Protecting rental income has always been a priority for landlords. In today’s lettings market, however, how you manage that risk matters just as much as the outcome.
With increased scrutiny of tenant selection and a stronger focus on fairness as the Renters’ Rights Act 2025 changes come into force from 1 May 2026 in England, landlords are expected to balance financial security with transparent and consistent decision-making.
The good news is that you can still carry out thorough checks and reduce risk. The key is ensuring your approach is structured, evidence-led, and applied fairly to every applicant.
Related: Family renters and affordability: How to raise rent fairly and reduce void risk under the new rules
Why income protection now requires a different approach
Traditionally, some landlords relied on simple rules to reduce risk, such as strict income thresholds or excluding certain types of applicants.
That approach is becoming harder to justify.
The direction of legislation and guidance is clear. Landlords should assess each applicant on their individual circumstances, apply the same financial standards to everyone, and avoid decisions based on assumptions.
This does not remove your ability to protect your income. It means those decisions must be supported by clear reasoning and applied consistently.
Related: How rental income reporting will work under Making Tax Digital
Affordability checks: what compliance really means
Affordability checks remain central to tenant screening. They help determine whether a tenancy is financially sustainable over the long term.
A commonly used benchmark is that a tenant’s income should be around 2.5 to 3 times the annual rent. However, this is a guide rather than a legal requirement.
A compliant affordability assessment should:
- consider total verified income, including multiple sources
- be applied consistently to all applicants
- allow for reasonable flexibility where appropriate
The aim is not to exclude applicants, but to assess whether the rent is realistically affordable based on the full financial picture.
Looking beyond income: building a clearer risk picture
Affordability is only one part of a well-rounded decision.
To reduce risk effectively, landlords should consider a broader range of factors, including credit history, employment and income stability, previous landlord references, and overall financial resilience, such as savings.
Looking at the full picture allows you to make more informed decisions and avoid over-reliance on any single metric.
Safer screening policies that reduce risk
To bring these elements together, landlords should adopt a clear and consistent approach to screening.
A well-designed framework helps protect your income while ensuring decisions remain fair and defensible.
Best practice includes:
- setting affordability expectations before marketing the property
- applying the same checks to every applicant
- using guarantors where affordability is slightly below target
- keeping clear records of decisions and supporting evidence
This creates a reliable structure that supports both compliance and confident decision-making.
Avoiding common pitfalls
In practice, most issues arise not from what landlords check, but how those checks are applied.
Common pitfalls include:
- applying different standards to different applicants
- rejecting tenants without reviewing their full financial position
- relying too heavily on fixed thresholds without flexibility
- failing to document decisions
These can create unnecessary risk, even where the intention is to protect rental income.
Strengthening protection without excluding applicants
Protecting your rental income does not have to rely on restrictive policies.
Instead, landlords can take practical steps that reduce risk while maintaining flexibility. These include using professional referencing services, requesting a guarantor where appropriate, considering rent protection options, and monitoring payments so any issues can be addressed early.
These measures provide meaningful protection while keeping your approach fair and compliant.
Related: Understanding possession grounds under the Renters’ Rights Act from May 2026
A balanced approach with Newton Fallowell
As the lettings landscape evolves, landlords who combine clear financial checks with consistent processes will be in the strongest position.
At Newton Fallowell, we support landlords with compliant tenant screening, structured affordability assessments, and practical solutions designed to protect your rental income without increasing legal risk.
Speak to your local Newton Fallowell branch today to ensure your tenant screening approach is fair, compliant, and built to protect your investment.
