News Review: Scotland
How to prepare for the annual student rush
by Stuart Pender, partner, Lomond Capital
Landlords up and down the country will be preparing themselves for the annual student rush – and nowhere more so than in Scotland where edinburgh alone will see 100,000 undergraduates searching for the ideal party place - sorry, student accommodation. now is the time when
landlords should be making sure their properties are in perfect working order, and all relevant paperwork is up to date. this is especially true for a city such as edinburgh which has a high proportion of overseas students that will be keen to bed themselves in early in a new city. the student body provides
crucial income for many landlords. new buy-to-let investors should give the option of student tenancy serious consideration as, contrary to popular opinion, students generally make excellent tenants. this is particularly true
in Scotland where demand for student flats in Scotland always outstrips supply.
Demand in glasgow, the highest demand for student flats is, as expected, in the city centre and West end. generally all students everywhere will aim to be as close to their campus as possible and to the attractions of the clubs, pubs and so on. as rents are more often than not now
being guaranteed by parents, the standard of student flats nowadays has to be very high. in edinburgh, demand
is such that most student properties will already be let and there is a constant demand for new student accommodation. there are some students who will start to ask in January about properties for their next academic year as they are desperate to get a good home in a desirable location in the city and these tenants are happy to pay a higher rent to secure a good property.
Legalities if you are thinking of letting clients’ properties to students it is vital that you are aware of legal rights and obligations. if you are planning to let your property out to more than three unrelated tenants, you must have a House in multiple occupation licence. neighbours can raise
objections when the licence comes to renewal, so it is in your own best interests to ensure quality tenants. always check references, and ensure they keep to their agreement to respect neighbours, tidy the lawn and clean communal stairs. Should you have to go to
court to evict a tenant, you must inform the relevant council of the intention. this is called a Section 11 notice and its main function is to give the council ample knowledge that an individual, or household, are at risk of becoming homeless. once aware a council may
intervene to see if the eviction can be halted through mediation or other means,
also, the notice will give the council time to discuss alternative housing options with your tenant. Private landlords and registered social landlord are subject to the Section 11 regulations. the only landlords not subject to the Section are councils. the timing of the notice is
very important. it should only be sent when you intend to take court proceedings rather than at the time you serve a notice to quit. the correct timing of serving the notice would be the date where you seek a court date to evict the tenant, if they have ignored the notice to quit, there are no direct
sanctions against those landlords who do not follow the Section 11 regulations. though action can be taken via the landlord registration scheme. Landlords can also land
themselves in trouble, however. in one of the first convictions of its kind in Scotland, a rogue landlord that racked up £3m in debts by illegally renting out properties to St andrews university students admitted a total of 10 charges, including breaches of the anti-Social Behaviour act and contravention of Hmo laws. the cupar Sheriff court
heard in June this year how the 36-year-old’s business affairs
“shambolically”
spiralled out of control as he attempted to juggle a large portfolio of properties.
Letting agents the best way of managing a number of student
accommodation properties is by appointing a letting agency. as well as managing the day-to-day running of the tenancy they can also help to find the ideal tenant for the property. and with grants and loans becoming more and more problematic and causing cashflow problems for students and ultimately landlords, the appointment of a good letting agent will smooth the collection process as well as attending to any repairs should any party get too out of hand. although the letting agency
may be responsible for the day-to-day maintenance of any tenancy, the contract is between the student and landlord with the landlord’s name and address appearing on the tenancy agreement. any legal action arising
from the tenancy would be raised against the landlord, not the letting agency. this is true for issues arising out of the return of students’ deposits. this is a bugbear and guarantees acres of newsprint at the start of each summer vacation.
Issues dundee university Students association
recently
announced that it is to carry out research to gauge how many of its members have been hit by rogue landlords who refuse to return their full deposits. research by nuS Scotland suggests a third of students believe a landlord at some point has unfairly retained their deposit. of course, this is another
reason why using a reputable letting agent can save a landlord time and hassle.
mortgage introducer AUGUST 2011 25
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