How to Rent a Residential Property in Scotland

Renting a property in Scotland is regulated slightly differently than renting south of the border. For example, a landlord can not charge a premium for granting or renewing a tenancy. Landlords and agencies must also inform tenants about fees that are illegal.

A new report by research firm Rettie & Co has found that the Scottish Government’s rent freeze is impacting investor appetite to fund and deliver build-to-rent homes in the country.

Location

In Scotland, the location of your rental property can have a huge impact on how much you pay. Rents tend to be higher in popular residential areas, particularly near universities.

You can find a wide range of properties for rent in Scotland, from city centre apartments to countryside cottages. Many landlords are willing to offer a six-month lease, which can be an ideal option for people looking for short-term accommodation.

If you're looking for a longer-term rental, consider renting from a housing association. Some housing associations accept direct applications, while others require you to be nominated by your local authority. Unlike south of the border, landlords in Scotland are not required to run immigration checks on prospective tenants. They must, however, be registered with the Landlord Registration Scheme.

Size

The private rented sector more than doubled in size between 1999 and 2019, making it the home of one in seven Scottish households. It is growing because of a shortage of social housing and high barriers to home ownership for younger people. This growth has been fuelled by investors seeking a steady stream of income. This trend has been most prevalent in London, where large institutional investment funds are erecting new blocks for rent, but it is now starting to affect Scotland.

These figures are based on rental data gathered by Rent Service Scotland, using a variety of sources including landlord and letting agent returns, mailshot initiatives, and advertised rent information. They exclude rents relating to housing benefits, mid-market rents, and halls of residence.

Furnishings

Furnishing a rental property can be a challenge. You have to consider the style and function of each room and make sure that the furniture is appropriate for the space. In addition, you need to ensure that any furnishings are safe to use. For example, you should not rent a home with a bed that has a sloping head or a sofa that is too small for the room.

You should also make sure that you check the identity of any potential tenants. You can do this by obtaining a credit report and a reference from a previous landlord or employer. You should also make sure that you are not discriminating against someone based on race, religion, age or gender.

In Scotland, you can find both part-furnished and fully furnished properties to rent. The former would typically include the basics like beds, a kitchen and wardrobes. The latter will also include extra furniture pieces like coffee tables and bookcases.

Lease terms

In Scotland, landlords must provide tenants with a written tenancy agreement. This must include all the terms of the tenancy. Any verbal agreements should also be incorporated into this document. Landlords must also protect any deposit under a government-approved scheme.

In addition, landlords cannot charge a fee for granting or renewing a tenancy. This is illegal and may be a breach of the law. If you are charged this fee, contact your local Citizens Advice Bureau.

When choosing a tenant, check their credit history and references. You should also be sure that they are willing to pay the rent. It is also important to note that it is illegal for landlords to discriminate against people on the basis of gender, race or religion. If you find that your landlord has done this, you can complain to the First Tier Tribunal for Housing and Property Chamber.

Deposit

As a landlord, you can ask for a deposit from tenants but it must be paid into one of the Scottish government-approved tenancy deposit schemes. It must be lodged within 30 working days of the start date of the tenancy, or any agreed timescales.

Landlords and letting agents can also ask for a holding deposit (also known as key money or a premium) but this must be returned if the landlord or agent decides not to rent the property or it is not signed up to a tenancy. Otherwise, it becomes an illegal premium.

The new regulations also include a requirement for landlords to provide an Energy Performance Certificate (EPC) for all rental properties. This should be provided to the new tenant, along with a recommendation report that suggests how the home can be improved in terms of energy efficiency.