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Tenancy - Additional notes on the private residential tenancy agreement (PRT)

Updated over 7 months ago

NOTES ON THE SCOTTISH PRT

The enhanced model PRT that is available for your business use should be served with the Private Residential Tenancy Statutory Terms Supporting Notes.

COMMUNICATION
Communication is not a Statutory Term in terms of the 2016 Act or The Private Residential Tenancy (Statutory Terms) (Scotland) Regulations 2017. You will note the Scottish Government model tenancy has the option for notices of email or letter. We have included both. You may choose to remove one. Please bear in mind that you may wish to serve rent increases via email.

UNENFORCEABLE CLAUSES
The following part-clauses are contained in the lease but, while useful, are likely to be unenforceable – we leave it to your discretion as to whether you choose to remove them.

AUDIO VISUAL EQUIPMENT
“In the event that a television, DVD / digital media player, computer, video game console or music system have been left in the Let Property these will be accepted in their condition at the date of entry and in the event of any breakdown or fault during the period of tenancy no repairs will be carried out to nor replacement made of the said items.”

CORRESPONDENCE
“The Tenant shall send, within seven days of receipt thereof, to the Letting Agent all correspondence addressed to the Landlord or Landlord’s agents and any notice, order or proposal relating to the Let Property, or any building of which the Let Property forms part, given, made or issued under virtue of any statute, regulation, order, direction or by-law by any authority”.
Please note, a tenant forwarding mail to a business address as opposed to a residential address may incur a cost.

AUTHORISATION FOR PROPERTY RELATED, HOUSING BENEFIT AND TENANT WHEREABOUTS
“The Tenant irrevocably authorises the Local Authority, Benefit Office, Post Office and the relevant utility companies or suppliers (including electricity, gas, water, internet, television and telephone) to discuss and disclose to the Landlord or the Landlord’s agents all financial and other information relating to the Let Property or any housing benefit claim. This authority shall extend to disclosure of the Tenant’s whereabouts if the Tenant has left the Let Property with rent or other money owing.”

LATE RENT FEES
We have kept in an option for interest at the judicial rate on any late payment of rent. You may wish to replace this with a rate over and above base rate. We have not included as default a rent late fee. There is varying debate in the industry as to whether a late rent fee is legal or illegal. It may of course be a premium but there is the question of whether it is being used for the granting, renewal or continuance of a tenancy. We have provided below the text for a late rent fee should you wish to include it at your own risk.

“In the event the Tenant fails to pay the rent (or any part thereof) within seven days of the date on which it fell due and the Landlord requires to issue a reminder or reminders, then the Tenant shall pay £25 plus VAT per reminder (subject to an inflationary rise in line with the Retail Price Index) representing the cost to the Landlord of issuing said reminder or reminders. The Tenant shall make payment to the Landlord within seven days of request by the Landlord. All dishonoured cheques or cancelled standing orders will be charged at £15 plus VAT. The Tenant shall be held liable for any further reasonable costs incurred by the Landlord through the Tenant’s failure to pay rent on time including, but not limited to, any administrative charges or late fees made by the Landlord’s bank, any expenses incurred by the Landlord in pursuing the Tenant for payment of said unpaid rent, legal or otherwise.”

ACCESS AND KEYS
The issue of access is a difficult one and the clauses are drafted to give landlords and agents as much contractual protection as possible. Where unsure, advice should always be sought.

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