Before letting your property there are a number of financial and legal considerations:
Arrange appropriate mortgage, if necessary notifying bank if it is to be used for letting and not your own dwelling house. This may result in an increase in your mortgage rate and you should be aware of any restrictions that your mortgage company will put on any lease (e.g. style of lease, length of lease, type of tenants, no. of tenants). Please note that many leases to the oil industry market will be company lets rather than short assured tenancies.
Confirm insurance for both buildings and contents will cover leased property. It is recommended that even unfurnished properties still have minimum contents cover for landlords. You are not liable for the tenants belongings. Please pay special attention to any policy restrictions with regards to vacant periods.
If you are relocating abroad or currently live outside the UK, advise tax office of the date of your departure from the UK and apply for a Non Resident Landlord Approval Number.
Consult your tax advisor regarding the tax on your property income and the offsetting of tax by expenses.
Apply for council tax exemption if the property is to be vacant and unfurnished before a lease. Apply for 10% discount if the property is vacant and furnished
Cancel telephone service, broadband, satellite TV and TV licence (if no TV in the property)
There is a requirement for landlord registration numbers to be included in written advertisements of properties to let. The Scottish Executive has now agreed a national fee of £55 to register as a landlord for a 3 year period. Thereafter to register individual properties will cost £11 per owner for each property. Online registrations will receive a discount of 10%.
Margaret MDL agent numbers:
Aberdeen City - 04238/100/14000
Aberdeenshire - 04238/110/14590
MDL Non resident and landlord agenct number:
Margaret Duffus Leasing - 922/NA022237
Energy Performance Certificates
It is a mandatory requirement that all properties sold or rented from 4 January 2009 require an Energy Performance Certificate (EPC). As part of the Single Survey in Scotland all properties marketed on or after 1st December 2008 will require to have an EPC when the property is offered to the market. A copy of the certificate requires to be submitted to Margaret Duffus Leasing prior to listing. This certificate must be displayed within the property and a copy issued to the tenant.
Private landlords have a duty to ensure that the houses they rent to tenants meet the new repairing standard which is set out in Section 13(1) of the Housing (Scotland) Act 2006 (the 2006 Act). The landlord should ensure that the house meets the Repairing Standard at the start of the tenancy. If a tenant believes that the landlord has failed to meet the Repairing Standards at all times during the tenancy, they have the right to apply to the Private Rented Housing Panel (PRHP). To find out more about your responsibilities under the 2006 Act, you can download an advice pack and other leaflets from www.prhpscotland.gov.uk