First-Time Landlord Renovation Guide: What to Do Before You Let

The following are legal requirements — not optional niceties. Failure to comply can result in fines, loss of the ability to serve a Section 21 notice, and in some cases criminal prosecution.

• **Energy Performance Certificate (EPC)**:
• •Required before marketing the property — must be available to prospective tenants
• •Minimum rating: E (as of 2025 — you cannot let a property with an F or G rating in England)
• •Certificate is valid for 10 years from issue
• •Cost: £60–£120 from a qualified Domestic Energy Assessor
• •Note: proposed future requirements (minimum C by 2028 for new tenancies — confirm current regulatory position as legislation is subject to change)

• **Gas Safety Certificate (CP12)**:
• •Required annually — a landlord's gas safety check by a Gas Safe registered engineer
• •Must be in place before the first tenant moves in
• •A copy must be given to the tenant within 28 days of the annual check (or at the start of the tenancy for a new check)
• •Cost: £60–£120 annually

• **Electrical Installation Condition Report (EICR)**:
• •Required for all private rental properties in England (Electrical Safety Standards in the Private Rented Sector Regulations 2020)
• •Must be carried out by a qualified electrician (registered with a competent person scheme — NICEIC, NAPIT, or similar)
• •Minimum frequency: every 5 years (or at change of tenancy if the current report is more than 5 years old)
• •The report must be given to new tenants before they move in
• •Any C1 or C2 defects identified must be remedied within 28 days and evidence provided to the tenant
• •Cost: £150–£300 for a 3-bedroom property

• **Smoke and carbon monoxide alarms**:
• •Smoke detector required on every floor of the property
• •Carbon monoxide detector required in every room with a fixed combustion appliance (boiler, gas fire, wood-burning stove — but not a gas cooker)
• •Detectors must be tested and shown to be working at the start of each tenancy
• •Cost: £15–£35 per detector; battery-operated detectors are acceptable

• **Legionella risk assessment**:
• •All landlords have a duty to assess and control the risk of Legionella bacteria in their property's water system
• •For a standard domestic let with a simple hot and cold water system, a basic written risk assessment is typically sufficient — this can be carried out by the landlord themselves following HSE guidance
• •For more complex water systems or HMOs, a professional assessment is recommended
• •The assessment should be reviewed periodically (typically annually when carrying out the gas safety check)

• **Right to Rent checks**:
• •Landlords must verify that all adult occupants have the right to rent in the UK before granting a tenancy
• •This requires checking original documents (passport, visa, biometric residence permit) or using the Home Office online right to rent checking service
• •Failure to carry out checks when a tenant has no right to rent can result in a fine of up to £20,000 per occupant

• **Deposit protection**:
• •Any deposit taken from a tenant under an Assured Shorthold Tenancy must be registered with a government-approved tenancy deposit scheme within 30 days
• •Three approved schemes: Deposit Protection Service (DPS), MyDeposits, Tenancy Deposit Scheme (TDS)
• •Prescribed information must be given to the tenant within 30 days confirming the scheme used
• •Failure to protect the deposit prevents the landlord from serving a valid Section 21 notice

Renovation decisions for a rental property should be driven by a different logic to renovation decisions for owner-occupation. The priority hierarchy is:

1. **Legal compliance first**: EPC, electrical, gas, structural — anything that could result in prosecution or loss of licence comes first regardless of cost 2. **Structural and fabric defects**: damp, roof leaks, defective windows — issues that will cause tenant complaints, void the insurance, and require emergency attention during a tenancy 3. **Value-protecting M&E upgrade**: new boiler (particularly if the existing boiler is more than 12 years old), partial or full rewire (if the current EICR flags significant issues), bathroom and kitchen update 4. **Cosmetic renovation**: decoration, flooring, lighting — high visual impact for relatively low cost 5. **Enhancement for rental premium**: en-suites, built-in storage, kitchen upgrade to higher specification — justified only if the rental premium covers the cost within a reasonable payback period

• **What London tenants pay a premium for (rental value drivers)**:
• •White goods included (washing machine, dishwasher, fridge-freezer) — particularly relevant in zones 2–4 in London where furnished lets command a premium
• •Good quality modern kitchen: tenants rank kitchen quality highly — a tired kitchen holds rental value down regardless of the property's other qualities
• •Bathrooms in good condition: a dated but functional bathroom is acceptable; a leaking, mouldy, or visibly deteriorated bathroom is a rental barrier
• •EPC C or above: increasing numbers of corporate tenants and higher-income renters explicitly select EPC C+ properties to manage energy costs
• •High-speed broadband: ensure full-fibre (FTTP) is available; this is increasingly a threshold requirement for professional sharers
• •Bike storage: in most London boroughs, secure bike storage is now a significant differentiator

• **What to avoid over-investing in for a rental**:
• •Very high-specification finishes: Carrara marble, bespoke joinery, luxury appliances — these do not command proportionate rental premium and are expensive to maintain or replace when damaged
• •Extensions or loft conversions purely for rental income: the yield calculation rarely justifies the capital cost; better to buy a slightly larger property in the first place

If you plan to let a property to three or more unrelated people sharing facilities (kitchen, bathroom) — a 'house in multiple occupation' or HMO — additional requirements apply.

• **Mandatory HMO licensing (England)**:
• •Applies to HMOs with 5 or more occupants forming 2 or more households, regardless of the number of storeys
• •License is issued by the local authority; fee varies by council (typically £400–£1,500 for a 5-year licence)
• •License conditions set minimum room sizes, fire safety requirements, and management standards
• •Operating an unlicensed HMO that requires a licence: fine up to £30,000 and a Rent Repayment Order (tenants can recover up to 12 months' rent)

• **Additional HMO licensing**:
• •Some London boroughs operate Additional Licensing schemes that extend mandatory licensing to smaller HMOs (often 3 or more occupants)
• •Check your specific borough — Tower Hamlets, Newham, Brent, and many others have Additional Licensing covering most HMO types

• **Article 4 Direction (planning)**:
• •Many London boroughs have introduced Article 4 Directions that remove Permitted Development rights for converting C3 (dwelling house) to C4 (small HMO) use
• •In an Article 4 area, converting a family home to a 3–6 person HMO requires full planning permission
• •This is a separate requirement from HMO licensing — you may need both a planning permission and a licence

• **HMO minimum room sizes (national standard)**:
• •Sleeping room for one adult: minimum 6.51m² (national minimum from 2018; some councils have higher standards)
• •Sleeping room for two adults: minimum 10.22m²
• •Rooms below these minimums cannot legally be used as sleeping rooms in a licensed HMO

See our separate guides on HMO licensing and HMO conversion costs for comprehensive coverage of these topics.