Letting agents in Scotland are being urged to get ready for the upcoming letting agent code of practice which is set to start accepting applications before the end of January.
Letting agents and those working in property management will need to join the new register of letting agents with the deadline for doing so having been set at the end of September 2018 by the Scottish Government.
The Scottish Government describes letting agent as someone who carries out work for a private landlord who wants to let their property out to a tenant or those who manage a property, including collecting rent, inspecting the property and arranging for repairs and maintenance, which either is currently or is planned to be rented out to a tenant.
Landlords who own and manage their own properties do not need to register, neither will those letting out and managing a holiday home. However, letting agents based outside Scotland who undertake letting agency work in Scotland will need to register.
‘Landlords need to be aware that some key legislation changes are on the horizon and they should be making sure that their letting agency will be compliant with the new rules,’ said Brian Moran, lettings director of Your Move Scotland.
The code of practice is being introduced with the intention of protecting landlords and tenants and eradicating poor quality housing, helping to raise standards and build a more effective private rented sector that meets the needs of tenants, landlords and letting agents.
Registration requires evidence that everyone in a lettings business who needs to has the relevant qualification covering essential aspects of letting agency work at Scottish Credit and Qualifications Framework (SCQF) level 6 or above.
Those who have achieved level six in the last three years are likely to meet the necessary requirements but awards from before that may require further training.
Also, to be fully compliant with the code all letting agencies must ensure they hold client money in a dedicated client account, belong to a Client Money Protection (CMP) scheme and hold Professional indemnity insurance.
It will be a criminal offence to carry out letting agency work in Scotland if not on the register with fines of up to £50,000 and prison sentences of up to six months for those convicted.
The fee for registration is related to the number of offices a letting agency has and covers three years. For one office it is £495, for two to three offices £595 and for four or more offices the fee is £700.
