You Can’t Turn Your Tenant Out in Order to Do Air BnB
The new Private Residential Tenancy has been with us for 2 years now and landlords’ fears generally haven’t materialised.
Although tenants can now terminate a tenancy only 28 days after it starts, there is little evidence of this happening – in Inverness at any rate. Edinburgh contacts tell us that’s an issue there however, which shows just how much things differ from area to area. In Inverness, tenants generally move on when they have a need to, and our average tenancy length is still around 18 months, as it was before the advent of the PRT.
A bigger concern for landlords perhaps is the restricted scope for ending a private residential tenancy. Formerly, a short-assured tenancy could be ended at any time after the initial tenancy period ended. With a PRT however, landlords can no longer do so, repossession being possible only in a number of specified circumstances such as a need to live in the property or refurbish it (See the information for landlords on the Scottish Government website for full details). Any tenancy of residential property entered into after 1 December 2017 will be a PRT with restricted repossession grounds.
Landlords can’t therefore let a property over the winter just to switch to Air BnB in spring, but we keep hearing of this happening here in Inverness, and the practice may be widespread in Scotland given our country’s popularity with self-catering visitors in summer. The reality is that many private landlords are unaware of the legal requirements and restrictions around letting property and it’s not easy to find out what those requirements are. The excellent Renting Scotland website is a good source of such information.
So, you'll need to decide whether you want to be a residential landlord or a holiday accommodation provider, but you can't do both. Do your research, ask about, and decide which route you want to go down.
We'll be happy to chat things through with you if you give us a call.