Choosing the Right Tenant in Scotland

At Buchanan Residential, we know that choosing the right tenant is one of the most important decisions you’ll make as a landlord. A reliable tenant will take care of your property and pay rent on time, helping you avoid costly issues. In this quick guide, we’ll walk you through the key steps to finding the right tenant for your rental property in Scotland.

Finding a Tenant

Whether you’re marketing the property yourself or using a letting agent, it’s important to clearly define the type of tenant you’re looking for. Be upfront about any specific requirements, such as whether pets or smoking are allowed in the property. This helps set clear expectations from the start and narrows your pool of applicants to those who meet your criteria.

Conducting Background Checks

Once you’ve found a prospective tenant, performing background checks is essential before finalising the tenancy agreement. Key documents you should request include:

• Proof of ID: A passport, driving licence, or a recent utility bill from the tenant’s current address.
• Proof of Income: A payslip, bank statement, or benefits letter to ensure the tenant can afford the rent.
• References: Contact details for a previous landlord or employer, if available.

You can also conduct a credit check to verify the tenant’s financial history, but remember: you must have written permission from the tenant, and it is illegal to charge them for this service. If you’re concerned about their ability to pay, consider asking for a guarantor, who will agree to cover the rent or damages if the tenant is unable to do so. Always get the guarantor’s agreement in writing, and carry out the same checks on them.

Legal Requirements and Discrimination

In Scotland, it is illegal to discriminate against tenants based on their gender, sexuality, race, disability, or religion. All tenants should be treated equally during the application process to avoid any legal issues.

Charges

Scotland has strict rules regarding what landlords and letting agents can charge tenants. The only legal payments you can require are:

• Rent: Rent increases can only occur once a year with a three-month notice period.
• Refundable Deposit: Deposits cannot exceed two months’ rent and must be lodged in a government-approved tenancy deposit scheme.

Any other charges, such as administration fees, holding fees, or fees for credit checks, are considered illegal. If a landlord or agent imposes such charges, they must be refunded to the tenant. Landlords can also face fines of up to £1,000 for charging illegal premiums.

Conclusion

Choosing the right tenant requires thorough checks and a clear understanding of your legal obligations as a landlord. At Buchanan Residential, we’re here to help guide you through the process, ensuring you find the perfect tenant for your property while staying compliant with Scottish law. If you need assistance, feel free to contact us for expert advice.

Buchanan Residential—Helping you make informed decisions for a successful tenancy.