PSL scheme can help Landlords in Edinburgh
Planned changes to legislation in the Private Rented Sector, including a winter rent freeze and eviction ban, regulations covering short-term lets and changes to terms of eviction, have resulted in widespread concern for private landlords.
The City of Edinburgh Council’s Private Sector Leasing (PSL) scheme offers a lifeline for landlords, providing a guaranteed, long-term rental income, while delivering accommodation for households facing homelessness.
Upcoming changes to the Private Rented Sector
The Scottish Government recently announced a winter rent freeze and eviction ban for public and private rented properties, which will run until March 2023, as a measure to combat the current cost of living crisis.
Longer term, the Scottish Government have used emergency powers gained during the Coronavirus pandemic to ensure that all grounds for tenant eviction remain discretionary from October 2022. Landlords will no longer be able to use mandatory grounds, which guaranteed an eviction order.
Edinburgh has also been announced as the first short-term let control area in Scotland. Under new legislation, landlords of short-term lets will require planning permission to let an entire property that is not their principal home. This legislation was introduced to control the number of short-term lets in an attempt to increase long-term housing stock.
Private Sector Leasing
For landlords and property investors looking for increased certainty, PSL could be ideal. Rent is paid to the landlord quarterly in advance, even if tenants don’t pay or the property is empty through no fault of their own.
PSL was established in 2005 by the City of Edinburgh Council and homes are fully managed by C~urb PSL at no cost to the landlord. C~urb PSL puts in place a range of support services for the tenants, who would otherwise be facing homelessness. Over 1,500 properties are currently on the growing scheme.
Properties are leased from private landlords and property investors to the City of Edinburgh Council and sublet to those in need of housing. The Council funds the management cost, so landlords benefit from free letting agency services whilst helping those in need. Landlord benefits include:
- Guaranteed rent paid quarterly in advance
- No void periods
- No property management or letting agency fees
- Tenant damage covered beyond fair wear and tear
- Regular property visits
- 3 or 5 year lease
- ISO accredited repairs service
- No charges for inventories or legal expenses to evict tenants
“It can’t get any better!”
Ken, a long-term landlord with C~urb PSL said: “PSL is a godsend for landlords looking for trouble free management. I have half of my property portfolio on the scheme, and this is the half I can most relax with. There are no voids, rents are paid three months in advance without fail and there are no issues regarding getting your property back at the end of the contract.
“I have been a serial landlord for almost 20 years and can honestly say that PSL has saved me through each property downturn. A guaranteed income for three or five years – it can't get any better!”
“I couldn’t have gotten through it without PSL”
As well as being a secure lettings option for landlords, PSL also provides safe accommodation for those who would otherwise be homeless. A current PSL tenant said: “I’ve been in PSL since 2013. Myself, my son and my grandson would be homeless if we were not in PSL. With the pandemic and serious health issues, the support was extremely important. I couldn’t have gotten through it without PSL”.
Contact C~urb PSL to arrange a free, no obligation rental valuation www.linkhousing.org.uk/CurbPSL or email [email protected]
C~urb PSL is accredited with Landlord Accreditation Scotland and a registered Scottish Letting Agent (LARN2203004).
Property to sell?
Link Group is currently buying properties and portfolios of empty properties in Edinburgh. Please contact [email protected] for details.