Whether it’s an old abode, a home left behind temporarily for horizons new, or a bricks and mortar investment, a number of us will find ourselves landlords at some point in our lives. In fact, there are approximately 2.82 million private landlords in the UK, around 94% of whom are private individuals.
For those thinking of joining their ranks, Lisa England, from egg partner Gilson Gray’s Residential Lettings Team, walks you through the 10 steps to letting out your property.
Do The Maths
Before you do anything, speak to an estate agent like Gilson Gray in order to understand your rental valuation and the potential return on your property. We offer FREE property valuations, and egg members are entitled to 50% off Landlord fees with us for the first 12 months - visit Gilson Gray | egg for more information.
But remember, it’s not just as simple as collecting rent - you need to account for the initial costs including compliance checks, marketing fees and inventory and any maintenance required throughout the tenancy.
Studio Apartment to Let in Stockbridge
Understand The Rules
Before you get busy filling out forms, it’s good to understand the legal requirements and responsibilities of being a landlord in Scotland.
The Scottish government has a handy guide on Becoming A Landlord in Scotland. Familiarise yourself with the Private Housing (Tenancies) (Scotland) Act 2016 and ensure your property meets the standards for rental properties in Scotland – lean on us at Gilson Gray to make sure everything is in order.
At this stage, you won’t necessarily need to provide any information about council tax or utilities for the property upfront, however, this information will need to be provided to your Letting Agent. Please note that the council tax banding of the property is required for advertising purposes alongside an Energy Performance Certificate (EPC). The EPC is something that we will arrange on your behalf.
Remember that you will also need to inform your mortgage provider, as well as arrange to take out Landlord insurance for both buildings & contents – your standard home insurance won’t cover this!
Inspector Gadget
Whether it’s somewhere you’ve lived for a long time or a property you’ve just bought, you need to conduct a thorough inspection of your property – in person. Make a list of any repairs or improvements needed to make the property safe, habitable and compliant. It’s much better to do it now before the photos are due to be taken or a prospective tenant is at the door.
The Paperwork
The first step on the paperwork trail is registration. The aim of landlord registration is to ensure that all private landlords and agents in Scotland are 'fit and proper' to be letting residential property – no cowboys! You’ll need to pay a registration fee but should receive your landlord registration number soon afterwards – this is the number that MUST be used for legal purposes when marketing the property on any and all advertisements/platforms as well as on the lease itself. You can register here - Landlord register home - Scottish Landlord Register.
Next up, compliance time. In order to meet the Scottish residential lettings’ regulations you need the following –
EICR (Electrical Installation condition report) – this is a comprehensive inspection and assessment of the electrical systems within a property – every 5 years
Gas Safety certificate – this confirms that the gas appliances in a rental property have been checked by a qualified gas engineer and are working safely and efficiently – every 12 months
Legionella Risk Assessment – this identifies and assess sources of risk from Legionella bacteria in water systems – every 12 months
Portable Appliance Test (PAT) – this involves the examination of electrical appliances and equipment to ensure they are safe to use – every 12 months
Gilson Gray can arrange this, making the process quick and stress-free. We will also issue reminders to you when your certificates are due for renewal.
Going To Market
We offer a set marketing fee which includes costs for professional photography and videography, plus the creation of a floor plan all for advertising purposes. The cost also includes viewings and putting the successful applicants through referencing checks.
Viewings
Once you’re ready to rent out a property you’ll most likely want to find a tenant fast – but it’s not just about speed, it’s about finding the right ones for your property. Viewings are crucially important here as it not only gives prospective tenants the chance to see their potential new home but also gives the chance for your Letting Agent to vet them on your behalf.
Checks and Balances
Once you’ve selected your tenants they need to go through identity, reference and credit checks. At the same time the lease documents need to be drawn up. Gilson Gray will do all of this for you.
An inventory will also need to be carried out – we use a third party called Pinstripe to detail all furniture, items, and condition within the property. This typically costs around £120 and includes taking photographs.
Money Matters
Prior to them moving in, tenants are required to pay a deposit which will be lodged with an approved tenancy deposit scheme. Gilson Gray use Safe Deposit Scotland.
Moving In
Now is the time to give the tenant a copy of the tenancy agreement, EPC and all other safety certificates as well as the invaluable user guide for all things tenancy related.
Once your tenants are settled in, Gilson Gray will handle the ongoing management of the property including; rent collection, tenancy renewals, and any maintenance issues that may arise. And don’t worry – we’ll keep you in the loop at every stage!
Moving On
Notice is vitally important here, with tenants required to give 28 days’ notice should they wish to end the tenancy. If Landlords are looking to take back the property to live in themselves, or their direct family member are, or they are looking to sell the property, then if the tenancy is less than 6 months, 28 days’ notice is required. If the tenants have been in situ for more than 6 months then it is 86 days’ notice.
Once the property has been vacated its essential to conduct a thorough check-out inspection to assess the property's condition and compare it against the initial check-in inventory. Both the landlord and the tenant need to be provided with a copy of the check-out report and advised of any cleaning or maintenance issues – if this is relevant.
Additionally, ensure that all utility accounts and council tax are settled and transferred appropriately. Finally, return the tenant's deposit, after making any necessary deductions, in accordance with the tenancy deposit scheme regulations. This process helps ensure a smooth transition for future tenants, or yourself if you’re moving back home.
For more information on home-buying, selling or renting across Scotland, visit gilsongray.co.uk or email [email protected]. You can also call their women-strong team on 0131 516 5366.
All eggs can benefit from 10% off residential conveyancing fees. So, if you’re looking to buy a property, just quote 'egg' when you email. All egg members also receive a whopping £400 discount on houses valued up to £400k, and a further 10% discount on values thereafter. Landlords receive 50% discount off management fees for 12 months if you're a paying member, 25% off for non-paying egg members. For all enquiries and valuation requests please email [email protected]. Free online valuation here.
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