Young landlords turning to TikTok for buy-to-let advice, specialists warn

Millennial and Gen Z landlords now make up 60% [1] of new buy-to-let investors in England and Wales. However, new analysis from Just Landlords reveals that many may be relying on social media for investment guidance, sparking concerns that they could be missing out on professional advice and vital legal know-how.

There are currently over 516,000 posts under #PropertyInvestment on TikTok, with interest in the topic up 170% in the past three years [2]. Related hashtags such as #Landlord (412,000 posts) and #PassiveIncome (3.3 million posts) are also driving major engagement, with around 133,000 monthly searches for "property investment" and 22,000 for "property investment for beginners" on the app [3]. Steve Parker, Managing Director of Just Landlords, comments:

"The enthusiasm and curiosity we're seeing among younger landlords is fantastic, but it's concerning that many are relying on social media for complex legal and financial advice.

"When it comes to things like compliance and protection, simple mistakes can be costly."

The Financial Conduct Authority (FCA) has warned that financial advice on social media can cause significant consumer harm if it is unclear, misleading, or made by unauthorised individuals. According to its new guidance, only firms or persons authorised by the FCA should give financial advice, with content being fair, clear and not misleading, so that consumers can make properly-informed decisions. [4]

6 Industry Tips for First-Time Landlords

To help new landlords start off on the right foot, Just Landlords has shared a series of specialist-backed tips for millennials and Gen Zs stepping into the rental market.

1. Do your homework on regulations

Landlord rules can be complex and can vary from one council to the next, so it's important you understand your local licensing requirements before you begin. You'll also need to meet national obligations such as gas and electrical safety checks, EPC standards, and deposit protection schemes. Non-compliance can have serious repercussions, from hefty financial penalties to being banned from renting altogether.

2. Budget beyond the mortgage

When it comes to managing your investment, mortgage repayments are just one piece of the puzzle. Letting agent and management fees, general maintenance, safety checks, insurance premiums and periods in-between tenants when the property is vacant – these costs can soon add up. A good rule of thumb is to set aside between 20% and 30% of your rental income to account for ongoing costs and unexpected expenses, to make sure you're not caught short.

3. Protect your investment

You can't rely on a standard home insurance policy when renting out a property, as this doesn't typically provide the necessary cover for landlord-specific risks. Your mortgage provider may also require you to have a specific landlord insurance policy in place. Specialist landlord insurance can provide cover for things like damage caused by tenants, loss of rent and even liability claims from tenants or visitors, offering financial protection against the realities of owning a rental property.

4. Focus on your relationships

A professional, respectful approach helps build stronger relationships with tenants, which in turn can lead to longer tenancies. Simple things like responding quickly to maintenance requests and communicating clearly about any changes can go a long way. Happy tenants are more likely to take good care of your property and less likely to want to leave, saving you the unnecessary cost and stress of frequent turnovers.

5. Think long-term, not just monthly yield

High rental returns can be tempting, but the most successful landlords look beyond short-term profits. Consider the wider factors that can affect your property's value – local regeneration, transport links and changing market conditions. A well-planned, patient approach helps ensure your investment remains resilient through any future economic turbulence.

6. Futureproof your property

By 2030, landlords will be required by law to ensure their properties have an Energy Performance Certificate (EPC) rating of at least 'C', but why wait? Investing in things like LED lighting, insulation or more efficient heating can help reduce running costs and also make your property more appealing to renters, potentially increasing its value in the long run.

"The rise of young landlords reflects a wider cultural shift in how younger generations approach money, side hustles and investment. But while platforms like TikTok are brilliant for sparking financial curiosity, they can't replace solid guidance from property professionals," adds Parker.

"Buying and managing a rental property is a serious financial commitment and getting it right early can make all the difference".