So, you’ve just bought your first buy-to-let property. Congratulations—you’re now a landlord. But before you start browsing for new tenants or calculating your passive income, a word of warning: the buy-to-let world in 2025 is more complex than ever.
Tighter legislation, higher mortgage costs, and shifting tenant expectations mean that rookie mistakes can be expensive—and sometimes legally risky. Here are the top 7 pitfalls first-time landlords should avoid this year, plus expert tips to get your investment off to a strong start.
Failing to register your tenancy deposit correctly
By law, you must protect your tenant’s deposit in a government-approved scheme (DPS, TDS or MyDeposits) within 30 days of receiving it. Failure to do so can result in hefty fines and make it difficult to regain possession of the property.
Pro tip: Always issue the prescribed information promptly. Many eviction cases fail because landlords didn’t follow this simple step.
Overlooking EPC and compliance certificates
As of 2025, all rental properties in England and Wales must have an EPC rating of at least E—with proposals to raise that to C by 2028. You’ll also need:
- Gas safety certificate (renewed annually)
- Electrical Installation Condition Report (every 5 years)
- Smoke and CO2 detectors in place
Pro tip: Non-compliance not only puts tenants at risk, but can invalidate insurance and attract fines of up to £30,000.
Letting emotion dictate your property choice
It’s easy to fall in love with a property you’d like to live in yourself—but that doesn’t make it a good rental. Tenants prioritise convenience, connectivity and functionality over luxury finishes.
Pro tip: Research tenant demand in your area. A two-bed flat near a station may outperform a three-bed house in a sleepy suburb.
Setting the wrong rent
Too high, and you’ll face void periods. Too low, and you’ll erode your margins. New landlords often guess, or base rents on outdated assumptions.
Pro tip: Use platforms like Rightmove and OpenRent to compare similar listings, or speak to local letting agents for pricing insights.
Underestimating ongoing costs
Repairs, void periods, management fees, insurance, and mortgage interest—all eat into your returns. Many new landlords overlook these and assume their gross rent equals profit.
Pro tip: Budget for 20–30% of your rental income to go on running costs annually.
Using a poor or incomplete tenancy agreement
A vague or outdated tenancy agreement leaves you exposed. Don’t download a free PDF from a dodgy website—get it done properly.
Pro tip: Use the official government model tenancy agreement, or have a solicitor draw one up that covers things like pets, rent review clauses, and late payments.
Trying to do everything yourself
Managing a property takes time, knowledge and access to trusted trades. If you’re new, the DIY route can cost more in the long run—especially if you fall foul of legal obligations.
Pro tip: A good managing agent can save you stress and protect your investment. Shop around and ask for recommendations.
Being a landlord in 2025 isn’t as easy as it used to be—but get it right, and it’s still one of the most reliable routes to long-term wealth.
Start with knowledge, prepare for bumps in the road, and never stop learning. Your first buy-to-let shouldn’t be your last—just your smartest.
