PIMS Everything you need to Start your Tenancy the BEST way- Compliant with Renters Rights

The legal rule

Vetting is where the landlord decides whether the proposed tenant should ever reach the tenancy stage. There is no single law that says “you must vet well”, but the start of the tenancy still engages legal duties: Right to Rent where applicable, anti-discrimination duties, data handling, and a lawful and consistent decision-making process.

What landlords get wrong

• Relying only on a “pass” or “fail” score.
• Ignoring affordability and focusing only on enthusiasm.
• Accepting weak guarantors or not checking the guarantor properly.
• Assuming the lead applicant speaks for everyone.
• Rushing because the property has been empty too long.

PIMS Legal Reality: Courts do not treat deposit compliance as a technicality. A landlord who protects late or serves defective prescribed information may still lose possession timing, face penalties, and hand the tenant financial leverage. This is one of the most common — and avoidable — legal failures we see.

Real consequences

Poor selection often becomes the root cause of later arrears, access disputes, breach issues, refusal to cooperate, and possession difficulty. Under the new regime, landlords should think more carefully because if the tenancy goes wrong, there is no casual fallback route.

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The legal rule

A holding deposit is capped at no more than one week’s rent. The default deadline for agreement is 15 days from receipt unless a different deadline is agreed in writing. It may only be retained in limited lawful circumstances. It may go toward the tenancy deposit or the first month’s rent with the tenant’s consent once a tenancy agreement has been signed.

What landlords get wrong

• Taking more than one week’s rent.
• Failing to define the deadline for agreement clearly.
• Not getting explicit written consent for how the money is later used.
• Forcing the tenant to use it only against the deposit.
• Treating it as non-refundable admin money.
• Classifying it as rent too early.

Real consequences

A mishandled holding deposit can trigger repayment, dispute, civil penalty exposure and arguments before the tenancy has even started properly. It also undermines landlord credibility if the tenancy later becomes contested.

The legal rule

The agreement must correctly identify the landlord, the tenant, the property, the rent, the rent day and the obligations of the parties. Under the new system, landlords should work from a tenancy agreement that is built for the assured periodic model and the possession regime applying on or after 1 May 2026.

What landlords get wrong

• Using old AST wording that no longer matches the current regime.
• Leaving names or addresses incomplete.
• Not matching the agreement to the actual occupancy pattern.
• Accepting money before the tenant has the agreement.
• Relying on verbal understandings instead of written clarity.

Real consequences

If the agreement is weak, unclear or outdated, the landlord starts the tenancy from a poor position. That can affect rent disputes, occupation disputes, service of notices, and later possession strategy.

The legal rule

A The pre-Tenancy payment is permitted. Holding deposits are capped. Tenancy deposits are capped. Current guidance also makes clear that asking for rent in advance can be unlawful where it amounts to asking for rent before it is due - with the exception of the initial rent payment. The Landlord or Agent shall not thereafter require the Tenant to make any rent payment before the Rent Payment Day. 

What landlords get wrong

• Thinking enthusiasm from the tenant makes an unlawful payment lawful.
• Trying to fix weak vetting by taking more money.
• Confusing rent, holding deposit and tenancy deposit.
• Carrying over old practices such as admin fees, referencing fees, inventory fees or check-in fees.

Real consequences

Unlawful payment handling can create enforcement exposure, repayment obligations and argument over whether the tenancy start was compliant at all.

The legal rule

Tenancy deposits are capped at five weeks’ rent where annual rent is below £50,000 and six weeks where annual rent exceeds that threshold. Where a deposit is taken, it must be protected in an authorised scheme within 30 days and the prescribed information must also be issued within 30 days.

What landlords get wrong

• Protecting late.
• Issuing incomplete prescribed information.
• Assuming one tenant signing is enough for all.
• Not keeping proof of service.
• Thinking “deposit protected” automatically means “fully compliant”.

Real consequences

Deposit non-compliance can expose the landlord to financial penalties, create counterclaims, weaken possession proceedings and turn what should have been routine enforcement into expensive litigation.

→ See fines and penalties

The legal rule

Before the tenant moves in, the property should be ready for lawful occupation. That means safe, compliant, fit for habitation, and actually capable of being let. This also includes confirming authority to let, licensing position and any unresolved mortgage, lease or permission issues.

What landlords get wrong

• Letting first and checking licensing later.
• Allowing move-in before repairs are complete.
• Ignoring HMO or selective licensing issues.
• Forgetting that insurance, lease and mortgage restrictions can still bite.

Real consequences

Starting with a non-compliant property can lead to tenant complaints, local authority action, rent repayment exposure and major strategic weakness if possession is later needed.

The legal rule

The inventory is the written benchmark for the condition of the property, its contents, cleanliness and meter readings at the start of the tenancy. It is not there for decoration. It is evidence.

What landlords get wrong

• Using vague descriptions.
• Not getting it checked and acknowledged.
• Forgetting photos or video support.
• Producing it too late.

Real consequences

If the inventory is weak, deposit deductions become harder to justify and disputes become easier for the tenant to run.

The legal rule

Required documents must be served properly. Right to Rent checks still apply in England where relevant. The official Renters’ Rights Act Information Sheet 2026 is now part of the information landscape for the new regime. The key point is not simply to “have” the documents. The point is to be able to prove who received what and when.

What landlords get wrong

• One tenant signs for all.
• Emailing links and assuming that proves service.
• No clean audit trail.
• Forgetting that all named tenants matter, not just the lead tenant.

Real consequences

Weak sign-off leads to argument over what the tenant knew, what they received, and whether the landlord complied at all. That can later surface in defence, counterclaim or pure delay.

The legal rule

Keys should not be handed over just because everyone is in a hurry. Once occupation starts, the legal clock is running.

Final checklist

• Tenant vetting completed in full
• Credit check reviewed
• Holding deposit handled lawfully
• Tenancy agreement prepared and signed
• Any guarantor agreement signed and witnessed where required
• Lawful payments only requested and received
• Deposit protected correctly
• Prescribed information prepared and served
• Property confirmed fit for occupation
• Inventory completed
• Photographs and video record completed where used
• Keys, meter readings and move-in arrangements prepared
• Right to Rent completed where required
• Tenant Sign-Off completed by all relevant tenants
• Renters’ Rights information served where required