Open ended tenancies and on the hook for start dates?

by Readers Question

13:55 PM, 3rd January 2019
About 6 months ago

Open ended tenancies and on the hook for start dates?

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Open ended tenancies and on the hook for start dates?

As Scotland is leading the way in bringing more uncertainty to an uncertain future for the PRS I am faced with a puzzling question. I am currently advertising a vacant property, but notes of interest are coming from prospective tenants looking to secure a property in September 2019.

Basis I cannot assure a future tenancy as once the property is tenanted in the near future I would have to await until current (new) tenants have elected to leave and that could be any time if at all.

This got me thinking – can I sign up for a start date with the qualification ” subject to conditions being met” such as the current tenants having left ?

Another related question would be – what happens if you sign up a lease for a future, date but the property is not available as occupying tenant has not left? Are you on the hook for the new contract?

Many thanks

Asif



Comments

AA

11:20 AM, 7th January 2019
About 6 months ago

Reply to the comment left by Luke P at 07/01/2019 - 09:18
Difficult to hold tenant to the notice if they cry being coerced . Also this whole thing of signing a lease with prospective tenants to a future date and then being unable to deliver the property has opened up a can of worms for me. Landlords are an easy target for liability and compensation . I am trying to cover this base and think of how not to be left on the hook, as the title of this thread leads with. AST's will have the same issue I.e. A tenant not leaving but now this issue has been spotlighted, there is a cost hazard which is potential but can visit you.

Kevin Thomson

12:40 PM, 7th January 2019
About 6 months ago

Reply to the comment left by AA at 07/01/2019 - 11:20
landlords have been left to make their business decisions on 28 days notice.

student HMO businesses in particular will flounder in this environment. If student tenants are not willing to take up tenancies from 1st June then I will be switching to working people.

Luke P

12:54 PM, 7th January 2019
About 6 months ago

Reply to the comment left by AA at 07/01/2019 - 11:20
It's also difficult to prove coercion without a date of signature. Trouble is, landlords are being forced into thinking 'creatively' by ruinous and completely ill-thought through legislation.

AA

15:55 PM, 7th January 2019
About 6 months ago

Reply to the comment left by Kevin Thomson at 07/01/2019 - 12:40
I am of the same mindset. I prefer my properties not to be empty, but this is now out of my hands. The sting in the tail is rents are going up. That is certain. I a and am considering 2 tier rents. Rents for students who will jump ship after the academic year and rents for working people. Its an idea.

Kevin Thomson

18:31 PM, 7th January 2019
About 6 months ago

Reply to the comment left by AA at 07/01/2019 - 15:55
I've been renting per room in the region of £500-575 per month. But £600 per room is probably not far away, as you were saying with a 4 bedroom advertised at 2,400.

5 years ago I think my rooms averaged 400, some even 350.

to my mind rents have risen big time as soon as the SNP lease came on the horizon, and perhaps more importantly the prospect of rent controls, ie best put rents up now before you can't.

funny that the idea of rent controls has had the opposite effect of what was intended.

AA

19:20 PM, 7th January 2019
About 6 months ago

Reply to the comment left by Kevin Thomson at 07/01/2019 - 18:31
The rent control issue is an interesting one. The way I have read the legislation is, if the policy is enacted then only INCREASES in rent are controlled by a rate of CPI plus 1%. So if a property is vacated and someone is signing up to a new agreement the rent can be whatever. The tenant cannot complain to any body about what they have signed up for already, just what happens afterwards.

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