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THE NON-DOMESTIC PRIVATE RENTED PROPERTY MINIMUM STANDARD

Non-Dom_Private_Rented_Property_Minimum_Standard_-_Landlord_Guidance__2_

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Chapter 1: How the Regulations Apply to Non-Domestic Property<br />

the PRS Regulations only apply to properties which are let under a tenancy,<br />

non-domestic properties which are occupied under other arrangements, for<br />

example properties let on licence, or ‘agreement for lease’ arrangements, are<br />

unlikely to be required to meet the minimum standard.<br />

2. The Regulations (Regulation 20(3)) also state that a non-domestic PRS<br />

property will not be required to meet the minimum standard if it is let on a<br />

tenancy which is:<br />

a. granted for a term certain (the original term or time period granted by a<br />

tenancy) not exceeding 6 months (unless the tenancy agreement<br />

contains provision for renewing the term or extending it beyond 6 months<br />

from its beginning, or, at the time it is granted, the tenant has been in<br />

occupation for a continuous period of more than 12 months); or<br />

b. granted for a term certain of 99 years or more.<br />

3. These two specific exclusion conditions were set to avoid capturing very<br />

short, flexible leases often used by small and medium-size enterprise (SME)<br />

occupiers, and very long tenancies where the tenant’s long-term possession<br />

of the property makes them more akin to a buyer than a tenant. Regardless of<br />

these exclusions, landlords of such properties may still choose to improve the<br />

EPC rating to an E or higher if they wish, to enable the property to benefit<br />

from energy efficiency savings.<br />

1.1.2 Meaning of “landlord” and “tenant” (Regulation 21)<br />

4. In the Regulations a landlord is a person who lets, or proposes to let, a nondomestic<br />

private rented property. The Regulations do not make a distinction<br />

between different types of landlord, therefore non-domestic properties let by<br />

local authorities or public bodies will be covered by the minimum standard.<br />

5. A tenant means a person to whom a non-domestic property is let. A superior<br />

landlord is someone who is the landlord of someone who is themselves a<br />

landlord.<br />

1.1.3 Meeting the minimum standard, and sub-standard Property<br />

(Regulation 22)<br />

6. Where a non-domestic private rented property is legally required to have an<br />

Energy Performance Certificate (EPC), it will meet the minimum standards<br />

required by the PRS Regulations where, from the trigger dates set out below<br />

at 1.2.1, it has a valid EPC which states that the energy efficiency rating for<br />

the property is E or above. Where a property is at EPC E or above, the<br />

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