Things To Know About A Private Residential Tenancy

Renting has been a much more reliable option than buying real estate. The cheap prices and likeliness of a temporary stay have made it even so especially for students living abroad. A student would require a house until their graduation and a few beyond that. However, in many cases, the landlord would evict the place without reason or even raise the rent without notice, which can be detrimental to the tenants. This is the very reason people are switching to Private Residential Tenancy (PRT) which is a better form of a rental agreement that provides safety and security to not only the tenants but the landlords too. The blog below describes more in-depth about the PRT and how it can benefit the tenant and the landlord too. 

What Is A Private Residential Tenancy?

The PRT is an open-ended tenancy and is designed to provide greater security of tenure for tenants while also giving landlords more flexibility in terms of rent increases and evictions. Unlike previous tenancy types, there is no fixed term for a PRT, and the tenant can stay in the property for as long as they wish as long as they comply with the terms of the tenancy agreement. The rent can be increased by the landlord once every 12 months, but only after giving the tenant three months’ notice and providing evidence to support the increase. 

This type of private residential tenancy was first introduced in the year 2017 in Scotland. Under a PRT, the tenancy can be ended by the tenant giving written notice to the landlord, or by the landlord if they have a specific reason for doing so, such as wanting to sell the property or move back in themselves. Under this agreement, the tenant also has the freedom to challenge the increase in rent or eviction notice if it seems unfair in front of a panel.

Things A Private Residential Tenancy Agreement Must Include 

There is certain mandatory information that has to be present on the agreement and some other optional ones. Both of them are mentioned below –

Mandatory Clauses:

• Property address: The complete property address must be included.
• Name and address of the landlord and tenant: Complete names and current addresses should be present.
• Facilities of property: Amenities, number of facilities and other details need to be mentioned.
• Duration and start date of tenancy: Clear mention of the dates.
• Rent and payment terms: Rent amount, date of payment, method of payment, any additional fees like late payment penalty must be included.
• Security deposit: The exact amount, return details and any deductions must be mentioned.
• Maintenance of the property: The type of maintenance required from the tenant and the landlord needs to be mentioned.
• Rules and restrictions: Such as no smoking, loud or frequent parties, etc.
• Termination of the agreement: Notice to leave private residential tenancy and how the landlord and tenant plays a part in this.

Discretionary Clauses:

• Pets: The decision or rules if pets are allowed.
• Alterations: The rules to be followed if any changes are done to the house.
• Additional needs: Garden, sheds, furnace, attic, etc maintenance.

Things The Tenant Has To Keep In Mind

There are some responsibilities that the tenant has to follow and certain guidelines which dictate some procedures –

Responsibilities:

• The rent has to be paid on time and the full amount that was first agreed upon in the private residential tenacy agreement.
• Maintaining the property and ensuring the tidiness of the place.
• Ensuring the neighbours and surrounding areas are not disturbed and a healthy atmosphere is maintained.
• Letting the landlord or their representative access the place for maintenance, assessment or repairs.
• Requesting permission before any alterations and keeping pets.
• Providing advance notice if travelling away from the house for a long period of time.
• Preserving documents and records of any important communication between the landlord and the tenant.

When moving out:

• It is very important as per the private residential tenancies act to present a notice in writing, email or letter at least 28 days prior. This allows for a smooth transition and nothing gets rushed at the end.
• Any change of date or addition of days must be informed well in advance so that the necessary arrangements can be made.
• Ensure to collect the security deposit that was agreed upon and also settle any outstanding bills or payments before leaving the place.
• It is a good practice to clean and organise the place before leaving and not leave a mess behind.
• If the landlord wants a quicker exit, then the tenant can challenge this notion with the private residential tenancies board. 

Things The Landlord Has To Keep In Mind

A private residential tenancy is advantageous to both parties and hence even the landlord has certain responsibilities that have to be abided by. 

Responsibilities: 

• Providing accurate documents and ensuring the rental agreement is formed after the satisfaction of both parties.
• Returning the agreed deposit when the tenants are vacating and only deducting what was initially mentioned in the agreement.
• Should respect the tenant’s privacy and inform in advance if any maintenance, repair, or assessment work is needed.
• Ensuring the essential facilities and services are in place before the tenants move in.
• Perform maintenance that is required from the landlord’s side along with proper safety measures like smoke detectors, ventilation, etc.
• Provide a valid notice before increasing the rent so that the tenant is prepared to accept the changes.
• Compiling with legal requirements and moral and private residential tenancy rules. 

When moving out:

• A moving-out inspection is done to ensure things are in order and nothing major has gone wrong.
• Maintain leniency and support if the tenants request a few additional days.
• Ensure the tenants are abiding by their leaving regulations as per the agreement.
• Since a private residential tenancy agreement is open-ended even the landlord should be open-minded and mature towards challenges. 
• Return the exact amount of the deposit to the tenants.
• Any changes to utilities or certain services must be taken back which were under the name of the tenants earlier.

In the end, having a comfortable residential stay is a good mixture of the house, the neighbourhood and also the landlord. Hence if the house and neighbourhood are up to the person’s expectation, then a private residential tenancy is the best type of agreement between the landlord and tenant. Not only does it provide a safe tenure to the tenant, but it also helps with a smooth process for the landlord.

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