If you’re considering becoming a private landlord, you might not know where to start or remember everything that you need to do to get set up. The process is different in Scotland so here’s a checklist to get you started.
1. Register as a landlord with your local council
Even if you plan to use a letting agent to manage your property, you must still do this – or risk being fined up to £50,000. Register as a landlord through the central online system for Scotland. You should also keep them up-to-date with your tenant’s details and move in date for Council Tax purposes.
2. Apply for a HMO (House in Multiple Occupancy) license
If your property is going to be shared by three or more people who are not members of the same family, then you will require a HMO.
3. Speak to your mortgage lender for advice
It is likely that you will need to review the terms of your current mortgage and discuss your options for updating or changing to a buy-to-let mortgage.
4. Contact HM Revenue & Customs
When you start renting out property, you must tell HMRC and you may have to pay tax. If you don’t you could be charged a penalty.
5. Consider your insurance
Lots of companies offer landlord specific products. In most cases you will need buildings, contents and property owner’s liability insurance but this will depend on the property itself and whether it is let furnished or unfurnished, so seek advice.
6. Get a tenancy agreement
The main types are Short Assured and Assured and you must provide tenants with a written tenancy agreement that is fair and easy to understand.
7. Make sure the property is safe
There are lots of measures to be taken into consideration, including; smoke alarms, heat alarms, fire extinguishers, electrics and gas safety. You should also arrange an Energy Performance Certificate (EPC). You will need to display the EPS in adverts for the property.
8. Compile an inventory
You should have a list of everything that is in the property and its condition – you might also want to take photos for comparison when the tenant moves out.
9. Advertise your property
If you use a letting agent, they often use portals such as s1homes and will promote your property on your behalf or you can post it yourself from as little as £25 + VAT. Your property will be included in email alerts to users looking for properties matching yours. You should include your landlord registration number in all adverts, along with the EPC Certificate.
10. Arrange viewings
If your property is already occupied by tenants, you will need to provide them with at least 24 hours written notice of a visit to your property and try to be flexible with times to suit them.
11. Ask for references
Tenants should provide references from a previous landlord or their employer and you should follow these up.
12. Paperwork and agreements
As well as the tenancy agreement, you must provide a Tenant Information Pack which the tenant should sign to confirm receipt of. Arrange payment of deposit and rent and put the deposit into a recognised Tenancy Deposit Scheme. Take your tenant through the inventory and retain a signed copy.
If you’re a landlord looking for an agent to manage your property on your behalf, use the free tools at s1homes.com to find someone you can trust in your area and read our Tips for Choosing a Letting Agent.