Update on the Private Rented Tenancy Agreement28 Nov 2017
Update on the Private Rented Tenancy Agreement – the 1st December is almost here! How is Fineholm dealing with the changes…
The time has arrived!.. on Friday 1st December the new PRT legislation comes into play. We have been very busy the last couple of weeks trying to finalise the paperwork and advise new tenants, along with training staff of course.
So whilst the PRT will slowly become the “norm” at the moment it is a fairly steep learning curve for all and there are some definite changes that, whether they are liked or not, need to be accepted!
One of the most fundamental changes with the introduction of the PRT is the initial term – to be clear – there isn’t one. The PRT(Private Rented Tenancy) has a start date and no end date. There is an allowance within the legislation for the notice period to be increased from the suggested 28 days’. However, advice given form ARLA solicitors stipulates that this must be in line with the notice period that a landlord requires to give to a tenant. Therefore contrary to our initial blog, increasing the notice period to more than 3 months or 90 days would most probably not be viewed as fair by the first tier tribunal. We have therefore chosen to implement a 90 day notice period within the first 90 days of a PRT, and on the 91st day this will change to 28 days’ notice So at any point after the first 90 days, should the tenant wish to leave, the minimum notice period is 28 days on receipt of written notice.
There are of course allowances for landlords to be able to get their property back but there is no longer the “no fault sec 33” notice that there is with the SAT. There must therefore be a legitimate reason as to why the landlord wants the property back.
The other fundamental change for Fineholm landlords is the change to automatic rent increases. We can no longer implement the automatic rent increase of 3.5% after the initial 6 months and then annually thereafter – we will now be reviewing rents individually on a 12 monthly basis with the first rent increase allowed by law after 12 months of the tenancy. The method of implementing these increases is changing too with very specific paperwork required – as a full managed landlord, Fineholm will deal with this on your behalf.
METHOD OF SERVING NOTICE
We will no longer be required to serve notice using sheriff officers to ensure receipt, we are now able to serve notice using email. This will be a small cost saving for landlords. As we are now able to serve by email the cost to prepare the paperwork will be £30 for the first notice and £20 per subsequent notice (plus VAT)
For clarification, if however you have a current tenancy running, it will continue as a SAT. It will remain as such until the tenant moves out or you as a Landlord decide to terminate the lease.
This new legislation will change things in the rental market and Fineholm will stay as informed as possible, taking expert legal advice as to how exactly things should happen until they do become the “norm”.
If you wish to discuss any of this new legislation or simply wish to understand the new legislation a bit better then please comment below!