Lesson 2 – What is a Private Residential Tenancy?

Lesson Overview

The Private Residential Tenancy (PRT) is the standard form of tenancy for most private residential lets in Scotland. Introduced on 1 December 2017 under the Private Housing (Tenancies) (Scotland) Act 2016, it replaced the Short Assured Tenancy (SAT) and was designed to provide greater security for tenants while creating a simpler and fairer legal framework for landlords.

Understanding whether a tenancy is a PRT is essential because it determines the rights and responsibilities of both landlords and tenants. In this lesson, you will learn the legal definition of a PRT, who it applies to, which tenancies are excluded, and the key rights and responsibilities of each party.

Learning Objectives

By the end of this lesson, you will be able to:

• Define a Private Residential Tenancy (PRT).
• Identify when a tenancy is legally considered a PRT.
• Recognise the types of tenancies that are excluded from the PRT system.
• Understand the rights of landlords and tenants.
• Explain the responsibilities each party has throughout the tenancy.

What is a Private Residential Tenancy?

A Private Residential Tenancy (PRT) is the legal agreement between a landlord and a tenant for the rental of a residential property in Scotland. It is the default tenancy type for almost all new private residential tenancies that began on or after 1 December 2017.

Unlike previous tenancy agreements, a PRT does not have a fixed end date. Instead, it continues until either:

• The tenant chooses to leave by giving the required notice.
• The landlord legally ends the tenancy using one or more of the statutory eviction grounds.
• Both landlord and tenant agree to end the tenancy.

This open-ended approach provides tenants with greater housing stability while still allowing landlords to recover possession of their property when a valid legal reason exists.

Legal Definition of a Private Residential Tenancy

For a tenancy to be legally recognised as a Private Residential Tenancy, several conditions must be met.

These include:

• The property must be let to an individual rather than a business.
• The tenant must use the property as their only or principal home.
• The property must be located in Scotland.
• The tenancy must not fall into one of the excluded categories set out in the legislation.

If these conditions are satisfied, the tenancy will normally be a PRT regardless of what the tenancy agreement is called.

This means that simply giving an agreement a different title does not change its legal status.

Key Features of a Private Residential Tenancy

The PRT includes several important features that distinguish it from previous tenancy types.

These include:

• No fixed term.
• Open-ended tenancy.
• Greater security of tenure for tenants.
• Landlords require a statutory ground to end the tenancy.
• Rent increases are subject to legal procedures.
• Written tenancy terms must be provided.
• Tenancy deposits must be protected in an approved scheme.

These protections are intended to create a fair and transparent rental system.

Who Does the PRT Apply To?

The PRT applies to most privately rented residential properties in Scotland.

Examples include:

• Flats.
• Detached houses.
• Semi-detached houses.
• Terraced houses.
• Furnished properties.
• Unfurnished properties.
• Single-family homes.
• Most privately rented accommodation.

The tenancy normally becomes a PRT automatically if:

• A landlord rents a residential property to an individual.
• The property is the tenant’s main home.
• No legal exclusions apply.

There is no requirement for the landlord to choose the PRT—it applies automatically where the legal conditions are met.

Who Can Be a Landlord?

A landlord may be:

• An individual.
• A couple.
• A partnership.
• A limited company.
• A trust.
• A property investment business.

Regardless of ownership structure, landlords must comply with Scottish housing law and register with the relevant local authority.

Who Can Be a Tenant?

A tenant is usually an individual who rents a property as their main residence.

Tenants may include:

• Working professionals.
• Families.
• Students renting private accommodation.
• Retired people.
• People relocating for employment.

Joint tenants can also hold a PRT together.

Excluded Tenancies

Not every residential occupation agreement is a Private Residential Tenancy.

Some tenancy types are specifically excluded by law.

Examples include:

• Social housing provided by local authorities.
• Housing association tenancies.
• Holiday accommodation.
• Student accommodation in certain circumstances.
• Agricultural holdings.
• Crofts.
• Resident landlord arrangements in some situations.
• Accommodation linked to employment.
• Certain licensed premises.
• Military accommodation.

Different legal rules apply to these types of occupation.

It is therefore important to establish whether a tenancy falls within the PRT legislation before preparing a tenancy agreement.

Rights of Tenants

The PRT provides tenants with a number of important legal rights.

These include:

Security of Tenure

Tenants can remain in the property indefinitely provided they comply with the tenancy agreement and the landlord does not establish a valid eviction ground.

Safe Accommodation

Tenants have the right to live in a property that meets the Repairing Standard and complies with all relevant safety regulations.

Privacy

Landlords cannot enter the property whenever they choose.

Except in emergencies, landlords should give reasonable notice before entering the property.

Deposit Protection

If a deposit is taken, it must be placed in an approved tenancy deposit scheme within the required legal timescale.

Fair Rent Increase Procedures

Landlords must follow Scottish legal procedures when increasing rent.

Tenants have the right to challenge certain rent increases where permitted by law.

Responsibilities of Tenants

Tenants also have legal responsibilities.

These include:

• Paying rent on time.
• Looking after the property.
• Reporting repairs promptly.
• Allowing reasonable access for inspections and repairs.
• Not causing anti-social behaviour.
• Respecting neighbours.
• Complying with the tenancy agreement.

Failure to meet these responsibilities could result in legal action or eviction if a statutory ground applies.

Rights of Landlords

Landlords also have important legal rights.

These include:

• Receiving rent on the agreed dates.
• Inspecting the property after giving appropriate notice.
• Recovering possession where a valid eviction ground exists.
• Expecting tenants to care for the property.
• Recovering reasonable costs where tenants have caused damage beyond fair wear and tear.

Responsibilities of Landlords

Scottish landlords have significant legal responsibilities throughout the tenancy.

These include:

• Registering as a landlord.
• Providing a written tenancy agreement.
• Protecting tenancy deposits.
• Meeting the Repairing Standard.
• Maintaining gas, electrical and fire safety.
• Providing required certificates.
• Carrying out repairs within a reasonable time.
• Respecting tenant privacy.
• Following the law when increasing rent or ending a tenancy.

Failure to comply with these obligations can result in financial penalties, tribunal action, or enforcement by the local authority.

Why Understanding the PRT is Important

Whether you are a landlord, tenant, or letting agent, understanding the PRT is essential.

A clear understanding of the legislation helps to:

• Avoid legal disputes.
• Protect both landlord and tenant rights.
• Ensure legal compliance.
• Promote professional property management.
• Create positive landlord-tenant relationships.

The PRT forms the foundation of almost every private residential tenancy in Scotland.

Key Takeaways

• The Private Residential Tenancy (PRT) is the standard tenancy for most private residential lets in Scotland.
• It applies automatically where the legal conditions are met.
• PRTs are open-ended and do not have a fixed end date.
• Some tenancy types are excluded from the PRT legislation.
• Both landlords and tenants have important legal rights and responsibilities.
• Understanding the PRT is essential for complying with Scottish housing law.

Knowledge Check

1. When did the Private Residential Tenancy become the standard tenancy in Scotland?

A. 2010
B. 2015
C. 1 December 2017 ✅
D. 2020

2. Which of the following is a key feature of a PRT?

A. It always lasts for 12 months.
B. It automatically ends after one year.
C. It is open-ended and has no fixed end date. ✅
D. It only applies to furnished properties.

3. Which of the following is generally excluded from the PRT system?

A. Private rented flat.
B. Detached house rented to a family.
C. Holiday accommodation. ✅
D. Semi-detached house.

4. Which of the following is a landlord’s legal responsibility?

A. Paying the tenant’s utility bills.
B. Decorating the property every year.
C. Protecting the tenancy deposit in an approved scheme. ✅
D. Providing free broadband.

5. Which of the following is a tenant’s responsibility?

A. Registering as a landlord.
B. Protecting the tenancy deposit.
C. Carrying out annual gas safety checks.
D. Paying rent on time and taking reasonable care of the property. ✅