The start of the tenancy can be a stressful time as you get everything in order for your new tenant(s) moving in. Failure to have all your ducks in a row at this stage could result in an even more stress inducing experience when the tenancy ends, particularly if you find yourself in a dispute over the deposit. Making sure you have a few important steps completed can ensure smoother sailing through the tenancy.
Preparing the property
One of the first priorities should be ensuring the property is ready to welcome new tenants. Arriving to a clean home on move-in day can make a great first impression on the tenant and helps set a standard that you would expect them to match. Any necessary repairs should also be completed before the tenant moves in, and you should make sure any appliances, heating systems, and safety features are all working as expected.
Important documents you need
There are a few key documents that the tenant needs to be provided with before the tenancy starts. The inventory is possibly the most valuable piece of evidence in the instance of a deposit dispute. It provides a record of the property’s condition at the start of the tenancy, and an adjudicator will refer to this in order to paint a picture of how the property looked when the tenant moved in. The most effective inventories go beyond a simple list of fixtures and furnishing and include clear descriptions, photographs, and a thorough schedule of condition covering every room, right down to level of cleanliness. Investing the time into producing a well-detailed inventory can be a massive help if a dispute does arise.
The tenancy agreement should also be carefully prepared and explained. While tenants will usually read through the agreement before signing, landlords should not assume that every clause will be fully understood. Taking a few minutes to discuss key points such as maintenance responsibilities, reporting repairs, and access arrangements can help prevent misunderstandings later. Open communication from the get-go also encourages the tenant to speak to the landlord whenever issues arise, making it easier and faster to resolve them. The Scottish Government has its own model tenancy agreement template which it suggests landlords use.
Protecting the deposit
If you choose to take a deposit from your tenant, there are a few guidelines that need to be followed. Firstly there is a limit to how much deposit you can take, which is no more than a maximum of two months rent. As per the Tenancy Deposit Scheme (Scotland) Regulations 2011, it is a legal requirement that landlords protect the deposit with a government-approved tenancy deposit scheme such as SafeDeposits Scotland. The deposit scheme will hold on to the deposit for the duration of the tenancy. Landlords will have 30 working days to protect the tenant’s deposit.
Along with protecting the tenant’s deposit, you also must provide them with prescribed information. This includes key details relating to the tenant’s deposit, including which deposit scheme their deposit is being protected with, and its contact details.
Failure to protect the deposit or provide the prescribed information is grounds for the tenant to take the landlord to the First-tier Tribunal for Scotland (Housing and Property Chamber) where the landlord could be ordered to pay the tenant up to three times the deposit amount, so it is in the landlord’s best interest that they protect the deposit quickly.
