Main types of tenancy agreements

Short assured and Assured are the main types of tenancy agreements in Scotland. Landlords with these types of agreements must provide tenants with a written tenancy agreement that is fair and easy to understand. This forms the contract between the landlord and tenant and sets out the legal terms and conditions for both sides.

Short-assured

This is the most common type of tenancy in the private renting sector in Scotland and begins with a term of 6 months or longer. Once the first 6 months are up, the tenancy can be renewed for a shorter period. For a tenancy to be short-assured, a form called an AT5 notice must be given to the tenant before they sign the tenancy agreement or move in.

Assured

From the start of the agreement, this type of tenancy is classed as ‘contractual assured tenancy’ for a fixed period of time. It automatically becomes a ‘statutory assured tenancy’ if:

• The landlord issues a notice to quit because they want to change the agreement but the tenant stays in the property
• The fixed period covered by the tenancy comes to an end and the tenant stays in the property.

What is included in an agreement?

For short-assured and assured tenancies the agreement should include:

• Landlord and tenant names
• Rental property address
• Rent price and how payment is made
• Deposit and how it will be protected
• Length of lease
• Responsibilities for repairs
• Responsibilities for bills
• A statement for the tenant stating that antisocial behaviour is a breach of the agreement
• How to end the tenancy agreement (how much notice is required by the landlord and by the tenant for moving out of the property).

It may also contain information about the furniture in the property, rules around pets or smoking.

Depending on the type of tenancy, the landlord and tenant will have different rights and responsibilities so it’s important to have those clear from the beginning of the tenancy.

Other types of tenancy agreements

Common law

For cases where the tenant is living with the landlord. Although no written agreement is needed, it is recommended that there is a lodger agreement put in place.

Regulated tenancies

Tenancies created before 2 January 1989 are usually this type. Some of these still exist but a new one cannot be created. With these agreements, landlords or tenants can ask Rent Services Scotland to set ‘fair rent’ with a form called RR1.

Changes to tenancy agreements

If the landlord wants to make changes to the tenancy agreement then that will need to be agreed with the tenants.

Further information for tenants and landlords in Scotland can be found in the Private Renting section of The Scottish Government website

For thousands of properties to rent throughout Scotland, search s1homes.com

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Many landlords are happy to manage their properties by themselves, but there are those who would rather employ a letting agent. There are agents across Scotland, so how do you choose which one is best for you?

Here are some considerations.

1.       Decide what level of service you need

There are different levels of service offered by letting agents. Your choice will depend on how much support you think you need and how much you are willing to pay.

Each agent will have their own packages but here is a guide to the types of services offered.

• Let only is likely to cover marketing your property, viewings, tenant credit and reference checks, tenancy agreements, inventory, collection of deposit and placing the deposit into a tenant deposit scheme.
• Full management will usually cover all of the services for a let only but will also deal with ongoing management of the property. This will cover the transfer of rental income and arranging repairs and maintenance on your behalf.

Some agencies also offer guaranteed rents if your property is empty. You will need to make a judgement as to whether you will actually benefit with this type of arrangement before signing up.

2.       Ask for a breakdown of fees

Some services will have a fixed price, others may be a percentage of rent. Some have upfront fees or additional services for an extra charge. Make sure you understand the options available to you and the costs associated with each before selecting an agent.

3.       Think about the type of tenant you are looking for

Your target customer will also influence the agent you choose. Some are specialists in short-term lets, so think about how long you want to let your property for. Others are experts in student lets, so consider whether you are offering your property as an HMO.

4.       Opt for local knowledge

Choose an agent that knows your area, especially if your rental property is not close to where you live or somewhere you don’t know well. They will know the typical rental values of properties in your area and will have the network of contacts for local tradespeople too. This will be helpful if you decide to have an agent manage the maintenance of your property.

5.       Choose one that advertises on the key property portals

s1homes.com is Scotland’s biggest property site so you want to make sure to choose an agent that advertises on the website. We also have a tool for landlords to help find a letting agent in your area.

6.       Ask around

It is always good to get recommendations from other people, particularly if you are new to being a landlord. Speak to friends, family and colleagues to get a view on their experiences. Speak to a few different agents to compare their services and pricing before making a decision.

To find a letting agent in your area, visit s1homes.com

If you are a tenant or landlord in Scotland, read on and all will become a bit clearer.

What is a House in Multiple Occupation (HMO)?

An HMO is a property that is shared by three or more people who are not members of the same family. There are some exceptions, for example residential or nursing homes but that is the general criteria.

Who needs an HMO licence?

Landlords with properties meeting the criteria above must get an HMO licence from the council for the area where the property is situated. The council will advise of the application process and associated fees for that local authority.

Who issues an HMO licence?

The local council for the property area will issue the HMO licence. They will arrange to visit the property to ensure it meets the required standards, based on Scottish Government’s Guidance on Mandatory Licensing of Houses in Multiple Occupation. These standards include the provision of adequate facilities for each resident and compliance with fire safety but there is a series of checks that they will carry out.

What is the purpose of an HMO licence?

The purpose of the licence is to ensure that the accommodation is well-managed and safe. The checks to obtain the licence will cover the living accommodation and its owner or letting manager, to ensure they are fit and proper to hold the licence.

How do I find out if my property has an HMO licence?

As a tenant / prospective tenant, in most cases rental properties will be advertised as non-HMO or HMO licensed where appropriate. You can also just ask the landlord or contact your local council as they will have a list of all the landlords licensed for the area.

What happens if an HMO doesn’t have a licence?

It is a criminal offence to have a property as an HMO without a licence and the maximum fine is £50,000. The local council can inspect a property without an appointment if they think it is operating without a licence. If the landlord’s licence has been suspended or revoked, this means the property is no longer suitable for rental as an HMO. Refer to your tenancy agreement or take advice if you have questions about the effect on your living arrangements.

The Scottish Government website has more detailed information about the legislation if you want to dig a bit deeper.

For more renting tips, read Renting advice for tenants in Scotland.

Search properties for rent across Scotland at s1homes.com

Scotland’s private rental sector faced a shake up a few years ago when the Tenancy Deposit Schemes (Scotland) Regulations were introduced, meaning that all deposits had to be paid into a Scottish Government approved tenancy deposit scheme.

Three years since the new laws came into force, I’m pleased to say the majority of the nation’s landlords now comply and use deposit schemes, meaning that when you view a rental property on s1homes.com, it should be registered with one of the three approved deposit schemes.

SafeDeposits Scotland was one of three organisations formed to hold this money, and since then we’ve had to do a lot of work in getting the message out that not only is it not optional, it’s an important part of the rental process and is in effect, a tenant’s right.

Of course, there are still some landlords yet to sign up, but failure to do so will catch up with them eventually as potential tenants now rightly expect their deposit to be protected by a neutral party with an independent dispute resolution service.

Although landlords are legally obliged to abide by the rules, the approved deposit schemes out there – ourselves included – must add real value to the rental process and make it as easy as possible if we want compliance rates to rise further.

This means doing more than just collecting the money. It’s about enhancing the experience of both the tenant and the landlord. We provide peace of mind that the money in this important transaction is safely protected and will be fairly returned or distributed.

We are there for both parties from the moment a landlord opens an account right through to a tenant moving out, whether there’s a dispute over the money or not.

The process has to be hassle free and the dispute resolution service has to do what it says on the tin, i.e. resolve disputes independently, fairly and quickly.

So far SafeDeposits Scotland has secured over £63m worth of deposits not because landlords have no choice (as they do) but because we’ve been able to prove our worth to them. There has to be a real business benefit to placing your deposits with a third party.

So whatever side of the rental market you’re on, whether you’re renting and want to know your money is in a safe place, whether you’re a landlord who hasn’t already signed up, or whether you have but want to make sure you’re getting the best service for you and your tenants, we’ll be at the other end of the phone when you need us.

Jen Paice is CEO of SafeDeposits Scotland, Scotland’s only not-for-profit tenancy deposit scheme. See www.safedepositsscotland.com or call 03333 213136 for more details.

Who is your customer?

The main consideration in your decision is your target customer. Depending on the type of tenant you expect to have in your property, they will have different requirements. Students are more likely to be looking for furnished accommodation, as are young professionals, whereas a family or older tenant is more likely to have some furniture of their own.

If you have a letting agency managing the property on your behalf, it’s worth asking them for their expertise. They’ll know what demand is like in the area and whether furnished or unfurnished gets the best response for your type of property.

Letting a furnished property

Benefits

• It can be more appealing to a tenant if they can see furniture in the room – but avoid it looking cluttered.
• There is usually more demand for furnished property so you are likely to let it more quickly and a furnished property also offers access to the short-term lets market.
• At the end of a tenancy you still have the furniture and can let your property again.
• Landlords who let furnished properties are entitled to claim a wear and tear allowance on their letting income. More information from HM Revenue & Customs.

Disadvantages

• As a landlord, you are responsible for making sure all furniture complies with legislation.
• Although not a requirement, it is sensible to insure your belongings. You should also be prepared for incurring costs for furnishings being damaged and needing replaced.

Letting an unfurnished property

Benefits

• Tenants seeking an unfurnished property may be more likely to stay – once they have moved in with their furniture it is more of an upheaval to move.
• You are not responsible for the furniture or damage to it and you can benefit from breaks in council tax when the property is unoccupied (check with your local authority as this can vary across Scotland).
• It also means that if you decide to sell, it’s much easier if you don’t have furniture to move out.

Disadvantages

• On the downside, properties can look bare and uninviting if they are viewed with no furniture.
• You won’t be eligible for the wear and tear allowance.
• It’s also worth remembering that even if the property is unfurnished, tenants will still expect some white goods to be supplied with the property, along with carpets and curtains, so you should still have landlord insurance.

There is always the option to go with part-furnished. You might want to provide the basics of unfurnished with some extras but not extending to beds, washing machines etc. Whichever route you decide to take, remember the customer’s needs are the most important consideration.

If you are looking for a letting agent to look after your property, s1homes can help you find a trusted agent in your area.

Whatever the reason, we’re offering some advice to help you find the rental property to suit you and some tips that can help along the way.

Plan your finances

You will have an idea of the area you’d like to live in, so research the typical rents in the neighbourhood and be sensible about what you can afford. Consider your bills (utilities, insurance, council tax etc.) to give you a realistic budget. Some bills may be included with your rent but this can vary, so it’s best to check. You’ll also need a deposit and one month’s rent upfront in most cases, to be paid on the day you move into a property.

Finding a rental property

What kind of property?

Once you know your budget you should think about the property itself. Would you prefer furnished or unfurnished? Is it a house or a flat that you’re looking for? Do you need to be close to transport links or do you want parking close to your home? Making a list of your requirements before you start looking will help speed up your search.

Searching for property

95% of people start their search online on sites like s1homes.com, Scotland’s biggest property site.

You can set up property alerts based on your search criteria to be emailed as soon as property matching your criteria hits the site. This is particularly important – there is high demand for quality rented accommodation, so properties go quickly. Especially when it comes to festival lets in Edinburgh or student accommodation around the start of a new semester.

Check that the landlord (in some cases this is also the letting agent) is registered with the local council. If so, they will have a landlord registration number that will be included in all property adverts, along with the Energy Performance Certificate (EPC).

If you plan to live with others, check out our top tips for choosing a flatmate. If three or more unrelated people will be living in a property, it will need to have an HMO (house in multiple occupation) license from the local council – this is something to check as part of your search.

Viewing properties

Letting agents across Scotland advertise their properties with online portals, like s1homes.com. Alongside the listing, there will be contact details for the agent. Call or email them directly from the site or your property alert email and arrange a time for a viewing. Once you’re in touch with them, agents will also be on the lookout for properties coming onto their books matching what you’re looking for.

For things to look out for during a viewing, print our handy renting checklist. It’s always good to take someone along with you for safety and a second opinion.

Also, ask your current landlord or employer to give you a reference – this will speed up the process for you when the new landlord or letting agent asks you for one.

Moving in

• When you first move in, it’s good to familiarise yourself with the location of the water mains, gas valve and fuses in case you have to turn these off in an emergency.
• You should have two smoke alarms and a Landlord Gas Safety Record (issued once a year).
• Any furniture provided by the landlord should adhere to Furniture and Furnishings Fire Safety Regulations 1988 and have a symbol on the furniture to say that it is fire resistant.
• Your landlord should give you an inventory. Check it’s correct or create your own if one isn’t supplied. Check the condition of walls, floors and any furniture and take photos to show any damage to the landlord. Once both parties are happy, you’ll sign the inventory and each keep a copy.
• Pay your deposit and first month’s rent – get a receipt for these payments. Your deposit should be registered by the landlord with one of three Tenancy Deposit Schemes within 30 working days of your tenancy beginning. If this isn’t done, you should remind your landlord as the Sheriff Court can order that this happens and you could be compensated.
• Insurance – the landlord has to insure the building and anything in the property that belongs to them. You, as a tenant, are responsible for insuring your own belongings.

Now you’re an expert on renting in Scotland, start looking for your next home. For over 3,000 properties to rent across Scotland, search s1homes.com

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1.    Meet and interview all flatmates before they move in

You don’t have to be best friends with your flatmates but you do need to be able to at least tolerate people you are going to be living with. It’s important to know things like; if they smoke, how often they are likely to have people over and how they feel about having pets in the house.

2.    Make sure your lifestyles are compatible

If you work shifts and have an usual sleep pattern then you don’t want to live with someone who works from home and is likely to disturb you. Similarly, if you’re an early to bed type, someone who stays up late with the TV blaring is not going to be your ideal flatmate.

3.    Be honest

It’s important to set expectations from the start. Be upfront about the fact that you’re a neat freak, or that you don’t like people taking your personally labelled food – it’ll save a lot of arguments and resentment in the long run if you all know what to expect.

4.     Talk money

Money can be an uncomfortable topic, but it is an inevitable one when it comes to sharing a home. It’s not personal so discuss how the bills and costs will be split so everyone is clear about their responsibilities.

5.    Be open-minded

You can do all your research and question prospective flatmates relentlessly but, ultimately, there is a leap of faith involved – even with close friends. Until you live with these people, you’ll not know how it’s going to go. So, give it a chance, you might even make lifelong friends.

Do you have flatmate stories or tips? Share them with us!

For properties to rent across Scotland, search now

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Let’s take a look.

Almondhill Steading, Kirkliston

First up we have a steading conversion in a quiet countryside courtyard.

£1,260 per month.

Alexandra Gate, Paisley

This flat was formerly part of the Royal Alexandra Hospital, designed by well known local architect T.G. Abercrombie.

£375 per month.

East Draffan Farm, Lesmahagow

Is a converted barn more your style? This converted barn on East Draffan Farm is set in a beautiful rural landscape.

£700 per month.

Hallcraig Street, Airdire

And finally, the former Rialto Bingo Hall in Airdire which has been sympathetically converted into 5 retail units and 5 luxury apartments.

£550 per month.

Could one of these be your perfect new home?

Take photographs of the property

Take a look at some of the priciest properties advertised on s1homes available for the Commonwealth Games and Ryder Cup.

1. Old Glassingal, Dunblane
6 bedroom house
£52,000 pcm

2. Tulipan Crescent, Callander
5 bedroom house
£43,342 pcm

3. Finnieston Street, Glasgow
3 bedroom flat
£43,329 pcm

4. Imperial Way, Bothwell
5 bedroom house
£34,667 pcm

5. Old Mill Cottage
6 bedroom cottage
£21,671 pcm

Which one would you prefer to stay in?