And why you need a letting and property company
Becoming a landlord can be a rewarding venture, offering the chance to generate passive income and build long-term wealth. However, managing rental property is far from passive — especially if you’re new to the game. With around a third of UK households renting in either the private or social sector, demand for quality rental homes is high. But success as a landlord depends on avoiding the common missteps that can cost you time, money, and legal headaches.
Whether you’re renting out your first property or expanding your portfolio, here are 11 pitfalls many new landlords fall into — and practical ways to steer clear of them.
1. Skipping Proper Tenant Vetting
One of the fastest ways to run into trouble is by not thoroughly checking who you’re renting to. Without proper screening, you risk ending up with tenants who fail to pay rent, damage your property, or require costly legal eviction.
Always carry out reference checks, review financial history, run credit reports, and ideally meet applicants in person. A thorough vetting process helps reduce the risk of rental issues down the line.
Tip: At Carrick Johnson, we carry out detailed background checks and personal interviews to help match the right tenant to the right property.
2. Not Staying Up to Date with Legal & Tax Rules
It’s easy to underestimate the legal obligations of being a landlord. From safety regulations to changing tax rules, there’s a lot to stay on top of.
New legislation like the Renters Reform Bill and the 2026 rollout of Making Tax Digital are just the start. As of May 14, 2025, enhanced Anti-Money Laundering (AML) and financial sanctions requirements also apply to landlords and letting agents.
Falling behind on compliance can result in fines or even legal action. Working with a knowledgeable letting agent can help ensure you’re always on the right side of the law. T
3. Using Poor or Generic Tenancy Agreements
If you’re relying on a handshake or downloading a basic lease template online, you could be setting yourself up for disputes. A well-drafted tenancy agreement is essential to define both parties’ responsibilities, rent terms, and notice periods.
Make sure your contract is tailored to your property, complies with currentg legislation, and is clear and comprehensive.
4. Failing to Protect the Tenant’s Deposit
By law, any deposit you take must be p laced into a government-approved tenancy deposit scheme within 30 days of receipt — and your tenant must be informed of where it’s held.
Failing to do so can lead to serious consequences, including being ordered to repay up to three times the deposit amount and losing the ability to serve certain legal notices.
This is a simple but crucial legal obligation that every landlord must follow.
5. Getting Rent Pricing Wrong
Setting the right rental price is a balancing act. Charge too much, and you may face long void periods. Charge too little, and you leave money on the table.
It’s important to do your homework — or better yet, consult a local letting expert — to determine a fair and competitive rent for your specific area and property type.
6. Not Creating a Proper Inventory
A detailed inventory at the beginning of a tenancy protects both you and your tenant. It documents the condition of the property and any furnishings or fittings provided.
Without this, it becomes almost impossible to prove responsibility for any damage at the end of the tenancy — meaning you might struggle to justify deposit deductions.
Take photos, list everything clearly, and have the tenant sign the document at move-in.
7. Underestimating Maintenance Costs
It’s easy to assume your property won’t need much upkeep, but repairs and general wear-and-tear are inevitable.
Setting aside 10–15% of your monthly rental income for ongoing maintenance is a smart way to ensure you’re not caught off guard by unexpected costs. Regular property inspections also help catch issues early before they become expensive problems.
Need help staying on top of it? Carrick Johnson offers full property management services to handle maintenance on your behalf.
8. Poor Presentation of the Property
Even in a competitive market, presentation matters. A tired-looking interior or neglected exterior can put off prospective tenants and lead to longer vacancies.
A fresh coat of paint, clean flooring, tidy gardens, and general cleanliness can make a huge difference — and can often be achieved without major expense.
9. Ignoring Energy Efficiency
Tenants are increasingly conscious of energy bills, and regulations now require landlords to meet minimum Energy Performance Certificate (EPC) standards.
Improving insulation, sealing draughts, or installing a more efficient boiler can not only help attract tenants but also increase your property’s overall value.
10. Not Preparing for Empty Periods
Even the best-managed properties will occasionally sit empty between tenancies. Failing to budget for these void periods can leave you scrambling to cover mortgage payments or bills.
Factor in a few weeks of vacancy each year when planning your finances. It’s a realistic buffer that helps keep your cash flow steady and your stress levels down.
11. Leaving Out Essential Appliances or Furnishings
Trying to save money by excluding basic white goods or furniture — especially in areas targeting younger renters or students — could be a false economy.
If you do provide furnishings or appliances, make sure they’re safe, clean, and in working order. Always clearly state what’s included in the tenancy.
Bonus Tip: Plan Repairs Early and Use Trusted Tradespeople
Landlords who wait until the last minute to arrange repairs risk longer void periods and substandard work. Whether it’s redecoration or appliance replacement, plan ahead and build relationships with qualified, reliable contractors.
Carrick Johnson ensure all tradespeople are properly certified and that their work meets legal standards — especially for gas, electrics, and fire safety.
Final Thoughts
Stepping into the world of property letting can be exciting — but it comes with its fair share of responsibilities. By understanding the common mistakes new landlords make, and how to avoid them, you’ll be in a much stronger position to protect your investment and build a successful rental business.
If you’d like help managing your property, finding great tenants, or staying compliant with new legislation, speak to our team at Carrick Johnson today.
