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John Grants
Landlord guide

Protecting your rental income.

Where rent is lost and what reduces the risk: the right tenant, a protected deposit, the arrears rules and the questions to ask before you buy insurance.

What type of property is it?

On this page

At a glance

  • Most income risk comes from three things: a gap between tenants, rent going unpaid and damage or disputes. You can reduce each of them before the tenancy starts.
  • The strongest protections are proper referencing, a protected deposit (capped at five weeks’ rent for most tenancies) and a clear, lawful paperwork trail.[1][2]
  • Since 1 May 2026, serious rent arrears can be a mandatory ground for possession once three months’ rent is owed, with four weeks’ notice.[3]
  • Landlord insurance costs are an allowable expense against your rental income, but policies differ, so read what is excluded before you rely on one.[4][5]

Rules and figures last checked October 2026.

Where rental income is lost

A property that is let for a full year at a realistic rent, to a tenant who pays on time and looks after it, is the best income protection there is. Almost every protection below is a way of getting closer to that.

  • Empty weeks between tenants. Pricing the rent realistically matters more than almost anything else. A free rental valuation compares your property with similar homes let nearby.
  • Rent that stops arriving. The best defence is choosing the right tenant in the first place.
  • Damage, or a dispute about it. An inventory and a protected deposit are what settle these.
  • Legal costs and delay. Getting the paperwork right first time avoids most of these, as the Renters’ Rights Act guide explains.

Choosing the right tenant

Our Let Only service includes finding your tenant, running references and credit checks and preparing the contract. See services and fees. You must also check that every adult occupier has the right to rent in England before the tenancy starts; the rules and penalties are in our landlord legislation guide.[6]

The deposit and the rent rules

  • The cap. A deposit can be up to five weeks’ rent (six if annual rent is £50,000 or more), and a holding deposit up to one week.[1]
  • Protect it properly. The deposit must be protected in a government-approved scheme within 30 days. If it is not, a court must order you to pay between one and three times the deposit.[2] Since 1 May 2026, a court will only grant most possession orders if the deposit has been protected or returned.[8]
  • Rent in advance. Between signing and the start date you can ask for no more than one month’s rent, and you cannot ask for anything before both sides have signed.[9]
  • Rent rises. Rent can rise once a year through a Section 13 notice with at least two months’ notice, and not in the first year.[10]

When rent goes unpaid

Act early, and in writing. If arrears build up, the main ground for possession is Ground 8 (serious rent arrears). It needs arrears of at least three months’ rent if rent is paid monthly (or 13 weeks’ rent if paid weekly or fortnightly) both when you serve notice and at the court hearing, and it needs four weeks’ notice. Benefits are not counted when a tenant owes rent.[3]

Ground 10 (some rent unpaid) and Ground 11 (persistent late payment) are discretionary, so the court decides whether it is reasonable to grant possession.[3] Because the notices and the order of steps have to be exactly right, talk to our lettings team before serving anything.

Insurance

Insurance does not remove the risk; it moves part of the cost. The details of each policy decide what you actually get.

  • Landlord insurance. HMRC treats landlords’ policies for buildings, contents and public liability as allowable expenses against your rental income.[4] If your home has a mortgage, tell your lender before you let it, and check your buildings policy actually covers a let property rather than assuming it does.[11]
  • Legal expenses cover. Citizens Advice notes that most legal expenses policies will not pay for everything, and that insurers may insist you use their own legal team.[5]
  • Rent guarantee cover. Some insurers sell policies aimed at unpaid rent. We cannot recommend a product, so ask any insurer what triggers a claim, how long it pays for, what the tenant referencing requirements are and what is excluded.

Letting someone else carry the load

With Rent Collection we collect the rent, register the deposit and provide statements; with Full Management we add inspections every four months and maintenance. We also offer a Guaranteed Rent scheme for a fixed monthly income. Compare them side by side on our services and fees page, or start with how letting works.

Sources

Every figure and rule above comes from one of these, read in October 2026. The dates are the ones each publisher shows as when the page was last updated.

  1. [1]Fees you can charge as part of a tenancy (opens in a new tab)GOV.UK · page updated 7 July 2026
  2. [2]Housing Act 2004, section 214: proceedings relating to tenancy deposits (opens in a new tab)legislation.gov.uk
  3. [3]Grounds for possession: guidance for landlords and letting agents (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 1 May 2026
  4. [4]Work out your rental income when you let property (opens in a new tab)GOV.UK (HM Revenue and Customs) · page updated 19 March 2025
  5. [5]Finding free or affordable legal help (opens in a new tab)Citizens Advice · page updated 14 April 2020 (last reviewed)
  6. [6]Landlord’s guide to right to rent checks: 1 October 2026 (opens in a new tab)GOV.UK (Home Office) · page updated 1 October 2026
  7. [7]Rental discrimination under the Renters’ Rights Act 2025 (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 6 May 2026
  8. [8]Renters’ Rights Act: an overview for landlords (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 1 May 2026 (published)
  9. [9]Rent in advance and deposits (assured tenancy agreements: a guide for landlords) (opens in a new tab)GOV.UK
  10. [10]Rent increases (assured tenancy agreements: a guide for landlords) (opens in a new tab)GOV.UK
  11. [11]Renting out your property: landlord responsibilities (opens in a new tab)GOV.UK

This is a general guide to the rules in England, not legal or tax advice. Your own circumstances, and your lease or mortgage terms, may change what applies, so check the sources below or speak to a solicitor or accountant before you act.

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