5 costly mistakes landlords make and how to avoid them

5 costly mistakes landlords make and how to avoid them

Landlords are facing one of the most significant regulatory shake-ups in decades, bringing increased risk if you get things wrong. Here’s how to sidestep common mistakes and stay ahead of the regulatory curve.

Key takeaways

  • Legal compliance is essential to protect your ability to regain possession, particularly with the upcoming abolition of Section 21 notices.

  • Robust tenant referencing will help you assess a tenant’s risk and suitability - avoiding arrears, evictions and damage.

  • Timely repairs and maintenance can help you avoid financial penalties as well as reputational damage.

  • Proper insurance cover ensures adequate protection for your property type and tenancy model.

  • Choosing the right letting agent can help you navigate the changing regulatory landscape while protecting your income, providing a better tenant experience and setting you up for long-term success.

Being a landlord today is not what it was ten - or even five - years ago. The regulatory landscape has become more complex, tenant expectations are higher than ever and the financial risks of getting things wrong have increased significantly.

Yet many landlords, whether self-managing or working with the wrong agent, continue to fall into the same traps. These mistakes can cost time, money and even your ability to regain possession of your property.

Here are five of the most common pitfalls we see and how a great letting agent can help you sidestep them entirely.

1. Falling behind on compliance in an era of reform

Landlords are navigating one of the most significant regulatory shake-ups in decades. 

The Renters Rights Bill will abolish Section 21 evictions - making legal compliance not just important, but essential for protecting your ability to regain possession through legitimate grounds.

What’s more, other stakes are rising too:

A great letting agent doesn’t just help you tick boxes - they stay ahead of the regulatory curve. They maintain airtight records, manage renewals and inspections, and keep you informed on upcoming obligations so you don’t get caught out when the rules change.

2. Skipping robust tenant referencing

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A rushed tenancy can quickly become a costly one. Robust referencing is not just about credit scores - it’s a multi-layered process designed to assess a tenant’s reliability, risk and long-term suitability.

True due diligence includes:

  • Affordability checks, based on income vs rent ratios.

  • Credit history, including CCJs, defaults, and payment patterns.

  • Employer references confirming stable and ongoing employment.

  • Landlord references verifying past behaviour, payment history, and property condition.

  • Identity and fraud checks to confirm legitimacy.

  • Where appropriate, guarantor vetting and documentation.

Cutting corners here risks arrears, evictions and damage - not to mention stress.

Experienced agents use specialist referencing providers and ensure each application is rigorously assessed before any tenancy agreement is signed. Many also offer insurance-backed rent guarantees, giving you an added layer of protection.

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