Your empty home unlocking its potential
Do you own an empty home? When you leave a property empty you not only miss the opportunity to make money from it, you can also face substantial costs by just leaving it unused. Each month your property is empty could mean lost income. Empty homes can be a target for vandalism, graffiti and other criminal activity. As an owner you might be faced with higher repair and maintenance bills. You can also face costs for insurance, higher Council Tax and security. Making better use of your empty home makes sense for you financially, and it could provide a much needed home for someone in the city. Your options The two main options are either renting or selling your empty home. Renting out your property Renting out your home could give you a regular income whilst keeping the property in a good state of repair. The most appropriate option for you will depend on the condition of your home, the involvement you wish to have in managing your property and how much rent you could earn.
i. Through the Edinburgh Empty Homes Loan Fund If you own an empty home that needs some work before you can rent it out, you may be able to access a loan through Link to help with the costs. Link, through the Edinburgh Empty Homes Loan Fund, will provide loans of up to 15,000 to help with repair and renovation costs. Once the empty home is at a suitable standard to rent, Link2Let (part of Link) will market the property for you and provide a management service for up to seven years. For more information, contact Link on 0131 624 7813 or visit their website http://linkhousing.org.uk/ our-services/edinburgh-empty-homes-initiative ii. Through Private Sector Leasing (PSL) or Letfirst Under PSL you would lease your property for a set length of time (between 1-5 years) in exchange for guaranteed income. Link Group is the managing agent for PSL in Edinburgh. Through Link Group, your property would be leased to people who are homeless or in need of housing. Rent on the property is guaranteed and paid to you quarterly in advance, even when empty. Call the Link PSL team on 08451 550 021 for more information. Letfirst, managed by Orchard and Shipman, help people who might otherwise find it difficult to access the private rented sector, for example because they receive benefits or do not have a deposit. Letfirst guarantee rent on the property, as well as providing a comprehensive and professional management service. If you wish to refurbish your property, then Letfirst can also help you manage this process. Call 0131 553 0060 or e-mail letfirst@let-first.com to find out more. iii. Through a letting/management agent For a fee an agent will advertise and rent out your home. Many offer a management service, which involves general maintenance and organising necessary repairs over the period of the tenancy. Landlord Accreditation Scotland (LAS) is a voluntary scheme which landlords and letting agents can join to demonstrate good management practices that are above the minimum legal requirements.
For more information about LAS or to confirm a letting agent is accredited contact LAS on 0131 553 2211 or visit their website www.landlordaccreditationscotland.com iv. Privately You can also rent out your home yourself. If you do this you need to make sure that you are fully aware of all the responsibilities and obligations that need to be met. For example, you will need to register as a landlord with the City of Edinburgh Council. You will have to inform your mortgage lender, acquire buildings insurance and explore potential tax implications of letting out your property. You will also need to pay deposits received to an approved tenancy deposit scheme. Your duties as a landlord include providing a written tenancy agreement and a tenant information pack. The pack should contain basic details about you as the landlord and the property including an Energy Efficiency Certificate. It should also include information about the tenancy and the rights and responsibilities of the landlord and tenant. You must ensure your property is in good repair and meets the Repairing Standard detailed in the Housing (Scotland) Act 2006. Find out more at www.edinburgh.gov.uk/info/20058/ private_housing/373/private_landlords or contact the Council s Private Rented Services on 0131 469 5293. Houses in Multiple Occupation (HMOs) If your property is going to be let to three or more unrelated people as their main home, you will need to apply for a licence to operate a House in Multiple Occupation (HMO), as well as registering as a landlord. HMOs must comply with additional regulations before they can be rented out. These include: an inspection bringing your home up to the standard and condition highlighted during inspection gaining consent from neighbourhood representatives. A property cannot be used as a HMO until the licence has been granted by the Council. Find out more at www.edinburgh.gov.uk/info/20058/ private_housing/372/houses_in_multiple_occupation _hmo or contact the Council s Private Rented Services on 0131 469 5151.
Selling your property If you prefer to sell your property, you should be realistic about your home s potential. Some house-hunters are looking for properties to renovate so your home doesn t need to be in perfect condition. To sell your property you must have a Home Report carried out by a Chartered Surveyor. This provides information on the property s condition, value, energy efficiency and accessibility for people with particular needs. If you are thinking about selling your property there are several options. i. Selling privately Most people in Scotland sell their home through a solicitor. If you decide to sell the property privately you avoid paying an estate agent s fees or commission, but you will have to do all the work yourself. This includes advertising and dealing with would-be buyers directly, with the solicitor or licensed conveyancer dealing with the legal aspects of the sale. ii. Selling through an estate agent or solicitor offering estate agency services If you decide to use an estate agent instead it may be worth consulting the National Association of Estate Agents (NAEA), the Royal Institution of Chartered Surveyors (RICS) or the Guild of Professional Estate Agents. They all set out rules of conduct which estate agents must adhere to. iii. Selling at auction Some types of properties tend to be more suited to be sold at auction. If your property is particularly run down, auctions can attract potential purchasers who are specifically looking for a renovation project. If you simply want a quick and uncomplicated sale an auction can be a suitable option.
Long term benefits Everyone can benefit from an empty home being brought back into use; you could be better off financially as well as giving someone a much-needed new home. You can get this document on tape, in Braille, large print and various computer formats if you ask us. Please contact ITS on 0131 242 8181 and quote reference number 14-0205. ITS can also give information on community language translations. Designed by the City of Edinburgh Council Corporate Governance 14.230/SFC/GD/June 2014