A Beginner’s Guide to Becoming a Landlord
Becoming a landlord can be an exciting prospect. However, it doesn’t suit everyone. If you have recently taken on a second property keep reading to learn more about the implications of being a private landlord to determine whether it is right for you.
Getting Started
When you’re new to letting out property, you probably won’t be aware of all the regulations and lengthy paperwork required.
First of all, you need to register as a landlord with your local authority. As part of the registration process, you are required to confirm that you have all the various valid safety certificates in place to ensure your property complies. If you plan on renting out to multiple occupants, you will need to apply for a HMO license (Houses in multiple occupation). Also, if you are taking a deposit you will be required to lodge the rental deposit with one of the three approved deposit schemes available in Scotland.
Making the property ‘tenant-ready’
The property you’re renting out must meet the Repairing Standard which covers the minimum conditions expected.
Depending on the current state of your property, it could take you a bit of time and money to get your place in order. There may be major issues such as leaks from the roof or more minor problems including replacing furniture that’s not fit for purpose.
Finding Tenants
Trying to find the right tenants isn’t easy and in order to do so, you must carry out thorough reference checks. If you’re looking after this part of the process yourself, it can become very time consuming and frustrating if you can’t find suitable people.
When tenants are chosen and ready to move in, you’ll need to give them a copy of the Tenant Information Pack, which contains a summary of the relevant legislation for the tenant. You will also need to ensure your safety certificates are all valid from the move-in date.
Another thing on your list should be to conduct an inventory check before your tenants move in. When a lease ends, you’ll need to carry out an inspection which may unearth issues that need to be addressed before the property can be re-rented. Agreeing an inventory with the tenant before they move in will make clear if anything has been damaged over the course of the tenancy.
Managing your properties
If you’re thinking of renting out just one property, you may be considering managing it yourself rather than using a letting agent. As the landlord, you will be responsible for ensuring your property is maintained to an acceptable standard and staying on top of all current regulations and legislation is non-negotiable. You need to ask yourself if you’ll have the free time to respond quickly to any issues that may arise in your property as well as arranging any required repairs.
Letting a property can be hard work, and the more properties you have the more complex it becomes. Depending on your current lifestyle and commitments, it may be wiser to instruct an agent to manage your property for you. Employing the services of a qualified letting agent who can handle the day to day management of your property and stay on top of the latest regulations will give you full peace of mind.
Summary
At DM Property, our lettings team have expert knowledge of the local market and are accredited by Landlord Accreditation Scotland (LAS) and Scottish Association of Landlords (SAL). CIH/Letwell Qualified Agents. (LARN1901038). We have excellent occupancy rates in all our properties and our team offer a personal service that has been praised by both landlords and tenants.
If you would like to discuss your lettings options, we would be happy to advise you. Simply fill out the form below and a member of the lettings team will get in touch.