Registered with Property118.comTuesday 14th April 2015
My understanding of the Edinburgh student market is that it currently operates on the basis described above. The problem with the new PRT is that the landlord has no control over when the student leaves. The tenant may opt to stay for the summer or perhaps a month into the new term so the landlord is unable to plan for holiday let's over the summer or may miss the busy period for returning students and so lose out for the next year. A lose lose situation!
Rod.... Read More
I suspect that any potential work around is really just wishful thinking. Unless the landlord can justify one of the 18 grounds for termination of the lease the tenant has the right to stay indefinitely. Any cunning scheme which contradicts this will most likely be over turned by the 1st tier tribunal in favour of the tenants with the potential for recompense to paid by the landlord to the tenant.
Financial inducement of the tenant may be a way forward but would be in no way binding if it contradicted the fundamentals of the legislation.
Can you provide any more detail on the potential work around?
Reply to the comment left by Asif Ahmed at 16/11/2017 - 16:49I'm not sure if that would fly. What would happen after the 3 months at zero rent? The tenant has the right to stay but at what rent? Would that then be a rent increase which you would need to give 3 months notice for? Could the tenant refer the increase to the 1st tier tribunal as unfair? It opens up a lot of questions to which there are as yet no answers. Like all legislation, the government writes it but the courts interpret it and I'm not sure how your plan would be interpreted. I think the student market is one of the many areas that the legislation fails to cater for. We are all going to be on a fairly steep learning curve on this.
Asif, I feel your pain. I am a landlord in Scotland and also work for a leasing agent so we also have the added burden of agent registration looming! Registration along with the 74 page model tenancy produced by the Scottish Government is moing to lead to a major shake of letting agents. Some solicitors are already off loading their leasing departments as they no longer see it as a viable prospect.
Re your 12/9 scenario.... The danger is you will be uncompetitive unless everyone is doing it and it would seem unlikely that everyone will. The students will just go for a landlord who is charging a market rent and not trying to build in the costs of their voids by front loading the rental payments.
I've said it before on here, I predict a reduction in supply of rental stock, a reduction in quality and rising rents as a result. This will happen in the sector of the market which follows the rules, the unregulated market where landlords choose to not play by the rules will grow putting tenants at risk and legitmate landlords out of business.
Welcome to the pleasure dome!
As an aside, have you read the model tenancy? If it wasn't serious, some of it would be a laughable. For example, there is clause which states 'The tenant will maintain the garden in a reasonable manner.' WTF is that supposed to mean?