Top 10 Letting Tips for Edinburgh Landlords
As a landlord you are responsible for complying with the law and ensuring that your tenants are safe. If you are new to letting your property, the requirements can seem daunting but once you understand what you need to do, and why, it should be reasonably straightforward.
Here are our top ten tips to see if you are "fabby" or "shabby" - answer all ten then you decide!
1. Landlord Registration
You’re registered as a landlord and your properties are linked to your registration number. This applies to each owner listed on the title deeds. More information is available on Edinburgh City Council's website. Don’t be a rogue!
The process for registering as a landlord is straightforward – you complete a form online, on the Scottish Landlord Register website, and pay the fee, which is currently £80 plus £18 per each property. You need to renew your licence every three years, and you will receive a reminder in advance. If you operate as a landlord without a valid registration you can be fined up to £50,000.
2. Landlord Insurance
Your property is fully insured for both buildings and contents insurance, and with Public Liability Indemnity cover. The insured value should adequately meet the rebuild costs, unless you’re really good with a trowel!
Your regular home insurance companies may not insure a property that is rented out, and so you may have to use a specialist insurer or deal with an insurance broker who can make sure that you have adequate insurance in place. If you have an HMO property, your licence may stipulate a certain level of cover, and it is worth double checking that you have that in place.
3. Legal Lease
Your lease is a PRT.
It may sound obvious, but the lease must be legally compliant. In Edinburgh, that means it will almost certainly be a ‘Private Residential Tenancy’ (PRT). Anything with a fixed end date is probably illegal.
Since December 2017, the only lease that can be used for residential property in Scotland is known as a Private Residential Tenancy (PRT). This supersedes previous leases, and any new lease should be operating on a PRT type lease. There are no other leases that you can use if you are letting private property to new private tenants in Scotland. The only exception is the occasional 'Short Assured Tenancy' (SAT) which we encounter if the same tenants are in the same property and they were on a SAT before 1 Dec 2017.
Your letting agent will draw up the lease for you and we would strongly recommend taking professional advice as the lease is a legal document which outlines the rights of your tenants.
4. Tenancy Deposit Scheme
Your tenant’s deposit is in one of the three official TDS schemes, and you’ve given them a certificate to confirm that it’s there. Your bank account, a separate bank account or your mattress don’t count!
If your tenant has ever paid you a deposit for the property, you should ensure that you have placed that money into one of the three government-backed tenancy deposit schemes which are available. These schemes protect the tenant's money and ensure that it is either returned safely and properly at the end of the deposit to the tenant or, if you are looking to retain it, it is retained fairly due to something that the tenant was responsible for. Once you have paid your tenant's deposit into one of the three tenancy deposit schemes available, you must also issue a certificate to prove to the tenant that you have actually moved the funds into one of the schemes. The three schemes are:
Letting Protection Service Scotland
5. Smoke/Heat Alarms
You have working alarms fitted on the living room, kitchen and hall ceilings.
All properties must have alarms fitted to the ceilings in the main living room(s), kitchen and hallway(s). If it’s a HMO, then also in the bedrooms and large cupboards too. They must be interlinked (and hardwired if HMO). Your tenant’s safety is the biggest responsibility you have as a landlord. Take it seriously, as the Judge certainly will later.
6. Safety Certificates
Your certs are all in place and in date. ”It needs updating” is the same as “I don’t have one!”.
Tip – if you don’t absolutely know that your sefelty certificates are all in order and in date, then it’s very likely that they aren’t. Acronym soup time, but you need; PAT, GSC, EICR, EPC, LRA, FRA and LWTC, and if HMO you need FFE and EL (if fitted) too. (Test yourself - answers to what all these mean are at the end!)
7. Repairing Standard
The property meets the updated Repairing Standard. More simply, would you also be happy to live in the property paying the rent your tenant is paying? If yes, then it’s probably meeting the standard. And vice versa.
The repairing standard was updated in March 2024 to include new several new requirements including
- kitchen storage and preparation space
- a fixed heating system
- safe access to stairs and other common areas
- safe common doors allowing keyless exit in the event of a fire
- safe drinking water, free from lead
8. Property Inspections
You inspect the property a couple of times a year.
The tenant will usually want an inspection every 6 months. It ensures you are seeing any issues early so they can be dealt with, but gives the tenant an opportunity to show and tell of any problems too. Going every month or not at all should both be avoided!
9. Checking-In & Checking-Out
You have a record of the property's condition at check-in.
You should have a fully detailed (written and photographic) record of the property’s condition at the start of the tenancy, including meter readings. The same again at the check-out. This protects both tenant and landlords and ensures any matters needing to be claimed against the deposit are fair and accurate. The deposit belongs to the tenant and can only be used for items the tenant is responsible for under the lease clauses.
10. Letting Agent
You are shrewd and gifted individual who has chosen a brilliant Edinburgh letting agent to do all of the above for you so you can enjoy ‘Stress Free Ownership’.
If you’re already a client with us then you won’t be getting back the last two minutes of your life spent reading this blog post. If you're not, call us on 0131 221 1818.
As you can see there are many obligations involved in becoming a landlord and to make matters worse, the regulations change on an alarmingly regular basis. While it is perfectly acceptable to self-manage your property, the time and the worry involved can be overwhelming and we find that most of our clients find it a relief when they commission us to look after everything for them. If dealing with maintenance issues, legal documents and filling in forms are not your favourite pastimes, we’d recommend a conversation with our team who have the expertise to take all those tedious activities off your hands.
How well did you score out of ten? If you're more shabby than fabby we can help get you back on track!
Answers to the Safety Certificate acronyms in number 6
(if you have to look – call us anyway!)
PAT – Portable Appliance Test
GSC – Gas Safety Certificate
EICR – Electrical Installation Condition Report
EPC – Energy Performance Certificate
LRA – Legionella Risk Assessment
FRA – Fire Risk Assessment
LWT – Lead Water Testing Certificate