Thinking about letting out a property in Scotland? We’ve collated some of the essential points you need to be aware of in the Scottish rental market.
Being in the private rental market in Scotland can be a fulfilling journey, but as a landlord, it’s essential to stay informed about the responsibilities and legalities that come with it.
Letting property is not just about providing a space to live; it's about creating a home and a relationship with your tenants based on trust and understanding. By following the below guidelines, you can ensure a positive experience for both parties.
Let’s get started.
What type of tenancy will I have?
Since December 2017, the private residential tenancy has been the standard tenancy type in Scotland, aiming to improve the quality and security of private renting for tenants, landlords and investors. One key point to keep in mind is that every new tenancy is open-ended, meaning that the tenancy lasts until the tenants wish to move or you, as the landlord, serves notice. Landlords can only serve notice under certain set grounds; there are no “no fault” type evictions.
It's important to familiarise yourself with all housing related legislation, and any changes this has brought about, to ensure you’re compliant.
Registration and responsibilities
Before you begin letting, register every individual property you are letting. This is a must-do first step and you can register via your local council on the Scottish Landlord Register. If you’re joint owners, all who are named on the deed will have to register too.
Even if you're letting through an agent, you as the landlord still hold legal responsibilities to register and ensure you’re compliant. We touch on some of the major aspects below.
How to increase the rent
Landlords can now propose rent increases to adjust their rent to match current market value. However, there are some caveats that landlords should be aware of.
If the tenant thinks the increase is excessive, they can apply to the Rent Service or First Tier Tribunal to rule on the case. The Rent Service or First Tier Tribunal will apply an approach known as 'tapering' which looks at the difference between the current rent and the open market rent. They will use this to decide upon a final rent increase amount.
Safety and compliance
Your property must adhere to various safety regulations, including the installation of smoke and heat alarms, carbon monoxide detectors, and ensuring fire safety measures are in place. All private rented properties must meet a basic level of repair, known as the repairing standard.
Here’s a brief overview of some essentials:
- Each home must be maintained in line with a basic level of repair set out in the Repairing Standard for Scotland, including but not limited to safe kitchens allowing tenants to safely prepare and access food; fixed heating systems to ensure that heaters are in a reasonable state of repair and functional; no lead pipes throughout the entire property.
- Every home must have interlinked fire alarms, including one smoke alarm in the room that is used most, one smoke alarm in every hallway or landing and one heat alarm in the kitchen.
- Carbon monoxide detectors must be placed in every room that has a fixed combustion device appliance of any kind (with the exception of cooking appliances), including boilers, fires (including open fires), gas or paraffin heaters, stoves or a flue.
- Every property must have a Residual Current Device (RCD) on the electrical circuits. This will act as a safety device that switches off electricity automatically if there is a fault.
Find out more about the Repairing Standard on gov.scot.
