Renting your property out

This guide is primarily for new landlords - if you are already a landlord then you can use it as a ready checker to make sure you are doing everything you need to. You need to be aware that if any legal action is taken it will be raised against the landlord, even if you are using a letting agent - so you need to be aware of your responsibilities.

Talk to your council, lender and insurer

Register as a landlord with your council. Most landlords must do this. You will need to register even if a letting agent takes care of the property and deals with the tenants. There are serious consequences if you don't register.

If your property is going to be let to three or more unrelated tenants, then you'll need to apply for a HMO (house in multiple occupancy) license. There are extra criteria you'll need to meet if your property will be used in this way.

Inform your mortgage lender you want to rent your property out. Some lenders have restrictions on who you can let to. You can get into serious trouble with your lender if you are letting your property without consulting them, as it may be breaking your mortgage contract.

Having tenants can affect your insurance, so be careful. You need to make certain your insurers understand you have tenants and provide adequate coverage. Buildings, contents and property owners liability are all kinds of insurance cover you should ask about.

Getting the property ready

Make sure the property has smoke alarms, a heat alarms and carbon monoxide detectors. All alarms must be mains powered and interlinked.

If the property is an HMO (house in multiple occupancy) you will have extra fire safety criteria to meet.

Get an electrician to check both the installation and electrical items in the property are safe. The installation can be checked by a test called the Electrical Installation Condition Report. The appliances can be checked by what's called Portable Appliance Testing (PAT). HMOs must have their electrical installation tested every 5 years but all landlords must make sure their property's electrical installation meets the Repairing Standard - Electrical Safety First suggest testing rented property electrical installations every 5 years or the end of each tenancy, whichever comes sooner. If you have any gas appliances, arrange for a safety check every 12 months, called an Annual Landlord Gas Safety Record. This should be done by a Gas Safe engineer.

Arrange an Energy Performance Certificate (EPC) for your property. You have to include the rating in any advertising and to show the certificate if any prospective tenants ask to see it.

Check the property meets the Repairing Standard, which can be enforced by the Private Rented Housing Panel. Private rented accommodation needs to be wind and watertight and fit for you to live in to meet the Repairing Standard, but it also needs water, gas, electricity and heating installations to be in a reasonable state of repair.

Your flat or house must also meet a level of repair that is known as the Tolerable Standard. One part of the Tolerable Standard says the property may not be suitable to live in if damp is a serious problem.

Compile an inventory and take meter readings. You might want to take photos because this can help show the condition of furniture and carpets, for example. If there is any damage already, make sure you mention it in the inventory as it is helpful for you and your tenants to have a record.

Advertising the property and references

You need to give the Energy Performance Certificate (EPC) rating in any adverts.

From 1 June 2013, when a property is advertised, landlords have to include their registration number in all adverts.

Ask for references from a previous landlord or employer. If these are satisfactory, arrange a moving in date with the tenant.

Dealing with tenancy paperwork and deposits

Set up a Private Residential Tenancy (PRT), using the Scottish Governement Model Agreement and Easy to Read Notes or the Scottish Government Online Tenancy Creation Tool.

You also need to give them an Annual Landlord Gas Safety Certificate, Energy Performance Certificate (EPC) and electrical safety certificates. Inform them of their Repairing Standard Rights. Tell them how to report repairs and emergencies - you could do this later but it helps to make them confident you are going to be a good landlord.

Arrange payment of rent and deposit. You could ask them to put the property address as the 'reference' if they pay by bank transfer.

Put the deposit straight into one of the approved Tenancy Deposit Schemes. You have to give it to the scheme within 30 days of the tenancy starting. Tell the tenant which Tenancy Deposit Scheme their deposit is in.

Inform your council of your tenant's details and moving in date. Let your tenant know the council have their details for council tax purposes. Let the tenants know what council tax band the property is so they can work out how much their bills will be.

Move in day

Hand over keys. Collect the signed receipt for the Tenancy Information Pack unless you have an acknowledgement by email if you sent it electronically.

Look around the property with your tenant(s). Show them where the stopcock is to turn off the water supply, how to switch off the electricity and how to reset the electricity if a fuse blows.

Give them a copy of the inventory and ask them to check and return it, signed, with any changes or additions.

Arrange to visit in three months to check they are settling into their tenancy well. Put a date in your diary a week from now to check your tenant(s) have returned the inventory and amend/discuss accordingly if there are any changes.