Key dates and figures examiners expect you to know as at August 2026:
- Rental bidding banned from 1 May 2026 — you must advertise a true asking rent and cannot accept more.
- Blanket bans unlawful — refusing benefit recipients or families with children is discrimination.
- Pet requests — tenants have a statutory right to request; landlord must reply in writing within 28 days and cannot refuse unreasonably. No pet deposit permitted.
- Right to Rent — from 1 October 2026 any third-party digital provider must be a registered RtR DVSP. Manual and Home Office online checks remain valid.
- Deposit cap unchanged — five weeks’ rent (six if annual rent ≥ £50,000).
This is a free, independent study guide for Unit 3 of the NRLA Level 3 Certificate in Managing Property & Residential Lettings (MNRLA): Lettings Practice & Compliance. It covers market appraisals, marketing a property to let, preparing a property to let, tenant selection and verification, and creating a tenancy, with a revision summary and self-test quiz at the end.
This guide is produced by RentalReady UK to support your revision. It is not official NRLA course material and does not replace the NRLA’s own learning content or assessment.
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Market Appraisals For Agents And Landlords
A market appraisal is the process of valuing a property for rent, and getting it right matters for both the landlord and the agent — overpricing leads to a long void period, while underpricing loses the landlord income unnecessarily.
- compare recently let properties of a similar type, size and condition in the immediate area, not just properties currently advertised, since asking prices are not always achieved
- account for condition, furnishing status, energy efficiency (EPC rating) and any unique features that affect desirability
- factor in seasonal demand — the rental market tends to be more active in spring and summer, particularly near universities and city centres
- be transparent with the landlord about the evidence behind a valuation, rather than quoting an unrealistically high figure simply to win the instruction
How To Market A Property To Let
Once a price is agreed, the property needs to be marketed accurately and legally. Under the Consumer Protection from Unfair Trading Regulations 2008, property particulars must not be misleading, and key information — such as council tax band, tenure, and any material facts that could affect a tenant’s decision to view or rent — should be disclosed upfront under Material Information requirements.
- use accurate, recent photographs and a floor plan where possible, and never use images of a different unit within the same development without making this clear
- state the correct rent, deposit amount and any permitted payments clearly, since the Tenant Fees Act 2019 restricts what can be charged to a prospective tenant
- disclose material information the tenant would need to make an informed decision, such as whether the property has a restrictive covenant, is leasehold, or sits in a flood risk area
- ensure any energy performance certificate (EPC) is valid and displayed as required in property advertising
How To Prepare A Property To Let
A property should be legally compliant and genuinely ready for occupation before a tenant moves in, not simply “good enough” to pass a quick look.
- complete a valid gas safety check, and where required, an EICR, before the tenancy starts
- test and confirm smoke and carbon monoxide alarms are working on the day the tenancy begins
- provide the tenant with the required documents at the start of the tenancy, including the How to Rent guide, EPC, gas safety certificate and any deposit protection prescribed information
- carry out and photograph a detailed inventory and schedule of condition, which is essential evidence if there is a dispute about damage at the end of the tenancy
- check that the property meets the standards expected under the Housing Health and Safety Rating System (HHSRS) before marketing it
Tenant Selection And Verification
Selecting a tenant is not just about who can pay the most or move in the fastest — it involves a legal duty to check eligibility and a fair, consistent selection process.
- carry out a Right to Rent check on every adult occupier before the tenancy begins, either using the Home Office online service or an approved identity service provider — this is a legal requirement, not an optional extra
- reference prospective tenants for affordability (commonly requiring income of around 30 times the monthly rent, though this varies by referencing provider), previous landlord conduct and credit history
- apply selection criteria consistently to avoid unlawful discrimination under the Equality Act 2010, which protects characteristics including race, disability, sex and religion
- obtain the tenant’s informed consent before running credit or reference checks, in line with UK GDPR requirements
- where a guarantor is required, ensure their own affordability and identity are properly checked, not just accepted on trust
How To Create A Tenancy
Once a tenant has been selected and referenced, the tenancy itself needs to be set up correctly from day one.
- use a written tenancy agreement that reflects the correct tenancy type and includes all agreed terms — since the Renters’ Rights Act 2025, this will be a periodic assured tenancy rather than a fixed-term AST
- protect any deposit taken in a government-approved scheme and serve the prescribed information within 30 days
- provide the required documents (How to Rent guide, EPC, gas safety certificate, EICR where applicable) before or at the start of the tenancy
- confirm the rent amount, payment date and any permitted fees clearly in writing, in line with the Tenant Fees Act 2019
- keep a clear record of everything provided and when, since this evidence matters if a dispute arises later, including at possession stage
Download the free printable revision checklist for this unit: NRLA Level 3 Unit 3 Revision Checklist (PDF)
Revision Summary — Key Facts For Unit 3
- Market appraisal should be based on comparable recently LET properties, not just current asking prices
- Property adverts must not mislead — Consumer Protection from Unfair Trading Regulations 2008 + Material Information requirements
- Tenant Fees Act 2019 restricts what can be charged to a prospective or current tenant
- Before move-in: valid gas safety check, EICR where required, working smoke/CO alarms, How to Rent guide, EPC
- Inventory and schedule of condition with photos is essential evidence for later disputes
- Right to Rent checks are a legal requirement for every adult occupier, not optional
- Referencing typically checks affordability, previous landlord conduct, and credit history
- Selection criteria must be applied consistently to avoid Equality Act 2010 discrimination claims
- Consent is needed before running credit/reference checks (UK GDPR)
- Since the Renters’ Rights Act 2025, new tenancies are periodic assured tenancies, not fixed-term ASTs
- Deposits must be protected within 30 days with prescribed information served
Self-Test Quiz
Test yourself with these 10 multiple-choice questions. Answers are listed at the bottom.
- A market appraisal should mainly be based on:
a) Properties currently advertised at any price b) Recently let comparable properties c) The landlord’s original purchase price d) The highest rent ever achieved locally - Which regulations require property adverts not to be misleading?
a) Consumer Protection from Unfair Trading Regulations 2008 b) Housing Act 2004 c) Equality Act 2010 d) Data Protection Act 2018 - What does the Tenant Fees Act 2019 primarily do?
a) Sets minimum rent levels b) Restricts what fees can be charged to tenants c) Bans deposits d) Regulates gas safety - Which document must generally be provided to tenants at the start of a tenancy?
a) Land Registry title b) How to Rent guide c) Landlord’s tax return d) Mortgage statement - Right to Rent checks must be carried out on:
a) Only the lead tenant b) Every adult occupier c) Only tenants over 30 d) Only non-UK nationals - What does referencing typically assess?
a) Political views b) Affordability, landlord history and credit history c) Marital status only d) Nationality only - Applying selection criteria inconsistently between applicants risks breaching:
a) The Tenant Fees Act 2019 b) The Equality Act 2010 c) The Gas Safety Regulations d) The Housing Act 2004 - Before running a credit check on an applicant, a landlord/agent must obtain:
a) A guarantor b) The applicant’s informed consent c) A court order d) Local authority approval - Since the Renters’ Rights Act 2025, new tenancies are typically:
a) Fixed-term ASTs b) Periodic assured tenancies c) Licences d) Regulated tenancies - Within how many days must a deposit be protected and prescribed information served?
a) 7 days b) 14 days c) 30 days d) 90 days
Answers
1. b — Recently let comparable properties
2. a — Consumer Protection from Unfair Trading Regulations 2008
3. b — Restricts what fees can be charged to tenants
4. b — How to Rent guide
5. b — Every adult occupier
6. b — Affordability, landlord history and credit history
7. b — The Equality Act 2010
8. b — The applicant’s informed consent
9. b — Periodic assured tenancies
10. c — 30 days
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