Landlords Information

A comprehensive service that covers everything we do, from letting out your property to dealing with the ongoing monthly management—thus freeing up your time and taking some of that stress away from what can often become a second job for you.

• Rent appraisal
• Advertising your property
• Erecting our eye-catching and very unique moo-let “To Let” boards
• All viewings (carried out by our own staff)
• Application processing for prospective tenants
• Dealing with all contracts
• Dealing with processing rents on a monthly basis, including texts and e-mails to landlords confirming that rent has been paid and the amount
• Guaranteed monthly statements sent out at the end of each month
• Lodging of deposits with the deposit scheme
• Complete and thoroughly detailed professional inventory prior to the start of a new tenancy
• Alerting the local council and utility companies at change of tenancy
• Check in and check out
• Routine inspections carried out, with reports sent
• Reactive management of all maintenance issues, as and when they arise
• Dealing with any other issues during a tenancy that may come up
• Ensuring all legislation and compliance is monitored and completed in full, on time

There are several things that can and do crop up during a tenancy, so the list above is certainly not exhaustive, but the important thing is that we act on your behalf and in all fairness to the tenant. We are also here to act as a buffer, giving you peace of mind as the moo-team takes care of things on your behalf.

If you’re happy to manage your own property/properties, then this is the service for you. Using the Let Only Service will give peace of mind that everything will be in place to ensure you are in line with current legislation and compliance.

• Rent appraisal
• Advertising your property
• Erecting our uniquely branded “To Let” boards
• All viewings (carried out by our own staff)
• Application processing for prospective tenants
• Dealing with all contracts
• Complete and thoroughly detailed professional inventory prior to the start of a new tenancy
• Ensuring first month’s rent and deposit are paid in clear funds prior to start of tenancy
• Alerting the local council and utility companies with new tenancy details
• Check in

If you manage your properties yourself and are looking to take a holiday, one of the solutions we offer is holiday cover. This service ensures that if anything does happen while you’re away, your tenants have someone they can call on to take care of the issue—letting you relax and enjoy your time away with complete peace of mind.

All existing Short Assured Tenancies will continue as they are and will only need to convert to a new PRT as and when a new tenancy must be signed.

There are a few changes between the old and the new, and here are some of the main ones.

You no longer need:

• AT5 forms, to be given to tenants before a lease is signed
• Tenant Information Packs, to be given before a lease is signed
• Start and end dates, with a minimum of a 6-month lease
• Two-month notice periods to be served on the ish date (end date)
• Notice to Quit forms, to be served with the section 33 notice
• AT6 notices, required if looking to use grounds for eviction

All of the above made for quite a complex tenancy regime and saw many a landlord being caught out because, for example, a date was incorrectly used, or no AT5 form was given to a tenant, or notices were not correctly filled out—any of which could cause all sorts of issues.

The new Private Residential Tenancy has been created to be easier to use and understand, giving tenants more security of tenure while balancing that with a much easier and quicker process for landlords to gain back possession of their properties if required.

The main conditions of the PRT:

• Tenancies now have a start date and no end date, so no fixed terms.
• After signing a new lease, tenants can give a minimum of 28 days’ notice throughout the length of the tenancy.
• There are 18 grounds on which a landlord can gain possession of their property, 8 mandatory and 10 discretionary (all grounds have temporarily been changed to discretionary due to COVID-19).
• A single Notice to Leave shall be issued to end a tenancy.
• Landlords can give 28 days’ notice if the tenancy is less than 6 months into the lease.
• Landlords need to give 84 days’ notice if the tenancy has gone beyond 6 months (this notice period has temporarily been changed to 6 months due to COVID-19).
• If a tenant is in breach of Grounds 10–15 within the agreement, then the landlord is required to serve 28 days’ notice, no matter how long the tenancy has been in place.
• Rent increases can be done once in any 12-month period and tenants require a minimum of 3 months’ notice.

We appreciate this may all be a bit alien, but if you have any questions about the new PRT then visit the website below or just let us know and we will be happy to go over it with you in more detail.

For more information, visit: https://beta.gov.scot/policies/private-renting/private-tenancy-reform/

All landlords must be registered on the landlord register with each individual local authority where your properties are located, and then for each property you have in those areas. The registration lasts for 3 years, after which it must be renewed. A late fee is incurred for late application submissions.

Your landlord registration number is required to be visible on all advertising for the property when letting.

A quick breakdown of the fees are as follows:

The EPC is valid for 10 years, and if you have recently bought your property, this will be part of your home report. Your EPC is also required to be displayed on all advertising for the property to be let and is a legal requirement.

Minimum EPC regulations: implementation timetable updated

The Scottish Government has advised that it intends to postpone the introduction of the minimum EPC requirements indefinitely due to the COVID-19 pandemic and other factors. Finalised regulations are yet to be confirmed, so watch this space; however, preliminary versions of the minimum standards are detailed below.

Private rented sector properties in Scotland will need to achieve at least:

• EPC rating of E at change of tenancy from (date to be confirmed)
• All rental properties must have an EPC rating of E by (date to be confirmed)
• EPC rating of D at change of tenancy from (date to be confirmed)
• All rental properties must have an EPC rating of D by (date to be confirmed)

In some situations, it is proposed that there will be exemptions, including where:

• It is not technically feasible to carry out improvements
• Other owners in a block of flats refuse consent to do work to common parts of the building
• Tenants refuse consent for work
• Permission to carry out work to a property that is listed or in a conservation area can’t be obtained
• The cost of improvements needed in the period 1 October 2020 to 31 March 2022 exceeds £5,000, and where the cost of improvements needed in the period after 31 March 2022 exceeds £5,000 (final dates to be confirmed)

From 1 December 2015, the Housing (Scotland) Act 2014 introduced the requirement in Scotland for any new tenancies entered into to have an Electrical Installation Condition Report (EICR) carried out on all electrical installations, fixtures, and fittings within their rental properties. From 1 December 2016, all tenancies must have a valid EICR, a copy of which must be provided to the tenant.

The EICR lasts for 5 years and must include Portable Appliance Tests (PAT). Anything that the landlord has supplied in the property that has a plug on it is deemed to be a portable appliance and will therefore need a PAT.

If you have a current EICR and PAT, then you don’t have to have a new one carried out for a new tenant moving in; you simply need to ensure the new tenants receive a copy of the most recent certificate.

Although the PAT is also valid for 5 years, it is always advisable to take the advice of a qualified electrician if they have recommended to carry out the test on a more regular basis.

The EICR should cover all electrical installations contained within the property and anything in the common area of the property that, directly or indirectly, serves the house and the owner is responsible for maintaining (solely or in common with others).

An EICR must be completed by a competent electrician who must be:

• Employed by a firm that is a member of an accredited registration scheme operated by a recognised body such as SELECT, NAPIT, or NICEIC, or
• A self-employed member of an accredited registration scheme operated by a recognised body, or
• Able to complete the checklist at Annex A of the Scottish Government guidance, which can be found on the Private Rented Housing Panel’s (PRHP) website

Any problems with an electrical installation identified within the EICR must be rectified immediately. This can be done by recording the completed work on a Minor Electrical Installation Works Certificate.

Failure to have a valid EICR in place may lead to the First-Tier Tribunal (Housing and Property Chamber) issuing a Repairing Standard Enforcement Order (RSEO) ordering the landlord to have the EICR carried out. Failure to comply with an RSEO is a criminal offence.

Landlords are required to have their properties fitted with linked smoke alarms along with a heat detector in kitchens, also linked. Since 1 March 2019, it has been permissible to install either mains-operated alarms or tamper-proof, long-life lithium battery alarms.

Professional advice can be taken from qualified electricians to ensure they are compliant with the standards in building regulations.

Guidance issued by Scottish Ministers requires there to be at least:

• One functioning smoke alarm in rooms that are frequently used by the occupants for general daytime living purposes
• One functioning smoke alarm in every circulation space on each storey, such as hallways and landings, or in main room if no landing on upper storey
• One heat alarm in every kitchen
• All alarms should be ceiling mounted
• All alarms should be interlinked so that all sound when one device is activated (radio interlinking rather than hard-wired interlinking can be used in most cases)

In order to comply with the repairing standard, landlords should either install smoke and fire detectors that meet the standard set by guidance issued by Scottish Ministers or be able to justify why a lesser level of protection is appropriate in a particular home. Reasons why a lesser level of protection might be appropriate could include:

• Where the proximity of an open fireplace would make a smoke detector impracticable, so a heat detector may be fitted
• Where the layout and design of the house means that one detector can combine the protection required by individual detectors in different areas, such as a kitchen/diner or open-plan layout, or in small flats where the living room and hall can be covered by one smoke alarm
• Where the landlord intends to install detectors within a reasonable timescale as part of a programme of upgrading property

CO detectors must be fitted to comply with the repairing standard.

The detectors must have a long-life battery or mains-powered detector and be fitted in spaces that have any of the following:

• Gas/oil boiler
• Gas/oil fire
• Wood-burning stove or open coal fire.
• There should also be a CO detector in any bedroom or living room that is bypassed by a flue.

The exclusion to this is any cooking appliances.

Detectors must comply with BS EN 50291-1:2010+A1:2012 and, where hard-wired or wireless installations are adopted, applicable European directives. There are rules on the positioning of detectors, including that they should in most cases be 1–3 metres from the appliance, 30 cm from any walls (if ceiling mounted) and 15 cm below ceilings (if wall mounted). CO detectors have expiry dates printed on them and must be replaced before that date is reached.

Landlords of residential accommodation have responsibilities for combating Legionnaires’ disease. Health and safety legislation requires that landlords carry out risk assessments for the Legionella bacteria that causes Legionnaires’ disease and thereafter maintain control measures to minimise the risk.

Most rented premises will be low risk, but it is important that risk assessments are carried out and control measures introduced. This note is intended to provide a brief guide to what the landlord should do. Further advice is available from the Health and Safety Executive.

What is Legionnaires’ disease?

Legionnaires’ disease is a pneumonia-like illness caused by Legionella bacteria and can be fatal. The infection is caused by breathing in small droplets of water contaminated by the bacteria. The disease cannot be passed from one person to another.

Legionella bacteria are found in the natural environment and may contaminate and grow in water systems, including domestic hot and cold water systems. They survive low temperatures and thrive at temperatures between 20–45°C if the conditions are right. They are killed by high temperatures at 60°C or above.

Landlords have a legal duty to ensure that the risk of exposure of tenants to Legionnaires’ disease is accurately assessed and controlled. A risk assessment should be carried out and regularly reviewed, and control measures should be implemented where necessary.

Control measures

Simple control measures that should be maintained that can help manage any risk from Legionella include:

• Flushing out the water system by running all outlets for at least 2 minutes where the premises have not been used (e.g., before letting the property or if the property has stood empty for some time)
• Avoiding debris getting into the system (e.g., making sure cold-water tanks, if installed, have a tight-fitting lid)
• Setting controls so that the hot water is heated to and stored at 60°C
• The removal of any redundant pipe work
• Advising tenants to regularly clean, descale, and disinfect shower heads and spray taps (including any removable inserts and hoses)

Advice for tenants

Landlords are entitled to expect the tenants will play their part in ensuring control measures are maintained and should:

• Inform tenants of potential risk of exposure to Legionella and its consequences
• Inform tenants of any action that arises from the landlords’ risk assessment, if appropriate
• Request tenants to inform the landlord if the hot water system is not heating properly or if there are any other problems with the system
• Request tenants to inform the landlord if the cold water system is not running cold
• Advise tenants to keep the water turned over

A GSC is required to be carried out every 12 months to ensure all gas fittings and flues are maintained in a safe condition.

The annual certificate must be carried out by a Gas Safe Registered engineer with certificates being held on file for 3 years.

A copy of the up-to-date certificate must be given to the tenant.

Regulations introduced in April 2018 allow a landlord to arrange for a gas safety check to be carried out any time from 10–12 calendar months after the previous check, whilst still preserving the original check expiry date.

It is worth noting that the statutory GSC does not include an annual service to boilers and appliances, but it is advisable and considered best practice to have an annual service carried out.

The Tenancy Deposit Scheme (Scotland) came into force in 2011, which means if a deposit is taken it must be lodged in the deposit scheme within 30 days of the start date of the tenancy. If the First-tier Tribunal (FTT) is satisfied that there has been a failure to comply with this, they can award the tenant(s) up to three times the amount of the initial deposit.

When moo-let are dealing with a new tenancy, it is standard practice to lodge the deposit on the same day the tenancy starts to ensure complete compliance, thus protecting the landlord.

As a non-resident landlord with property in the UK, moo-let.com Ltd is under a legal obligation to operate the non-resident landlord scheme (NRL).

Because all income received from property letting in the UK is taxable—even though you personally may receive a UK personal allowance (currently allowing you to receive £12,500 of income/profits without paying tax), which may cover any profits—any income still needs to be declared.

The non-resident landlord scheme requires letting agents (or tenants) to deduct tax at source—being 20% of the rental income minus any expenses that the letting agent pays for directly.

The letting agent pays this deducted tax over to HM Revenue & Customs on a quarterly basis and provides the landlord with a certificate of tax deducted on an annual basis.

It is, however, possible to apply to HM Revenue & Customs to have rents paid “gross,” i.e., without tax deducted at the source, if certain criteria are met.

This does not remove the requirement to declare any profits from the property letting to HM Revenue & Customs, but it is likely that if the profits are small—and if you are entitled to a UK personal allowance because, for example, you are a Commonwealth citizen—then they are likely to agree that it is unnecessary for you to complete a tax return.

Should you wish to apply for rental income to be paid gross, please let your accountant know, and they will arrange to send you the appropriate form to fill out and return. If you choose not to complete the form, then tax will automatically be deducted at source on a monthly basis and will have to be reclaimed after the completion of a tax return after the end of the UK fiscal year, which is 5 April.

moo-let’s NRL number NA051166

All letting agents operating in Scotland who hold or handle client money are required by the Letting Agent Code of Practice to hold client money in one or more separate and dedicated client bank accounts and to have Client Money Protection (CMP) insurance.

Not only will you have peace of mind that client funds are safe with both a client account and CPM in place with moo-let, but also there is a system in place that links with the client bank account. This has huge benefits for landlords, tenants, and moo-let because, as it is a bank account, every transaction will show as a real-time cash transaction, demonstrating complete transparency.

The main features for tenants:

• All tenants are allocated a unique ID that links them to the property.
• Tenants are automatically invoiced 2 days before every due date.
• Rents paid in are automatically shown as paid, as the tenants use the unique ID as the reference when paying the rent.
• Tenants receive a receipt of payment when the payments are reconciled.
• Tenants receive an automatic reminder by text and e-mail if the rent hasn’t reached our account by lunchtime of the due date.

The main features for landlords:

• All rent payments to landlords, contractors, and our commission are automatically paid on the bankroll at 5 pm on the due date.
• You will receive a text and an e-mail to alert you that your rent has been paid over to you and the amount.
• Monthly statements are set up to be sent out automatically at the end of each month.
• Yearly statements can be sent as a PDF upon request for tax returns, which show a breakdown of all payments for the period covered.
• An owner app is available, giving you at-your-fingertips, real-time access to everything going on with your properties.

One thing is certain—at some point your property will need to have maintenance carried out. This aspect is a huge part of the daily management of properties.

To help with demand and to ensure all issues are dealt with reactively, moo-maintenance was set up as a sister company to work alongside moo-let.

All safety certificates are taken care of by full-time and qualified tradesmen, including a gas engineer, builder, and two apprentice joiners.

Tenants log all maintenance issues

To ensure maintenance issues don’t get missed and that broken door handle that fell off doesn’t become lost among your knickknacks because it has taken so long to get fixed, tenants can either log on via the link on the home page or download the link to their phones.

This allows them to log in details along with pictures of all maintenance issues, which then routes into our system’s back office, as well as being e-mailed to the moo team.

The system is easily navigable for tenants, and once an issue is logged it will be highlighted at each stage until completion, ensuring nothing gets missed.

The system will notify the relevant tradesman, who will then update the progress to completion so that the team has an overall view of what stage all maintenance issues are at and can keep you updated as they progress.