If you let any house or flat, or rooms in your own home, to three or more unrelated people so that they are sharing a kitchen, bathroom or toilet, this is classed as a House in Multiple Occupation (HMO) and you will need to get a licence from the local authority. The licensing authority will need to check that the property meets requirements in terms of physical standards, such as space, bathroom and kitchen facilities and fire safety. The booklet Houses in Multiple Occupation: a guide for Landlords, includes information on what is likely to be required.
For more information on HMOs, see
Houses in Multiple Occupation.
Good management is vital to hassle-free letting. If both sides know clearly what their rights and responsibilities are, you have a much better chance that everything will run smoothly. Even if you see it as just an informal arrangement, it's always best to put everything in writing, to avoid any misunderstandings later on.
There are also some rights and responsibilities which tenants and landlords have automatically by law. No matter what you include in your tenancy or occupancy agreement these requirements cannot be signed away.
Good management also helps to address the issues that neighbours of rented housing can be concerned about. These include maintenance and cleaning, and the behaviour of tenants. Many potential problems can be avoided if, for example, you make sure tenants know when and where to put out rubbish, what the arrangements are for cleaning common areas, and what to do if repairs are needed. And if you have made clear what is expected of them, you are in a much stronger position if there are any complaints.
This section tells you what is required by law. It covers regulated, assured and short assured tenancies, and the rules that apply to resident landlords - where you are letting part of your own home - tied housing, provided with employment, shared housing and students. It also outlines landlords' general duties not to discriminate against people because of their race, gender or disability.
Good practice on how to put the legal requirements into practice, and other things you might want to consider in drawing up an agreement. There are model tenancies, and information about finding and using a letting agent.
The Scottish Core Standards for Accredited Landlords [PDF external link] help private landlords achieve best practice. These were developed as part of the project to promote accreditation schemes, but you don't have to be a member of a scheme to use the standards.
Further information on how to become an accredited landlord is available form Landlord Accreditation Scotland.