So, you’re thinking of renting out your property but don’t know where to begin with the process. If you own a house or flat and would like to let it out to someone to live in, there are various necessary steps to be taken before handing over the keys to your property.
Local Council Registration
Before you rent out your property, you will need to ensure that as a landlord you are registered with your local council. This process must be completed even if a letting agent is instructed to manage the property you let on your behalf. Landlord registration covers you for three years and, at the end of this period, you will need to renew your registration with the local council should you want to continue letting out your property. Prospective landlords can apply for landlord registration online at the Scottish Landlord Register website or by contacting your local council housing department.
Additionally, if you would like to appoint a letting agent to manage the property on your behalf, you should ensure that they are registered with the Scottish Government. To be deemed ‘fit and proper’ to carry out the work expected, it is a legal requirement for all Scottish letting agents to join the Scottish Letting Agent Register. You will be in safe hands with d and h law as we are registered with the Scottish Government: Letting Agent Registration Number LARN2006004.
Your Responsibilities
As a potential landlord, it is important that you know exactly what you are responsible for and carry out all essential duties. For example, if the property you are letting out is mortgaged then you will need to inform and get consent to rent from your current lender. Additionally, taking out landlord insurance is essential to guarantee that your property is covered while being let and you must inform HMRC about any property you are letting as income may be taxable.
There are also several other responsibilities you need to consider, including:
- Deposits must be registered with an approved tenancy deposit scheme.
- Produce and share a tenancy agreement with the tenant.
- Meet all safety requirements.
- Meet Repairing and Tolerable Standards as set out by the Housing (Scotland) Act 2006.
- Valid certificates should be held, including Energy Performance Certificate (EPC) meeting minimum required energy efficiency standards, current gas safety certificate (if applicable), and current Electrical Installation Condition Report (EICR) and Portable Appliance Testing (PAT).
- Safety measures in place including compliant smoke, heat, and carbon monoxide alarms.
- Legionella Risk Assessment carried out.
Finding A Tenant & Ongoing Management
There are various ways to advertise your property and find tenants, especially with the internet at everybody’s fingertips. Hiring a reliable letting agent to market your property and deal with tenant onboarding is the best way to ensure security for both landlord and tenant while saving the landlord a lot of hassle. Letting agents will be able to conduct property viewings, vet potential tenants via comprehensive references and background checks, and prepare required tenancy paperwork.
After all tenancy paperwork has been finalised and the deposit has been processed, it is the responsibility of the landlord to provide the tenant’s details to the local council. It is also recommended that on move-in day, some final steps such as providing the tenant with any instructions regarding energy and water supply and providing a property inventory for them to return to you once signed and completed. This will cover both tenant and landlord should there be any disputes regarding the state of the property upon the end of a tenancy.
Following the successful move-in of your new tenant, it is recommended that you consider the ongoing management of the property and tenancy. This includes the collection of rent, periodic property inspections, and providing tenants with contact details for emergencies regarding the likes of plumbing and electrics. End of tenancy will also need to be considered with proper protocol in place for a check-out inventory and release of the deposit.
How can d and h help potential landlords?
We understand that letting your property can be a daunting prospect as there is a lot to consider throughout. Our range of rental management services will take the stress and hassle away from you and will give you peace of mind that your property is in safe hands. With offices in Kirkwall and Thurso, our qualified property experts can assist with every step of the process. From marketing your property and finding a suitable tenant, to collection of keys and return of deposit at the end of a tenancy, we will be able to support you and manage each key stage of the process. While ensuring tenant satisfaction and making sure your property is maintained to a high standard, we will work with landlords to help increase rental returns and minimising void periods.