Thinking of investing in a property for rental income, upgrading your exisiting property or increasing your rental capacity? Whatever your plans for the future, Littlejohns can offer advice and guidance.
Unfortunately we are not able to advise you on the tax implications of letting your property. This information is available from the Inland Revenue.
The Tenancy Deposit Scheme is a scheme designed to safeguard tenants deposits by placing them with a third party.
The Scheme launched on the 2nd July 2012, Littlejohns are using Safe Deposits Scotland
Houses in Multiple Occupancy (HMO) legislation applies to all properties with 3 or more unrelated Tenants. There are certain rules and regulations to which properties meeting this description must adhere. Full details of these regulations are available from the City of Edinburgh Council.
To comply with EU legislation all rental properties marketed in Scotland must have a valid Energy Performance Certificate (EPC).
The certificate gives a rating, similar to what you find on white goods etc, showing its energy efficiency and its environmental impact on a scale of A to G in a graph form, where A is most efficient and G the least efficient.
The certificate also recommends ways to improve the property’s energy performance to help save energy, reduce bills and cut carbon dioxide emissions.
The cost of a certificate is in the region of £80 plus vat. The certificate is valid for rental purposes for 10 years but properties should be re-assessed sooner if energy saving improvements are carried out, such as the installation of a new boiler.
It is good letting practice and will improve your property’s EPC rating if you can provide a basic level of thermal insulation and where necessary draught insulation of doors and windows and lagging of hot water pipes and immersion heaters.
The Tenant must be able to heat your property to a reasonable temperature and at a reasonable cost so there should be an efficient and economical heating supply and hot water supply.
The Non-resident Scheme is a scheme for taxing the UK rental income of non-resident Landlords.
The term ‘ non-resident landlords’ includes individuals, companies and trustees who have:
A UK rental income and a ‘usual place of abode’ outside the UK. In the case of individuals, this is regarded as an absence from the UK for 6 months or more.
What does it mean?
The scheme requires UK Letting Agents to deduct Basic Rate Tax (currently 22%) from any rent collected for non- resident Landlords, if non-resident Landlords do not have a UK Letting Agent acting for them or if a ‘let only’ service is provided, and the rent is more than £100.00 per week, their tenants must deduct the tax. In calculating the amount to tax, the Letting Agent or Tenants take into account any allowable deductible expenses they pay in the quarter.
For non-resident Landlords to be able to receive rents with no tax deducted, they must successfully apply to the Inland Revenue for approval. If successful, a notice of approval will be sent to the non-resident Landlord and a separate notice sent to us, the Letting Agent, authorising us to pay rent without deducting tax. Please note that even though rent may be paid with no tax deducted it is still liable to tax and therefore must be included in any tax return.
If you are resident overseas you will need to complete a NRL1 form to register your status with the Inland Revenue.
For further information and to download an application form please visit HMRC.
Upgrading your property
Are you getting the most out of your property? The standard of rental property in Edinburgh is constantly improving. Traditional tenement flats are now competing with brand new properties. Let our Maintenance Department get yours up to scratch. Littlejohns will advise on what improvements will add value, carry these out and can even provide furnishings for your property. Our strong management skills and contacts with all maintenance trades mean that work will be carried out smoothly and efficiently so that your property is vacant for the shortest time possible. Do get in touch with us today to find out more.
Use our knowledge and expertise to help you decide on the right type of property in the right area. We know the rental market and are experienced in predicting market trends. We really can help you to make the best choice and maximise your rental income.
Fees for the services of our Property Manager are agreed on an individual basis according to your needs. Our services include sourcing suitable properties for you to view and helping ensure that your chosen property is correctly presented and meets all safety regulations.
The Management Process
Littlejohns offer a complete management service for your property. Marketing your property, vetting prospective tenants, regular inspections, on-going maintenance and rent collection are just a small part of what we do.
It is now an offence for Landlords to let a property without having applied to be registered. Landlords could face a fine or have their rent withheld if they avoid registering.
Personal, professional service is our priority; we aim always to meet your needs promptly and efficiently. Take a look in more detail at what we have to offer. If you have any questions or would just like to find out more, feel free to contact us at any time.