Guide

Renting your property out

Last updated: 10 July 2017

Registration

Before you can rent out your property you have to register with the local council which covers the area where your let property is located.

Registering before you rent out your property makes sure you meet the minimum legal requirements.

Joint owners (anyone else who's named on the title deeds) need to register too, but they won't be charged.

It's a criminal offence if you rent out your property without registering with a local council. You could be fined up to £50,000.

You can apply for landlord registration online on the Scottish Landlord Register website, or you can contact your local council's housing department.

Exemptions

There are some situations where you don't have to register with a council to rent out a property. These include:

  • holiday lets
  • houses managed by religious orders
  • houses with a resident landlord
  • houses with agricultural and crofting tenancies
  • letting to family members
  • houses providing care services governed by Care Inspectorate regulation

HMO licence

You need a house in multiple occupancy (HMO) licence if both of the following apply:

  • you want to rent your property out to 3 or more tenants
  • none of the tenants are related or part of the same family

If you want to use your home in this way, there are extra criteria you'll need to meet before the council will agree to register you.

They'll have to decide:

  • if you are 'fit and proper' (able) to hold an HMO licence
  • if the property is managed properly
  • if the property meets their required standards
It's a criminal offence to rent out a home to 3 or more unrelated people without an HMO licence. You could be fined up to £50,000 if you do.

Landlord accreditation

Although you legally have to be registered as a landlord in Scotland, you can also apply for accreditation.

This could make tenants more likely to want to rent out your property instead of non-accredited ones.

Apply for accreditation

To apply for accreditation you can contact Landlord Accreditation Scotland and fill in their application form.

If you can confirm that you meet (or are working to meet) the standards listed in the form, you can become an accredited landlord.

Local councils may offer their own accreditation scheme or work in partnership with Landlord Accreditation Scotland.

Talking to your lender and insurers

Once you've registered to be a landlord, you'll also have to discuss your plans with your mortgage lender and your insurers.

The terms of your mortgage or insurance may change if you rent out your home.

Mortgage lender

You should tell your mortgage lender about your plans to rent your property out. Some lenders have restrictions on who you can let to.

Some mortgages may have terms and conditions that stop you from renting your home out to anyone, so if you do this without consulting them you might break your contract and get into serious trouble.

Insurers

When you rent your home out to other people it may have an impact on your existing buildings and contents insurance.

You should discuss the situation with your insurers and let them know you plan to have tenants move into your home.

They will give you advice on what steps you should take regarding:

  • buildings insurance
  • contents insurance
  • property owners liability

Renewing your licence

When you application for registration is approved it's valid for 3 years. If you want to keep letting after that you have to renew your registration.

You can apply to renew your registration on the landlord registration website up to three months before your current registration expires. Your local authority will also send you a reminder when your registration is due to expire.

If you renew your registration after it expires, you may have to pay a late fee.

Renting your property out
Registration