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Landlords, Edinburgh, Glasgow, HMO licensing, HMO Properties, Property Investment, Student Accommodation
HMO Planning with Cairn
HMO Planning with Cairn House in Multiple Occupation (HMO) regulations are stringent, and for a good reason. They ensure that properties are safe, habitable, and managed correctly, especially when rented out to multiple, unrelated tenants. Navigating this terrain can be challenging, particularly given the intricate legalities around HMO. However, with Cairn, a trusted authority on HMO in Edinburgh, Glasgow, and Central Scotland, you’re in capable hands. Here’s why. Licensing Expertise: To rent to three or more unrelated individuals, a landlord must obtain an HMO licence. This process involves an intricate application procedure, including property inspections and compliance with safety regulations. With Cairn’s comprehensive service, landlords can ensure that they achieve a full three-year licence, renewed timely, and maintain a stellar property history, critical for successful inspections. Safety First – The HMO Certificate: Safety is paramount in any HMO property. Cairn ensures landlords have the necessary certifications – from the Energy Performance Certificate to the Landlord Gas Safety Certificate and Fire Risk Assessment. Not only does Cairn aid in obtaining these documents, but they also provide vital training for tenants on safety equipment, ensuring compliance with both HMO and Fire Scotland requirements. Seamless Tenant Transition: From vetting potential tenants to ensuring they have a comprehensive understanding of living in an HMO property, Cairn manages it all. This involves industry-standard checks, gathering references, and detailed tenant training sessions covering everything from fire safety to using appliances and maintaining HMO safety requirements. Continuous Oversight: Cairn’s dedication doesn’t stop post move-in. Throughout the tenancy, they conduct quarterly inspections to ensure the property remains in optimal condition. Furthermore, Cairn revisits fire safety training, ensuring tenants are always updated on safety measures and any new legislation. Quality Maintenance: Given the nature of HMO properties, wear and tear can be more prominent. Cairn boasts a reliable and efficient in-house maintenance team, ensuring swift and affordable repairs, keeping properties in their prime. HMO Letting Management: HMO properties, particularly student accommodations, often yield higher returns. However, they are also subject to stricter controls. Cairn’s deep-rooted expertise ensures properties are not just compliant but are also refurbished in a way that maximises both compliance and rental yield. Comprehensive HMO Development Services: Beyond letting management, Cairn offers a suite of HMO development services. From assessing properties for HMO compliance to procuring planning permissions and overseeing refurbishments, Cairn’s specialists guide landlords at every step. In Conclusion: The world of HMOs is complex, but with a seasoned partner like Cairn, navigating becomes a breeze. Whether you’re a seasoned landlord or just venturing into the HMO scene, Cairn’s comprehensive suite of services ensures you’re always ahead of the curve, delivering quality and compliant housing solutions. If HMO planning is on your horizon, there’s no better companion than Cairn. Explore our unparalleled services and make your HMO journey seamless, learn more about our HMO Property Services
Landlords, Buy To Let, Edinburgh, Investment, Portobello, Property Investment
Tips for overseas investors in Edinburgh property
Tips for Overseas Investors in Edinburgh Property Edinburgh, with its rich history and vibrant culture, is not just a prime tourist destination; it’s also a hub for overseas property investors. Whether you’re a seasoned investor or just beginning to explore opportunities in the Scottish capital, it’s crucial to have a deep understanding of the local property market. With that said, Cairn Estate & Letting Agency, with years of experience and unparalleled knowledge of the Edinburgh property scene, shares essential tips for overseas investors. Understand Your Investment Objectives: Before delving into the market, it’s paramount to outline clear objectives for your property investment. Are you looking for capital growth, or is your primary focus the yield expectation? Ideally, you are evaluating the required landlord time commitment, be it HMO or traditional single let. Defining these objectives will shape your investment journey. Leverage Expert Market Analysis: The property market is driven by trends, and having expert analysis at your fingertips can make all the difference. Using industry information portals, Cairn offers in-house and dedicated subscription data on property prices and market trends, ensuring that overseas investors are equipped with the most recent and relevant data. Capitalise on Established Industry Connections: One advantage of partnering with Cairn is the agency’s industry reputation, leading to direct approaches from sellers. They have nurtured relationships with property professionals, opening the doors to “off” market opportunities that might be hidden from the average investor. Stay Updated: The property market is dynamic, with prices, trends, and opportunities shifting frequently. Cairn aids its investors by providing monthly property list updates and reviews of client objectives, ensuring that every decision made aligns with the latest market insights. Weigh Opportunities against Your Investment Profile: It’s not just about identifying opportunities; it’s about recognising the ones that align with your investment profile. From development appraisals to capital growth estimates and rent and yield predictions, Cairn ensures that each opportunity resonates with the client’s specific objectives. Navigate the Development and Project Management Maze: For those looking to invest in property development, navigating the maze of local authority consents, cost tenders, and contractor appointments can be daunting. Cairn simplifies this process, offering comprehensive services that encompass everything from project assessment to site inspections and reporting. In Conclusion: Investing in Edinburgh’s property market from overseas can be both rewarding and challenging. By enlisting the expertise of Cairn Estate & Letting Agency, overseas investors can access the industry insights, connections, and tailored services needed to transform challenges into opportunities. Whether you’re considering a single buy-to-let property or aiming to expand a diverse portfolio, Cairn stands as the ideal partner in your Edinburgh property journey. For more insights into the Edinburgh property market and tailored guidance for overseas investors, contact one of our friendly property investment professionals.
Landlords, Edinburgh, Property Management
Unlocking Success in the Scottish Capital: Property Management Edinburgh
Unlocking Success in the Scottish Capital: Property Management Edinburgh Welcome to Cairn Letting Agency, your indispensable guide to masterful property management in the thriving heart of Scotland – Edinburgh. Home to a diverse array of attractions, Edinburgh is a magnet for both local and international tenants, offering landlords unparalleled opportunities. Maximising these opportunities calls for more than mere ownership – it necessitates effective property management. At Cairn, we aim to take you through the nuances of successful property management in Edinburgh. Whether you’re an industry veteran or a newbie, we have the strategies you need to navigate the bustling property market of the Scottish capital. Edinburgh’s property market is diverse and dynamic, thriving on its rich history, breathtaking architecture, and vibrant cultural scene. By understanding its key aspects, such as rental rates, tenant preferences, and in-demand areas, we enable you to make informed decisions that yield significant returns. As seasoned property managers in Edinburgh, we juggle a myriad of responsibilities, from marketing your property to screening potential tenants. We expertly handle lease agreements and rent collection, ensuring all transactions are smooth and timely. Our expertise also lies in adhering to local regulations, and maintaining excellent tenant relations – a cornerstone of effective property management. Navigating local regulations is critical for success. At Cairn, we’re well-versed in pertinent legislations such as The Housing (Scotland) Act and The Private Housing (Tenancies) (Scotland) Act. We ensure your properties meet all health and safety standards and building codes, thus protecting you from potential legal hurdles. Navigating local regulations and compliance One of the most critical aspects of property management in Edinburgh is ensuring compliance with local laws and regulations. Property managers must be fully versed in the relevant legislation, including: 1. The Housing (Scotland) Act: This act governs various aspects of private rented properties, including licensing requirements, inspections, and dispute resolution. 2. The Private Housing (Tenancies) (Scotland) Act: This legislation introduced a new type of tenancy agreement, known as the Private Residential Tenancy, which has specific rules and regulations regarding rent increases, termination notices, and tenant rights. 3. Health and safety regulations: Property managers must ensure that their properties comply with all health and safety standards, including fire safety, electrical safety, and gas safety. 4. Building codes: Rental properties must adhere to all applicable building codes, including structural requirements, energy efficiency standards, and accessibility requirements. By staying abreast of these regulations and ensuring compliance, property managers can avoid potential fines, legal disputes, and damage to their reputation. Benefits of hiring a professional property management company in Edinburgh The key to success lies in attracting and retaining quality tenants. With competitive rental rates and appealing property listings, we help you stand out in the crowd. Our rigorous tenant screening process ensures that you enjoy a hassle-free relationship with reliable and financially stable tenants. Maximising rental income and minimising vacancies are our specialities. By keeping an eye on market trends and implementing efficient rent collection processes, we help you maximize your income. Prompt maintenance and effective marketing strategies also reduce vacancies, ensuring that your property continues to generate income. At Cairn, we believe that regular property inspections and diligent repair management are vital for success. We work with reliable contractors, and respond promptly to tenant concerns, cultivating a healthy landlord-tenant relationship. While property management can be complex, hiring Cairn as your professional property management company brings you peace of mind. With our expertise and established processes, we ensure that your properties are legally compliant, efficiently managed, and appealing to potential tenants. Our access to marketing resources significantly reduces vacancies, freeing you to focus on other aspects of your life and business. In conclusion, property management in Edinburgh, with its thriving market and diverse tenant base, is a rewarding venture. At Cairn, we use our local market understanding and effective management strategies to help you unlock the full potential of your investment. Reach out to Cairn Letting Agency today for a smooth and successful property management experience in the heart of Scotland. Let’s prosper together in this vibrant market.
Landlords
Landlord FAQs – Landlord Support
Landlord FAQ’s What are the legal compliance issues? In recent years the private rental sector has increasingly been the subject of new regulatory requirements from both the UK and Scottish governments. We have put together a full resource on https://cairn.verticaldev.org/legislation/ How long will it take to rent out my property? Well that depends on the condition and the location of the property our specialist team can advise you of the best way to market your property and we can also offer our development team for any mini refurbishment required. We market your property on our website and various property portals Rightmove, Citylets, Zoopla and we also market through our social media channels which have a large following. How much does the service cost? Depending on the service you require whether that is full management to tenant find only we can deliver a service that suits your budget requirements. Please contact Fiona in Glasgow or Lianna in Edinburgh to discuss our full range of services. Please note we are currently offering three months FREE management to any new landlords till the end of May 2023. How do you go about vetting tenant applicants? Firstly, we pre-qualify tenants before viewings to ensure they meet referencing requirements for the property, this includes ensuring the affordability criteria is met. Once a tenant has applied for a property / paid a deposit we use a well-established referencing agent to conduct all formal reference checks to give the landlords the most cover possible Are you a member of any accredited bodies? All agents legally need to register with the Scottish Government. Our LARN number is LARN2002011. We are also members of the Scottish Association of Landlords (SAL)and the Property Ombudsman (TPOS). Our senior members of staff are also members with Property Mark. What if my tenant is late with their rent? If a tenant does not pay their rent by the 7th day in the month our accounts team will call/text and email the tenants and the guarantors (if applicable) asking them to pay this immediately. At this stage, we also provide the tenants with the below links for help and advice if they are struggling to pay their rent: * Shelter Scotland – https://scotland.shelter.org.uk/about_us/contact_us * Citizens Advice Scotland – https://www.citizensadvice.org.uk/scotland/ * The Scottish Government – https://www.mygov.scot/rent-arrears If we receive a response to this communication, we will propose a payment plan with the tenants and confirm this with the landlord to make sure you are happy with this. If we do not receive a response, we will contact the tenants again on the 14th day and request an explanation as to why the rent has not been paid. We will notify you by day 14 if we have not received any rent to let you know as our landlords get paid on the 15th of every month. Please find important information attached on the eviction ban and what this means for serving notice. If we do not have rent in by day 21, we will arrange an inspection of the property to ensure the tenant is still residing in the property and we will continue with regular inspections until we receive rent. Once it gets to month 5 of the tenant being in rent arrears, we are obliged to send the tenants ‘pre-action requirements’ which include important information on how they can get help and advice with their arrears, we will continue to send this information until the tenants hit 6 months of arrears, once this happens, we will be in a position to service notice. Please note our process is in line with the Scottish Governments legislation on the current eviction ban Our accounts team process and pay all landlords on the 15th of each month. If the 15th falls on the weekend or a Bank Holiday, this will be processed the following day. I have also attached some information relating to our Rent Guarantee service which is an additional cover but might be something you wish to consider. Can I use my own contractors to carry out work? You can however we have an in-house team that can cover any maintenance work at favourable rates. How often do you carry out inspections on my property? Our SME software system diarises quarterly inspections where an external member of the team will inspect your property. The Property manager will send you photos of any works and transparent communication will begin to resolve any works working to your budget. Why choose Cairn? We are 100% dedicated to managing your property our team will treat it as if it were their own and are highly qualified in doing so. We have been established since 1999 and have built a reputation for quality service in property rentals particularly HMO properties. Our staff are highly trained we invest heavily in staff development our team attend monthly legislative courses and are put through ARLA and Letwell accreditation to ensure you meet your obligations as a landlord. We have an inhouse Compliance & Legislative training manager who not only keep our staff and landlords uptodate but can advise external landlords with our legislative and compliance service. Our OCT Manager has in-depth knowledge on the First Tier Tribunal for Scotland (Housing and Property Chamber) a service we offer to our existing landlords and those who don’t necessary use our management programme. This is a unique service as many agents outsource this externally to a lawyer which can be very costly. Our staff team are dynamic and we retain staff long term so you have continuity of service. We have comprehensive professional indemnity and public liability insurance. We hold comprehensive client money protection in Safe Deposit Scotland Don’t take our word for it read our testimonials.
Landlords, Property Investment
Landlords, Worried about Rent Arrears ?
Landlords, are you worried about rent arrears? Do you have a rental property where the tenant is in rent arrears? Are you worried that your agent is not doing all they can to recover the rent or follow the legal process? Are you managing the property yourself and are unsure of what is legally required before you can start eviction proceedings? Not to worry, Cairn is on hand to assist with all your rental worries! With the ‘Cost of Living Crisis’, more and more landlords are finding themselves in difficult situations where the tenant cannot afford to pay rent or is refusing to. The eviction ban is also impacting landlords leaving many feeling helpless with little options available to them. So, what can you actually do? Firstly, if the tenant is struggling to pay rent, you should try to work with them as much as possible to arrange a payment plan. Cairn currently provides an income and expenditure form to our tenants which allows them to work out their incomings and outgoings each month to establish what disposable income they have leftover for the repayment of debt. It is also important to make your tenant aware of all the additional help available to them, including contacting Citizens Advice, Universal Credit, the Scottish Welfare Fund, and the Discretionary Housing Payments through the Scottish Government. If there is a Guarantor in place, make sure you contact them as they will also be responsible for the payment of rent per the terms of the tenancy agreement. Conducting inspections is also important, this allows you to establish that the tenant is still residing in the property and maintaining it to a reasonable standard. If you have exhausted all avenues above and the tenant is still refusing to pay, unfortunately the only option left is to start eviction proceedings. With the current eviction ban, tenants must be in substantial rent arrears (6 months plus) for an eviction order to be granted. Landlords must firstly serve notice on the tenant to vacate and ensure they are complying with the governments ‘pre-action requirements’ for rent arrears. What are ‘pre-action requirements?’ As a result of changes to legislation, any landlords applying to the First-tier Tribunal to evict their tenants for rent arrears need to be able to demonstrate that they have complied with pre-action requirements outlined by the Scottish Government. Before applying to the tribunal, a landlords must: 1. Provide to the tenant clear information relating to: the terms of the tenancy agreement, the amount of rent for which the tenant is in arrears, the tenant’s rights in relation to proceedings for eviction (including the pre-action requirements set out in this regulation), and how the tenant may access information and advice on financial support and debt management. Make reasonable efforts to agree with the tenant a reasonable plan to make payments to the landlord of: future payments of rent, and the rent for which the tenant is in arrears. Give reasonable consideration to: any steps being taken by the tenant which may affect the ability of the tenant to make payment to the landlord of the rent arrears within a reasonable time, the extent to which the tenant has complied with the terms of any payment plan agreed, and any changes to the tenant’s circumstances which are likely to impact on the extent to which the tenant complies with the terms of any payment plan agreed. Cairn currently has a strict rent arrears process in place which includes template letters for staff to send to tenants, complying with the above legislation. What happens at the end of the notice period? If the tenant does not vacate the property, you will be required to apply to the Housing and Property Chamber, First-tier Tribunal for Scotland for an eviction order. This involves completing application paperwork, providing evidence of the eviction ground and also demonstrating that you have complied with the pre-action requirements. Before submitting the application, you will also need to issue a section 11 notice to the local authority. During the application, the landlord / representative will also need to attend one or more case management discussions with the Tribunal before any order is granted. It is important that landlords have a strong case at the Tribunal as legal members are required to now conduct a ‘reasonableness’ test on the tenants and landlords’ circumstances before granting or rejecting eviction applications. This process can be very time-consuming and complicated, especially if defended by the tenant, landlords can defend themselves at hearing, but many do employ the services of a lawyer to act on their behalf. Landlords can also apply to the Tribunal for an ‘order of payment’ for the debt owed by the tenant. Again, this involves submitting application paperwork along with the required evidence and attendance at one or more case management discussions. At Cairn, we have an in house Compliance Manager on hand to assist landlords with eviction and civil applications at the Tribunal. Should you wish advice or more information on this service please email enquiries@cairnletting.com
Landlords, Edinburgh, Letting
Edinburgh Letting: New Landlords, Read This
Discover everything you need to know about Edinburgh letting for first-time landlords. Some people become landlords by accident. They move in with a partner and want to hang on to their property. Or they relocate for work and don’t want to sell their home. So, they decide to rent it out. Others are more deliberate, viewing buy-to-let as a sensible long-term investment. No matter how you’ve arrived at your decision to let out your Edinburgh property for the first time, this post is for you. Here, we lay out the steps you need to take before you become a landlord, and what you need to do once you’ve found your tenants. New to Edinburgh letting? What you need to do before renting out your home Before you even contemplate putting your home up for rent, you need to make sure your mortgage lender allows it. If you have a standard residential mortgage, you’ll have to ask for “consent to let,” which is where your lender will give you permission to rent out your property with a residential mortgage. This is usually for a set amount of time. Otherwise, you’ll need to switch to a buy-to-let mortgage. If you don’t have a BTL mortgage and you try to rent your property on a residential mortgage without consent to let, you run the risk of breaching your contract. And if that happens, it could result in your lender demanding instant repayment of the full mortgage balance! Once you have the mortgage sorted, the next step is to amend your insurance policy to include landlord insurance. Having tenants living in your property can affect your liability. You must also register as a private landlord with the Scottish Landlord Register. Everyone named on the title deeds must do so. Failure to register is a criminal offence and can result in a fine. You can register as a landlord here. Finally, if you’re planning on renting to three or more unrelated people, this will be classed as a house of multiple occupancy (HMO). HMOs require an additional licence. Learn more about Edinburgh HMOs here. Found your tenants? Here’s what you need to do next First, it’s important to note that there’s a lot of responsibility that comes with being a landlord. If you’d rather take a hands-off approach, working with a local property management company (like Cairn) can be a big help. Learn more about our management services here. However, if you want to try your hand at being a DIY landlord, there are several things you’ll need to do: Conduct all viewings of the property Get references for all tenants Take deposits and move funds from tenants Ensure all compliance is in place for the tenants’ move-in (safety certificates/maintenance/cleaning) Conduct inventory Create the correct tenancy agreement and ensure all parties sign it Meet with your tenants and give them a tour of the property. Show them how to switch off the electricity, how to reset a blown fuse, and how to switch off the water supply in an emergency — plus anything else specific to your property. Once you’ve received your tenant’s deposit, you’ll need to place it into a Tenancy Deposit Scheme within 30 working days of the start of the tenancy. You should also notify your tenant in writing which scheme is holding their deposit. Finally, you should notify the local authority and the property’s utility providers that a tenant is moving in (and that you no longer live there) so that the Council Tax account and energy accounts can be updated. You should also let your tenant know that you’ve done this. Of course, your responsibilities as a landlord don’t end there. Throughout the tenancy, you must: Respond to reactive maintenance/emergency out-of-hour issues (weekends and evenings) Conduct periodic inspections of the property Handle tenant complaints Handle neighbour complaints Collect rent/chase rent if in arrears And at the end of the tenancy, you must: Conduct a move-out inspection Handle deposit deductions/deposit disputes Re-advertise the property and start the process all over again If this seems like too much to handle, we have friendly and qualified staff here at Cairn ready to help you with the management of your property. Whether it was accidental or on purpose, if you’re entering the world of Edinburgh letting as a landlord, Cairn can help. We can look after everything to make sure you remain compliant and your tenant enjoys a safe and happy experience. Contact us here to learn more.
Landlords, Legislation
Legislation Update – Answers for Landlords
Rent increase and eviction ban Scotland Following our last blog on the rent increase and eviction ban issued on 6th September 2022, Cairn have been working hard in the background to obtain answers for landlords on how this will work in reality. We have received update today that The Cost of Living (Tenant Protection) (Scotland) Bill has now been published: Cost of Living (Tenant Protection) (Scotland) Bill 2022: overview – gov.scot (www.gov.scot) Overview of Bill The Scottish Government have produced this Bill, as it is believed that people who rent in Scotland are the most at risk of poverty due to the financial crisis. The emergency measures have been implemented to: Protect tenants with the cost of living crisis by stabilising housing costs Lessen stresses and impacts on the wellbeing of tenants by evictions being banned. Give tenants more time to find alternate accommodation when facing eviction Reduce unlawful evictions and also raise the level of damages paid to a tenant by the landlord if unlawfully evicted. If passed, the Bill intends to place an immediate ban on rent increase notices and a moratorium on evictions until at least 31st March 2023. Wording has also been included to allow legislation to be extended by two further periods of six months with Parliamentary approval. However, there is a requirement for legislation to be examined and reported on, every 3 three months to ensure that the Bill is proportionate and reflects the changing economic crisis. Rent increase ban The emergency legislation aims to set a permitted rate of rent increase, known as the ‘rent cap‘. The cap will be set to zero from 6th September 22 to at least 31st March 23. However, the Scottish Government do have the powers to vary this cap to take into consideration the economic crisis on a wider scale which we sincerely hope will be investigated, as it is not only tenants whom are struggling from the current crisis. The cap applies to any rent increase proposed on or after 6th September 22 and no rent increase can be issued whilst the cap of zero is in place. This legislation does not affect rent changes/increases between tenancies. The legislation does take into consideration the impact the cost crisis is having on landlords and has been updated to allow landlords to apply to a Rent Officer to increase the rent to cover some of the ‘prescribed costs‘ in the preceding six months. Prescribed costs are mortgage interest payments (for the let property) and landlord insurance (other than buildings or contents insurance) / service charges which the tenant is responsible for per the terms of the lease which the landlord has had to pay. The landlord will be required to provide evidence to the Rent Officer and where authorised, the landlord would be able to increase the rent by the lower of 50% of the increase in the ’prescribed costs‘ in the preceding six months, or 3% of the current rent level. Landlords and tenants will also have the ability to appeal the Rent Officers decision via the First-tier Tribunal for Scotland. Rent increases issued before 6th September 2022 It has been confirmed in the legislation that rent increase notices issued before 6th September 22, will still be enforceable after the required 3 month notice period to the tenant. However, tenants also has the right to apply to the Rent Officer to challenge any notices issued if they believe the increase has been set at an unfair level. Eviction ban The moratorium will stop enforcement action for induvial evictions over the next 6 months. However, safeguards have been implemented to allow enforcement of evictions in certain circumstances, these include: Cases of antisocial behaviour and criminal behaviour Cases of abandonment Substantial rent arrears (where at least 6 months worth of rent is owed at the point the eviction order is issued) Eviction applications submitted / orders issued before 6th September 2022 If an eviction order is granted before this legislation comes into force, or if a landlord has submitted an application for eviction with the Tribunal before the legislation comes into force, the case will not be affected by the moratorium. This also applies to an eviction notice issued to the tenant before 6th September 22 as these should still be enforceable in line with current legal requirements. Increases damages for unlawful evictions These changes have been implemented to discourage landlords from conducting unlawful evictions and if passed, seek to increase the award to tenants to the maximum amount of 36 months worth of rent. There is also a requirement being placed on the Tribunal to notify the relevant authorities (Police / local authority / landlord registration), that an order has been made against the landlord. With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland. This will ensure legislation is being followed and that the most recent and correct advice on how to manage tenancies is being received. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, we also have an in-house Compliance Manager who is both ARLA and LETWELL qualified to assist landlords with more difficult tenancy issues. Please do not hesitate to contact us to obtain further information on our management services.
Landlords, Glasgow, Hints & Tips, Letting
Glasgow Letting: New Landlords, Read This
Glasgow Letting: New Landlords, Read This Discover everything you need to know about Glasgow letting for first-time landlords. Perhaps you’ve moved in with a partner and you don’t want to sell your property. Or maybe you’ve had to relocate temporarily for work and you want to hang on to your investment. Either way, if you’re thinking of letting out your Glasgow property for the first time, this one’s for you. Here, we lay out the steps you need to take before you become a landlord, and what you need to do once you’ve found your tenants. New to Glasgow letting? What you need to do before renting out your home One of the first things you need to do before you rent out your home is to make sure your mortgage lender allows it. You’ll need to ask for “consent to let” (which is typically for a set amount of time) or you may need to switch to a buy-to-let mortgage. Otherwise, you run the risk of breaching your mortgage contract, and this could result in your lender demanding instant repayment of the full mortgage balance. Next, you’ll need to contact your insurance provider and amend your policy to include landlord insurance. Having tenants living in your property can affect your liability. You must also register as a private landlord with the Scottish Landlord Register. Everyone named on the title deeds must do so. Failure to register is a criminal offence and can result in a fine. You can register as a landlord here. Finally, if you’re planning on renting to three or more unrelated people, this will be classed as a house of multiple occupancy (HMO). HMOs require an additional licence. Learn more about Glasgow HMOs here. What you need to do once you’ve secured your tenants There’s a lot of responsibility that comes with being a landlord. If you’d rather take a hands-off approach, working with a local property management company (like Cairn) can be a big help. Learn more about our management services here. If you want to be a DIY landlord, you’ll first need to Conduct all viewings of the property Conduct referencing off all tenants Take deposit and move in funds from tenants Ensure all compliance is in place for the tenants move in (safety certificates / maintenance / cleaning) Conduct inventory Create the correct tenancy agreement and ensure all parties sign this Meet with your tenants and give them a tour of the property. Show them how to switch off the electricity, how to reset a blown fuse, and how to switch off the water supply in an emergency — plus anything else specific to your property. Once you’ve received your tenant’s deposit, you’ll need to place it into a Tenancy Deposit Scheme within 30 working days of the start of the tenancy. You should also notify your tenant in writing which scheme is holding their deposit. Finally, you should notify local authority & the properties utility providers that a tenant is moving in (and that you no longer live there) so that the Council Tax account & Energy accounts can be updated. You should also let your tenant know that you’ve done this. Throughout the tenancy: Respond to reactive maintenance / emergency out of hour issues (weekends and evenings) Conduct periodic inspections of the property Handle tenant complaints Neighbour complaints Collect rent / chase rent if in arrears At the end of the tenancy: Conduct move out inspection Handle deposit deductions / deposit disputes Re-advertise the property and start the process all over again If this seems like too much to handle we have friendly and qualified staff here at Cairn ready to help you with the management of your property. Whether it was accidental or on purpose, if you’re dipping your toe into the world of Glasgow letting as a landlord, Cairn can help. We can look after everything to make sure you remain compliant and your tenant enjoys a safe and happy experience. Contact us here to learn more.
Landlords, Buy To Let, Legislation, Property Investment
Tax Breaks for Landlords: Will Holyrood Follow Suit?
Tax Breaks for Landlords: Will Holyrood Follow Suit? It’s all change in the UK. We have a new Prime Minister, a new Chancellor, and a new (mini) budget. For landlords in England and Northern Ireland, the tax breaks described in Kwasi Kwarteng’s budget could represent tens of thousands of pounds in savings. But for their Scottish counterparts, it’s simply a case of waiting to see if Holyrood (the Scottish Government) follows suit. In this short blog post, we recap the mini-budget’s impact on landlords and share some thoughts on Holyrood’s potential response. How will the mini-budget affect landlords? In case you missed it, here are the main points from the mini-budget that’ll affect landlords: The basic income tax rate will be cut to 19p (from 20p) from April 2023. The 45% higher rate will be abolished and replaced with a single higher rate of 40%. Stamp duty land tax will be cut in England and Northern Ireland. The limit for buyers will be raised to £250k (from £125k) — or £425k for first-time buyers. The planned increase in corporation tax has been cancelled. It will remain at 19%. The planned rise in National Insurance contributions will be reversed from 6 November. According to an analysis by tax firm Blick Rothenberg in the Telegraph, the corporation tax rate remaining at 19% will save an incorporated landlord with £250,000 in rental profits £15,000 a year. Meanwhile, the change in Stamp Duty rates means landlords buying property worth up to £250k will have less to pay. Previously, buy-to-let investors had to pay a 3% surcharge on purchases up to £125k, and a further 5% on anything between £125,001 and £250k. Now it’ll be a straight 3% up to £250k, 8% between £250,001-£925,000, 13% between £925,001-£1.5m and 15% for anything £1.5m+. Example: Under the new rules, Stamp Duty for a property worth £249,000 in England will be £7,470, down from £9,950 under the old rules. However, much of this will not affect Scottish-based landlords The cut in additional rate income tax (from 45% to 40%) on earnings above £150,000 won’t apply in Scotland. The rate in Scotland will remain at 46% for the time being. Similarly, the cut in basic rate tax from 20p in the pound to 19p won’t be seen in Scotland. And the Stamp Duty cut will only apply in England and Northern Ireland. Scotland has its own system: Land and Buildings Transaction Tax (LBTT). The current LBTT rates mean buy-to-let investors need to pay a 3% surcharge on purchases up to £145k, 5% between £145,001-£250,000, 8% between £250,001-£325,000, 13% between £325,001-£750,000 and 15% for anything £750,001+. So, for a £249,000 property in Scotland, LBTT is currently £12,040 — a significant difference from south of the border. Will Holyrood mirror Westminster? That is the question. And right now, the answer seems to be “no.” The First Minister, Nicola Sturgeon, has heavily criticised the Chancellor’s decision to abolish the top rate of income tax and has hinted that she has no interest in “blindly following suit”. As it stands, the Scottish Government probably won’t make a final call on income tax rates until its draft budget is presented to Holyrood. We’ll be keeping a close eye on developments. If you’d like to get more posts like this in your inbox, sign up for our regular newsletter.
