✏️ Updated March 2026
Free Checklist25 ChecksUK 2026
Rent to Rent Due Diligence Checklist:
Rent to Rent Due Diligence Checklist:
25 Checks Before You Sign
Complete this checklist before signing any rent to rent agreement. Every check is here for a reason — skipping even one can cost you thousands. Save it, print it, use it on every deal. For more detail, see our complete rent-to-rent checklist.
💡 How to Use This Checklist
Work through every section before signing your management agreement and before spending any money on the property. A check is only complete when you have written evidence or confirmation — not just a verbal assurance. Items marked CRITICAL should stop the deal entirely if they cannot be satisfied.
Section 1
Property Checks
🏠 Property — 6 Checks
Land Registry ownership verified CRITICAL
Check gov.uk Land Registry — £3. Confirm the person you’re dealing with is the registered owner or has authority to act for the owner.
Article 4 Direction status checked
Check with the local council planning department whether Article 4 applies to this specific address.
HMO licensing area confirmed
Check whether mandatory and additional licensing applies. Confirm the requirements and fees with the council’s housing team.
Room sizes measured and confirmed against licensing minimums
Minimum 6.51m² for single occupancy. Measure every lettable room before signing. Base your income analysis on lettable rooms only.
Property condition assessed — maintenance cost estimated
Walk through every room, check boiler condition, inspect roof via loft, check for damp/mould. Get contractor quotes for any required remedial work before committing.
EPC rating checked
Request the current EPC. Minimum rating E required for letting. Factor the EPC rating into your utility cost estimate — lower rated properties cost significantly more to heat.
Section 2
Landlord and Legal Checks
⚖️ Legal — 7 Checks
Mortgage confirmation obtained in writing CRITICAL
Written confirmation from the landlord that their mortgage permits HMO use and company let arrangement. Do not proceed without this.
Headlease checked (leasehold properties) CRITICAL for SA
For SA deals: read the headlease user restrictions and alienation clauses. Most leasehold flats prohibit short-term letting.
Company Let Agreement reviewed by solicitor
First deal: solicitor review is non-negotiable. Subsequent deals: reuse the reviewed template with minimal amendments.
Subletting permission clause verified as explicit and sufficient
The clause must explicitly permit the specific model you intend — HMO room lets, SA, or both. Generic permission is not sufficient.
Break clause included and mutual
Mutual break clause exercisable from month 18 with 2–3 months written notice minimum.
Rent-free period negotiated and documented
Minimum 4 weeks, ideally 6–8 weeks. Specified with exact start and end dates in the agreement.
Schedule of condition completed and signed
Photographic and written record of property condition before taking possession. Both parties signed. Attached to and forming part of the agreement.
Section 3
Financial Checks
💰 Financial — 6 Checks
Deal modelled at 75% occupancy — still profitable CRITICAL
If the deal does not generate positive profit at 75% occupancy (3 rooms out of 4 occupied, or 3.75 out of 5), do not proceed.
Realistic room rates verified with live SpareRoom data
Check live listings in the same postcode for comparable rooms. Use the mid-range of current listings, not the top end.
Utility costs estimated with current live quotes
Get an actual energy quote for the property — do not use old estimates. Add 10–15% buffer. Budget separately for winter vs summer.
Setup costs fully budgeted and capital confirmed available
Furnishing + compliance + licence + insurance + bills buffer. Do not start without confirmed access to all funds needed.
HMO licence fee researched and included in setup costs
Check the current fee with the council — typically £500–£900 for 5 years. Include in your setup budget.
Guaranteed rent amount agreed at or below your maximum
Maximum landlord rent = (total room income at 75% occupancy) − running costs − minimum target profit. Do not exceed this figure.
Section 4
Compliance Checks
🔒 Compliance — 6 Checks
HMO licence application planned for day of signing
Apply for the HMO licence the day you sign the management agreement. Processing takes 4–12 weeks — start immediately.
Fire door requirement assessed and budgeted
Fire doors required on all bedrooms and kitchen. Budget £130–£250 per door fitted.
Interlinked smoke alarm system planned
Grade D interlinked system required — smoke alarm in every bedroom and on every floor, heat detector in kitchen.
Gas Safety Certificate (CP12) in date or booked
Must be current before any tenant occupies. Book a Gas Safe engineer to inspect and certify the boiler before move-in.
EICR in date or booked
Electrical Installation Condition Report — required every 5 years. Check when the last one was done and book if due or expiring.
HMO insurance policy identified and ready to activate
Get quotes for specialist HMO operator insurance before signing. Policy must be active before any tenant moves in.
⚠️ The Golden Rule
Never spend any money on a property — not one penny — until the management agreement is signed by both parties and every CRITICAL check above is satisfied. Every item marked CRITICAL is a deal-stopper if it cannot be confirmed.
Want the Full Deal Analysis Training?
Property Accelerator walks you through this checklist and every aspect of analysing and closing your first rent to rent deal.
Watch the Free Training Use the Deal Calculator →