What are the legal requirements for rental properties?

ESPC Head of Lettings Nicky Lloyd shares advice for landlords on legislation, property tax payable on buy-to-let purchases and property maintenance.

Landlord registration 

In Scotland it's a criminal offence to rent your property without registering as a landlord, and failure to do so could result in fines of up to £50,000. You can apply for landlord registration at the Scottish Landlord Register website or with the local council.  

Energy Performance Certificate (EPC) 

All properties must have an EPC. If you have a Home Report dated within the last 10 years you will find a copy of the EPC within this report. All privately rented properties will be required to meet a minimum standard rating of C by 2028. 

Gas and electrical safety certificates  

All rental properties must have checks carried out to ensure they are safe for tenants. These include Gas Certificate (all gas appliances must be checked annually); a Portable Appliance Test and Electrical Installation Condition Report (EICR) which means wiring and sockets must be checked on a regular basis, usually every three to five years.  

Smoke alarms 

Rental properties should have a smoke alarm in the room which is frequently used by the occupants for general daytime living purposes, a heat alarm in every kitchen and a smoke alarm in every circulation space on each floor, such as hallways and landings. The alarms should all be ceiling mounted and should be interlinked.  

Legionella risk assessment  

All rented properties in Scotland legally must have a risk assessment for legionella carried out which should identify any areas where legionella bacteria could grow and if treatment is required. 

Tenancy deposit scheme 

All deposits paid by tenants must be placed in one of three Scottish Tenancy Deposit Schemes (TDS): Safe Deposit Scotland, My Deposits Scotland, or Letting Protection Service.  

Insurance  

As a landlord, you are responsible for the building insurance for your property. You may choose to arrange insurance for any contents you may have in the property, but anything belonging to your tenant is their responsibility to insure. 

Tax 

Land and Buildings Transaction Tax (LBTT) applies to property transactions in Scotland. It is usually the solicitor who is acting on the buyer’s behalf who will complete the return and facilitate the payment. The amount of LBTT payable depends on the price of the property.  

Landlords also must pay Additional Dwelling Supplement (ADS), which is a tax on the purchase of additional residential properties (such as buy-to-let and second homes) of £40,000 or more. The current rate is charged at 4% of the total purchase price. 

ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental property and finding the right tenants. Contact the team on 0131 253 2847 or landlord@espc.com.