Navigating Scottish Tenancy Laws

In Dwello’s comprehensive guide, we’ll cover the essential aspects of Scottish tenancy laws that every landlord should know.

Scottish tenancy laws govern private housing and private tenancies, outlining the legal responsibilities of both landlords and tenants. Understanding the documents required when renting, such as tenancy agreements and safety certificates, is crucial for compliance and tenant protection.

Understanding the Private Residential Tenancy (PRT)

The cornerstone of modern Scottish tenancy law is the Private Residential Tenancy (PRT), which replaced the Assured and Short Assured Tenancies in December 2017. The PRT applies to tenancies where the tenancy started on or after 1 December 2017, and the date the tenancy started is crucial for determining the type of tenancy agreement. The PRT aims to provide greater security and flexibility for both landlords and tenants. Key features of the PRT include:

• Open-Ended Tenancy: Unlike previous tenancy types, the PRT has no fixed term, allowing tenants to remain in the property until they choose to leave or the landlord has grounds for eviction.
• Notice Periods: Landlords must provide tenants with at least 28 days’ notice if the tenancy has lasted six months or less and 84 days’ notice if it has lasted more than six months. Tenants can terminate the tenancy with 28 days’ notice at any time.
• Rent Increases: Rent increases are limited to once every 12 months, with a minimum of three months’ notice required before the new rent takes effect. Tenants can challenge unreasonable increases through a Rent Officer.
• Most private landlords must register with the local council before letting a property.

Private landlords are responsible for providing tenancy agreements to tenants. Tenancy agreements should be in writing, signed by both parties, and clearly state the date the tenancy started. Tenants may need permission from the landlord to make certain changes or take specific actions, and landlords can decide whether to grant such permission. Tenants are required to pay rent and deposits as agreed, and all payments must be paid legally. It is illegal for landlords to evict tenants without following the correct legal process.

Understanding the Private Residential Tenancy Agreement

A private residential tenancy agreement is the foundation of any private residential tenancy in Scotland. This legally binding contract sets out the terms and conditions agreed upon by the tenant and the private landlord, ensuring both parties understand their rights and responsibilities from the outset. Since 1 December 2017, this type of tenancy agreement has been mandatory for all new private residential tenancies, providing greater security and predictability for tenants while safeguarding the interests of landlords.

The Scottish Government offers a model private residential tenancy agreement, which landlords can use as a template to ensure compliance with the law. It is essential that tenants receive a written tenancy agreement, along with explanatory notes that clarify the terms of the agreement. This written documentation helps prevent misunderstandings and protects both parties if disputes arise.

Both landlords and tenants should familiarize themselves with the agreement’s contents, including details about rent, deposit, repairs, and notice periods. Understanding the legal requirements and obligations under a private residential tenancy agreement is crucial for maintaining a positive and lawful tenancy experience in Scotland.

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Recent Changes to Scottish Tenancy Laws

The landscape of Scottish tenancy law is constantly evolving and landlords must stay informed about recent changes to remain compliant. Some notable updates include:

• Rent Control Zones: Local councils can apply to the Scottish Government to designate Rent Pressure Zones (RPZs) in areas where excessive rent increases are causing affordability issues. Local councils are also responsible for registering private landlords. In RPZs, rent increases are capped at a specified percentage above inflation.
• Fair Rents: In January 2020, the Scottish Government introduced the “Fair Rents (Scotland) Bill,” aimed at capping rent increases for private tenants and ensuring they align with market rates. These changes apply to private tenancies, affecting both private landlords and letting agencies.
• Minimum Energy Efficiency Standards: Landlords must ensure their properties meet minimum energy efficiency standards, with properties required to have an Energy Performance Certificate (EPC) rating of at least D by 2025.

Recent regulations also affect fees that can be charged by landlords or letting agencies. Only certain fees, such as rent and tenancy deposits, can be legally charged, while other fees (like key money or administration charges) are illegal. All payments, including rent and deposits, must be paid legally and in accordance with the law by both private landlords and letting agencies.

Tenancy deposit schemes are mandatory for all private tenancies, and any deposit paid by a tenant must be paid into an approved scheme to ensure protection and compliance.

Rent and Rent Increases

Rent is a central aspect of private residential tenancies, and Scottish law sets out clear rules to ensure fairness for both tenants and landlords. Landlords must follow strict legal requirements when increasing rent. In most cases, rent can only be increased once every 12 months, and tenants must be given a minimum of three months’ notice before any rent increase takes effect.

The notice period is designed to give tenants time to adjust their finances or seek advice if they believe the rent increase is unreasonable. If a tenant feels that a proposed rent increase is excessive, they have the right to challenge it by applying for rent adjudication through Rent Service Scotland. This process is straightforward and helps protect tenants from unfair rent increases, ensuring that any changes to rent remain reasonable and in line with market rates.

Landlords must provide a clear rent increase notice that complies with all legal requirements. Failing to do so can result in the rent increase being invalid. Tenants are encouraged to seek advice if they are unsure about their rights or if they wish to challenge a rent increase, ensuring that both parties comply with the law and maintain a fair tenancy.

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Letting Agent Responsibilities

Letting agents play a vital role in managing private residential tenancies on behalf of landlords. Their responsibilities go beyond simply finding tenants—they must ensure that every tenant receives a written tenancy agreement and accompanying notes that explain the terms of the agreement. Letting agents are also required to comply with the letting agent code of practice, which sets out the standards of professionalism and conduct expected in the industry.

All letting agents operating in Scotland must be registered with the local authorities, and tenants should always check that their letting agent is properly registered before signing any tenancy agreement. The Scottish Government provides clear guidance on the responsibilities of letting agents, helping both landlords and tenants understand what to expect from their services.

If tenants have concerns about their letting agent’s conduct or believe the agent is not complying with the code of practice, they can seek advice from organizations such as Shelter Scotland or make a formal complaint. This ensures that letting agents are held accountable and that tenants’ rights are protected throughout the tenancy.

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Staying Compliant with Safety Regulations

Ensuring the safety of tenants is a top priority for landlords and compliance with safety regulations is non-negotiable. Landlords must ensure the property meets safety standards, including regular inspections and compliance with all legal requirements. Key safety requirements include:

• Gas Safety: Landlords must arrange an annual gas safety check by a registered Gas Safe engineer and provide tenants with a copy of the gas safety certificate.
• Electrical Safety: Electrical installations must be inspected and tested at least once every five years by a qualified electrician. The landlord’s responsibility also includes maintaining electricity and heating systems in safe working order. A copy of the Electrical Installation Condition Report (EICR) must be provided to tenants.
• Smoke and Carbon Monoxide Alarms: Landlords must install working smoke alarms on each floor of the property and carbon monoxide alarms in rooms with fuel-burning appliances.

After meeting these requirements, the landlord must provide tenants with all required safety documents and certificates. Tenants are responsible for keeping the property in good condition and avoiding causing nuisance to neighbors. Repair and maintenance of essential services, such as heating and electricity, are the landlord’s responsibility.

Giving Notice and Access

Ending a private residential tenancy or arranging access to the property involves following specific legal procedures to protect the rights of both tenants and landlords. Tenants wishing to end their tenancy must provide their landlord with at least 28 days’ written notice. This notice period allows landlords to make necessary arrangements for the property and ensures a smooth transition for both parties.

When a landlord needs to end a tenancy, they must issue a notice to leave document, clearly stating the reason for eviction and complying with the required notice period. Additionally, landlords must give tenants reasonable notice before accessing the property for repairs, inspections, or valuations. Access should always be arranged at a mutually convenient time, and tenants have the right to refuse entry if the request is unreasonable or if the landlord arrives without prior notice.

The Scottish Government offers detailed guidance on notice periods and access requirements for private residential tenancies. Tenants who have concerns about notice or access can seek advice from organizations such as the Citizens Advice Bureau to ensure their rights are respected and that all legal requirements are met.

Addressing Tenant Complaints and Disputes

Effective communication and conflict resolution are vital for maintaining a positive landlord-tenant relationship. Addressing tenant complaints promptly and fairly can prevent disputes from escalating. Landlords should have a clear process in place for handling complaints, including:

• Prompt Response: Acknowledge complaints within a reasonable timeframe and provide a timeline for resolving the issue.
• Documentation: Keep detailed records of all communications, inspections and repairs to provide evidence if needed. It is important to keep all communications and complaints in writing to ensure clarity and proof of what has been discussed.
• Mediation: Consider using third-party mediation services to resolve disputes amicably without resorting to legal action.

Disputes may arise over repair issues, and both landlords and tenants have legal responsibilities to address repairs as outlined in the tenancy agreement. If a dispute involves a letting agency, tenants can seek advice or escalate the issue to the appropriate authority. Illegal actions, such as unregistered landlords or unlawful evictions, can be reported to the local council. The local council or tribunal may decide the outcome of unresolved disputes.

Navigating Scottish tenancy laws can be challenging, but staying informed about the key regulations and recent changes is essential for ensuring a smooth and compliant rental experience. By understanding the Private Residential Tenancy, keeping up with updates, adhering to safety regulations and effectively managing tenant relationships, landlords can mitigate risks and provide a positive living environment for their tenants.

To speak to one of our property experts here at Dwello, you can call us on 0141 357 3579 or you can visit the Landlord section of our website for further information.