOs.
• Gumtree and Facebook Marketplace: Extra reach but more filtering work.

A practical sequence: list on OpenRent, add Rightmove if needed, then mirror to SpareRoom or Facebook for HMOs.

Viewings and what to look for

Safety:

• Do viewings in daylight where possible.
• Have someone know where you are and when, especially for back-to-back viewings.

What to look for:

• Punctuality, basic communication, how they talk about previous landlords.
• Signals of overcrowding risk (eg 2 adults saying "plus a cousin sometimes" on a one-bed).
• Whether their story matches what you later see on references.

2. Tenant referencing: checks you actually need

A thorough referencing pack should cover:

• ID and address: Passport / driving licence, proof of current address.
• Credit check: CCJs, defaults, insolvency markers; usually via a referencing agency.
• Employment verification: Employer reference or payslips / bank statements.
• Affordability:
• Typical test: income at least 2.5-3x monthly rent.
• NRLA example: rent x 30 should be less than or equal to annual salary.
• Previous landlord reference: Payment history, property care, behaviour.
• Right to Rent (England): Check immigration status and keep records.

OpenRent's comprehensive referencing, for example, includes credit, income, landlord and employment checks, with references around GBP 30 per applicant paid by you, not the tenant.

If someone refuses referencing or cannot evidence income, that is your answer.

3. Tenancy agreement: AST and fair clauses

For most standard lets in England in 2026 you are still using an Assured Shorthold Tenancy (AST) framework (until Renters' Rights changes fully bed in).

Key points:

• Use a current AST template from a reputable source (eg NRLA or a good online service), not an ancient Word doc.
• Essential content: parties, property, term, rent, deposit, landlord responsibilities, tenant obligations, how to end the tenancy.

Under the Consumer Rights Act 2015, terms must be fair and transparent. Unfair or one-sided clauses can be unenforceable. Examples to avoid:

• Clauses that try to dodge your repair duties under Landlord and Tenant Act 1985.
• Blanket bans without reason (eg "tenant pays all agency fees" which is also banned under the Tenant Fees Act 2019).
• "I can enter whenever I like" clauses that ignore quiet enjoyment.

You can still ban pets or smoking in many cases, but phrase it clearly and reasonably.

4. Deposit: collecting, protecting, and serving PI

If you take a deposit in England/Wales, the Housing Act 2004 rules apply.

You must:

• Protect the deposit in a government-backed scheme within 30 days of receiving it.
• Serve prescribed information and scheme details to the tenant and any relevant person within the same 30 days.

Schemes:

• Custodial and insurance options from DPS, MyDeposits, TDS (and nation-specific schemes in Scotland/Wales, which you cover in separate guides).

If you miss the deadline:

• Tenant can claim 1-3x the deposit as a penalty through the court or tribunal.
• Certain "no-fault" possession routes (Section 21) are blocked until you refund the deposit or otherwise remedy.

Use the scheme's online workflow. It walks you through the PI documents, which removes a lot of risk.

5. Check-in: getting the start right

A proper check-in saves most deposit arguments later.

On or just before move-in:

Inventory and schedule of condition

• Detailed room-by-room list with photos.
• Note meter readings, existing marks, wear, and provided items.
• Ideally signed by both you and the tenant, or done via a professional clerk.

Meter readings

• Gas, electric, water where relevant.
• Give these to both the tenant and suppliers to avoid disputes.

Key handover

• Record how many keys for each lock you give, and have the tenant sign for them.

Paperwork pack (England example)

• Tenancy agreement.
• Gas safety certificate.
• EPC.
• EICR if applicable.
• How to Rent guide (latest version).
• Deposit prescribed information.

If you ever need to prove you complied with the Deregulation Act 2015 and associated rules, this is where it comes from.

6. Ongoing management: rent, repairs, inspections

Rent collection:

• Set up a standing order. Keep a simple spreadsheet or software log.
• If rent is late:
• Day 1-3: polite reminder.
• Day 7+: written reminder.
• Persisting issues: move into arrears process.

Repairs and maintenance:

• Tenants report issues; you log them and respond promptly.
• Under Landlord and Tenant Act 1985 section 11, you must keep structure, exterior, heating and key installations in repair, regardless of what the contract says.

Inspections:

• Typically every 3-6 months.
• Give at least 24 hours' written notice, respect quiet enjoyment.
• Document condition and raise any issues early.

Track all communications and work orders. On a single BTL this can be a simple email folder and spreadsheet; for more, consider software.

7. Compliance: recurring tasks

In England/Wales in 2026:

• Gas safety: Every 12 months, certificate to tenant within 28 days.
• EICR: At least every 5 years, sooner if report says so.
• Smoke and CO alarms: Test on move-in, respond to reports, comply with local regulations.
• EPC: Every 10 years, minimum E rating (unless exempt).
• Licensing: HMO, additional, or selective licensing where applicable.
• Recordkeeping: Keep certificates, licences, inventories, and key emails.

If you skip these, you risk fines, rent repayment orders, or possession claims being thrown out.

8. Rent increases: Section 13 and new rules

Under the Housing Act 1988, Section 13 is the statutory route to increase rent on a periodic tenancy.

With the Renters' Rights Act changes due from 1 May 2026:

• All rent increases in periodic tenancies must go via a Section 13 notice.
• Contractual rent review clauses will no longer be valid once the new regime is in force.

You must:

• Use the correct prescribed Section 13 form.
• Give at least 2 months' notice.
• Increase no more than once every 12 months.

The increase must be broadly in line with market rent. Tenants can challenge at the First-tier Tribunal if they believe the new rent is above market.

So your process becomes: check comparables, serve the correct form, and be prepared to justify the figure if challenged.

9. Arrears and ending a tenancy

Arrears:

• Communicate early in writing, keep a clear timeline.
• Agree realistic repayment plans where appropriate.
• If arrears persist, you may rely on a relevant statutory ground for possession under the Housing Act 1988 (eg Ground 8 serious arrears) or its updated version under the Renters' Rights framework once in force.

Ending the tenancy:

• You must follow statutory notice procedures:
• Currently Section 21 / Section 8 for ASTs (until phased out/modified).
• Post-Renters' Rights Act, no-fault routes change, and process will be more heavily ground-based.
• Errors with notices (wrong form, wrong dates, missing compliance) are a major reason possession claims fail. If in doubt, this is the moment to pay a solicitor or a specialist service.

10. What self-managing saves -- and risks

Cost saving:

• High-street full-management fees: typically 8-15% + VAT of monthly rent.
• On GBP 950/month, 12% incl VAT = GBP 114/month = GBP 1,368/year.
• Over a 5-year tenancy that is GBP 6,840 saved if you self-manage well.

Risks:

• One botched deposit, illegal fee, or unsafe installation can cost GBP thousands in penalties or disallowed possession routes.
• Time cost: callouts, admin, chasing trades.
• You must keep up with law changes (eg Renters' Rights Act and new Section 13 rules) or you will run on outdated assumptions.

Common forum myths:

"Just download any AST and you are fine." Wrong: outdated agreements can clash with Tenant Fees Act and newer laws, making clauses unenforceable.

"You do not need referencing if they seem nice." Wrong: most arrears and damage stories start with "they seemed nice at the viewing". Formal checks protect you.

"Section 13 lets you name any price." Wrong: increases must reflect market rent, and tribunals can reset to market level if you overreach.

If you treat self-management like a small business, invest a bit in training and templates, and keep a compliance checklist, it can absolutely be worth the fee saving. If you want it to be passive, a good managing agent is cheaper than your first serious mistake.

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