Scottish Letting Day 2019 Biosphere Blue

Welcome to
Scottish Letting Day
Conference and exhibition 12 November 2019
Sponsors:

John Blackwood introduction video
Sponsors:

Succession planning
for landlords
Fiona Watson, Paris Steele
Scottish Letting Day 2019

Succession planning for
landlords
Fiona Watson
Paris Steele
12 November 2019

Overview
• what would happen to your properties if you were unable to manage
them? i.e. illness, incapacity or death
• Powers of Attorney (lifetime)
• wills (after death)
• registration considerations

Powers of Attorney
• adults with Incapacity (Scotland) Act 2000 – general principals
• granted in lifetime
• Nominated Attorney(s)
• Continuing Attorney (financial) and Welfare Attorney
• registration with Office of the Public Guardian (Scotland)
• can revoke and vary

Continuing Attorney
Financial powers, can include:
- access to information
- dealing with bank accounts and paying bills
- exchange, sell or lease property
- administer and manage property
- tax returns
- commence, run, sell or wind up any business
- borrow or lend money

If you don’t have a PoA in place and you lose
capacity:
• no-one else has authority to manage your properties/business
• “next of kin” has no legal authority
• bills go unpaid?
• leases can’t be entered into/terminated
• can’t service notice on tenant in breach
• property owned by company - Incapacity of Company Director
• application to court for Guardianship Order

Wills
• sets out the division of your estate following death
• appointment of executor(s) to administer your estate
• how is title to jointly owned property held? i.e. survivorship destination
• use of Trusts
• review regularly
• divorce/separation/cohabitation
• lifetime gifting

Intestate estates
• where deceased leaves no will
• Succession (Scotland) Act 1965
• prior rights and legal rights
• your estate may end up being divided in a way you wouldn’t intend
• do not assume everything will just go to your spouse!

Registration
• Landlord registration:
- an attorney managing property for a family member under a PoA must
register with the local authority as an agent
- executor doesn’t need to register in first 6 months. If property still held
after 6 months, registration will be required.
• Letting agent registration:
- if managing property for a family member under a PoA, the attorney
doesn’t need to register as a letting agent with the Scottish Ministers
- if managing properties and not under the terms of a PoA, and is receiving
payment for doing so, they could be caught under the letting agent rules.

Fiona Watson
fwatson@parissteele.com

Sessions now available to attend
Biosphere Blue
(current room): Understanding the private residential tenancy
Biosphere Green: Tribunal know how for letting agents
Ozone: Demystifying legionella &
A year in the life of a tenancy deposit scheme
Showdome: Top tips from a self-made property investor
4D Cinema: Informing research to shape the future of private renting
Salisbury Suite: The role of the CMA in regulating letting agents

Understanding the
private residential tenancy
Gail Bowden, SAL

Gail Bowden
SAL
Understanding the Private
Residential Tenancy

Agenda
Making the most of -
The Private Residential Tenancy
(PRT) agreement video
• creating a PRT
• managing a PRT

The Private Residential
Tenancy
model agreement

Private Residential Tenancy 1 December 2017
View PRT video: https://youtu.be/9ei61J6okCI

Meaning of Private Residential Tenancy
A tenancy is a PRT where—
a. the tenancy is one under which a property is let to an
individual (“the tenant”) as a separate dwelling
b. the tenant occupies the property (or any part of it) as the
tenant’s only or principal home, and
c. the tenancy is not one which schedule 1 states cannot be a
private residential tenancy.
Your tenant will have the protections of a PRT, even if you give
them a tenancy agreement for any other type of tenancy.

Create the Private Residential Tenancy

Mandatory terms
-the core rights and obligations, which includes,
among other things, the statutory terms
applicable to all private residential tenancies, the
repairing standard and tenancy deposits. They
are 'mandatory clauses' which must feature in
any agreement prepared using this model. These
terms are laid down in the Act, supporting
secondary legislation and other relevant housing
legislation and are indicated in bold typeface.

Discretionary terms
- which the landlord may or may not wish to include
in the written tenancy agreement. These are in
ordinary typeface. The model tenancy agreement
contains a number of suggested terms which the
landlord may edit or remove as required. This
category will also include any additional terms the
landlord chooses to add. Any additional terms added
or edited by the landlord must comply with the
requirements of the Act, supporting secondary
legislation and other relevant legislation.

Signing the Private Residential Tenancy
Agreement

Managing the Private Residential
Tenancy

Scottish Government guidance
• Your tenant can only give you notice to leave once they have started
to live in the let property. Your tenant's notice has to be given 'freely
and without coercion'. This means you must not have pressured or
persuaded your tenant into leaving.
• You and your tenant can agree a different notice period. But this must
be in writing and can only be done once the tenant has started to live
in the let property. A tenant's agreement to change the notice period
must be given 'freely and without coercion'. If you insert a longer
notice period into the tenancy agreement before the tenant is living
in the let property, the notice period will be invalid and the 28 day
notice period will apply.

Rent
increases • if you want to increase the amount
of rent your tenant pays you, you
have to give at least three months'
written notice before you can do it
• you must use the correct form to
give your tenant notice of a rent
increase — a Landlord’s Rent-
Increase Notice to Tenants
• you can only increase the rent once
in a year (you have to wait 12
months before it can be increased
again).

Ending the
agreement
Tenant to landlord – 28 days
Landlord to tenant (no tenant breach)
• 28 days (if tenant has occupied
for 6 months or less)
• 84 days (if tenant has occupied
for more than 6 months)
Landlord to tenant (tenant breach) - 28
days

Ending the agreement
8 mandatory grounds
• landlord intends to sell
• property to be sold by lender
• landlord intends to refurbish
• landlord intends to live in property
• landlord intends to use for non-residential purpose
• property required for religious purpose
• tenant not occupying let property
• tenant has relevant conviction

8 discretionary grounds
• family member intends to live in property
• tenant no longer in need of supported accommodation
• breach of tenancy agreement
• anti-social behaviour
• association with person who has relevant conviction or engaged in
relevant anti-social behaviour
• landlord has ceased to be registered
• HMO licence has been revoked
• overcrowding statutory notice served on landlord

2 mixed grounds
• rent arrears (mandatory if tenant owed rent for 3 or more
consecutive months and owes at least 1 months’ rent at start of day
on which tribunal first considers case)
• not an employee (mandatory if apply for eviction order within 12
months of employment ceasing)

Evidence examples
• rent arrears – rent statement
• anti-social behaviour – breach letters, witness statements, reports
from police/local authority ASB team
• selling - estate agent letter, solicitor letter
• moving back in - confirmation of new job, ,
affidavit
• refurbishment – planning permission,
contract with builder

Ending the agreement – rent arrears
Our advice on this has now changed following
the recent Upper Tribunal decision that a Notice
To Leave issued before tenants have owed some
rent for 3 months is invalid -
• advice is not to issue NTL until tenant has owed
some rent for 3 months
• so if rent in arrears since 26 July we now advise
NTL can’t be issued until 26 October (3 months
from 26 July)

Wrongful termination
• if landlord misleads tribunal into
awarding eviction order OR
• tenant was misled into leaving property
without eviction order
• Tribunal can award wrongful termination
order requiring landlord to pay tenant up
to 6 months’ rent. Could also jeopardise
landlord registration status.

Easy to read notes
• these notes explain all of the different
parts of the tenancy agreement
• each part of your agreement is
numbered, and you will be able to look
for the same numbers in these notes to
find information about each part.

Easy to read notes
Let’s look at some
helpful clauses…

17. Reasonable care
The tenant agrees to take reasonable care of the let property
and any common parts, and in particular agrees to take all
reasonable steps to:
• ensure the let property and its fixtures and fittings are kept
clean during the tenancy

20. Access for repairs, inspections and
valuations
Reasonable access, for non-emergency work, would generally mean
access during the working day (8 a.m. to 6 p.m.) Monday to Friday.
Remember
• the landlord does not have the right to enter the property without
the consent of the tenant
• the landlord can use the Right of Entry process via the Housing &
Property Chamber, First- tier Tribunal

24. Ending the agreement - joint tenancies
• if the agreement is a joint tenancy then all of the joint tenants have to
agree to the ending of the agreement
• one joint tenant cannot end the agreement on behalf of all tenants
• any notice from the tenant to end the tenancy would have to be
signed by all of the joint tenants.

24. Joint tenancies continued
If a joint tenant wants to end the tenancy by sending notice to the
landlord by email then this would be done either:
• by each of the people who are joint tenants sending their own email
to the landlord, all saying that the tenancy is to end on the same date
or
• by each of the joint tenants signing a paper copy notice to the
landlord and then one of those joint tenants scanning or taking a
photo of that signed paper copy notice and attaching it to an email
and emailing it to the landlord, on behalf of all of the joint tenants.

38. Guarantors
• the guarantor (if any) agrees to meet the full
demands of the tenancy, on the tenant's
behalf, if the tenant does not comply with
those rules
• joint residential tenancies have joint and
several liability and so the guarantor is
guaranteeing all the joint tenants and not
just one particular tenant
• the guarantor's liability continues after the
tenancy ends - to cover any duties breached
during the tenancy where the costs are still
due to be paid.

Contact information:
Scottish Association of Landlords (SAL)
Hopetoun Gate, 8b McDonald Road
Edinburgh EH7 4EZ
0131 564 0100
info@scottishlandlords.com
www.scottishlandlords.com Twitter: @scotlandlord
Scottish Association of Landlords

Biosphere Blue
(current room): Unwrapping the energy performance certificate
Biosphere Green: Letting question time
Ozone: Changing the referencing process forever (Vouch) &
What’s next? (PayProp)
Showdome: Working positively with Universal Credit
4D Cinema: A guide to completing your tax return
Salisbury Suite: Preventing HR headaches

Unwrapping the energy
performance certificate
Scott Restrick,
Energy Action Scotland

Unwrapping the energy performance certificate

Scottish Context for Energy Efficiency Standards
• By 2040 ALL Scottish homes are EPC ‘C’ where
technically and feasible and cost effective
• Social Rented – already covered by Energy
Efficiency Standard for Social Housing (EESSH)
• Current EESSH policy – EPC ‘C’ by 2020
• EESSH 2, maximize number achieving EPC ‘B’ by
2032

Scottish Context for Energy Efficiency Standards
• PRS Consultation (May/June 2019) proposed:
• Band ‘E’ from April 2020
• Band ‘D’ from April 2022
• Band ‘C’ from 2025
• Timeline:
• Issued draft regulations and guidance for consultation
in May 2019
• Regulations laid in Parliament after Summer recess

Rating Metrics on EPC

SAP rating is a cost based metric

SAP rating is a cost based metric
MPG?

Building Element Efficiency Ratings

Recommendation for Improvements

IMPROVEMENT MEASURE TYPE – Solid Walls
Item Measure To be considered when existing
dwelling is/has:
Recommended if existing dwelling
has:
Improve to:
Q Solid wall
insulation
Solid wall (stone or brick) or park
home
wall, assessed as "as built" and not
"unknown"
Wall U-value (as entered by
assessor or assumed from RdSAP
tables) > 0.6
Internal or external wall insulation
with:
E&W, NI: U-value 0.3
Scotland: U-value 0.22

IMPROVEMENT MEASURE TYPE - Glazing
Item Measure To be considered when existing
dwelling is/has:
Recommended if existing dwelling
has:
Improve to:
O Double glazed
windows
Single glazed windows present Less than 80% of windows with
multiple glazing
If all windows measured, all single
glazed windows replaced by double
glazing with U = 1.8 (roof windows)
or U = 1.6 (other windows), and g =
0.63. Otherwise the windows with
single glazing changed to double
glazing with U = 1.6 and g = 0.63.
O3 Glazing
replacement
Double glazing with PVC frames
and 12 mm gap installed before
2002 (E&W) or 2003 (Scotland) or
2006 (Northern Ireland)
At least 80% of windows are of that
type
Replace double glazed units with
new units giving whole-window
values of U = 1.6 and g = 0.74.
P Secondary glazing Single glazing present but assessor
de-selected measure O. See Note 6
Less than 80% of windows with
multiple glazing
If all windows measured apply
secondary glazing to single glazed
windows with U = 2.6 (roof
windows) or U = 2.4 (other
windows) and g = 0.76.
Otherwise the windows with single
glazing changed to secondary
glazing with U = 2.4 and g = 0.76.

IMPROVEMENT MEASURE TYPE - Heating
Item Measure To be considered when
existing
dwelling is/has:
Recommended if existing
dwelling
has:
Improve to:
L2
[Note 1] - Secondary electric
heaters (693) if no existing
secondary.
New or
replacement
storage
heaters
Main heating by storage
heaters, Old
(large volume) or Slimline
Mains gas not available, and
hot water heating by
cylinder with single
immersion, or from solid-
fuel secondary heater
High heat retention storage
heaters (409) and controls
(2404), and dual immersion
water heating, large cylinder
with 50 mm factory-applied
insulation.
any other hot water system
(2404).
Main heating by:
- electric room heaters
- electric ceiling heating
Also if no space heating
system present
hot water heating by
cylinder with single
immersion or from solid-fuel
secondary heater or no hot
water system present
(2404), 7-hour off-peak tariff
and dual immersion water
heating, large cylinder with
50 mm factory-applied
insulation. [Note 1]
any other hot water system
(2404), 7-hour off-peak
tariff. [Note 1]

Craig Avenue – Base Rating

Craig Avenue
 all external walls U-value = 0.22

Craig Avenue
 all external walls U-value = 0.27

Craig Avenue
 all external walls U-value = 0.22 and insulate corridor to same

Craig Avenue

Craig Avenue
 install replacement glazing U-value 1.4

Craig Avenue
 Install high heat retention storage heating

Craig Avenue
 Install high heat retention storage heating with new HWC

Craig Avenue

Craig Avenue
 Insulate the flat roof

Craig Avenue
 Add PV, 2.5kWp system

Craig Avenue

Estimation of Running Costs – Base Rating

Payment method has a big influence on running costs

Current price (Nov-19) for an off-peak electricity supply

Using the default PCDF prices for July 2019

Using the current SP CPWM (PPM) prices Nov-2019

Unregulated fuels can be very variable in their cost

Location / Climate have a significant impact too…

Potential for Renewables

Lunch is now served in the Stratosphere area
Programme resumes 13.15pm
Please visit our exhibitors’ stands
Sponsors:

Conference and exhibition 12 November 2019
Sponsors:
Tweet #LettingDay

Using mediation in
resolving conflict
May Millward & Amanda Rigby Greenhaugh,
Scottish Mediation

Mediation workshop
May Millward
Amanda Rigby- Greenhaugh
85

Positions
86
Interests
Needs
Party 1 Party 2

Positions
91
Interests
Needs
Tenant 1
Stop parking your
car outside my
house
Tenant 2
I’ll park where I want it’s
not your parking space

Needs – conflict drivers
• F Fair
• L Listened to
• A Acknowledged
• S Status
• H Heard
• E Esteem
• R Respect
• S Security
92

5 stages of mediation
• introductions and ground rules
• uninterrupted speaking time
• exchange
• exploring options/problem solving
• agreement
93

Stop – Start – Continue
Identify –
• something I/they should stop or change
• something I/they should start doing
• something I/they should continue to do
94

Benefits of mediation
• confidential, unbiased and voluntary
• looks forward rather than dwelling on the past
• encourages early resolution of disagreements
• puts the people involved in control of the outcome
• is less formal than grievance and complaints procedures
or court proceedings
• is less stressful
• could be cheaper
• could resolve your dispute quicker
• enables ongoing relationships
95

What People Say about Mediation (1)
• “I was nervous before engaging in mediation as I did
not know what to expect, I was also concerned that the
process might break down. My concerns were
unfounded and I felt that mediation was the best
choice I could’ve made in the situation. I felt totally
supported by our mediator and found the structure of
the appointments to be ideal. I felt heard during our
sessions and when it came to the joint meeting I felt
that it was safe to discuss how I felt, what the impact of
the behaviour had been for me and how I would like to
resolve the situation. We were facilitated in creating an
agreement around our professional relationship and
this also covered what we would do in the event of any
further occurrences. I am happy to say that since our
mediation there have been no further incidents. The
intervention of mediation prevented the situation from
becoming irreparable and I would highly recommend
this service.”
96

What People Say about Mediation (2)
“The mediation started us off on
a process of communication and
problem-solving which had
previously proven a challenge for
both of us. It gave us the space to
talk through and reflect on our
difficulties. I would recommend it
for anyone dealing with difficult
issues.”
97

Access to mediation
Scottish Mediation
www.scottishmediation.org.uk
0130 556 8118
University of Strathclyde
Housing Mediation Project
hass-mediation-clinic@strath.ac.uk
0141 548 4510
98

Mediation techniques workshop
3 hour workshops offering training on ways to
effectively manage relationships between agents,
landlords, and tenants covering –
- the causes of conflict
- how situations can escalate
- best practice on managing and resolving issues
***Constitutes 3 hours of formal CPD ***
99

Mediation techniques workshop for letting agents
• 20th November 2019 – Inverness
• 27th November 2019 - Prestwick
• 11th December 2019 – Methil
• 15th January 2020 – Aberdeen
• 23rd January 2020 – Hamilton
• 29th January 2020 – Dumfries
• 18th February 2020 – Perth
Book at Landlord Accreditation Scotland - Stand 34
100

Mediation techniques workshop
feedback
• keeping tenants’ and landlords’ needs to the fore
• knowing the techniques and ways to mediate will
help me feel more confident in resolving issues
more positively.
• will use in situations in day to day work hopefully to
stop situations escalating between parties
• in a work context good for dealing with colleagues,
other agents, tenants and landlords. Good for
personal situations too!
101

Biosphere Blue
(current room): A guide to completing your tax return
Biosphere Green: Property insurance – The top secrets to ensure
that you have the correct cover in place
Ozone: Support towards meeting minimum energy efficiency standards &
Freeing up time for landlords and letting agents
Showdome: Understanding the private residential tenancy
4D Cinema: How to survive rent controls and the buy to let backlash
Salisbury Suite: Preventing HR headaches

A guide to completing
your tax return
Jackie Fraser, Chiene + Tait

Letting Day Conference 2019
C+T2

The tax return
Jackie Fraser
Partner

Scottish Letting Day 2019 | Let’s take it step-by-step
Firstly, some guidance is on-hand…
https://www.gov.uk/government/publications/self-assessment-uk-property-sa105

Deadlines
• HMRC must receive your tax return by:
• paper – 31 October 2019 (or 3 months after the date of the tax return notice)
• online – by 31 January 2020 (or 3 months after the date of the tax return
notice)
• late return - £100 penalty
• more than 3 months late – daily £10 penalty
• charged interest

The extra tax returns

The extra tax returns: two most common

Cash basis, or accruals?
Scottish Letting Day 2019 | First, decide…

In detail…

Payment
• due date – 31 January, following end of tax year
• payments on account due 31 January during tax year and 31
July, following tax year
• online banking, telephone banking, bank or building society,
cheque
• through PAYE tax code – providing tax of less than £3,000

Losses
Scottish Letting Day 2019 | How to handle losses

Complications
Scottish Letting Day 2019 | What to watch out for

Questions?
Scottish Letting Day 2019 | Questions

Refreshments are served in the Stratosphere area
Programme resumes 15.15pm
Please visit our exhibitors’ stands
Sponsors:

Unwrapping the energy
performance certificate
Scott Restrick, Energy Action Scotland

Biosphere Blue
(current room): Taster training for letting agents – meaningful CPD
Biosphere Green: Tribunal know how for landlords
Showdome: Informing research to shape the future of private renting
4D Cinema: Working positively with Universal Credit
Salisbury Suite: Digital first impressions: How do you measure up on
LinkedIn?

Taster training for letting
agents – meaningful CPD
Elspeth Boyle, Landlord Accreditation Scotland

The Letting Agent
Compliance Programme
It’s a numbers game
Promoting best practice in the private rented sector

The Code quiz
starter for 10
overarching standards of practice – how many?
13
unlucky? How many letting agent cases have been
heard on breaches of overarching standards?
37

The numbers game
which standard is the one that landlords claim has been breached most?
17
you must be honest open, transparent and fair in your dealings with
landlords and tenants (including prospective and former landlords and
tenants).
Closely followed by …..

21 and 26
you must carry out the services you provide to
landlords or tenants using reasonable care and skill
and in a timely way
you must respond to enquiries and complaints within
reasonable timescales and in line with your written
agreement

On a positive note
which paragraphs of Section 2 have been brought to the tribunal
least?
22
23
24
28

22
you must not unlawfully discriminate against a landlord, tenant or
prospective tenant on the basis of their age, disability, sex, gender
reassignment, marriage or civil partnership, pregnancy or maternity,
race religion or belief or sexual orientation
23
to ensure all staff and any subcontracting agents are aware of, and
comply with the Code and your legal requirements on the letting or
residential property

25
you must ensure you handle all private information sensitively and in
line with legal requirements
28
you must not communicate with landlords or tenant in any way that is
abusive intimidating or threatening

How many written procedures are required?
Scottish Government states there is a minimum of 9

Keeping things in proportion
how many letting agents have applied to the register so far?
938*
approved?
700 approximately*
what about the rest?
Scottish Government are still “determining” the remaining
applications
therefore approximately 4% of agents have had to answer to a claim
of a breach of the LACP in the first year.

The Letting Agent Compliance Programme (LACP)
Continuing professional development (CPD) is a commitment to continually update skills and knowledge in
order to remain professionally competent.
The Scottish Government requires lettings agents to undertake 20 hours of CPD over three years.
This programme ensures that agents can meet that requirement by undertaking relevant, detailed workshops
based on the Letting Agent Code of Practice
Course 1 2 3 4 5
Code Section 1 & 2 3 4 5 & 6 8
Who should
attend?
Principals,
Managing
Directors, Director
of Lettings
Letting/Sales
team, Valuers,
Listers
Negotiators Property
Managers/adminis
trators
Maintenance Team
Accounts/Finance
Team
Learning aims
and outcomes
Overarching
standards of
practice,
recruitment and
L&D
Understanding
terms of business
Letting property,
starting and ending
tenancy processes
Tenancy
management
Client money and
insurance
CPD Hours 2.5 2.5 2.5 3 2

Why send agency staff to LACP?
back to 23
to ensure all staff and any subcontracting agents are aware of, and
comply with the Code and your legal requirements on the letting or
residential property
case where member of staff entered a property without tenant
consent

Extract from FtT determination 2019
The Tribunal made the following Letting Agent Enforcement Orders:
1. The respondent shall within 21 days lodge with the Tribunal and
copy to the applicant:
a. written procedures and processes for exercising entry to
properties;
b. full details of the training provided to staff regarding the exercise
of entry to let properties by whom and to whom; and
c. the respondents letting agent registrations
1. The respondent shall within 21 days pay to the applicant a sum of
£1,200 by way of compensation for the unlawful exercise of entry
on 22 May 2019 and the anxiety and distress occasioned to the
applicant and her family.

Booking a place
the Letting Agent Compliance programme runs from end of
January 2020
can be done in any order or as a stand alone course
can be booked as a block for a discounted rate
will run across the country
CPD will be logged by LAS
speak to the LAS team today for priority booking

www.landlordaccrediationscotland.comwww.landlordaccreditationscotland.com

Thank you for coming
See you next year
Sponsors:

Scottish Letting Day 2019 Biosphere Blue

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Similar to Scottish Letting Day 2019 Biosphere Blue

Similar to Scottish Letting Day 2019 Biosphere Blue (20)

Recently uploaded

Recently uploaded (20)

Scottish Letting Day 2019 Biosphere Blue

Editor's Notes