1. Rent arrears: How to sustain tenancies in the private rented sector
Natasha Miller
Letting Agent Plus Development Officer e: t:

2. Workshop topics
Key differences between the new and old private tenancy regimes in Scotland
The initial findings of the ‘Letting Agent Plus’ pilot
Recommendations for improving tenancy sustainability in the private rented sector

3. Introduction of the PRT
The Private Housing (Tenancies) (Scotland) Act 2016 introduced the PRT to Scotland in December 2017
No new short assured or assured tenancies on or after 1st December 2017
Existing private tenancies (short assured, assured and regulated) will continue unless brought to an end by the landlord or tenant

4. Differences between the PRT & SAT
No end date – tenancies will continue indefinitely
Different notice periods for landlord and tenant
Only one rent increase in any 12 months period (which can be challenged at the FTT if not market rent)
No pre-tenancy notices required (no AT5 form)
Only one notice required to leave or end the tenancy (‘notice to leave’ form)
Modernised eviction grounds
(18 in total)

5. Ending a PRT
Landlords and tenants can end a tenancy by ‘mutual consent’
Tenants - 28 full days notice, in writing to end the tenancy
Landlords - 28 full days’ notice in writing if a tenant has been in the tenancy for under six months or the reason for eviction relates to their conduct, otherwise it is 84 days (3 months)

6. Ending a PRT (ctd)
For joint tenancies, all tenants must agree to end the tenancy and they must all sign the notice to leave form
Notice periods should start 2 days after the notice is sent (a 28 day notice period is really 30 days for example)
Notice should be given “freely and without coercion” by a tenant
Attempts to pressurise, threaten or persuade a tenant to give notice could amount to illegal eviction a tenant which is a criminal matter.
As with assured and SATs, a landlord cannot legally evict a tenant from the tenancy property until an order for eviction is obtained from the FTT

7. Ending a PRT (ctd)
Landlord process to evict: ) serve a ‘notice to leave’ form containing: - at least one of the 18 grounds for eviction - the correct amount of notice to the tenant(s) - the day on which the landlord expects to be entitled to apply to the FTT for an eviction order if tenant remains ) obtain an order for eviction from the FTT (where a tenant doesn’t leave at the expiry of the notice period)
**Wrongful termination orders – if a tenant believes they were misled into leaving the property, they can apply to the FTT for a wrongful termination order and compensation amounting to no more than the value of 6 months’ rent**

8. Grounds for Eviction Discretionary Grounds
Landlord’s family member intends to live in the property
Tenant no longer needs supported accommodation
Tenant has breached a term of the tenancy agreement
Tenant has engaged in relevant antisocial behaviour
Tenant has associated in the let property with someone who has a criminal conviction or is antisocial
Landlord has had their registration refused or revoked
Landlord’s HMO licence has been revoked
An overcrowding statutory notice has been served on the landlord
Mandatory Grounds
Landlord intends to sell the property
Let property to be sold by lender
Landlord intends to refurbish the property
Landlord intends to live in the property
Landlord intends to use the property for non-residential purposes
Let property is required for a religious worker
Tenant is no longer occupying the property
Tenant has a relevant criminal conviction

9. Grounds for Eviction Mandatory or Discretionary
8) The tenant has stopped being, or has failed to become, an employee
Mandatory to grant an eviction order if:
the landlord applies within 12 months of the tenant no longer being an employee or
the tenant never became an employee and the landlord applies within 12 months of the tenancy starting date
Discretionary:
If landlord seeks to recover possession over 12 months after the tenant ceased to be an employee or, the tenancy start date (in cases where the tenant did not become an employee)
12) Tenant is in rent arrears over 3 consecutive months
Mandatory to grant an eviction order if:
Rent arrears of 3 consecutive months or more
Still owes at least 1 month’s rent by the day of the tribunal hearing
Arrears not due to a delay or failure in payment of a relevant benefit
Discretionary:
Less than 1 month’s rent or no longer in arrears by the date of the tribunal hearing
Reasonable in the circumstances to issue an eviction order -

10. Rent Arrears Grounds for Eviction: Old regime
Section 33 – the ‘no fault’ eviction ground To terminate a short assured tenancy under section 33 of the Housing (Scotland) Act 1988, 4 conditions must be satisfied: 1) SAT must have reached its expiry date (ish). 2) Tacit relocation must not be operating (this means that a notice to quit must have been correctly served) 3) No new contract must have been entered into 4) The landlord must have given a section 33 notice to the tenant saying that s/he requires possession of the property

11. Rent Arrears Grounds for Eviction: Old regime (ctd)
Mandatory Ground 8: three months' rent arrears 3 months rent arrears both at the time the section 19 notice is served, and at the date of the court hearing Discretionary Ground 11: persistent delay in paying rent Persistently delayed paying rent Ground 12: some rent unpaid Rent is unpaid both on the day when the section 19 notice was issued, and on the day when possession proceedings commenced

12. Rent Arrears Grounds for Eviction: Key differences
PRT
Assured
3 consecutive months of arrears
3 full months of arrears owed
Discretionary if there has been a benefit payment delay
No provision for application of discretion in cases of a benefit payment delay
1 months’ worth of arrears still owed at hearing to satisfy mandatory ground for eviction
Discretionary ground for eviction only if 3 full months of arrears not owed at time of hearing
A PRT tenant has better protection against eviction for rent arrears than a SAT tenant
However, the mandatory ground for evicting a PRT tenant with arrears is easier to satisfy than for an assured tenant

13. The Housing & Property Chamber of the First Tier Tribunal for Scotland
Most PRS cases moved to the FTT from 1st December 2017
Less adversarial
No cost to raise an action
Simplified process and proceedings
Cases adjudicated by panels of specialists in private sector issues
Volume of applications higher than anticipated (delays)…
Opportunity to identify and resolve cause of arrears?

14. Letting Agent Plus Project
Background
15% of households live in the PRS in Scotland
Increasing numbers looking to the sector as a long term housing option
More tenants with one off or ongoing support needs
Letting agents often find it difficult to help tenants get the right support to access or sustain tenancies
Social landlords perceived to have better access to essential advice services
Capacity and limited resources

15. Letting Agent Plus Project
Barriers to accessing/sustaining tenancies in the PRS
Perceived tenant risk
Deposit guarantee schemes
Benefit caps and the roll out of UC
Competition
Prejudices

16. Letting Agent Plus Project
Aims and Objectives
Develop a letting agent plus service
Identify barriers and come up with workable solutions
No additional costs to agents’ businesses
Develop a LAP ‘how to’ guide for the sector

17. Letting Agent Plus Project
How we seek to overcome barriers
Education – training courses for agents
Knowledge – sharing of best practice & resources
Relationships – improve advisory networks (ensure advice and support is prompt, consistent & effective to build trust and confidence)

18. Letting Agent Plus Project
What we can offer letting agents
Immediate access to advice
Free training
Improved referral routes
‘Letting Agent Plus’ logo
Opportunity to influence the whole PRS in Scotland

19. Letting Agent Plus Project
Case Study: Proactive intervention can prevent homelessness
Repeated late and/or non- payment of rent
Referral to LAP project for help with long term sustainability of tenancy
Income maximisation officer helped to resolve UC issues
Budgeting & income maximisation advice/training
Liaised throughout with agent
Sustainable repayment plan

20. Letting Agent Plus Project
Findings so far…
Early intervention best
Realistic repayment plans more effective
Regular updates, positive working relationships and key contacts instil trust and confidence in service
Tokenistic advice and/or help to avert a crisis situation only often not enough

21. Over to you!
Discussion
How many PRS tenants seek money and debt advice in comparison to social housing tenants?
Do PRS tenants usually only seek help at crisis stage & why?
Examples of positive/negative experiences of dealing with private landlords and/or agents
Top tips for getting the best outcome for your PRS clients

22. Changes in Private Rented Sector: What you need to know
Natasha Miller
Letting Agent Plus Development Officer e: t: