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| 07/10/2025 | Nykky Danielewicz
Licensed letting agents in Scotland: What landlords need to know

Why your letting agent must be licensed in Scotland 

If you trust a company to manage your biggest asset, they should be properly regulated. In Scotland, that means being registered as a letting agent and complying with the Letting Agent Code of Practice. Here’s why it matters for landlords—and what is changing next.

Legal baseline

  • Registration is mandatory: anyone carrying out letting agency work in Scotland must be on the Scottish Letting Agent Register and follow the statutory Letting Agent Code of Practice.
  • Operating unregistered is a criminal offence under the Housing (Scotland) Act 2014.
  • Penalties include fines and potential prosecution; removal from the register prevents an agent from trading.

What licensing gives you 

  • Client money safeguarded: agents must operate robust client-accounting, hold Client Money Protection (CMP) and Professional Indemnity Insurance.
  • Standards you can enforce: the Code of Practice covers marketing, onboarding, referencing, deposits, repairs, complaints and more. Landlords and tenants can escalate issues to the First‑tier Tribunal (Housing & Property Chamber), which can issue Letting Agent Enforcement Orders.
  • Fit and proper people & training: registration includes a fit‑and‑proper test and training requirements for key staff.

Risk of using an unregistered or non-compliant agent 

  • Criminality and invalid instructions: it is illegal for them to operate; recovering funds or enforcing obligations can be difficult.
  • No safety net: weaker protection around rent handling, deposits and remedial works if there is no CMP/PII or Code compliance.
  • Reputational and legal exposure: Tribunal action, public orders and removal from the register.

What’s changing soon

Forthcoming measures are set to strengthen the register and transparency. Once commenced, applications will require clearer ownership disclosure and decisions on refusal or removal will be shown on the public register for longer. These tighten oversight without changing day‑to‑day management duties.

How to check an agent

  • Search the Scottish Letting Agent Register: confirm the firm’s name and registration number.
  • Ask for proof of CMP and PII: certificates should name the provider and cover client funds.
  • Request the written complaints procedure: required under the Code and needed if you ever go to the Tribunal.
  • Confirm training/qualifications for the person in day‑to‑day control of letting work.

Bottom line for landlords 

A licensed, Code‑compliant agent is your legal protection, financial safety net and route to redress if something goes wrong. Before you instruct, or renew, carry out the quick checks above and keep copies of CMP/PII certificates with your management agreement.

For guidance or a quick compliance check on your current agent, contact our team.

We are a registered Scottish letting agent LARN2401006.

Verify our status on the Scottish Letting Agent Register: https://register.lettingagentregistration.gov.scot/searchresult/LARN2401006