AML Regulations for Landlords: What you Need to Know (& Why You'll Need a Letting Agent)

New anti-money laundering (AML) regulations came into force on 14 May 2025, and they’re already reshaping the rental market—especially for student landlords.

The updated rules expand AML obligations to all types of rental activity, including student lets. So whether you're renting out a single flat to undergraduates or managing a portfolio of student HMOs, these changes now apply to you—regardless of the monthly rent.

While the objective is sound—cracking down on money laundering—the practical requirements are technical, time-consuming and legally complex, making it harder than ever to self-manage student rentals without professional support.

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A Quick Look at What’s Changed

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What This Means for Student Landlords

If you let property to students—even if it's just a single house or flat—you now need to:

• Confirm your identity and ownership status

• Demonstrate where your investment funds came from

• Carry out due diligence on every student tenant

• Keep records of risk assessments and verification processes

• Register with HMRC as a business covered by AML legislation

• As Steve, Managing Director at Bristol Digs explains:

  “In theory, it’s incredibly onerous. In reality, we’ve had to purchase two systems to stay compliant - one using Experian to check landlords’ status and another that checks all tenants through our online signing platform. It really is impossible to do it correctly without at least making use of a Let Only agency service.”

Why Going It Alone is Risky

Managing student lets can be demanding enough without navigating complex financial regulations. To stay on the right side of AML rules, you'd need:

• Access to reliable ID verification tools

• A risk-based compliance framework

• Constant monitoring and record-keeping

• Familiarity with the AML legal framework—and its ongoing updates

Even well-intentioned landlords risk falling foul of the law simply by missing a step or misunderstanding a technical requirement.

How Bristol Digs is Supporting Student Landlords

We’ve put robust systems in place to ensure our landlords stay compliant—without lifting a finger:

• Landlord Verification – All landlords using Bristol Digs are verified via Experian for ownership and AML risk.

• Tenant AML Checks – Our online signing system now includes AML verification for all student tenants before tenancy agreements are signed.

• Built-in Compliance at Every Level – Whether you use our full management service or just our Let Only option, AML protection is included as standard.

• Next Steps for Landlords

  If you’re self-managing student properties—even on a small scale—you now have legal obligations to:

  • Register with HMRC under AML rules

  • Perform checks on yourself and your tenants

  • Maintain detailed records for at least five years

  Alternatively, you can let us handle it all for you. At Bristol Digs, our landlord services take care of compliance from start to finish, leaving you free to focus on your property and your tenants.

• AML is Here to Stay – Stay Protected

  These new regulations mark a major change for the private rental sector. And while they aim to clean up the market, the compliance burden now falls squarely on landlords—including those in the student sector.

  Let the team at Bristol Digs help you stay ahead of the law, avoid costly mistakes and protect your rental income. Get in touch today to learn more.