If you are a landlord in Scotland who is considering renting out a property, you will need to create a letting agreement. This legal document outlines the terms and conditions of the tenancy agreement and protects both you, as the landlord, and your tenant.
Before you create a letting agreement in Scotland, there are several things that you should consider. Here are some key points to keep in mind.
1. Types of Tenancy Agreements
There are a variety of different types of tenancy agreements available in Scotland, each with its own pros and cons. For example, a short assured tenancy agreement will offer you more security as a landlord, as it provides greater protection against eviction. However, a private residential tenancy agreement may offer your tenant more security, as it provides them with greater rights and protections.
2. Legal Obligations
It is important to be aware of your legal obligations as a landlord in Scotland. For example, you will need to register with the local authority and provide your tenant with a copy of the tenancy agreement within 28 days of the start of the tenancy. You will also need to make sure that the property meets certain health and safety standards, and provide your tenant with a copy of the Energy Performance Certificate.
3. Rent and Deposits
You will need to decide on the rent and deposit amount for the property. The deposit cannot exceed two months’ rent, and must be paid into a government-approved tenancy deposit scheme. You will also need to decide on the frequency of rent payments and whether any utilities are included in the rent.
4. Maintenance and Repairs
You will need to include provisions in the letting agreement for maintenance and repairs. It is important to be clear about who is responsible for what – for example, the tenant may be responsible for minor repairs, while you as the landlord may be responsible for major repairs.
5. Termination of the Agreement
You will also need to include provisions for terminating the tenancy agreement. For example, you may include a notice period that must be given by either party if they wish to terminate the agreement. You may also include provisions for early termination in certain circumstances, such as if the tenant breaches the terms of the tenancy agreement.
Creating a letting agreement in Scotland can be complex, so it is important to seek professional advice if you are unsure about any aspect of the process. By creating a clear and comprehensive letting agreement, you can help to protect yourself and your tenant and ensure that the tenancy runs smoothly.