Our lettings staff are qualified to the highest industry standards
We offer a wealth of services to suit our wide range of landlords
A report on planning ahead and always having a budget for contingencies
For reference - or not!
Finding the correct tenant is paramount
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Welcome to our first edition of Lettings Matters, now distinct from our established Property Matters publication. We are delighted to be launching Lettings Matters at a time when the sector is experiencing much change, and hope to offer our readers some insight on the current market situation.
The recent and ongoing changes in government legislation have led to an unparalleled period of upheaval for Landlords, but also for Tenants, who have found historically low levels of housing stock available to meet their relocation needs, as less people move within the lettings market.
Following The Coronavirus (Scotland) Act 2020, an emergency law to protect renters in Scotland during coronavirus, the Scottish Government introduced The Cost of Living (Tenant Protection) (Scotland) Act on 6th October 2022. In March 2023 amendments introduced a rent increase cap in rented housing and a further pause on some evictions.
The rent cap was initially set at 0%, effectively freezing rents. The measures were intended to protect tenants during the cost of living crisis. From 1 April 2023, the current rent increase cap of 0% for existing private rented tenancies increased to 3%. As with previous rent increases, private landlords need to give their tenants notice before they increase the rent.
Private landlords can also apply to Rent Service Scotland to increase the rent to partially cover specific increased costs incurred in the preceding six months. The maximum limit of increase is
currently 3%. This limit is 6% from 1 April 2023. These rates will last ‘at least until the 1st October 2023’. Enforcement from eviction orders are also prevented over the same period except in certain circumstances.
In addition to the changes in legislation surrounding rent increases and evictions, the Scottish Government is proposing the introduction of regulations to ensure properties in the private rented sector reach an EPC rating of C by 2025, ‘at change of tenancy’, ‘where technically feasible and cost-effective’, with all other properties to follow by 2028. These present significant challenges for some Landlords. With great change comes great opportunity, some within the sector will seek greater efficiency, both in the energy performance, management and rental income of their property. The Lettings Team at Galbraith meet weekly to keep abreast of the changes in Legislation and market trends. If you require advice, just make contact with your friendly local team. n
David Corrie 01556 505 346 david.corrie@galbraithgroup.com
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You may be surprised to know many landlords’ most important criteria when letting out their property is not how much rent they can achieve per calendar month, but getting the correct tenant for the property. Whether it be a fully managed let or a let only finding the correct tenant is paramount.
Many different factors make a suitable tenant for a landlord, and many of these things are personal to the landlord, the property, and the situation. Take the length of tenancy for instance, many landlords may think that the “perfect” tenant would stay for as long a term as possible, this reduces the costs associated with advertising and finding a new tenant. However, in some cases a
family member may be due to move into the property in a year’s time, so a short-term tenant of a year or so may be perfect in that instance.
One aspect which is the same for all landlords is referencing. Tenant referencing involves finding and confirming information about a prospective tenant. This helps to make an informed decision on whether to rent your property to
that individual or not. Referencing can reassure landlords that a tenant can pay their rent on time and offer an insight into how they will treat the property.
At Galbraith, we use an external company which provides a platform for tenants to upload information, and this information is then reviewed and verified to formulate a comprehensive reference on the tenant.
The areas looked at include affordability, address history, credit history, ID verification, fraud checks, and landlord/managing agent checks. These checks are factual and can go a long way in reassuring a landlord that the prospective tenant will look after the property as their own and take care of it as the landlord would.
£Affordability looks at the prospective tenant’s ability to afford the rent by assessing the proposed rental amount against the applicant’s declared income. The income must equal to or more than 2.5 times the annual rent (or the individual proportion of the rent).
This check looks to see if the declared income is earned and if it is likely to change. References are obtained from the prospective tenant’s current employer during the tenancy term.
Address history looks at the previous address history of the prospective tenant to ensure they are not trying to hide any detrimental information at an undisclosed address.
Credit history checks the prospective tenant’s ability to handle their finances. Tenants will have to declare any detrimental credit history they may have encountered i.e. CCJs, and bankruptcies. The detrimental credit history checks are considered individually.
This check is to ensure that the tenant is who they say they are and verifies name, date of birth, and whether the person is still alive.
For this check, the current landlord is contacted to check if the rent was paid on time, the tenant’s suitability, and if the landlord would rent to the tenant again.
These checks are not a fail-safe way of getting the “perfect tenant” however they do give you an idea of the tenant’s history. A landlord can take a decision on anything that is discovered during these checks, however it is always better to be fully informed before choosing a tenant. Having all the facts at your disposal from the outset will enable you to make an informed decision and start the tenancy off on the right note. n
Isla Shaw01786 434622
isla.shaw@galbraithgroup.com
The areas looked at include affordability, address history, credit history, ID verification, fraud checks, and landlord/managing agent checks.
Isla Shaw
By appointing an agent, these weighty obligations are removed. The agent will manage compliance with Health and Safety regulations and all other legislation. This will keep the property owner updated on any requirements or changes of relevance.
Not only will we be able to find potential tenants more rapidly, due to comprehensive marketing of the property, we will also be able to secure the most suitable tenants, through an extensive screening and referencing process.
By appointing a letting agent, you’ll receive a legally binding and compliant tenancy agreement that protects your interests as well as your tenants’.
We will also have all paperwork and systems in place to get the tenancy up and running quickly and efficiently.
It's essential that an inventory is carried out prior to anyone moving in. If the process is rushed and certain factors are overlooked, a landlord has little chance of making
a claim from the tenants’ deposit at their tenancy end date. Proof of the property condition at commencement of tenancy is vital.
To ensure your property is being looked after, we will perform frequent property visits. This will not only put your mind at ease but also prevents any mistreatment of your property from reaching a critical stage, such as garden overgrowth. Managing the property condition during the tenancy will result in fewer required works at the end of the tenancy.
All repairs and maintenance will be taken care of on a daily basis, with a maintenance reporting system active 24/7 for tenants to report a repair. We will be able to log notes on the repair and instruct any required works with an approved contractor, taking the day-to-day administration away from the landlord.
Each tenant will pay a deposit prior to their tenancy start date, that deposit must be lodged with one of the deposit protection schemes within 30 days. Tenants have to be
informed within the same timeframe about where their deposit is being held.
By renting through a letting agent, you’ll have additional peace of mind that your rent will be collected and tenants chased up, if required. The property deposit will be fully protected and logged with a protected scheme until the end of the tenancy. By not registering a tenancy deposit, a landlord could have to repay the tenant up to three times the original deposit amount!
The principal reason landlords use a letting agent to manage their property is peace of mind. Our lettings staff are qualified to the highest industry standards and can assist with every aspect of managing your property and relationship with the tenant throughout the tenancy as an end-to-end service. n
Susan Guthrie 01573 224 244 susan.guthrie@galbraithgroup.com
Legislation relating to rental property is continually evolving and the burden of compliance for landlords can be oppressive. Failure to comply with health and safety regulations could result in a landlord being removed from the landlord register and fined thousands of pounds.
1 Saltoun Home Farm is an impressive traditional property boasting 5 bedrooms, landscaped garden and outbuilding.
The property comprises:
• Entrance hallway
• Dining room
• Spacious dining kitchen
• Lounge
• 5 bedrooms
• Main bathroom with traditional freestanding bath and separate shower cubicle
Currently on the market for rent is Cordlean House, in the Scottish Borders. Situated in an elevated position, the property has lovely rural views and offers easy access to the historic village of Stow...
Property is a secure investment that will offer capital growth, and high demand among tenants is pushing rental prices up, despite recent Scottish government interventions. Major cities, county towns and rural locations all posted positive annual price growth according to the latest Office for National Statistics rent inflation index. Scotland recorded the highest average rent increase in the UK, up by 4.5 percent in the year ending January 2023.
It remains to be seen whether the next leader of the Scottish government will relax the cap on rental price increases, but it’s likely that demand will continue to exceed supply by some margin. So what can you as a landlord do to attract the best quality tenant and make your property work for you?
Troublesome tenants can be a real headache for a landlord, so choose carefully. Late payers and tenants who don’t look after the property during their tenancy should be avoided. A suitable tenant is someone who pays on time, preferably by standing order and is willing to look after the property to a good standard, including the garden.
Credit checking, contacting employers and seeking references from previous landlords can help determine if someone is right for your property. A lettings agent can undertake all the necessary reference and financial checks and many landlords are opting for a fully managed lettings service. All prospective tenants are fully referenced by Galbraith through an independent company, including anti -money-laundering checks, prior to proceeding with any tenancy agreement.
If you are opting to manage your rental property yourself, the best advice is to meet the prospective tenant in person, as instinct alone can often put your mind at ease.
Routine property inspections are also important to ensure that the property is maintained throughout the tenancy by both the landlord and the tenant. This also provides detailed proof if there is any dispute over the property deposit return at end of tenancy.
Bear in mind that the prospective tenant will also be judging you and your property and trying to decide whether it’s the right property for them and whether they can trust you to be a good landlord.
Making the right impression in those first few seconds is vital. The property should look at its best from the approach and any front lawns or driveways should be well kept. Give the potential tenant confidence in you as a landlord too by developing a good relationship with the potential tenant as quickly as possible – gaining their confidence at this stage will help reinforce that you will be fair during their tenancy and will deal with any problems swiftly and effectively.
The property must be of a high standard to attract a good quality tenant. Imagine it’s you renting the property and ask yourself what you would expect from the property? As a landlord it doesn’t have to cost a fortune to upgrade your rental property. Nice bathrooms and kitchens are priorities on tenants’ wish lists, whilst painting the walls and fitting new carpets needn’t be too expensive. Along with energy efficient measures including good insulation and a modern heating system, these improvements are the best way to attract a reliable tenant, who is willing to pay a monthly rent that reflects the quality of the property.
Clients who have upgraded their property to include, for example, a more efficient heating system and a new kitchen have been able
to secure a tenant who will remain for several years and have been able to charge a higher rental fee. This investment in the property will pay off in terms of higher rental revenue, fewer complaints from the tenant, and will also ensure your asset is kept in good condition for the future. Galbraith has a team of highly experienced lettings agents on hand to advise on what you need to do to make your property more attractive in a competitive market place. We can manage the whole process of advising on compliance regulations, marketing the property, finding tenants, carrying out credit checks, legal documents and the full tenancy cycle through to deposit return.
Currently on the market for rent is Cordlean House, in the Scottish Borders. Situated in an elevated position, the property has lovely rural views and offers easy access to the historic village of Stow, with its train station and local amenities, while Edinburgh is just 23 miles away.
Cordlean House is an impressive detached family home, presented in immaculate condition. There is a cosy lounge complete with woodburning stove and Boudoir grand piano; superb open plan dining kitchen; separate utility room and boot room. The four double bedrooms each have an en-suite bathroom. Outside, families will enjoy the spacious patio and large garden with children’s adventure play area.
Susan Guthrie is lettings manager for Galbraith in the Scottish Borders with over 17 years’ experience providing a comprehensive service for landlords and tenants. n
Susan Guthrie 01573 224 244 susan.guthrie@galbraithgroup.com
The residential rental sector in Scotland continues to offers good returns, as demand for good quality rental property remains exceptionally high in all areas of the country.
Energy Performance Certificates (EPCs) explain how energy efficient a property is and provide a rating from A, very efficient, to G, inefficient. It measures the cost of providing heat and power to the property, based on a set of assumptions on occupant behaviour.
The higher the cost to heat, the lower the EPC rating. Properties that don’t retain heat will therefore have a lower EPC rating than properties that are well insulated.
At the time of writing, February 2023, a landlord is required to have a current EPC (less than 10 years old) at the point of marketing a property for rent. This rating must be included in adverts and provided to a tenant before the date of entry.
Previous proposals by the Scottish Government to require a minimum EPC of D from 2022 were not taken forward due to the impact of the Covid-19 pandemic.
However, the government now intends to introduce a requirement for all properties in the private rented sector to have an EPC rating of C from 2025 at the change of
tenancy and from 2028 for all private rented sector properties. There may be exemptions available for properties where it is not possible or cost-effective to achieve that standard.
It would be prudent to start looking at your certificates now and not wait until 2025 or 2028 so costs can be planned over the next three to five years. The EPC will provide suggestions on ways to improve the energy efficiency of your property and a rough cost for each suggestion. This may include cavity wall insulation, double glazing, fitting an efficient boiler, or even some minor amendments such as fitting an insulating jacket to your hot water tank or replacing all light bulbs with LEDs.
Home Energy Scotland is a company funded by the Scottish
Government which can provide useful information on:
● funding options including Scottish Government grants and interest-free loans
● installing renewable energy at home
● saving energy and keeping warm at home
Home Energy Scotland can be contacted on 0808 808 2282 for advice and guidance.
EPC rules and regulations are subject to change so please contact me or one of my colleagues for the latest information and guidance. n
Impressive traditional house refurbished to a high standard with traditional features.
The 4 bedroom property comprises:
• Entrance hallway with stove
• Lounge
• Dining room
• Kitchen diner
• Utility
• 4 double bedrooms with 2 en-suite
• Family bathroom
• Storage, garden and parking
With that in mind it’s a good idea to plan ahead and always have a budget for contingencies.
I recommend to all our landlords that they should set aside their first year’s rental income in a separate bank account to cover the cost of unforeseen and emergency repairs. If this pot is untouched in the first few years of the tenancy so much the better, but leave it in the bank to be prepared for all unforeseen circumstances and in the meantime it will generate interest.
There are of course other costs that must be taken into consideration at the start of a tenancy.
Landlords must ensure that all gas appliances in a property are checked by a qualified engineer at the start of the tenancy and every 12 months, with the details recorded in the gas safety certificate. The fee for these checks will start from around £60, depending on the number of gas appliances to be inspected.
Landlords must also budget for the EICR, EPC and any other relevant certificates.
The EICR (Electrical Installation Condition Report) Certificate is required every five years in Scotland and costs will vary according to the size of the property. The certificate must be available to the tenant or the local authority for inspection if requested.
In many cases there may be some remedial electrical works to be undertaken, unless the property has been recently re-wired or is a new build. However this is money wellspent as it will ensure the property is in good condition throughout the duration of the tenancy and will reduce the likelihood of any electrical fault
developing – which would be far more expensive to rectify at that stage. Pricing for the EPC (Energy Performance Certificate) starts from around £90 plus VAT.
Galbraith can provide trusted and approved trades people for all works and repairs.
The initial outlay at the start of a tenancy agreement can seem high to first-time landlords, but these costs are predictable and many are one-off fees.
A service plan for boilers is highly recommended and some companies offer boiler replacement deals which are worth considering if the boiler is over five years old.
As a landlord you must have appropriate landlord insurance and it is worth choosing one that offers a rent guarantee insurance, to cover any potential void periods. Each insurance company will differ but a standard policy should cover buildings, new-forold contents, public liability insurance, glass and sanitary ware, floor coverings and alternative accommodation for tenants in the event of an emergency.
We can advise on appropriate landlord’s insurance and we offer tailor-made lettings services for landlords, including everything from a fully managed service to simple rentcollection.
With our fully managed service we conduct routine property inspections every six months and provide a report to the landlord of any issues that may require attention. When we are at the property we take the opportunity to speak with the tenants and ask them to highlight any issues of concern.
Minor issues such as a damp patch are always better to be addressed early on
before they escalate and become an expensive problem. An open dialogue with your tenants is always recommended as a means to anticipate any potential problems before they escalate and to ensure that the tenants are aware of anything they could or should be doing to avoid potential maintenance problems.
We look at other parts of the property as well, such as the gutters and the roof and if they need to be cleared or inspected we advise on this and can then arrange repairs if necessary.
Recently we visited a vacant property we were looking after for one of our landlords and discovered a burst pipe. In this instance we were able to turn the water off at the stopcock and arrange for an emergency plumber to fix the leak and check the property for any further issues. We then liaised with the landlord’s insurance company and provided quotes for repairs. Time is of the essence in these situations and particularly in this case as the landlord was due to be abroad for several months!
Planning ahead for unexpected costs, in the hope that they do not arise, is well worthwhile and offers landlords the ultimate peace of mind. n
Rebecca Reed 01556 505 346 rebecca.reed@galbraithgroup.comWe all know that repairs and emergency situations can and do arise during the course of a tenancy and more often than not they happen at the least convenient moment!
We can advise on appropriate landlord’s insurance and we offer tailor-made lettings services for landlords, including everything from a fully managed service to simple rent-collection.
Rebecca Reed
Short term lets have been favoured by second home owners for the limited regulation and the high income potential, however the introduction of short term lets licensing agreements has increased the compliance burden, bringing them more in line with long term lets.
The Scottish Government has put in place this licensing scheme to ensure basic safety standards are in place across all short-term lets operating in Scotland, while also providing discretionary powers to licensing authorities to address the needs and concerns of local communities. Improved visitor experience and confidence will benefit tourism and the economy.
The law around short-term lets changed on 1 October 2022. New hosts are required to apply for a short-term let licence before accepting bookings or receiving guests
The Scottish Government approved the short term lets legislation on Wednesday 19 January 2022. Local authorities have a duty to establish a short term let licensing scheme by 1 October 2022.
- By 1 October 2023 – Existing hosts and operators have to apply for a licence
- By 1 January 2025 – All shortterm let properties require a licence to operate.
The short-term lets licensing scheme is mandatory for all shortterm let accommodation across Scotland. This includes holiday cottages, B&Bs, guest houses, rooms within a home and unconventional accommodation such as pods and yurts.
Applications for short term let licences are made through the local authority.
Mandatory Conditions attached to all short-term let licences are:
• an annual Gas Safety Record (if applicable);
• Satisfactory equipment installed for detecting, and for giving warning of: a) fire or suspected fire, and b) the presence of carbon monoxide in a concentration that is hazardous to health.
• an EICR (this needs to be carried out once year 5 years);
• a PAT test;
• a private water supply report (if applicable);
• a legionella risk assessment;
• records that upholstered furnishing and mattresses comply with Furniture and Furnishings (Fire Safety) Regulations 1988;
• an EPC;
• buildings insurance and public liability insurance; and
• Your floor plans for the accommodation may need to show: room sizes, fire escape routes, accommodation intended for guests with mobility issues
• an updated welcome booklet, containing your licence once granted, fire, gas, electrical safety information (including Gas Safety Report, EICR, PAT Report) and how to contact the emergency services.
After you apply for your licence, it is estimated that it could take between 9 and 12 months to arrive, but may be longer.
Local councils decide how long your licence will last for however your first licence can last for up to 3 years from the date it was issued. n
Isla Shaw 01786 434622 isla.shaw@galbraithgroup.com
The Scottish Government approved the short term lets legislation on Wednesday 19 January 2022. Local authorities have a duty to establish a short term let licensing scheme by 1 October 2022.
In a wooded rural setting with a private driveway, just outside the conservation village of Dunlop, North Borland is a fully upgraded Georgian country house dating from the 1840's.
The 4 bedroom property comprises:
• Entrance hall with flagstone floor
• Snug/sitting room with log burner
• Large open plan kichen/dining/family room
• 4 bedrooms
• Boot and utility room
• En suite shower room
• Contemporary fitted bathroom
The Kingdom of Fife combines the beauty of its coastline, varied traditional and modern styles of housing, plentiful cultural attractions, the traditional East Neuk fishing villages of Elie, Crail, Anstruther, Pittenweem, and St Monans and the jewel in the crown – St Andrews, one of the most desirable places to live in the UK, with its ancient University, superb golf courses, beautiful architecture, beaches and a wealth of excellent restaurants and pubs to choose from.
The rental market has changed significantly in recent years, with a marked shift to larger, better quality properties and family homes in rural areas.
The Galbraith office in Fife manages a wide variety of properties on behalf of our clients, from one-bedroom cosy farm cottages in scenic locations to five-bedroom ‘state of the art’ contemporary designs, to family homes with paddocks and stables.
The current market is characterized, as elsewhere in Scotland, by a shortage of supply. Tenants are aware of the need to apply early and to provide full documentation and references in order to have a chance of securing a good quality property. Tenants are prepared to pay a fair price for a well maintained, attractive home in a good location.
The reasons for renting are quite diverse – some families are trying out life in an area that they don’t know well before committing to a house purchase, while some are on a temporary secondment through work. The majority of prospective tenants have sold their property and are renting for 12-24 months while
looking for the right house to buy – it is often the case that being a cash buyer will provide a significant advantage in a competitive property market.
Tenants today expect a high standard of property and, quite rightly, expect to also be looked after well by either the managing agent or the landlord. Providing a responsive and attentive service ensures the tenantlandlord relationship is on a positive foundation from the outset.
We offer a wide range of services to suit our wide range of landlords – some opting for let only, some for fully managed and some for a ‘find and reference’ service – whatever they prefer we accommodate their needs.
If you have a property to let, please do not hesitate to contact Galbraith in Fife to discuss your needs. n
Geoff Laird-Portch 01334 659980 geoff.laird-portch@galbraithgroup.com
When choosing a letting agent, one of the key criteria is peace of mind that if there is a problem with your property, it's reported and dealt with efficiently.
Fixflo is an online repair management system that allows tenants to report repairs accurately and with images illustrating the problem in detail. When tenants move into their new property, they are all issued with the office-specific link to Fixflo, via Galbraith. The system is available 24/7 allowing tenants to report issues at a time that is convenient to them - this also avoids postponement as the tenants may forget to report the issue if they can only do so during
the hours of 9 to 5 when they are busy at work! The system has several different repair options to allow an accurate description of the issue. Tenants can report repairs, upload photos of the problem, supply the make and model of the appliance and provide any other relevant information. This avoids unnecessary call-outs and enables contractors to bring the correct equipment and parts.
In addition, the system will also advise tenants when it is their
responsibility to resolve an issue, such as a minor problem with mildew in the bathroom, offering guidance and advice pop-ups. This provides clarity and convenience for the tenant and helps ensure the property is well maintained. Ultimately Fixflo allows repairs to be carried out more quickly and efficiently. n
Isla Shaw 01786 434622 isla.shaw@galbraithgroup.com
Lowndes House is a traditional 4 bedroom detached property which has recently been renovated and insulated to the highest of standards.
The fully renovated property comprises:
• 4 bedrooms
• Rural yet highly accessible location
• Good access to nearby road and rail networks
• Private gated entrance
Aberdeen 01224 860 710 aberdeen@galbraithgroup.com
Ayr 01292 268 181 ayr@galbraithgroup.com
Blagdon 01670 789 621 blagdon@galbraithgroup.com
Castle Douglas 01556 505 346 castledouglas@galbraithgroup.com
Cupar 01334 659 980 cupar@galbraithgroup.com
Edinburgh 0131 240 6960 edinburgh@galbraithgroup.com
Hexham 01434 693 693 hexham@galbraithgroup.com
Inverness 01463 224 343 inverness@galbraithgroup.com
Kelso 01573 224 244 kelso@galbraithgroup.com
Moray 01343 546 362 elgin@galbraithgroup.com
Morpeth 01670 331 500 morpeth@galbraithgroup.com
Penrith 01768 800 830 penrith@galbraithgroup.com
Perth 01738 451 111 perth@galbraithgroup.com
Stirling 01786 434 600 stirling@galbraithgroup.com
Expertise
Galbraith operates from 13 offices across Scotland and Northern England, bringing our clients a wealth of experience in:
• Building consultancy
• Commercial forestry & woodland management
• Commercial property sales & management
• Estate, farm & forestry sales & acquisitions
• Estates, farming & land management
• Natural capital & carbon
• Property lettings
• Renewables and utilities
• Residential estate agency
