“Think, before you Ink!”

TENANTS - THINK CAREFULLY

If you are in Scotland and thinking about signing a Private Residential Tenancy Agreement (PRT) – as my teacher used to say, “think, before you ink!”

There are many conversations currently on social media referencing the Private Rented Sector (PRS) All very relevant and important.

Today however, I raise a concern that many tenants have a lack of understanding around the (PRT) Tenancy Agreement, that they are signing. The subsequent issues surrounding many misconceptions are faced by Landlords and Agents on a daily basis.

There is a huge demand for rented property at present and if you have the opportunity to rent a flat with your friends, there is a high degree of excitement and the pressure to sign the lease, is frightening.

I cannot however stress enough the importance of not only reading but fully understanding the principles of the PRT document.

It is extremely important to note that the term “Jointly and severally liable” appears multiple times and along with other clauses this results in the principle that no matter how many tenants there are, in practical terms, there is only one tenant entity.

The result is that assuming you are planning on sharing, you as an individual are taking on responsibility for your flat mate/s and visa versa. There might be damage, anti-social behaviour, poor financial skills, etc. These factors can potentially impact on you individually with, a need to pay a higher proportion of rent, affect the deposit return, influence referencing for future properties, the list goes on.

It is also extremely important to understand that under the terms of a PRT lease “One Joint Tenant cannot terminate the joint tenancy on behalf of all Joint Tenants”.

So, let’s explore what this means.

A student, as an example, has signed a PRT with 3 Mates. That student is totally reliant on these flat mates behaviour or needs to try and police inappropriate behaviour.

Now let’s assume something happens, for example the flat mates fall out or the student decides academia is not for them and wants to leave. The reality is they are potentially trapped.

Whether the student physically remains or not, they can only be released from the tenancy and all their responsibilities, if and once all the other tenants agree to leave or potentially find a replacement and agree a new lease with the Landlord/Agent. Equally from the former flat mates perspective, in simple terms, if the student leaves and refuses to contribute to rent, the remaining tenants are fully liable under the terms of the lease to ensure that the full rent is paid. This can put a huge amount of strain on any relationship, particularly if it is already fragile. The requirement for full rent payment as an example, can also draw guarantors into the equation.

A few key thoughts.

·????????Read and fully understand the lease and all the responsibilities you are agreeing to. This particularly applies to anyone entering the PRS for the first time. I and most good agents would be happy discuss any issues or concerns with you.

·????????The PRT is a standard document and as such is not there for negotiation, it is a sign or don’t sign, scenario.

·????????Choose your flat mates very carefully. You know your best mate, so think carefully are they really the best person to share a flat with? For many it’s a definite yes, others well it’s potentially a no!

·????????For students when choosing flat mates, think courses and for professionals think careers. If you are studying medicine for example, and your potential flat mate has only 3 classes a week and likes a party, its possibly time to rethink. ?Equally if you are on a career path, in a Monday to Friday role, do you really want to share with someone on a different shift pattern. Don’t get me wrong, in both these scenarios the visa versa, equally applies.

·????????Remember “think, before you ink!”

I could go on however as always, I trust the above is of assistance and should you have any queries, please feel free to contact me.