At the start of December 2017, The Private Housing (Tenancies) (Scotland) Act 2016 introduced the Private Residential Tenancy (PRT), in a bid to regulate the private rented sector. It only affects new tenancies created on or after 1 December 2017 – any short assured or assured tenancy agreement granted on or before this date will continue to run as normal for its duration. However, any landlord with a tenant under a short assured or assured tenancy agreement should still brush up on the changes.

So what’s new?

Renting to students

If you’re renting a flat or property to students, the new rules will apply. But purpose-built student accommodation won’t be affected. And if your accommodation was given planning permission or granted a change of building use, so you can let to students, you can offer fixed-term leases just like before.

Terminating tenancies

The big change here is you won’t be able to terminate a tenancy at a fixed date on a ‘no fault’ basis. There are two types of non-consensual termination allowed:

· By the tenant with 28 days’ notice

· By the landlord under any of the 18 eviction grounds

If your tenant disputes these grounds, the matter can go to the First Tier Tribunal (FTT) who will decide if the ground actually applies. If you can establish a mandatory ground, the FTT has to grant an eviction order. If the ground is discretionary, the FTT will decide if it’s been established and whether it’s reasonable to order an eviction.

Should the FTT find the tenancy agreement has been wrongly terminated, your tenant could be entitled to a sum of up to six months’ rent.

Upping the rent

PRT also means you can only raise the rent once every 12 months, and you’ll have to issue a ‘rent increase notice’. The tenant can object by referring the issue to the Rent Officer, who can amend the increase. However, you can then appeal the amendment to the FTT.

Capping rent increases

Rent Pressure Zones are areas where rent increases can halt at a rate set by the Scottish Government. It’s worth noting that Edinburgh City Council is considering turning the whole city into a rent pressure zone.

Using best practice

These changes can be confusing, especially when it comes to putting them into practice. So the Act coms with a Model Tenancy Agreement. This example of best practice includes mandatory core rights and obligations, like repairing standards and tenancy deposits, and discretionary terms you can add or remove as you see fit.

Have a look at the Model Tenancy Agreement on the Scottish Government website.

If you need some more guidance or advice with keeping your tenancy agreements in-line, get in touch with our residential property team today.