A Guide to Letting Property for Non-Commercial Residential Landlords

For more than a quarter of a century, D J Alexander has successfully let property on a semi- or non-commercial basis, usually on behalf of owners spending an expended period of time abroad.

Now, as a result of the recession, these are being joined by growing numbers of clients who are the reluctant owners of two homes – having bought one but failing to sell the first.

It is a problem faced by many householders today – so you are not alone. Temporary letting out one of the properties is one way of circumventing the problem – but to be successful it helps to have an expert on side.

As the properties served, until recently, as their main family homes, these clients are not able to take as detached a view of letting as a commercial landlord would. In fact, it would be fair to say that most of them would prefer not to be landlords in the first place!

Consequently, D J Alexander believes that the following guidelines will prove invaluable to anyone letting out a former home because of an inability to sell.


  • Use a reputable agent; one who will endeavour to make your letting contract as hassle-free as possible right from the start by matching your property with the right tenants. D J Alexander operates a rigid and well-proven tenant vetting service which has a good track record of identifying unsuitable individuals – before they take possession of a property
  • Pitch your rental at a marketable level. It is no good trying to obtain a sum in rent sufficient enough to cover your mortgage payments if these are above the “market” rental for the area. Remember a rental income that only covers part of your mortgage income is better than no rental income at all.
  • Watch your limit. If letting out to three or more unrelated persons you MUST have an HMO (houses in multiple occupation) certificate from your local council.
  • Remember that a tenancy agreement is a contract giving your tenants exclusive use of your property for an agreed period. Do not expect to be able to “nip in and out” as if you owned the place – even though you do!
  • Be prepared for additional costs. This will include an agent’s management fee, additional insurance and increased bills for maintenance and repairs. Be sure to keep receipts as these expenses can be set against income for tax relief.
  • As part of a short-assured tenancy, the occupier will lodge a deposit (usually equivalent to one month’s rental) as collateral for damage. However, normal wear and tear is not damage – so do not expect to recover the cost of removing carpet stains or scuffs on wallpaper with money from the deposit. D J Alexander, being equitable to both landlords and tenants, does not encourage this type of action.
  • Finally, a short assured tenancy lasts for six months and can then be renewed on a rolling basis thereafter. For most home owners who are letting out a property they are unable to sell, at least another year is likely to elapse before they feel sufficiently confident to put it back on the market.

For an audit of your property’s letting and rental prospects – without obligation – please contact David Alexander, Rob Trotter or Phil Strathie on 0131 558 5000.