If you’re new to letting a property, it can be a daunting process. There’s a lot to juggle and the consequences of getting it wrong can be significant. At Clan Gordon we manage hundreds of properties for Edinburgh landlords, delivering an award-winning service across the city for almost 20 years. Follow our 10 key steps to make sure you tick every box along the way, stay on the right side of the law and avoid the many pitfalls.
1. Register as a landlord
Anyone renting out their Edinburgh property must register with the local authority. The fee is £80 plus £18 for each property and if you register late, it’s £160. You can complete your application on the Edinburgh City Council website, where you’ll find details of the landlord registration obligations including the Tolerable and Repairing Standards. Landlords must agree to comply with these standards and other obligations such as gas and electrical safety checks.
2. Prepare your property for letting
Before you rent out your property, consider if there are any maintenance issues that need to be sorted. Is the boiler reliable? Do the walls need painting? Make sure it’s in the best possible condition to secure a good rental yield and prevent tenants raising issues when they move in.
3. Decide on the rent you want to charge
It’s important to set the right rent for your property – too low and you’ll miss out on valuable income, too high and you won’t attract interest and give yourself the best chance of securing reliable and reputable tenants. Do your local research and check out rents being charged for similar properties in the same area - and be realistic. If your property isn’t up to the same standard, adjust the asking price accordingly. Tenants are savvy and will know exactly what they can expect to pay.
4. Do a comprehensive inventory
Before tenants move in, make sure you create a detailed inventory with clear, well-written descriptions supported by high-quality, referenced photos of your property and any furnishings you’re providing. If you don’t have proof of the initial condition, it will be difficult to prove any damage in excess of acceptable wear and tear when your tenants leave. Take room-by-room photos, paying attention to any existing issues, and don’t forget door handles and ceilings!
5. Advertise your property
Advertising your property widely on all the leading websites gives the best opportunity of securing reputable and reliable tenants. Limiting yourself to one or two sites may save a few pounds, but you could find yourself settling for tenants who don’t quite fit your ideal requirements. Also, if your property is more suited to a professional couple or a family with children, limiting your advertising will produce an even smaller pool of potential tenants.
6. Choose your tenants carefully
Choosing the right tenants is crucial as it could make a huge difference in the weeks and months to come. Take time to meet prospective tenants individually and chat to them about their plans. It’s definitely worth trusting your gut feeling - building a strong relationship is key to the smooth-running of the tenancy.
7. Carry out full referencing checks
Careful checks and references are vital to ensure your tenants can afford the property and have a good reputation. It can be tempting to skip this step if you want to let your property quickly, but it’s not worth the risk. Make sure you ask for bank statements, a reference from a previous landlord and a credit check as the bare minimum.
8. Draw up the tenancy agreement
Your tenancy agreement is the legal document that protects you and your tenants and outlines what is expected on both sides. The easiest way to ensure your agreement is compliant is to use the Scottish Government’s model tenancy agreement, which has just been updated following changes to rules about rent increases and evictions. Make sure it covers everything you have agreed with your tenants – it’s too late to make a change once it’s been signed. And remember you need to register your tenant’s deposit in a recognised scheme.
9. Complete all the safety checks
When you register as a landlord, you agree to meet several obligations regarding the safety of your property. Checks must be carried out to provide gas and electrical safety certificates, and you are obligated to get the water supply tested for legionella. You’ll also need to provide an EPC that details the energy efficiency of your property – this gives tenants a good idea of how much their bills will cost.
10. Move your tenants in
On moving in day, get off to a good start by welcoming your tenants and explaining how everything works. Spending time now is worthwhile as it will avoid future questions – and endless phone calls. Leave instruction books for appliances and talk your tenants through anything tricky. Let them know the best way to get in touch with you and arrange to drop by in a few days to see how everything is going.
For more advice and guidance on how Clan Godon can support you with letting your Edinburgh property, speak to one of our expert property managers. Schedule a call now and we’ll talk you through the process and make sure everything runs smoothly.