What You Need To Do1 Register each owner of the property with the council local to the rental. Easiest way is online by goingto www.landlordregistrationsscotland.gov.uk. The cost is £55 for the first property and £11 forsubsequent rentals. Registration lasts 2 years and fines are due if not renewed. £50,000 fine if you donot register. Enter letting agents registration number on-line if using one.

2. Properties with more than two unrelated tenants is a House in Multiple Occupation (HMO) andrequires to be registered as such with the local council. Heavy fines for Non-registration.

3. A Gas Safety Certificate (CP12) is required for all gas appliances and carried out by a registered GasSafe (replaced Corgi) engineer. Check engineer's registration on 0800 408 0606. Cost is around £60 for aboiler with extra charges for additional appliances. Legal requirement carrying heavy fines and criminalsanctions if ignored.

4. Energy Performance Certificate legally required before a property is advertised. An EPC lasts 10 yearsand is part of a Home Sellers pack and Green Deal assessment. Cost is around £80 and carried out byChartered Surveyors and qualified assessors.

5. 2016 saw the requirement for an Electrical Installation Condition Report (EICR) carried out by either aSELECT or NICEIC registered electrician and Portable Appliance (PAT) Test for all new tenancies. In 2013a revision to the Repair Standard Legislation requires let properties to have interlinked smoke and heatdetectors.

Key-Lets, 12 Parkhouse Street, Ayr KA7 2HH 01292 289289

WHAT YOU NEED TO KNOW by Tim Williamson

1. A rental contract (lease) is between the landlord and tenant. ALetting Agent represents a landlord and acts in the Landlord's name.A tenant can only seek redress from a landlord through the courtsalthough a landlord can only seek redress from a letting agent if'professional negligence' can be shown.

2. Tenants' deposits have to be paid into a Government approvedTenancy Deposit Scheme. Failure to do so renders the landlord topay to the tenant 3 x deposit as a penalty for failing to meet thelandlord's legal obligations. Letting Agents who do not lodgedeposits make the landlord liable for any subsequent claim by thetenant.

In Briefto save you time

new to letting

6. Take out Landlords Building and Contents insurance. For unfurnished properties consider minimum(£5000 ?) contents cover to protect carpets, fittings and white goods. Consider new for old policies overlike for like.

7. Take out Rental and Legal Protection cover to protect your income stream. Costs are around £100 pa.Look at Endsleigh, Letsure and Leaseguard for cover.

8. Use a professional inventory company to provide an in depth digital Inventory and Schedule ofConditions for your tenants. Cost is around £80 - 120 depending on property size and condition. This isimportant for any claim on a tenancy deposit scheme and as evidence for any property insurance claim.

9. Have all carpets professionally cleaned for your first tenancy. Dry cleaning systems are less harmfulto your carpets than a wet system. Tenancy Deposit Schemes require receipts if you claim against atenant that does not have the carpets cleaned on exit.

10. Keep all invoices prior to and during the time your property is a rental property. Income fromresidential rentals is a taxable income and treated as any other business income. There are allowableexpenses such as any interest on loans against the property, maintenance costs, administrative costs,such as letting agent fees, accountants, insurances etc. Any improvements to a property such asbuilding a conservatory could be offset against any capital gain on a property. Seek advice from achartered accountant (costs from £200) or HMRC to understand your own tax liability.

What You Need to Consider.1. If you are working overseas for more than six months register with HMRC's Non-Resident LandlordScheme as an overseas landlord at www.hmrc.gov.uk/international/nr-landlords.htm

2. Furnished or unfurnished tend to serve two different markets. Students, Sharers, Domestic Split,Relocated Employees and Corporate tenants tend to look for furnished rentals. Families usually seekunfurnished lets, as do those who have sold a house and looking for another.

Should You use a Letting AgentConfidence and convenience are the two main reasons landlords use letting agents. The professionalagent will advertise, carry our viewings, rigorously and comprehensively reference prospective tenants,provide all the correct legal work to protect your investment (including lodging deposits correctly),collect rents and provide statements for tax purposes, manage maintenance issues, regularly inspectyour property and instigate rapid and robust rental arrears processes if required.

Managing rental properties is not rocket science but it is time consuming and has to meet all the variouslegal obligations placed on landlords. A small mistake can lead to major expense and inconvenience.

Tim Williamson

Key-Lets, 12 Parkhouse Street, Ayr KA7 2HH 01292 289289

Tim Williamson is a principle partner in Key-Lets with over 35 years of experience in theproperty market both as a landlord and letting agent. Key-Lets are a fiercely independentletting agency specialising in quality stand alone and portfolio properties for corporate andworking tenants in Scotland.