Section 3 of Private Tenancies Act (Northern Ireland) 2022

Section 3 - Tenant to be provided with a receipt for payment in cash

A landlord must provide a tenant with a written receipt, free of charge, for any payment made in cash in relation to a tenancy. A receipt must also be provided for cash payments relating to a tenancy between persons either who are not yet tenant and landlord (for example, payment of a deposit to secure a tenancy), or who have previously been tenant and landlord (for example, payment of rent arrears made after a tenancy has ended).

A receipt is beneficial to both tenants and landlords offering tenants documented proof of cash payments and landlords a record of cash payments. For tenants who pay their rent in cash a rent receipt may be the only written evidence they have of their payments. It is a good idea for both landlords and tenants to save copies of receipts of cash payments.

Any written receipt must detail:

• the payment date;
• what the payment was for;
•  the amount paid, including:
• if any amounts remain outstanding, and
• if the payment was made in full.

Where a payment of a single sum covers two or more payments, then the receipt must state:

• how these payments are shared out between each payment;
• any amount that remains outstanding on each payment; and
• if no further amount is due.

A landlord must provide the receipt at the time the payment is made and, where possible, a tenant should only make a cash payment when a written receipt is available. There may be exceptional circumstances that may delay a landlord from providing a written receipt immediately and in such instances tenants and landlords can agree what can be considered as a reasonable timescale for the written receipt.

Offences

It is an offence if a landlord or his representative fails to provide a receipt, if the receipt provided does not contain the correct information or if the receipt is not provided as soon as reasonably possible.

A tenant can complain to their local council if their landlord has not provided a receipt which meets the requirements. The council will decide on any appropriate enforcement action.

The legislation makes provision to prosecute the landlord and any agent appointed by the landlord to provide the receipt. In other words, if there is no agent and there is a breach then the landlord is liable but if there is an agent and there is a breach, then both the landlord and agent are liable.

If the landlord or their representative is convicted of an offence the council can issue a fixed penalty notice, not exceeding £500. Fixed penalty notices can be given for all offences:

• failure to provide a receipt
• failure to provide a receipt containing the correct information, and
• not providing a receipt in a reasonable time.

If the landlord is convicted by a court the penalty will be a fine not exceeding level 4 on the standard scale (currently £2,500).

If after the conviction, if the landlord’s failure to provide a receipt continues for a further 14 days, the landlord is deemed to have committed a further offence. This is an extension version of the offence and does not apply to any agent because once the landlord has had his attention drawn to the default and been convicted of it, responsibility for giving the receipt is with the landlord.

A fixed penalty notice can only be given for the first offence. The only option available for continued offences is summary conviction

Exceptions for controlled tenancies

There are exceptions to prosecution where a payment in cash was made in respect of rent in the case of a controlled tenancy.

Landlords of controlled tenancies may have a genuine reason for getting an outstanding amount of rent wrong on a receipt, as it can take some time between a property being inspected, found fit and the Rent Officer confirming that the rent can be increased.

Where that person is charged with continued failure and the written receipt was given before the 14 day period beginning with the payment of the fixed penalty (including before the fixed penalty was given) the only incorrect information on the receipt relates to the amount of rent outstanding, and the incorrectly stated outstanding amount reflects the difference between the contractual rent and the rent limit (determined by the Rent officer) then it is a defence to prove the landlord believed they had a genuine claim to the difference.

If you require information in an alternative language, the flyer is provided on the link below.

• The Private Tenancies Act (Northern Ireland) 2022 - Sections 1-6 for Tenants and Landlords - translated flyers