Dear All,
We are (almost) at the end of July! How did that happen?!! It does not seem that long ago I was writing about April showers and Shakespeare day! World cup fans may know the significance of July 30th, but I am not that into football, leave that to my Uncles and prefer to think of it as Cheesecake day.
Any excuse!
As you are, hopefully, aware there have been some changes to property law due to the pandemic, which are still in place and seem to be until March 2021, if this changes we will advise.
This means that the leases signed at this point in time look slightly different to the usual Private Rented Tenancy agreement, with additional notes regarding social distancing and access notifications if feeling unwell.
https://www.gov.scot/publications/coronavirus-covid-19-landlord-and-letting-agent-faqs/
A landlord asked me recently the difference between the old fixed term lease and the new lease, meaning the short assured tenancy (SAT) and the Private Rented Tenancy (PRT) and although this will not apply to many landlords reading this, we only have 20 SAT still active, I will explain briefly as best I can, and sectioned it off so you can skip ahead.
Old Short Assured Tenancy – if your tenants have signed since 01/12/2017, this may be a bit dull.
The SAT had a fixed term which was between a minimum of 6 months (and a day) or a maxim a year (less a day)
After the initial period the SAT would continue on a rolling period from the same date eg. the initial period was 1st February – 31st January. The lease would roll on the 1st of the month until the tenant gave the appropriate notice to end the lease at the next rolling period called tacit relocation .
The tenant and landlord would need to make sure that the notice period synced in with this rolling period, and often it would be missed or just given in time making the notice quite short or long.
it was clunky and awkward and lead to what we remember as the busy summer period, when students and guarantors were tied into a lease agreement during term time, and a quiet winter period which could be really difficult for a landlord who finds themselves with a long void.
New “lease for life “
When the PRT was introduced 1st December 2017 all new residential leases signed had to , by law, be a PRT. Any existing leases that had a change of tenancy, or rent increase would need to be re signed as a PRT. Which is why if you haven’t had a new tenant in the property, but a rent increase you will have a PRT or if there was a change of tenancy but the property was not on the availability market there will be a PRT.
Private Rented Tenancy summed up
The PRT only has a start date and will roll on a continuous basis until the tenant or landlord supply notice. The tenant needs to supply 28 days notice and the landlord notice varies. Depending on the reasons it is 31 days notice (28 days plus 2 days for deliver and 1 for good measure) or 87 days (84 days plus 2 days for deliver and 1 for good measure). Every case is unique and the evidence that needs to be provided to the First Tier Tribunal can be a lot, which is why we would charge a fee to serve the notice through the first tier tribunal.
Active effects
2019 was the first year we really saw the effects of the PRT and the knock on from students vacating at the end of the academic year. We found a shift from the percentage of student tenants we had to tenants in full time employment and properties that would traditionally be let to students, being let to professionals.
Which is a contributing factor I feel to why Glasgow Property Letting have not found the amount of tenants giving notice due to the pandemic as other agents.
This is my own opinion and view point.
Finances
I was speaking with a landlord yesterday about the personal financial effects of the pandemic and the changes to work environment. Working from home has meant that a lot of people, myself included have saved a lot of travel expenses as well as avoiding the stress of rush hour traffic.
Citylets have published an article about that which can be found here.
https://www.citylets.co.uk/blog/71-of-uk-households-saved-money-during-lockdown/
I used a some of the money I know I have saved to buy my mum a present, “Dear NHS :100 stories” which is a lovely book, profits go to the NHS and an easy present for an NHS worker like my mum and so many others that have been essential through this pandemic.
Going forward
August is already looking to be a busy month for GPL with new tenancy start dates and check outs happening. We are working with Pinstripe and the tenants to arrange a self assessment inspection as a lot of tenants still are not confident about letting people in, which I can understand. As you know I have contacted all the tenants to make sure they are okay and they are expecting an inspection report from Pinstripe to be sent to them.
The certificates we are on top off, with a couple of tenants being symptomatic or having a vulnerable person in the household so we are documenting the attempts to carry out the renewal and checking in with them bi monthly.
Yesterday turned into a beautiful day in Glasgow and my son has been enjoying a little freedom, having his friends over and it has been boys on a trampoline since they could. They have had an absolute ball of a time, and I think in years to come the kids will remember this pandemic as a long summer holiday, seeing parents at home more, seeing family on screens and the excitement of moments like that, finally seeing friends and face to face laughing.
Our new normal will work out and as I said to a friend earlier the new groove and routine that we find ourselves in now could be better than before.
As always if you would like a chat, check in, catch up, please email admin@glasgowpropertyletting.com and we can book something in, I have a few webinars and training sessions booked in already, but we can arrange a suitable time.
Have a wonderful weekend when it comes,
Kindest Regards
Michelle O’Donnell
Branch Manager
0141 221 3990
17 Elmbank Street
Glasgow
G2 4PB
Registration number LARN1903009
VAT : 174415411
SC345735
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