Property Management

Question 1

Can you talk me through the Repairing Standard (Housing) (Scotland) Act 2006 and how it impacts Scottish Residential lettings?

Answer 1

The Housing (Scotland) Act 2006 introduced a repairing standard that all properties let in the private sector must meet. On 1 December 2015 the repairing standard was updated to include specific measures for electrical safety, and fire and carbon monoxide detection

Question 2

Can you talk me through the Private Housing (Tenancies) (Scotland) Act 2016 and how it impacts Scottish Residential lettings?

Answer 2

The Private Housing (Tenancies) (Scotland) Act 2016 commenced on 1 December 2017 and introduced the new ‘private residential tenancy’.

Its purpose is to improve security, stability and predictability for you as a tenant and provide safeguards for landlords, lenders and investors

Question 3

What regulations govern private water supplies in Scotland?

Answer 3

Water Intended for Human Consumption (Private
Supplies) (Scotland) Regulations 2017

Question 4

What are the key regulations included in the Water Intended for Human Consumption (Private Supplies) (Scotland) Regulations 2017?

Answer 4

Regulations govern the quality of water supplied to private water supplies. Covers the register of supply systems, risk assessment of water supplies and water quality standards and duties.

Question 5

How do the farm alarm regulations 2022 impact residential lets?

Answer 5

One smoke alarm in the living room or the room you use the most
One smoke alarm in every hallway or landing
One heat alarm in the kitchen
All smoke and heat alarms must be mounted on the ceiling and be interlinked.

Question 6

What is an EPC?

Answer 6

Energy Performance Certificate rates a property’s energy efficiency from A (most efficient) to G (least efficient), influencing potential energy costs and environmental impacts

Question 7

How often do EPC’s need to be carried out?

Answer 7

Every 10 years

Question 8

What is included in an EPC?

Answer 8

They assess elements like insulation, heating systems, and windows. Recommendations are given to improve a property’s energy usage.

Question 9

Why are EPCs important?

Answer 9

EPCs are legally required when selling or renting properties in the UK, providing essential information on energy performance to prospective buyers or tenants

Question 10

Name a legislation that is impacting the Rural Residential letting market right now?

Answer 10

Uncertainty over EPCs previous plans by the Scottish Government have currently been scrapped for EPC rating of C for all private rental properties by 2028.

Question 11

What sort of documents do you request from a contractor before entering a property for works?

Answer 11

Insurance, any certificates required and risk assessment

Question 12

What is an EICR?

Answer 12

Electrical Installation Condition Report

Question 13

How often do you need to carry out an EICR? Why are they necessary?

Answer 13

Every 5 years or at a change of tenancy

Question 14

You mention following a storm you were renovating a property and suggested improvements to the EPC what were these suggestions? Why did you make these suggestions?

Answer 14

Internal wall insulation as this was highlighting as a recommendation in the EPC certificate. This was recommended as contractors were already exposing the inner walls carrying out repair works.

Question 15

You mention taking a property back in hand what were the pros and cons of a PRT?

Answer 15

Pros:
Can vet the tenants before offering them a tenancy
Potential long term rental income due to an open ended tenancy
Cons:
Increased costs of getting property let (renovations and EPC and EICR)
Potential for tenants to leave so not as secure of long term income

Question 15

You mention taking a property back in hand what were the pros and cons of a holiday let?

Answer 15

Pros:
Potential higher income that you would receive from a PRT
More control = can set when you wish guests to be in the property or not
Cons:
Need to obtain a short term let licence governed by the local council
Increased management and costs of change over with guests and cleaning

Question 16

You mention taking a property back in hand what were the pros and cons of selling the property?

Answer 16

Pros:
Income received from the property can be used elsewhere on the estate
No longer have the management obligations of the property
Cons:
Lose control of who has the property if they chose to sell on

Question 17

Lead in residential properties are governed by which new legislation?

Answer 17

Repairing Standard require landlords to ensure that from 1 March 2024 the water supply in their private rented properties is free of lead.

Question 18

You mentioned a property with lead in it how was this identified?

Answer 18

This was identified during council water testing.

Question 19

What is process of switching a property to a mains supply?

Answer 19

Application to Scottish Water

Question 20

Do you have another example of where you met level 3 in property management?

Question 21

How are responsibilities split between a landlord and a tenant in a regulated tenancy, an SAT and a PRT?

Answer 21

All tenanted properties in Scotland are now required to achieve both the tolerable and repairing standard and it is the landlords responsibility to ensure this. However, tenants responsibilities include reporting maintenance issues in a timely manner and allowing access for maintenance.

Question 22

What are the EICR requirements for agricultural tenancies?

Answer 22

For any new leases, the landlord is required to have an EICR done on both the buildings and the house. The tenant then has the responsibility of having that updated every 3 years for the buildings and every 5 years for the house.

Question 23

Are you aware of any changes to compliance of residential dwellings within agricultural tenancies?

Answer 23

By February 2022, landlords were required to install smoke detectors, heat detectors and carbon monoxide detectors in residential dwellings under agricultural tenancies in Scotland.

Question 24

A property will comply with the repairing standards if it is…

Answer 24

it meets the tolerable standard

it is wind and watertight and reasonably fit for human habitation

it is structurally and externally in a reasonable state of repair and in good working order

it has a fixed heating system that is plumbed in or hardwired

the installations for the supply of water, gas, electricity (including residual current devices), and any other type of fuel, for sanitation, heating and hot water are in a reasonable state of repair and in good working order

it is free of lead pipes from the boundary stopcock to the kitchen tap

any fittings, fixtures or appliances supplied by the landlord as part of the tenancy are in good working order

any furniture provided by the landlord can be used safely for the purpose for which it was designed

there is satisfactory provision for and convenient access to spaces for food storage and food preparation

common parts can be safely accessed and used

common doors are secure and fitted with satisfactory emergency exit locks

Question 25

You were involved in renovating a property following Storm Arwen, what kind of works were required here? Was this within your skill set?

Answer 25

Flood damage, stripping the floor back to the floor boards on the entire ground floor
New kitchen
New bathroom
I liaised with the estate team who have specific skill sets surrounding joinery and construction
I also discussed with an architect and building surveyor which created a design plan for the works to be carried out and could be passed on to external contractors needed
I also verified these plans with our internal building surveyor along with the contractor quotes to see if these were of good value

Question 26

Can you talk me through the CDM regulations and how you fulfilled these with this renovation?

Answer 26

CDM regulations 2015 place specific responsibilities on duty holders, including designers and contractors, and make them accountable for the consideration and management of health and safety in construction work
Upon instruction of contractors our firm has a CDM letter which can be filled out and sent to the contractors
Within this letter it includes a clear description of the works agreed, details of local emergency services

Question 27

You also advised they could use this opportunity to install insulation, can you tell me about any proposed changes to legislation which may make this compulsory?

Answer 27

The Scottish Government’s proposed minimum EPC requirement for private residential lets

Question 28

You advised an estate on whether to let or sell their gate lodge and the pros and cons of each, can you please tell me what advice you provided on the pros and cons of holiday letting?

Answer 28

The advice I provided was to redecorate the property and re-let the property unfurnished under a PRT
Holiday let pros:
Higher rate of income as rate per night is far higher than a PRT
The client can stipulate times when they wish to have guests
Holiday let cons:
The property would require to be furnished (extra expenditure added to the redecoration works)
Would need to a short term licence which is governed by the local council
Increased management of the property (change overs between stays)

Question 29

You re-let a property after getting it back in a state of disrepair – did you withhold the existing tenants deposit?

Answer 29

Yes it was agreed between both the landlord and tenant that a 50% reduction would be made

Question 30

You carried out the end of tenancy inspection, can you list the things you would look to check here?

Answer 30

Meter readings
General cleanliness of the property
Noting any works which would need to be required before re- letting
Any items which the tenants are still required to be removed
Check for any damage to the property

Question 31

You arranged for a private water supply test to be done for lead pipes, how often should private water supplies be tested for residential letting?

Answer 31

Annually which was carried by the local council (Moray Council)

Question 32

The gate lodge that became vacant was it a listed building and how did this influence any of your renovation works?

Answer 32

Yes, the property was a C listed property.
Some windows required replacing and improved to double glazing which I needed to apply to the local planning authority for planning permission to replace these windows. We managed to achieve planning permission by replacing like for like with wooden sash windows and in the same colour (white).

Question 33

Who is responsible for the designation of listed buildings in Scotland?

Answer 33

Historic Environments Scotland (HSE)

Question 34

What legislation is in place to manage listed buildings?

Answer 34

Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997

Question 35

You mention that one of the options you have for the gate house was to turn it into a holiday let. Can you talk me through any additional costs that might incur in terms of business rates?

Answer 35

For short term letting you need a licence
Might have to pay non domestic rates
Local assessor will advise if your property is liable for business rates dependent on the period of which the property is available for let