Landlord/Tenant considerations vary by
Agreement type:
- Assured Tenancies
- Single Lets (standard rights),
- HMOs (5+ people/2+ households; mandatory licensing/H&S rules),
- Lodgers (licence, fewer rights, notice typically matching the rental payment period).
- Company Lets (different insurance/liability)
- Short Lets (flexible, potentially assured tenancy or licence depending on tenure/exclusive use and services provided).
Key distinctions hinge on exclusive room use (tenancy) vs. shared facilities/resident landlord (licence).
This is further complicated by the loss of fixed terms under the Renters Rights Act which introduces specific requirements for landlords planning to let to students on an academic year basis.
Single Let (Assured Tenancy – AST to 1 May 2026)
- Standard tenancy, tenant gets exclusive use of property.
- Governed by standard assured tenancy rules (Section 8 evictions, deposit protection, etc.).
HMO (House in Multiple Occupation)
- 5+ people/2+ households (Mandatory licensing) or more local rules.
- Requires higher fire safety (fire doors, extinguishers, blankets), specific room sizes, and waste disposal compliance.
Lodger (Licence to Occupy)
- Resident landlord lives in the property.
- Typically a licence, not a tenancy, meaning fewer tenant rights and easier eviction.
- Up to 2 lodgers: Generally fine without being an HMO (depending on other factors).
- Key: Landlord retains access/control, no exclusive space granted.
Company Let
- Tenant is a company (not an individual).
- Different insurance needs (liability, property damage) and no standard assured tenancy protections.
Short Let
- Can be a licence (flexible, e.g., holiday let) or a tenancy.
- Distinction depends on the arrangement;.
Key Legal Differences (Tenancy vs. Licence)
- Tenancy: Exclusive use of at least one room; secure tenancy rights.
- Licence: Permission to use (not occupy exclusively); fewer rights, easier to terminate (lodger scenario is often a licence)
Deciding what Type of Tenant to House
The location, property type, property size and layout and required rent to cover finance criteria may guide the landlord in how to dress a property for a target tenant type, such as lower income, students, families or professionals.
When selecting tenants, UK landlords must adhere strictly to anti-discrimination laws and base decisions on objective criteria like affordability and references. The key is to assess all applicants fairly and equally, regardless of their background or specific group (e.g., benefits claimants, students, families, professionals).
Fair and Objective Selection Criteria
Instead of focusing on the type of tenant, the focus should be on the individual’s ability to meet the tenancy requirements.
| Selection Criterion | How to Assess Fairly |
| Affordability | Use a consistent income requirement for all applicants (e.g., gross annual income is 30 times the monthly rent). All forms of income, including benefits, must be considered equally. |
| Income Verification | Request recent pay slips, bank statements, or proof of benefit letters. Landlords can still refuse a tenant if they genuinely cannot afford the rent based on these checks. |
| Rental History | Request references from previous landlords to check for a track record of paying rent on time, property care, and general conduct. |
| Credit Checks | Conduct a credit check with the applicant’s permission to look for County Court Judgements (CCJs) or a history of missed payments. |
| Right to Rent Checks | By law, you must check the immigration status and ID of all prospective adult occupiers to ensure they have the right to rent in the UK. |
| Guarantors | If an applicant (e.g., a student or someone with a low income/poor credit history) cannot meet the affordability criteria, you may request a guarantor, provided this is requested consistently from all similar applicants and not based on a protected characteristic. |
It is critical to reference all potential tenants, and we recommend you use a professional agency.
While it may be tempting to minimise voids, the Renters Rights Act is expected to make the court process more demanding and slower, increasing the need to screen out unsuitable tenants. Quality referencing provides landlords the opportunity to identify higher risk tenants and minimise the risk of costs for resolving issues such as rent payment, antisocial behaviour (ASB), or damage.
Legal Obligations and Anti-Discrimination
Under the Equality Act 2010, it is unlawful to discriminate against an applicant based on “protected characteristics”:
- Age (but exceptions exist for specific housing like retirement or student accommodation)
- Disability
- Gender reassignment
- Marriage and civil partnership
- Pregnancy and maternity
- Race (including colour, nationality, ethnic or national origin)
- Religion or belief
- Sex
- Sexual orientation
Landlords must not impose blanket bans on specific groups, such as “No DSS” (benefits claimants) or “no children”, as this has been found to be indirectly discriminatory against women and disabled people. The Renters’ Rights Act 2025 will make this explicit, making it illegal to refuse tenants solely because they receive benefits or have children from May 1, 2026.
