Top Tips For Renovating A House
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If you are renting a property to tenants, you will need to have a tenancy agreement in place. This is a document that protects both parties and states the terms of the tenancy to avoid any confusion or disappointment. We have included a link to a free tenancy agreement template as a downloadable PDF from the UK government website – see the end of this article to download it.
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ToggleA tenancy agreement is a legal contract between the landlord of a property and the tenant, or tenants, who live in the property. It is also known as a lease agreement or rental contract. This agreement sets out the terms and conditions of the tenancy, including the rights and responsibilities of both parties. A tenancy agreement will include details like the duration of the tenancy, how much rent is owed and when it should be paid, details of the termination and notice period of the tenancy, plus any conditions or restrictions of the tenancy, e.g. no smoking or no pets. A tenancy agreement also outlines the responsibilities of the landlord and tenant regarding property maintenance and repairs, and states who is responsible for these tasks. Not every tenancy agreement is the same, and both parties should read carefully before signing.
You need to have a tenancy agreement in place, as without one, there is no written record of the contract between you and your tenants. This can leave both parties with reduced legal options in the event of a dispute, so it’s in the best interest of everyone involved to have a tenancy agreement. If you need to evict your tenant, eviction procedures can be delayed without a tenancy agreement. If a tenant needs to claim housing benefits, they will also need to show their tenancy agreement. You will also need to have a tenancy agreement in place to get landlord insurance.
There are different types of tenancy agreements that you can use. The most common for regular residential properties is the Assured Shorthold Tenancy Agreement, or AST for short. The free downloadable tenancy agreement template, later on in this article, is for an AST.
This is the standard tenancy agreement used for letting residential properties in the UK. This type of agreement offers ‘limited security of tenure’, so the landlord is able to reclaim their property at the end of the tenancy. An AST agreement states the length of the tenancy, usually 6 to 12 months, and the rules that both the tenant and the landlord must follow. ASTs can be used when the rent is between £250 and £100,000 per year, the tenants are individuals rather than an organisation, the property is the tenant’s main home, and the landlord does not live in the property. ASTs can be individual, for one tenant, joint, for a group of tenants sharing a house, or a room-only AST, for landlords who are renting a property to 3 or more people, e.g. an HMO (House in Multiple Occupation). The tenant’s deposit is protected by law under an AST agreement.
If a landlord and tenant live in the same house and share rooms like the kitchen or bathroom, then an Excluded Tenancy Agreement can be used. This is a slightly less formal agreement than an AST with less legal protections, but some rules still apply, such as the landlord must give ‘reasonable’ notice to end the tenancy, there should be working gas and electricity in the property, and the tenant has the right to reasonable treatment without harassment or abuse.
This is an uncommon type of tenancy agreement that is usually only offered by housing associations. An assured tenancy doesn’t have a fixed term like an AST does; it runs indefinitely. An assured tenancy agreement doesn’t give the landlord the right to reclaim the property, and can only evict tenants if the tenancy agreement terms are broken, e.g. not paying rent. Tenants with no formal tenancy agreement who don’t live with their landlord can have an assured tenancy by default – this is why it’s important to make sure you have the correct tenancy agreement in place.
You can download a free Assured Shorthold Tenancy template here from gov.uk. This template includes a checklist for both landlord and tenant, the terms of the agreements, the obligations for both tenant and landlord, ground for repossession by the landlord, details of break clauses for tenancies over two years, any additional terms between the landlord and tenant, all contact details, and a page for signatures of both landlord and all tenants. You can modify this template to suit your needs, although we would always recommend having a legal professional check any changes to make sure they are legal and don’t affect the rights of either party. The signatures should be witnessed by a third party. Without a witness to a signature on a legal document like a tenancy agreement, the authenticity of the document can be brought into question. A witness can be any adult who is not related to either party and does not have any personal interest in the tenancy. The witness should see the signing of the agreement in person and also apply their signature as a witness to the agreement. A copy of the agreement should be given to all tenants, and a copy retained by the landlord.
It’s essential to make sure a tenancy agreement is legally binding, contains all appropriate information for both parties, including the start and end of the tenancy, rules regarding the use of the property, how much rent is and when it is due and other important information. This can avoid any future disputes or confusion about the rights and responsibilities of both tenants and landlords.
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