Becoming a landlord

[annedonnelly]

I know there are a few people on here who rent out property so I thought I'd ask..

I may be getting a property that I'd rent out. It's in Scotland and I know that some aspects of the law are different there. I can find loads of information about the legal stuff - what checks have to be done on the property and what paperwork I'd need to give the tenant, etc.

But I can't find much about the process of ensuring that I'm happy with the tenant and what sort of thing should go in the tenancy agreement. Do I ask for references from potential tenants? Could I specify no smoking in the property?

Can anyone point me to some advice about that sort of thing? It's not "buy-to-let" so I'm not interested in stuff about getting mortgages, etc.

Thanks

 

[Archie_tect]

Anne,
Try this for starters and follow the links from there:
https://www.gov.uk/renting-out-your-property-scotland
Where abouts in Scotland, city or country?

 

[annedonnelly]

Thanks @Archie_tect - I've already been through that. It's great on the legal stuff and lots to protect the tenants - rightly enough. But not much to help me feel confident I'm choosing the right tenants

It's Shetland - I think you'd call it "country"

 

[Archie_tect]

My only experience is from renting in Dundee, everything was done through solicitors who drew up the contracts and collected the rent, but that was 30 years ago!
You'll maybe just need someone local to act as your agent to save you having to travel up to sort out boilers cutting out and the like... maybe worth sounding out the local solicitor who's handling the title transfer over to you? They'll have local knowledge.

 

[annedonnelly]

My only experience is from renting in Dundee, everything was done through solicitors who drew up the contracts and collected the rent, but that was 30 years ago!

I think they've put some extra rules in place in the last 30 years

I will have someone local to keep an eye on things at that end. I'm just concerned that tenants will leave and I'll find they've painted the exterior red and fitted mirrors to the bedroom ceiling and I'll not be able to do anything 'cos the tenancy agreement didn't say that they couldn't!!

 

[Archie_tect]

How about these...
http://www.d-s-r.co.uk/

 

[YahudaMoon]

Hi Anne

I rented out a few houses in Manchester back in 1999 till 2009 with no problems except for non paying tenants

This is just part of the course, nothing will protect you from that, its just part of renting out property, if its a paid for house and not mortgaged its not a problem as you have no debts.

I recently bought another house that Im renting out after a five year gap.

The process is real simple really

1, Buy house

2, Find tenant

3, Give tenant short term tenancy agreement

4, Buy some building house insurance (Optional) I don't have this yet) :/

5, Collect money as your tenancy agreement

6, Pay your self assessment taxes at the end of year

Using solicitors and agents to rent your property is your choice, though from experience its a waste of time and money unless you some big time property landlord. You can get eviction notices typed up from any solicitor for about £30 if they dont pay

 

[Brains]

I'm a landlord.
Been doing it for over 30 years.

First of all the issue of painting the place red and covering the ceiling in mirrors;
If you look at the AST document (Assured Short-hold Tenancy, I'm sure Scotland has an almost identical document) there is a list of do's and do not's and there is nothing stopping you adding your own (such as no pets, no smoking and you must maintain the garden)

Deposit. Insist on at last 6 weeks and more if you can get it. If they cant manage 6 weeks then don't let to them. No if's no but's..
The deposit you retain (in escrow) so that if they do paint the place red, it will go some why towards rectifying the issue.
You only pay the deposit back 14 days after they have left, and you can deduct what you like, as long as it's justifiable and genuine (in England, by law, you must have a deposit certificate, they police what is a reasonable deduction) I'm sure Scotland will have something similar.

Tenancy checks, you can DIY, but I ALWAYS get a company to do the checks, they check things like 'do they earn enough to run this property' and their credit history and check their guarantors as well as contacting their last landlord over the phone.

In short, you are trusting someone with several hundred thousand pounds of property, so if anything even remotely smells fishy, such as employers (or previous landlords) who don't give references promptly, or bank details (minimum 3 months) that don't match the story, or 'new' jobs, or people working in the black economy then leave them alone and go elsewhere.

Good tenants are great, reward them. Bad ones are a nightmare and are as difficult to get rid of as lice.

Oh yes, and join the NLA, today, you can do it on line.

 

[annedonnelly]

Thanks @Brains That's exactly the sort of advice I'm looking for. I'd love to assume that all potential tenants are honest & trustworthy but I know that won't be the case. Looks like NLA will have the sort of info I need. I'll check their website before I do anything else.

@Archie_tect - yes, I've spoken to DSR. Mainly about the state of the rental market and to get an idea of prices.

 

[Over The Hill]

I have had three houses rented out for about 10 years.

From your post I think you mean you are unsure on the process of getting tenants and checking them out.

Back then I used to just find tenants myself be an ad in the local paper. Now that is not a good way.

People looking for a house to rent will go on line and search the big websites. To get on these you need to go through a letting agent. I do now. The agent will try to get you to sign everything over to them (finding, legals and on-going management) fine if you want that but it costs you. I just use them as a finding service. For £250 (claimable expense) they will fine a tenant, check out their references ask lots of questions and do a credit check on them. Tenant also pays them some fees. Agent also takes some pictures and advertises the house and shows the tenant around.
You can be as hands on as you wish. I tend to leave it to them and only meet the tenant on the handover day.

Once found I do everything but up to you. If the house is 100 miles away then different to being next door.

You need - gas safety check and possibly electrical check. Buildings insurance for a rental house. Take care with anything that's included, best to rent without any soft furnishings or electrical items unless letting furnished.

You can within reason specify what they can or cannot do in the house or who you will have in the house (within legal limits). If you are unsure then perhaps let the agent do the tenancy agreement but check the terms are OK with you.

In England we have to secure the deposit under an approved scheme. And yes you have to fill in a tax return and declare the income. Interest is an allowable expense so better to have a mortgage on the renter than on your home. So do as the MPs do!

Buy lots of magnolia paint and you are off!

 

[shouldbeinbed]

if you can, keep an eye on relationship status & new partners (if that means snooping on Facebook & twitter so be it). Have it as a notifiable condition of tennancy.

I rented our old house to our childminders daughter (known em for years), more as a favour, delaying selling it to help her, she got in with one of the most virulent s**tbag families in our town, they ripped my name off for massive identity theft, it came to light when the police arrived at my new address with a very irate car dealer to reclaim the Subaru Impreza 'I' had failed to return & ended up with them smashing my old house to pieces, very literally, including leaving gas and water flowing from ruined pipes and no doors on the place, so no proof enough it was them to prosecute. I sold the wreck to a builder for almost £30,000 less than I had left on the mortgage & ended up with a punitive interest rate deed of covenant on top of my new house mortgage to pay off too.

extreme case yes but hellish as an unwary newbie, a total eye opener to how shabbily business & law enforcement can treat victims of crime & damn near bankrupted me.

Just as a warning that something as simple as a new boyfriend can see things spiral very quickly away from you. Constant vigilance & don't be afraid to be hard faced.

 

[threebikesmcginty]

Get your soul removed.
Lose all humanity.
Be prepared to scrimp at all times.
Always blame your tenants, especially when it's your fault.
Change the rules more in your favour at any time.
Hold back deposits for spurious reasons.
Be prepared to burn in hell for all eternity.

That's about it really, good luck!

 

[Chromatic]

Get your soul removed.
Lose all humanity.
Be prepared to scrimp at all times.
Always blame your tenants, especially when it's your fault.
Change the rules more in your favour at any time.
Hold back deposits for spurious reasons.
Be prepared to burn in hell for all eternity.

That's about it really, good luck!

You've been reading B*****d Landlords I - V haven't you?

 

[pplpilot]

Get your soul removed.
Lose all humanity.
Be prepared to scrimp at all times.
Always blame your tenants, especially when it's your fault.
Change the rules more in your favour at any time.
Hold back deposits for spurious reasons.
Be prepared to burn in hell for all eternity.

That's about it really, good luck!

Tar us all with the samebrush why dont you? I have 3 proporties and treat all my 'very long term' tennents with respect and respond to thire issues imedietly, i have not raised rent in over 10 years, in return i get dood decent people wishing to rent from me. I would be mortified if for asecond i didnt follow up my duties as a landlord. These folk pay me on time every month and i have never had reason to bring any of them to book. The lest i can do in return is do as i would wish if it were me renting. Unfortunatly there are landlords that do the mirror opposite and give us all a bad name.

 

[annedonnelly]

I hope I'll be like @pplpilot rather than who-ever @threebikesmcginty has had to deal with - sounds like a nightmare!

Thanks @Over The Hill . That's the sort of info I'm looking for. I don't think advertising will be a problem - you either want/need to live on Shetland or you don't. There's a finite market for both property and tenants

It's the stuff about vetting and tenancy agreements that I need to understand. I'd never have thought of @shouldbeinbed's example of notifying of change of partner. That's the sort of example I need.