Buy to let – getting started as a residential landlord

First-time landlords often make the mistake of underestimating the amount of paperwork involved in letting a property. There’s more to renting out a property than just handing over the keys as you will see from our guide below.

Residential landlords in Scotland have to comply with various regulations and must have the appropriate property checks carried out and documents in place before they can legally rent out their property.

1. Landlord registration – all landlords in Scotland must register with their local authority and renew their registration every 3 years. Operating as an unregistered landlord is a criminal offence. A registration number shows that a landlord is approved by the local authority to let property.
2. EPC – an Energy Performance Certificate rates the energy-efficiency of your property and sets down estimated energy costs. All properties receive a rating from A (most efficient) to G (least efficient). From 1^st April 2022, landlords in Scotland can only let their property if it receives an EPC rating of D or higher (this applies to new tenancies). If you have an older property and are looking to improve your rating, consider installing double or triple glazing, loft and wall insulation, solar panels, ground-source heat pumps, and an energy-efficient boiler.
3. Water hygiene – there is a legal duty for landlords to assess and control the risk of exposure to legionella bacteria. Most landlords can assess the risk themselves and do not need to get a professional to carry out the Legionella Risk Assessment (LRA) for them, but it is important that you do check your water hygiene levels.
4. Electricity safety requirements – it is vital that your electrics are installed correctly and are safe and are inspected. An Electrical Installation Condition Report (EICR) can help with this. It is obligatory to obtain this every 5 years.
5. Gas safety certificates – likewise, make sure you’ve had your gas appliances, such as your hob, gas fire and boiler, checked with a Landlord Gas Safety Record check. This must be arranged annually.
6. Fire safety – make sure a fire alarm, heat alarm and fire extinguishers are present in the property, along with a carbon monoxide detector. On the 1st February, a new law from the Scottish Government requiring every home in Scotland to have interlinked smoke alarms came into force.
7. Furniture – if you are letting your property furnished, you need to ensure that any furniture (beds, sofas etc) meet fire safety regulations and have the appropriate labels and certificates.
8. Property inventory – an in-depth report and ideally photographs of the property and its furniture, fixtures and appliances will help you resolve any quibbles over belongings or damage at the end of a tenancy.
9. Landlord insurance – landlord insurance covers you in the event of flood or fire and for legal claims if someone injures themselves in your property and is a condition of all buy-to-let mortgages.
10. HMO – if you are renting out your property as a house in multiple occupation, you will need a separate licence from the council to do so. A house in multiple occupation is a property rented out by at least 3 (unrelated) people who share the bathroom or toilet and kitchen.