Unfortunately the list of legal requirements landlords have to consider is getting longer. This isn’t a definitive list, but some of the major things you
need to be aware of. Requirements are different in Scotland compared to England and Wales.
Landlord law considerations relate to:
1. Tenancy agreements and deposit schemes
2. Property compliance
3. Treatment of tenants
We’ll write in more detail about each of these items, but for now here is an overview.
Tenancy agreements and deposit schemes,
In England and Wales landlords use an Assured Shorthold Tenancy or AST for short. It is also mandatory to use a deposit scheme if you take a deposit from your
tenants. You have the choice of whether you use a custodial scheme or not. The point of difference with a custodial scheme is that you must hand over the deposit funds to the scheme administrators.
In Scotland the lease use is a Short Assured Tenancy or SAT. As of April 2012 there is a deposit scheme in place for deposits but it’s not yet active because
No administrator has yet been appointed. It will be a custodial scheme so landlords will hand over deposits. This legislation is retrospective so landlords currently holding deposits will have to
hand them over.
First time landlords are sometimes tempted to buy cheap tenancy agreement templates on the internet, but although may be legally compliant they wouldn’t be used by experienced landlords who generally view them as insufficient for their own needs.
As well as serving a tenancy agreement on your tenants you will have to serve statutory notices or your lease is invalid. Different notices apply in England and Wales, compared to Scotland.
Property Compliance
Assuming your property is not an HMO there are a number of things your property needs to make it fit to rent and legally compliant. These include an Energy Performance Certificate, Gas Safety Certificate and adequate buildings insurance.
In Scotland it is a requirement that landlords be registered against every property they let.
Additional requirements relate to electrical safety, carbon monoxide detectors and smoke alarms. The requirement for smoke alarms is set out in the Buildings Regulations (1991) and is compulsory in buildings built after June 1992.
However it is sensible to have alarms fitted in all properties.
Electrical safety checks are not a requirement but under the Electrical Equipment (Safety) Regulations 1994 all equipment supplied must be fit for purpose and safe. The only way of being certain is to have all mains equipment tested. This is called a Portable Appliance Test (PAT).
It’s worth noting that a landlords gas safety certificate is needed if even if you only have gas fires with no central heating or even just have a gas supply leading to the house.
Treatment of Tenants
Of course this relates to tenancy agreements and deposit schemes but is worth mentioning in its own right as first time landlords can trip up on this. Both landlords and tenants have rights according to the law of the land whether that’s Scotland, England or Wales.
Landlords may amend standard tenancy agreements but may not introduce unfair clauses. This is an important point should you ever have to evict or service notices on a tenant.
For example, you could not include a clause which allowed the landlord to do inspections at an hour’s notice.
Fairness also applies to your assessment of chargeable repairs and return of the deposit. A detailed inventory and check-in, illustrated with copious photos is in your interests and the tenants.
Obviously both parties must sign these off.