Scotland rental query

rich3245

Hi,

The landlord of a Scottish holiday let would like to let to us for 12 months, we have agreed a price and we would like to rent there. While we are there we will be looking to buy a house locally, but we are content to commit to 12 months.

The landlord is concerned that if they go down the Private Residential Residency route then it would be possible for us to decide we didn't want to leave at the end of the 12 months and continue our tenancy.

However, I understand that the landlord could give us notice to vacate with a length of 84 days, so could give us this notice 84 days before the 12 months is up (or earlier, presumably).

I would be grateful if anyone could confirm which is correct or offer any other solutions to allow a mutually beneficial 12 month let on an existing holiday let.

Many thanks

davidmcn

The 84 days notice is correct but it's still only going to work if one of the statutory grounds for ending the tenancy apply, and they don't include "I want to return it to being a holiday let". You can't contract out of that, because obviously every unscrupulous landlord would be doing so if they could.

rich3245

David,

Thanks. Presumably "5. Landlord intends to use the let property for non-residential purpose" doesn't apply? Holiday let counts as 'residential'?

Is there anywhere that you know of that explains what is and isn't permissible under the 18 grounds in more detail?

theartfullodger

Highly unlikely a landlord would succeed in evicting within 1st year: He has to go through FTT - see details (clink through for more info) here

https://scotland.shelter.org.uk/get_advice/advice_topics/renting_rights/renting_from_a_private_landlord/the_private_residential_tenancy

Whereas landlord can give notice after 28 days from start (there is no 6 or 12 month commitment).

If landlord uses ground which turns out to be invalid (eg to sell or live in but he does neither) tenant is entitled to 6 months rent. You'll be safe (IMHO..)


NB It's not "if" he goes down PRT route: He has no choice, any new tenancy will be PRT even if paperwork says not if renting to humans.


Artful, Scottish Landlord

davidmcn

rich3245 wrote: »

Presumably "5. Landlord intends to use the let property for non-residential purpose" doesn't apply? Holiday let counts as 'residential'?

Actually that might work, given the legislation defines it as using "the let property for a purpose other than providing a person with a home."

Is there anywhere that you know of that explains what is and isn't permissible under the 18 grounds in more detail?

You can read the Act here, the eviction grounds are in Schedule 3.

pinklady21

If he wants to rent it to you on a long term basis (ie not a holiday let), then he needs to accept the risk that you may not wish to leave. He can seek to repossess the property, but only on the grounds set out in the Act as set out above by previous posters.

On the face of it, it sounds like it could be a mutually beneficial arrangement - you have a base from which to continue your search for a house, he receives regular rent without all the faff of having to clean the house between short lets and deal with holiday makers.

For it to work there probably needs to be a basis of trust - on the one hand, he doesn't know whether your circumstances will change, and you find that you don't want to leave, on the other, you don't know whether he will try and make life unexpectedly difficult to try and get you to agree to leave.

As others have said, if he wants you out and you refuse to go, if he does not have any proper grounds then the First Tier Tribunal will be unlikely to grant him a possession order. None of this will help you persuade him to rent it to you though!
More likely is a face to face discussion where he decides whether he can trust you or not! (and you him!)
Best of luck.

rich3245

David,

It is a shame that the detail in Schedule 3 is not more detailed as it seems very open to interpretation - Is a holiday let 'a home'? That is clearly subjective and from Artful's reply it sounds as though even if that were suitable grounds for eviction it would not be a simple process for the landlord.

I expect, therefore, that the landlord will be very reluctant to give us a long term let as they would only have our word that we would mutually terminate at 12 months.

Is there no other legal agreement that we could enter in to, for example, go ahead with a PRT but with a covenant that we will terminate after 12 months?

Thanks again.

pinklady21

A further thought on this - presumably there are no planning considerations in play for the property? Some holiday lets have planning conditions attached that they cannot be permanently occupied. If it was built or created from an existing building fairly recently (eg a conversion of a farm building etc), the planning permission may have had occupancy conditions attached to it.
So even if you wanted to let it on a long term basis, it would not be "legal", and the planning dept may be able to take enforcement action against the landlord.
A lot of "ifs". Clearly I don't know the details, so it may or may not be relevant to your situation.

rich3245

Pink lady,

That is all really useful, thank you. It does like like it would have to go down to trust as you suggest - but I would fully understand their reluctance to proceed on that basis, no matter how trust worthy I may (or may not!) appear.

As my first dabble into the Scottish rental market (I'm English) I feel this is a frustrating and limiting system and there is surely room for improvement without impacting long term tenants.

theartfullodger

......
I expect, therefore, that the landlord will be very reluctant to give us a long term let as ....

They don't get a vote. PRT is long term if tenant wants it.


PRT a welcome swing-back in favour of tenant power after the swing t'other way in Housing Acts 1988 (England & Scotland ones...)

Hasbeen

theartfullodger wrote: »

They don't get a vote. PRT is long term if tenant wants it.


PRT a welcome swing-back in favour of tenant power after the swing t'other way in Housing Acts 1988 (England & Scotland ones...)

The Scottish PRT does give the tenant all the power/rights.

It is also very long winded and complicated, though it does have 49 pages of "easy read " notes attached to help people understand it.

It basically states that the tenant can move in and stay for as long as they like, it also implies that if they do not pay any rent they are protected.

Landlords here are selling their properties, firstly because of the Westminster which hunt and also now because of interfering Scottish legislation.

There is now a drastic shortage of rental accommodation with young couples having to stay with parents and families having to rely on emergency council accommodation.