7 COSTLY MISTAKES ACCIDENTAL LANDLORDS MAKE - AND HOW TO AVOID THEM
7 costly mistakes accidental landlords make - and how to avoid them
Becoming a landlord isn’t always something you plan. Maybe you’ve inherited a home, moved in with a partner, or relocated for work and suddenly, you’re responsible for letting out a property.
If this sounds familiar, you’re not alone. Many accidental landlords find themselves navigating new responsibilities without much preparation. But don’t worry! With a bit of guidance and the right tools, it’s entirely possible to manage your property confidently and avoid expensive mistakes.
In this blog, we’ll walk you through seven of the most common pitfalls for accidental landlords - and how to avoid them.
1. Not using a deposit protection scheme to protect the deposit
If you're letting out a property under an Assured Shorthold Tenancy (AST), you must legally protect your tenant's deposit in a government-approved deposit protection scheme within 28 days of receiving it. In Northern Ireland, the rules changed from 1st April 2023 that landlords have 28 days to protect the deposit, an increase from the previous 14-day requirement. Landlords must also provide a written receipt for any cash payments related to the tenancy. Additionally, it's now illegal for a landlord to request or hold a deposit that exceeds one month’s rent.
2. Not providing the prescribed information correctly
It’s not just about protecting the deposit; you also need to give tenants the Prescribed Information that tells them where their deposit is held and how it can be returned. This also needs to be done within 35 days, previously 28 days, upon receipt of the deposit. Missing this step can cause major issues if you need to end the tenancy later. With TDS NI the Prescribed Information is prepopulated, making it easy for you to send on to your tenant. Download our Prescribed Information guide here
3. Forgetting to join the landlord register
All landlords letting properties under a private tenancy in Northern Ireland are legally required to sign up to the landlord register. This involves providing accurate and up-to-date information about yourself and the properties you rent out. The Central Register of Private Landlords is a single, centralised system that holds details of all registered landlords and their properties. It enables tenants, neighbours, and local councils to verify whether a landlord is registered and supports better oversight across the sector. The register also helps inform landlords of their rights and responsibilities through regular updates, guidance, and support.
4. Using a verbal or outdated Tenancy Agreement
Verbal agreements or DIY contracts can create confusion about rent, responsibilities, and notice periods. For peace of mind on both sides, always use a professionally drafted tenancy agreement. If you’re unsure where to start, NIDirect.gov offers helpful information and templates for your tenancy agreement.
5. Missing out on safety requirements
All landlords -accidental or not- must meet certain safety standards. Landlords are responsible for:
- repairs to the structure and exterior of the property, heating and hot water systems, basins, sinks, baths and other sanitary ware
- safety of gas and electrical appliances
- fire safety of furniture and furnishings provided under the tenancy
- ensuring that the property is fit for habitation
- repairing and keeping in working order the room and water heating equipment
- the common areas in multi-occupancy dwellings
Failing to meet these standards can invalidate your right to evict and, more importantly, endanger your tenants. Check what’s legally required of landlords here.
6. Skipping the inventory
A proper inventory protects both you and your tenant. Without one, it’s hard to prove damage or loss at the end of a tenancy, which can lead to disputes. Taking time to document everything at check-in (furniture, condition, meter readings) means less stress later especially if your deposit protection scheme offers free dispute resolution, like TDS NI does. Check out our guide to Inventories, check-in and check-outs here.
7. Not factoring in tax
Rental income isn’t ‘extra’ money, it’s taxable. Many accidental landlords don’t realise they need to register with HMRC and declare their earnings. There may also be Capital Gains Tax implications if you sell the property later. The HMRC’s guide for landlords is a helpful starting point
Being an accidental landlord doesn’t mean doing it all alone. With the right support, you can manage your property professionally, protect your tenants, and avoid unnecessary costs.
Start by choosing a trusted deposit protection scheme like TDS NI, we’re here to help every step of the way!
Simple deposit protection
Joining TDS NI is simple!
It only takes a few minutes to join today.
We’ve also made this easy if you’d like to transfer from another scheme. Visit our switch page and we’ll handle the rest.
About TDSNI
The Tenancy Deposit Scheme NI is part of The Dispute Service (TDS), the leading tenancy deposit protection and resolution service provider in the UK making life easier for tens of thousands of agents, landlords, developers, and millions of tenants and homebuyers. TDS is a not-for-profit company with offices in Hemel Hempstead, Glasgow, and Belfast.
7 costly mistakes accidental landlords make - and how to avoid them
Becoming a landlord isn’t always something you plan. Maybe you’ve inherited a home, moved in with a partner, or relocated for work and suddenly, you’re responsible for letting out a property.
If this sounds familiar, you’re not alone. Many accidental landlords find themselves navigating new responsibilities without much preparation. But don’t worry! With a bit of guidance and the right tools, it’s entirely possible to manage your property confidently and avoid expensive mistakes.
In this blog, we’ll walk you through seven of the most common pitfalls for accidental landlords - and how to avoid them.
1. Not using a deposit protection scheme to protect the deposit
If you're letting out a property under an Assured Shorthold Tenancy (AST), you must legally protect your tenant's deposit in a government-approved deposit protection scheme within 28 days of receiving it. In Northern Ireland, the rules changed from 1st April 2023 that landlords have 28 days to protect the deposit, an increase from the previous 14-day requirement. Landlords must also provide a written receipt for any cash payments related to the tenancy. Additionally, it's now illegal for a landlord to request or hold a deposit that exceeds one month’s rent.
2. Not providing the prescribed information correctly
It’s not just about protecting the deposit; you also need to give tenants the Prescribed Information that tells them where their deposit is held and how it can be returned. This also needs to be done within 35 days, previously 28 days, upon receipt of the deposit. Missing this step can cause major issues if you need to end the tenancy later. With TDS NI the Prescribed Information is prepopulated, making it easy for you to send on to your tenant. Download our Prescribed Information guide here
3. Forgetting to join the landlord register
All landlords letting properties under a private tenancy in Northern Ireland are legally required to sign up to the landlord register. This involves providing accurate and up-to-date information about yourself and the properties you rent out. The Central Register of Private Landlords is a single, centralised system that holds details of all registered landlords and their properties. It enables tenants, neighbours, and local councils to verify whether a landlord is registered and supports better oversight across the sector. The register also helps inform landlords of their rights and responsibilities through regular updates, guidance, and support.
4. Using a verbal or outdated Tenancy Agreement
Verbal agreements or DIY contracts can create confusion about rent, responsibilities, and notice periods. For peace of mind on both sides, always use a professionally drafted tenancy agreement. If you’re unsure where to start, NIDirect.gov offers helpful information and templates for your tenancy agreement.
5. Missing out on safety requirements
All landlords -accidental or not- must meet certain safety standards. Landlords are responsible for:
- repairs to the structure and exterior of the property, heating and hot water systems, basins, sinks, baths and other sanitary ware
- safety of gas and electrical appliances
- fire safety of furniture and furnishings provided under the tenancy
- ensuring that the property is fit for habitation
- repairing and keeping in working order the room and water heating equipment
- the common areas in multi-occupancy dwellings
Failing to meet these standards can invalidate your right to evict and, more importantly, endanger your tenants. Check what’s legally required of landlords here.
6. Skipping the inventory
A proper inventory protects both you and your tenant. Without one, it’s hard to prove damage or loss at the end of a tenancy, which can lead to disputes. Taking time to document everything at check-in (furniture, condition, meter readings) means less stress later especially if your deposit protection scheme offers free dispute resolution, like TDS NI does. Check out our guide to Inventories, check-in and check-outs here.
7. Not factoring in tax
Rental income isn’t ‘extra’ money, it’s taxable. Many accidental landlords don’t realise they need to register with HMRC and declare their earnings. There may also be Capital Gains Tax implications if you sell the property later. The HMRC’s guide for landlords is a helpful starting point
Being an accidental landlord doesn’t mean doing it all alone. With the right support, you can manage your property professionally, protect your tenants, and avoid unnecessary costs.
Start by choosing a trusted deposit protection scheme like TDS NI, we’re here to help every step of the way!
Simple deposit protection
Joining TDS NI is simple!
It only takes a few minutes to join today.
We’ve also made this easy if you’d like to transfer from another scheme. Visit our switch page and we’ll handle the rest.
About TDSNI
The Tenancy Deposit Scheme NI is part of The Dispute Service (TDS), the leading tenancy deposit protection and resolution service provider in the UK making life easier for tens of thousands of agents, landlords, developers, and millions of tenants and homebuyers. TDS is a not-for-profit company with offices in Hemel Hempstead, Glasgow, and Belfast.