As some of our landlords may be aware, the
Scottish Government have introduced changes to the Private Rented Sector and the
creation of tenancy agreements.
This is one of the most significant changes to the Scottish private rental
market in a decade. Over the coming
weeks we will be adapting our legal paperwork and procedures to incorporate the
new regime and work towards a smooth transition for all our landlords.
From 1st December 2017 all new tenancies will be a Private Rented Tenancy
(PRT), this will replace the current Short Assured Tenancy and Assured
The aim of the tenancy
and improvements for landlords:-
- Improved security for tenants
- provide safeguards for
landlords, investors and lenders
- No more confusing notices
- Quicker referral of rent
- Scottish Government recommended
model tenancy agreement, which includes standardised terms
- 18 new modernised grounds of
possesion, including if the landlords wishes to sell and if the property
has been abandoned
What is in the new tenancy agreement:-
Government has produced a model lease which may be used by
landlords/agents. Its not compulsory to use the model agreement but
all agreements must contains two types of clauses:-
All PRT leases must contain certain mandatory
terms and we are working with our legal advisers to analyse the wording of the
lease and any additions or amendments.
- Mandatory clause - these must
appear in all PRTs these are statutory terms, repairing standards and
- Discretionary clauses - these
can be removed or altered.
Only one date is needed on the new lease - the start date. Legislation
does not allow the parties to agree a duration for the lease or an end
date. The tenancy can be terminated at any point after the start date by
the landlord or tenant.
Rents can only be increased once every 12 months with a 3 month notice period.
Tenants being offered a PRT must be issued with guidance notes
Ending the new PRT
One of the main changes is
the removal of the 'no-fault' eviction ground. This currently allows landlords/agents
to ask a tenant to move out with two months' notice once their original lease
period has expired without any further reasons being required.
Landlords/agents will now have to state at least one recognised 'eviction
ground' for bringing the tenancy to an end. There are 18 grounds
for possession including the landlord looking to sell/refurbish or move into
the property, to use it for non-residential purposes, anti-social behaviour or
criminal conduct or the tenant being in arrears for three or more consecutive
The notice period for most grounds is 28 days providing the tenant has occupied
the property for 6 months or less, and 84 days notice if the tenant has
occupied the property for 6 months or more. Certain grounds require 28
days notice regardless of the duration of the tenancy.
If the tenant wants to leave, they must give a minimum of 28 days notice in
writing. They can issue this at anytime after the start date. The
landlord can only end the tenancy if one of the 18 grounds for possession
All our management
properties are currently short assured tenancies. These will not be
affected by the PRT, and will continue to operate in perpetuity until
terminated by the landlord or tenant. However it won't be possible to
create new Short Assured Tenancies.
Please get in touch if you
have any questions and we will do our best to help.