Any out of the box suggestions for the end of student fixed term tenancies?

Reply to the comment left by Claire Smith at 31/08/2022 - 11:16
As tenants can legally challenge annual rent increases, do I can't see double rent being allowable.

Reply to the comment left by Yvonne Francis at 31/08/2022 - 09:42
It would be helpful for 118 admin to invite a landlord from SAL (Scottish Association of Landlords) to outline the fall out from all the changes, as they are coming down the line to England. I live in Edinburgh, (but my rental properties are in England) A recent report suggests that the Scottish changes are leading to a reduction of supply, particularly for students and lower income families https://rentbetter.indigohousegroup.com/findings/
Student landlords can't issue fixed term tenancies, which of course means they are unable to plan. Those that left the market either sold up or moved to airbnb. However, Edinburgh is trying to curb airbnb by requiring all landlords who want to let out an entire flat on airbnb to apply for planning permission from the council (and probably pay an enormous fee) Every day this month the local facebook pages have been full of students (and some professionals) desperately searching for accommodation. Edinburgh is giving planning permission for new PBSH very regularly, so this is obviously how they hope to fill the gap left by student landlords pulling out of the sector

Reply to the comment left by Annie Landlord at 31/08/2022 - 11:29
Hi Annie, Please see our recent article >> https://www.property118.com/glasgow-a-warning-to-all-landlords-in-the-uk/

How about landlords contracting with the students' university or college (college). That way the tenant is the educational establishment and it would be down to them to determine who they sublet to. There would need to agreements making sure that only students of the college are allowed to live there but it would then be down to the college to allocate rooms/properties to students.
This would not be tenancies as such as they are just providing accommodation.
The agreement would have to have a rent increase clause so that rents could be put up at suitable intervals.
This would then give certainty to landlords about ongoing rentals and would mean that they would not have the admin headaches - that would be down to the college.
Just some initial thoughts and I am sure there are problems that I have missed. Any further thoughts?

A question and also some views on the proposed reforms.
Does the new bill mean the abolishment of AST’s altogether? Does that mean all tenancies will be Assured Tenancies or will they still be classed as AST’s given section 21 is being abolished? Or will there be a new classification of tenancy?
In terms of the periodic tenancy issue for student landlords. An out of the box fix would be to charge equivalent of the annual rent in the first periodic term and every 6th periodic term thereafter if each periodic term was 2 months. This forces tenants to pay all the rent in the first period like most international students already do. The following periodic terms with the exception of every 6th periodic term could be charged at £1 per term. Periodic terms could be set to whatever period a Landlord wanted to specify.
If the tenant serves notice after after 1 month there would only be a nominal refund due of £1 or nothing if the rent is free for the subsequent periods. Opinions from any legal experts welcome on this idea?
In terms of students terminating or dropping out of Uni. Most student groups renting HMO’s sign a joint and several liability tenancy with each having a parental guarantor. A 2 month termination notice served by a single tenant would require all tenants to terminate. It is highly unlikely that the entire group would want to drop out of uni. Even if one person dropped out all tenants and guarantors would still be liable. It would be very difficult for the remaining group to find alternative accommodation given most students who wish to drop out either do it mid way through the first term or just before the new academic year. Thoughts on these ideas are welcome

Reply to the comment left by Oscar Lewis at 18/09/2022 - 23:09
Hi Oscar it’s this sort of creative thinking that may be the solution for student rentals. I’m sure we’d have to cover every base legally
and also not all tenants are going to be in a position to pay up front. Variations on your suggestions could definitely work though.
Alternatively, let’s hope that the new government sees sense and doesn’t push forward with the white paper although that’s incredibly optimistic!

Reply to the comment left by Oscar Lewis at 18/09/2022 - 23:09
If you set each periodic term after the first to £1 and the tenant didn't leave after the expected time they would only be paying £1 a period for the rest of the time they stayed on.
I don't see problems with tenants leaving early, as.in Scotland the problem is with students not leaving at the end of the tenancy in June/July and staying for August maybe September, October,.so you can't sign.any new tenants up till the original ones leave.

Reply to the comment left by Oscar Lewis at 18/09/2022 - 23:09This might fall foul of the Tenant Fees Act which if I'm not mistaken prohibits initial rents being higher than subsequent rents.
I believe this was incorporated so as prevent to Landlords front loading rents with the fixed fees they would otherwise have charged.

Reply to the comment left by Chris Bradley at 19/09/2022 - 09:35
My suggestion was to specify the £1 rent for only the 2nd-5th periodic term and then charge equivalent of the annual rent again in the 6th periodic term. This is assuming each period term is 2 months.

Reply to the comment left by Gromit at 19/09/2022 - 10:13
Will the rent reform bill create a new tenancy class instead of AST or will all tenancies just become AT’s? Any legal opinions on this?