Becoming a Landlord!

JadeLD

We've just moved from Edinburgh to Aberdeen due to being offered jobs up there - can't be too picky at the moment - got to go where the work is. We bought a flat a couple of years ago in Edinburgh and would probably lose a bit if we sold it. We also want to be sure we are happy in Aberdeen and give a bit of time to establish the security of the companies we are working for before selling up.

So the plan is to rent out the flat in Edinburgh, we have already arranged for a flat to rent in Aberdeen. It's quite a scary concept becoming a landlord and also renting again is a bit odd but we don't want to take too many risks.

I wondered if anyone here has rented their home or had any money saving or general advice on this front. I'm currently trying to sort a budget out with all the extras we will have to pay to comply with the legal requirements - there are lots and also different options! I've not been a landlord before or a tentant for a good few years to it's going to be a pretty steap learning curve I think! Any advice would be greatly received!

Jowo_2

If you face a long trip to visit, you should consider renting it out via an agent that belongs to a regulatory body, such as ARLA, that have a code of ethics, trained staff, have indemnity insurance and that ring-fence their clients money.

http://www.landlordzone.co.uk/agents.htm

Landlordzone is a great website for advice for landlords though their forum members aren't very strong on scottish housing law.

Get a good book on being a landlord, plenty available on Amazon and perhaps a MSE member can suggest a good title.

Off the top of my head, you have to get permission from your mortgage company and insurers to let, arrange a EPC certificate and gas safety certificate if there are gas appliances, HMO licence if the property/ is of a certain size is let to certain groups of residents (the local council website will give you info on this).

theartfullodger

As the flat is in Scotland you will need to be a registered Landlord - see...
https://www.landlordregistrationscotland.gov.uk
- not being registered is a Criminal offence in bonnie Scotland.

HMOs in Scotland are for 3 or more people not related - so, eg, 3 polish plumbers who just happen to be mates will be an HMO and you need an HMO license for that if occupied that way (eg mum, dad & 3 kids would not be an HMO..)

I'd STRONGLY suggest joing SAL see..
http://www.scottishlandlords.com/
The English associations (RLA, NAL) don't seem to understand Scotland and that the law is so very different there... (I rent property out in Scotland & Engerland)


Cheers!

Lodger

JadeLD

Thanks for those, I've not heard of ARLA before so will check that out. I had heard about the registered landlord thing, but hadn't looked that up yet so thanks for the link. I'll have a look at the scottishlandlords website too.

Been trying to sort out all the tax stuff - what fun! I think from what I have read that we can count our mortgage interest as an expense so that would mean that we make a loss and don't have to pay tax, although I assume we still have to fill out a tax return. Still have to contact the mortgage provider and let them know though, hope there are not too many problems there!

tbs624

Pity you've already made the move because Edinburgh Council advertise free Letwise courses on all manner of things for LLs/potential LLs. There is much useful general LL info from this webpage

You'll probably find SAL of more use to you than ARLA. SAL will also be able to give advice on taxation etc.

You may also want to read up on the PRHP (Private Rented Housing Panel)

JadeLD

Thanks tbs624 I'll look into those, although I have moved from Edinburgh my boyfriend will be there until the end of the month so we might look into those courses. There's load of info on the council site -can't believe I didn't think to look there yet! Will check the other stuff out too.

JadeLD

I've been given a quote from a solicitor to set up the lease and serve the papers for about £150 plus VAT, this seems reasonable to me - anyone know any different?

00ec25

JadeLD wrote: »

I've been given a quote from a solicitor to set up the lease and serve the papers for about £150 plus VAT,

same figure I was quoted - London suburban solicitor
of course all they will probably do is download from a website anyway so no great VFM if you know what you are doing!

JadeLD

Someone has recommended buying an off the shelf lease, there's one at http://www.themortgagesource.co.uk/AST-Tenancy-Agreement.php

Has anyone used these before and are do they stand up pretty well? Seems a lot cheaper because these are only £8.99 rather than £150! Seems like it might be worth a try especially because we know our first tenant as they are friends - less likely to disappear withour paying hopefully!