Ensuring a Compliant Transition to the Long-Term Market
Ensuring a Compliant Transition to the Long-Term Market: A Landlord Checklist
In these unprecedented times, we’ve received a significant number of landlords considering different ways of managing their properties. Here we take a look at some of the key aspects of the long-term rental requirements and how these differ from the short term rental market.
COVID-19 has had a profound impact on global hospitality and tourism sectors, not least the Edinburgh short-term rental market. Many owners of short-term rental properties have seen their rental income reduced to zero, with no positive news as to when the current restrictions may be lifted. Even then, there is unlikely to be an instant return to normality. The Edinburgh Festivals have all been cancelled for this year and this epitomises the effect that the disease is having upon our city, as well as the rest of the world.
However, city residents do still need a place to live and many short-term landlords have enquired about moving to the long-term market as a solution. If this is your own situation, then this blog covers some of the important aspects of ensuring that both you, and your property, can meet the long-term rental market requirements.
We’ve provided a helpful checklist below but would be delighted to talk to you about your own property should you wish to do so. Alternatively, you can use our free and instant online rental valuation to check the possible rental valuation for your property. Request a free and instant online rental valuation
Landlord Registration
Prior to marketing, you will need to register as a landlord with the City of Edinburgh Council. This generates a unique Landlord Reference Number and means that we can legally market and let your property on your behalf. It’s worth noting that any advert (other than a ‘To Let’ board) must show your Landlord Registration number as a legal requirement.
‘Know Your Customer’ (KYC)
As with all modern financial arrangements, you will be asked to provide proof of ID and proof of ownership prior to instructing any agency to carry out letting agency work for you. You should also check that the agency is a Registered Letting Agent and read the Terms of Business which should set out every aspect of the management agreement.
Insurance and Mortgage
The property should be suitably insured to cover any unfortunate incident which may arise and be specifically for a rental property. Notably it should have robust public liability cover within it. You get what you pay for but a good policy will give you peace of mind and provide genuine support when you most need it, such as loss of rent cover for up to three years if there is a major issue.
You should ensure that your mortgage provider has granted permission for you to let out the property.
Safety Certificates
Part of the Landlord registration process requires you to ensure that the property is safe for any tenants to live in. This is where we see the biggest difference between short-term rental properties, where the requirements are less regulated, and the requirements for long-term rental homes. All properties must have;
- Energy Performance Certificate (EPC)
- Electrical Installation Condition Report (EICR) including completion of any remedial works identified.
- Portable Appliance Test (PAT)
- Gas Safety Certificate (GSC)
- Legionella Risk Assessment (LAR) including completion of any risks identified
- Emergency Lighting Certificate (ELC) (if fitted)
- Fire Alarm and Detection System Installation Certificate (for smoke and heat alarms)
Fire Safety Equipment
This area has become increasingly important. Long term rental properties must now have interlinked smoke and heat detectors in the main traffic and living areas. These typically now incorporate 10-year lithium batteries meaning that they’re operational status is not reliant upon a tenant changing the battery when it starts ‘beeping’.
House of Multiple Occupancy (HMO)
HMO’s have an extra set of regulations and standards by which they must comply. However, for any property which has three or more bedrooms this is often a very worthwhile option. We are one of the largest HMO management agencies in Edinburgh and can provide full details about offering your property to the rental market as a HMO.
HELP!
It looks complicated but it’s relatively straightforward, as long as it is well managed and administered. We help new landlords on a weekly basis to bring their properties up to the required standards, then market and let them on their behalf.
If you’d like to discuss your own property in more detail or find out how we can help you too, please get in touch.
Steve Coyle, Managing Director
+44 (0) 131 357 9501
Request a free and instant online rental valuation