Landlord Guide

Thank you for considering using the services of Craigflower Lettings. We are based in

Shandon and specialise in the letting and management of good quality residential

property.

We were established in 2006 by Angus and Heidi King and between us we have

decades of experience in property management.

Whether you are a homeowner looking into letting your property or an experienced

buy-to-let investor we hope you will find us helpful, knowledgeable and

approachable.

In 2018 new regulations will require letting agents to register with the Scottish

Government and meet certain criteria in terms of standards of service, training,

insurance and client money handling. We have already been through a relevant

training course and put all the required accounts and insurance in place to meet

the requirements of the code.

We know what it takes to get your property let quickly, for the best price, to the

right tenants.

We are members of the Council of Letting Agents and protect deposit money

through an organisation called MyDeposits Scotland. We can provide a Rent

Guarantee Scheme but this does not suit every property or landlord.

We offer a free, no obligation valuation of your property and promise very

competitive rates. Whether you need an agent to manage you property or portfolio

or simply need help finding a tenant we will be able to tailor our service to meet

your needs.

About us

We find that tenants and landlords like

our service as we are small enough to

offer a personal service yet have the

capacity and experience to deal with any

eventuality. Our office is situated in

Shandon and a large percentage of our

portfolio is in and around this area.

The Lettings Market

Increasingly, good presentation is vital in terms of securing the best price and

quickest let. The rental market is very competitive and we have a great track record

for letting property very quickly – almost all of our properties let on the first viewing.

The properties that let quickest, and for the best price are the ones that have had

the most effort put in to the presentation. Showing a property that is messy or

asking tenants to use their imagination to see past all your packing crates etc is not

the way to guarantee a speedy let or a good price.

Landlords are often surprised at how quickly many tenants need to move in so for

us, a property that is clean, tidy and in move-in condition is the one that will

command the best price and quickest let. Tenants can get frustrated at seeing messy

properties and places that look in walk-in condition are snapped up if the price is

right.

Advertising

We will advise you on the type of

tenants to whom your property is likely

to appeal and how to present the

property in terms of furnishings, price

etc. Our properties appear on the top

four sites for lettings in Edinburgh.

Internet advertising (on sites such as

Zoopla and Lettingweb) delivers the bulk

of our lets but we also always have a

database of tenants looking for specific

types of property.

Choosing Tenants

We will check on tenants’ employment, rental and bank status to assess their

suitability. We can also offer a rent guarantee scheme by passing the referencing on

to a third party credit agency. The drawback to this is that they can reject many

perfectly good tenants as they may not meet the criteria of having been in their

current job long enough or have not been UK residents long enough. This process

can be counterproductive as it can mean longer void periods (and therefore less

money to you).

Service and fees

Our fully managed service costs 12% of each month’s rent including VAT (equivalent

to 10%+VAT at the current rate). The first time we let the property we charge a

letting fee of £275 (including VAT). This covers everything from advertising,

viewings, a To Let board, referencing, leases and inventory. Subsequent lets are

charged at £150 (including VAT).

With the management service you can have as much or as little to do with the

property as you like. We can handle everything from setting up utility accounts,

organising repairs to providing you with annual summaries for your tax returns.

If you are comfortable with the idea of managing the property yourself, we offer a

Let Only service. We can still handle everything up until the tenants move in but

after that you and the tenants would liaise with each other directly. This service is

priced at £375 including VAT.

Deposits

Since 2012, tenancy law insists that tenants’ deposits are held in an approved

Deposit Scheme. We use an organisation called MyDeposits Scotland. The deposit

body can act as an arbiter to settle any disputes over deposit deductions. The

deposit rules are lengthy but as a general rule of thumb they are there to both

ensure landlords can receive fair compensation for cleaning and damages but also to

ensure that tenants are not charged for things unfairly or for items that have

reached the end of their expected lifespan.

Other costs and safety compliance involved in being a landlord

Before letting your property, we have to consider the Repairing Standard, which is

part of a 2006 Housing Act that sets out basic rules for landlords to follow in terms of

presenting tenants with a property that is safe and habitable. Changes came into

effect from December 2015 that have insisted on a great range of safety checks to be

carried out.

Landlord Insurance replaces existing buildings and contents cover and also should

include cover for loss of rent (should fire, flood etc cause the tenants to leave).

Speak to your current provider, look online or ask us for a quote as we act as an

introducer for a landlord insurance policy and can set it all up for you and deduct the

cost from the rent.

Landlord Registration will provide you with a registration number to grant you

consent to let your property in Edinburgh. Visit

www.landlordregistrationscotland.gov.uk to register yourself and your property. If

we will be managing the property you will need to quote our reference number

97847/230/01140.

You will also need an Energy Performance Certificate (EPC). If the property has been

bought/sold since late 2008 there’s a good chance it will already have a certificate

but if not we can arrange one for you. They last for ten years and cost around £75,

depending on the size of the property.

Electrical safety regulations are the biggest changes as of December 2015. Landlords

are now required to have an EICR (Electrical Installation Condition Report) at least

every five years. This will highlight any areas of your electrics that need attention.

PAT Testing (Portable Appliance Testing) requires any electrical items with a plug (eg

kettle, toaster) to be checked each year. This is not too costly (can be just a few

pounds per item).

Fire Safety regulations require all rented property to have an interlinked smoke and

heat detection system that covers the hallway, living area and kitchen. Each property

should also now be issued with a fire blanket or extinguisher.

A test for Legionella will also have to be carried out. The frequency of further tests

will depend on the plumbing of the particular property but generally it will be valid

for three years. We also give tenants a guide to keeping them safe from the risk of

Legionella.

Contract Heating are able to do all of the compliance testing. They offer a fixed price

EICR and as part of that process will provide a quote for any required electrical work

and a quote for installing a smoke and heat detection system.

Taxation and dilapidations

It’s wise to budget around 10-12% of the annual rent for repairs and general upkeep.

You will also need to complete a Land and Property self assessment each year as the

income from the rent is taxable. If you will be living overseas you will need to

Gas safety

If there is a gas supply to your property

we will need a Landlord’s Gas Safety

Certificate. This is an annual check

carried out by a Gas Safe registered

engineer. We can organise this for you.

We recommend Contract Heating (tel

0131 458 3377). They also offer a very

comprehensive boiler breakdown policy

for £198 per year. Any room with a gas

appliance will require a carbon monoxide

detector (a battery operated one is fine).

register as an overseas landlord, otherwise the HMRC can request us to withhold

part of your rental payments. It is a quick and easy form – just visit

www.hmrc.gov.uk, search for Non Resident Landlords and use our code

904/NA/041312. We can put you in touch with an accountant if you would prefer to

hand this task over to an expert.

General Points about being a landlord

Letting a property is not for everyone. People can sometimes find it hard to detach

themselves emotionally from their property and maintaining a rental property can

be not only financially but emotionally draining.

Landlords want a tenant who will look after their property but remember that

tenants are looking for a home, not for somewhere to house sit.

Budgeting on redecorating and refreshing the property regularly will help to get the

best price, cut down on void periods and attract tenants who want a property that

looks like it has had some thought put into it. It is much easier for us to let more

expensive but very well presented than tired but cheap places.

Getting your property on the books

Demand for rental property is high and there is little to be gained from advertising

your place before it is looking its best. It takes us no time to get the property

photographed and have adverts posted and we will keep you on track with all the

required compliance issues. The safety compliance needs to be in place before

tenants move in but for advertising the property we just need to make sure you have

an EPC and a landlord registration number.

Contact us:

Craigflower Lettings

36 Ashley Terrace

Edinburgh

EH11 1RE

0131 346 2400

info@craigflowerlettings.co.uk

Checklist 2018:

This page gives a brief snapshot of the compliance requirements for getting your

property ready to let. You can arrange it all yourself or let us help out.

Landlord needs to do this:

Landlord Registration (www.landlordregistrationscotland.co.uk – if we are managing

the property, use our code 97847/230/01140. Lasts for3 years

Living overseas? Register as a Non-Resident Landlord with HMRC. Our code is

904/NA/041312

We can arrange all this if required:

Gas safety (battery CO detectors mounted in any room with a gas appliance). Annual

PAT (Portable Appliance Testing) Annual

Consider a Contract Heating Landlord Agreement? £198 per year and includes the

gas safety certificate, PAT testing and breakdown cover on the boiler.

EICR (electrical check) & any follow up remedial work (lasts 3-5 years)

Interlinked, mains-wired smoke and heat detection system (should last 10 years)

Fire blanket or extinguisher in kitchen (optional – fire service may advise tenans to

simply get out in event of fire)

Legionella report (Lasts 1-3 years)

EPC (a copy will be in the home report, but it needs to be updated if you have new

windows or boiler)

Lasts 10 years

Insurance quote for buildings and contents

This chart is not exhaustive nor reflecting all current regulation but hopefully will

give landlords a basic overview of the many processes and stages involved in the

rental cycle: