Landlord and Tenant Flashcards
What rights to compensation does a tenant under a 1991 act lease hold?
The tenant can claim compensation for improvements under schedules 3, 4 and 5 of the 1991 act. These include improvements for which notice is required, for which consent is required and for which no consent or notice is required.
What is the process for issuing a PRT tenant with a notice to leave?
Notice to leave prepared using the Scottish Governments notice generating system. Must be served either 28 days or 84 days depending on the length of the tenancy. The start date of the notice must be delayed by 2 days to allow for posting time. The notice was served in the pandemic and was subject to a 6 month notice period.
You conducted an agricultural rent review on an LDT. What must be included in the notice and how should it be served?
Tenant name, holding name, landlord name, rent proposed and the rent review date. Good practice to include the TFC guide to rent reviews. Should be delivered via recorded delivery.
What are the TFC recommendations for conducting rent reviews and what are the timescales?
Serve notice (no less than 1 year or more than 2 in advance) and meet tenant at least 6 months before. If not agreeable, the landlord has 4 weeks to provide justification. If tenant disagree, has 4 weeks to respond with counter proposal. The parties should meet again no more than 6 weeks later to discuss.
Once the rent is agreed what should follow?
The agreements made verbally should be formalised in a minute of agreement and signed off by both parties.
You say you have worked with tenants to obtain grant funding - is this a conflict?
In this case no, the funding was coronavirus business support and whilst our business was not operating a full capacity, we were able to spend time helping our vast array of tenants to prepare the required information and submit their applications. As a larger business we were not eligible for the same support. If the tenant and the landlord were applying for the same grant funding, and one agent was acting for both parties, a conflict of interest would need to be declared.
What are the key aspects of a grazing agreement? How are responsibilities split?
Grazing agreements are used for letting mowing or grazing for a specified period of the year. They cannot be issued for longer than 364 days. The grazier is responsible for herding the livestock or mowing, for maintaining the fencing, gates, walls and ditches as at the standard at date of entry, the right to fertilise as requirement. The farmer reserves the right of access.
What is the current rent per acre for grazing land in your area?
Between £50-65 per acre.
You have issued a rent review for regulated tenancies. Talk me through this. What is an RR1 form?
Rent reviews on regulated tenancies can be conducted every 3 years and the rent proposal must be submitted to the Rent Officer using an RR1 form. This form requires details about the lease, tenant, any upgrades made to the property which might be considered when setting the rent level. As the review was done during the pandemic, the rent officer did not visit but generally does to check the condition of the property.
What properties cannot be let on a PRT?
A PRT is a leasing vehicle for residential properties. Commercial and agricultural properties cannot be let using a PRT.
Why were PRTs brought in?
They were brought in the replace assured and short assured tenancies. The goal was to provide security, stability and predictability for tenants and safeguards for landlords, lenders and investors.
What are the standard HOTs in a commercial lease?
Parties, rent, subjects, term, landlord and tenant repairing obligations.
