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DR WILLIAM GERARD O'HARE CBE; CEO PARKER GREEN
"Great Partnership – up there with the best!"
Renting property can seem like an easy source of income to the unwary however being a landlord can be challenging, whether you are new to the game or not you must be aware of what to expect and what is expected of you! There are many things you need to know but in this article we will focus on one aspect in particular that we want to bring to your attention to - the need for effective tenancy agreements to ensure that your rent goes into your pocket.
Tenancy Agreements
Tenancy Agreement are a legally binding document between the home owner and the tenant(s) which sets out the terms agreed and aims to protect both parties in the event of a dispute. Any tenancy for longer than 12 months must be in writing. Under The Private Tenancies Order a Landlord is obliged to provide the Tenant with a prescribed Statement of Tenancy Terms within 28 days free of charge however we believe that a copy of the Tenancy Agreement should also be provided to avoid confusion as to the nature of the agreement that has been made.
And whilst cutting corners on this may be tempting to save you time and money in the short-term, any experienced landlord will tell you that not having a proper tenancy agreement in place could end up costing you a lot more in the long-run whenever you try to enforce the terms!
5 Reasons Why You Need Tenancy Agreements
There are many reasons why you need a professionally written tenancy agreement that has been drawn up by a solicitor who specialises in property law. Here are just some of the benefits of investing some extra time and money into getting this done right at the start.
This is often one of the primary considerations for landlords. A signed agreement gives the homeowner some assurance of the tenant(s) commitment to pay the rental fee agreed and provides recourse if at some point the tenant(s) fail to fulfil their end of the bargain should legal action need to be instigated. Tenancy agreement will include the specifics of how much is to be paid, by whom, by which date and how it should be paid. It will also detail the implications of late or non-payment to the tenants, such as include eviction and loss of deposit.
When you rent out a house it will inevitably come with some fixtures and fittings, perhaps it may even be fully furnished. A solicitor will advise you that an inventory of all items in the home should be carried out as part of the process. The condition of items should also be detailed. The tenancy agreement will outline the actions that will be taken if tenants fail to take care of your property.
A tenancy agreement will clearly state the responsibilities of both the landlord and tenant(s) from the outset. This will address the ‘grey areas’ which may not necessarily be the same in every landlord/tenant agreement, for example, who is responsible for paying for rates, or household bills such as the TV licence, phone and internet services, or who will cover the costs of repairs of the building e.g. roof or windows; the fixtures e.g. if the boiler breaks down or appliances such as the washing machine.
The agreement will also detail how the property can be used, for example, whether you are able to sub-let or have pets. Clarification of these issues from the start can avoid stressful and costly arguments further down the line, and will benefit both the landlord and the tenants.
Setting out the term of the tenancy is beneficial in the event of your own circumstances changing, for example, you decide to move into the property yourself or wish to sell the property with vacant possession. Alternatively if your tenants are not abiding by the rules then a tenancy agreement will outline how possession can be achieved legally, protecting both the rights of the landlord and without infringing those of the tenant(s).
An experienced property solicitor will know exactly what needs to be included in your Tenancy Agreement to satisfy legal requirements and the documents that should be provided to the Tenant:
If you draft your own terms and conditions, there is a risk that you will leave out important elements, or create loopholes which could be contested at a later date. Failure to comply with statutory requirements is an offence prosecuted by the local council.
During the process of drawing up the tenancy agreement with your solicitor legal requirements may come to light that you were unaware of. Tenants are protected by the law and if you do not take the appropriate advice you will leave yourself open to delay, frustration and unnecessary expense.
Protect yourself by engaging a solicitor to ensure that the tenancy agreement contains all the necessary information and is legally enforceable should any issues arise during the tenancy.
If you are a home owner who is planning to or currently renting your property contact law@lukecurran.co.uk or 02830267134 for advice on drafting tenancy agreements. We will provide an initial free consultation, with no obligation to commit to using our services.
