How do I set up as a landlord?

Here is a checklist of things to do to set yourself up as a landlord generating income from one or more properties.

• Will your annual net rental income be more than £1,000? You may need to Register for self-assessment
• Property income and associated expenses must be recorded separately for each property. Consider using software to record this information, or a spreadsheet (if simple).
• Are you renting out more than one property, or is there a significant number of transactions? Consider setting up a business bank account.
• Do you have a mortgage on the property? You may be able to claim interest on the loan against the income. Ensure you have informed your mortgage provider you are renting the property out.
• Do you need to register for VAT? You will if your annual rental income (before expenses are deducted) is more than £90,000.
• Consider paying voluntary national insurance contributions.
• Making Tax Digital will be commencing in April 2026 for landlords with income of £50,000 or more. Quarterly reports will need to be submitted to HMRC via approved software.
• Are you a non-UK resident renting a UK property? You will be required to pay 20% tax on each amount of rental income received. If you have no other UK income you may wish to consider applying to have the rent paid gross.
• Ensure you are familiar with your legal responsibilities as a landlord, including meeting safety standards.
• Some expenses will be of a capital nature, and some will be revenue. Only revenue expenses can be offset against rental income.
• If you are renting a residential property that is held in a company, partnership or trust, you will need to consider whether the Annual Tax on Enveloped Dwellings (ATED) is payable.
• Find out who is responsible for paying the Council Tax.