Property Letting
This article appeared in the January 2007 Issue of Homeplus.
With pensions continuing to attract controversy, people are looking at other ways of investing for their old age and property has always been a popular choice. But property can have difficulties too, as Karen Fulton a Partner with leading Private Client Solicitors, Bird Semple explains.
The Antisocial Behaviour Scotland Act 2004 represents the latest change to the letting of properties, as it contains legislation which affects many landlords who privately let residential property. As of 1st May 2006, it is an offence to privately let property without being registered with the appropriate local authority.
Why?
The Act’s aim is to ensure that landlords take steps to manage their properties and deal with tenants who are acting in an antisocial manner. The local authority can serve a notice which is called An Antisocial Behaviour Notice which sets out what a landlord has to do to comply and, if the landlord does not deal with the notice, then he or she will have committed a criminal offence, and if convicted, face a fine of up to £5000. This therefore makes it vitally important that you make sure you vet your tenants carefully, take up references and deal with any complaints from the tenants and neighbours quickly.
‘Fit and Proper’
The aim of the registration is said to be to ensure all private landlords in Scotland are ‘fit and proper’ to be letting residential property and to help local authorities remove disreputable landlords from the market and protect neighbours and tenants.
In deciding if the landlord is “fit and proper”, the local authority will consider any previous convictions, the landlord’s track record of tackling antisocial behaviour and anything else considered relevant. If the landlord fails the ‘fit and proper’ person test then their application for registration can be refused. (However there is a right of appeal)
NB
- If you own a house jointly and let it out, then all owners must be registered.
- If you own properties in more than one area you will be able to register in all authorities in one application and this will reduce the total fee you have to pay.
- It should also be noted that the registration only lasts for three years and then needs to be renewed.
If you don’t live locally to your rented property, or wish to detach yourself from the day to day hassle, then you may wish to deal with one of the companies who specialise in rental management. They can prepare your lease, find and vet prospective tenants, ensure collection of the rent and deal with the maintenance of the property. They will be your tenants’ first point of contact. Some will even find you properties to purchase and help you organise the renovation of the property. They can assist you with obtaining the specialist mortgages required for buy to let properties and for property portfolios.
Obviously this all comes at a price but many will find that it is a small price to pay for peace of mind that your property is earning you money and increasing in value without too much of your own input.’
Article compiled by Karen Fulton
Posted by Sharon Clift on Jan 08, 2007
