New tenancy setup checklist

Why it matters

Failing to correctly set up a new tenancy can lead to significant legal and financial repercussions for landlords. Non-compliance can invalidate notices, prevent successful possession claims, result in substantial fines, and lead to disputes over deposits or property conditions. A meticulous approach from the outset minimises risks, ensures legal enforceability, and protects your investment.

Legal requirements

• You must provide a valid Energy Performance Certificate (EPC) to the prospective tenant before they enter into a tenancy agreement.
• A current Gas Safety Certificate must be issued for all gas appliances and flues in the property by a Gas Safe registered engineer before the tenancy commences.
• An Electrical Installation Condition Report (EICR) must be obtained from a qualified electrician and provided to the tenant before they move in.
• You must ensure that smoke alarms are fitted on every storey and carbon monoxide alarms are installed in any room used as living accommodation containing a fixed combustion appliance, tested on the day the tenancy begins.
• The How to Rent Guide, current at the time, must be provided to the tenant at the start of the tenancy.
• Any tenant's deposit must be protected in a government-approved tenancy deposit scheme within 30 days of receipt and prescribed information provided to the tenant.
• Right to Rent checks must be carried out on all adult occupants before the tenancy begins, and copies of identity documents retained.
• The property must be fit for human habitation at the start of and throughout the tenancy.
• You must provide the tenant with your name and a valid contact address for yourself or your agent.
• Ensure the property meets minimum energy efficiency standards, typically an EPC rating of E or higher, unless a valid exemption is registered.

Common mistakes

• Not providing tenants with a valid EPC, Gas Safety Certificate, EICR, or the How to Rent Guide before or at the start of the tenancy.
• Failing to protect the tenancy deposit in a government-approved scheme or not providing the prescribed information to the tenant within the legal timeframe.
• Incomplete or incorrect Right to Rent checks, leading to penalties for illegal occupiers.
• Neglecting to test smoke and carbon monoxide alarms on the day the tenancy commences.
• Having a tenancy agreement that does not comply with the Tenant Fees Act 2019, leading to unlawful charges.
• Not conducting a thorough inventory and schedule of condition with photographic evidence, making deposit disputes difficult to resolve.
• Allowing a tenant to move in before all safety checks and certificates are in place and provided.
• Failing to adequately check a prospective tenant's references or financial suitability.

Practical guidance

• Begin by ensuring the property is compliant with all safety regulations, including gas, electrical, and fire safety.
• Obtain an Energy Performance Certificate (EPC) and ensure the property meets minimum energy efficiency standards.
• Conduct thorough tenant referencing, including credit checks, employment verification, and previous landlord references.
• Carry out Right to Rent checks for all adult occupants and securely store copies of their documents.
• Prepare a comprehensive, legally compliant tenancy agreement, specifying all terms, conditions, and permitted payments.
• Create a detailed inventory and schedule of condition, ideally with photographic or video evidence, signed by both parties at move-in.
• Collect the tenancy deposit and initial rent, then protect the deposit in a government-approved scheme and provide the prescribed information to the tenant within 30 days.
• Provide the tenant with copies of the EPC, Gas Safety Certificate, EICR, How to Rent Guide, and deposit protection prescribed information.
• Test all smoke and carbon monoxide alarms on the day the tenant moves in.
• Provide tenants with emergency contact details and clear instructions for reporting maintenance issues.

Pre-Tenancy Safety and Compliance Checks

Before a new tenant can move into your property, several critical safety and compliance checks must be completed. This includes ensuring a valid Energy Performance Certificate (EPC) is in place, demonstrating the property's energy efficiency. A Gas Safety Certificate, issued annually by a Gas Safe registered engineer, is mandatory for any property with gas appliances. Similarly, an Electrical Installation Condition Report (EICR) must be obtained from a qualified electrician, typically every five years, and provided to the tenant. Smoke alarms are required on each storey of the property, and carbon monoxide alarms must be present in rooms with a fixed combustion appliance, excluding gas cookers. All alarms must be tested on the day the tenancy commences. Failure to provide these certificates or ensure alarms are present and working can significantly hinder your ability to serve notices or pursue possession, and may lead to fines. Ensure you consult our 'EICR remedial works checklist' if any issues are identified during the electrical inspection.

Documentation and Legal Requirements

The foundation of a robust tenancy is comprehensive documentation and strict adherence to legal obligations. A legally compliant tenancy agreement must be in place, outlining all terms, conditions, and permitted payments in accordance with the Tenant Fees Act 2019. You must provide the tenant with the current 'How to Rent Guide' at the start of the tenancy. The tenant's deposit must be protected within 30 days of receipt in a government-approved scheme, and the prescribed information relating to the deposit protection must be issued to the tenant. Furthermore, 'Right to Rent' checks are a legal requirement for all adult occupants, ensuring they have a legal right to reside in the UK. Copies of identity documents must be securely retained for the duration of the tenancy and for a specified period thereafter. An accurate and detailed inventory and schedule of condition, preferably with photographic evidence, signed by both parties, is indispensable for resolving potential deposit disputes at the end of the tenancy.

Financial and Property Preparedness

Beyond legal documents, sound financial and practical preparations are essential. Thorough tenant referencing, including credit checks, employment verification, and previous landlord references, helps mitigate risks of rent arrears and property damage. Ensure all initial payments, including the tenancy deposit and first month's rent, are received as cleared funds before keys are handed over. The property itself must be clean, safe, and in good repair, meeting the standards of fitness for human habitation. All utilities should be checked, and meter readings recorded at the start of the tenancy. Consider conducting a Legionella risk assessment; while not always a legal requirement for domestic properties, it is good practice, especially in certain types of systems. Refer to our 'Legionella risk assessment checklist' for more details. Finally, provide clear instructions for utility transfers and emergency contacts for maintenance issues.

Regional Variations: Scotland, Wales, and Northern Ireland

While many core principles of tenancy law are similar across the UK, significant regional variations exist. In Scotland, the Private Residential Tenancy (PRT) replaced assured tenancies, offering open-ended agreements with different notice periods and rent review rules. The 'Private Residential Tenancy Statutory Terms Supporting Information' document must be provided. In Wales, the Renting Homes (Wales) Act 2022 introduced 'occupation contracts' and specific duties for 'contract-holders'. The 'written statement' of the occupation contract must be provided, and properties must be registered and licensed under Rent Smart Wales. Northern Ireland has its own separate legislation, including the Private Tenancies (Northern Ireland) Act 2022, which introduced new requirements for tenancy agreements, deposit protection, and energy efficiency. Always consult the specific regulations and guidance applicable to the region where your property is located, as non-compliance can lead to severe penalties.