Ensure Tenancy Agreements Are Not a Source of Disagreement

Renting any home means entering into a legal agreement - a tenancy agreement setting out the rights, duties and responsibilities of both tenant and landlord.

Nowadays, (since introduction of the Housing Act 1988) most tenancy agreements are what are known as assured shorthold tenancy agreements (ASTs for short). These 'assure' the landlord that he or she can, if desired or necessary, regain the property at the end of the agreed rental period. They also assure the tenant or tenants that unless there is a serious breach of the tenancy agreement, he, she or they, can remain in residence at the very least for six months.

For this reason assured shorthold tenancy agreements are most commonly for six month periods only. Tenants can then be asked to leave at the expiry of the six months.

Alternatively, when the fixed term expires, the landlord may grant the tenants a further fixed term tenancy agreement, or simply allow them to stay on under the same terms. In such circumstances there is no need for a new tenancy agreement; the tenancy simply becomes a 'periodic tenancy'. Tenants can quit periodic tenancies by giving the landlord one month's notice, and may be required to leave on receipt of two months' written notice.

Tenancy agreements provide landlords and tenants with both the express rights and obligations spelled out in the tenancy agreement (always provided these are not at odds with the Housing Acts, with common law rights, or could be deemed 'unfair'. So, for example, a landlord may not require tenants to give longer periods of notice than is laid down in law, or claim the right to give shorter notice than required).

Irrespective of what the tenancy agreement says, tenants are entitled to the 'quiet enjoyment' of their home and landlords may not demand access without notice or enter the premises when the tenants are not present. Landlords have a duty of care towards their tenants, and tenants have a duty of care towards the property they are renting.

Tenants are also entitled to feel safe in their rented home and to be assured of this by being given a copy of a current gas safety certificate, and (if the property is furnished) knowing that all the furniture provided has appropriate fire safety labelling.

This does not mean that there is one standard form of tenancy agreement, and landlords and tenants have scope to agree a considerable number of the terms included. Perhaps the most important are the rent to be paid, when it is payable, whether in advance or in arrears, whether a deposit is paid, and whether furnishings are provided or not.

Unless stated otherwise, private sector tenancy agreements entered into since February 1997 are automatically shorthold assured tenancy agreements.

But there are exceptions - holiday lets, where no rent or a very low rent, or a rent in excess of 25,000 GBP is charged, where the tenant is a company, or where the accommodation is shared with a resident landlord. For these exceptions, different types of agreement are needed - 'common law' tenancy agreements which stand on their own merits outside the restrictions and protections of the Housing Acts.

In England and Wales, unless the tenancy agreement is to be for a fixed period in excess of three years, the tenancy agreement could be verbal (even so, certain information - about deposits, gas safety and energy performance - must be provided by the landlord in writing). However, a written tenancy agreement is strongly advisable in all cases since verbal agreements are notoriously difficult to enforce.

Tenancy agreements may be between the landlord and one tenant or a number of tenants - for example a couple living together as partners. From the landlord's point of view, two or more signatories to the AST are better than one since each will be 'jointly and severally' liable for the full rent - meaning that if one does not or cannot pay, the other tenant is responsible in law for the entire amount.

Houses can also be divided into multiple tenancies where each tenant has exclusive use of a particular part of the property (say a bedroom) specified in the tenancy agreement, with access to and use of common areas. It makes sense to have multiple rather than joint tenancies where the tenants are not related and may intend to live in the property for different periods.

Tenancy agreements are important documents, enforceable in law, and both landlords and tenants should take great care before signing such agreements. They must be satisfied that the agreement contains only terms with which they are able and content to comply.

Residentiallandlord.co.uk provides a complete online resource for all UK buy to let investors. As well as comprehensive and up to date information there is also a document download centre which includes our much praised downloadable tenancy agreement.

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