This is day 2 of my 31 days of tips on tenancy agreements series. To see the rest of the series click here.
Why use a tenancy agreement?
Contrary to what many might think, it is not actually necessary (at the moment) to have a written tenancy agreement to create a tenancy. Why have one then? There are a number of very good reasons.
So the things don’t get forgotten. When a landlord rents out a property to a tenant, this is a legal contract, and as with all contracts, has terms and conditions. It makes sense to write these terms and conditions down, so that they will not be forgotten.
It is all too easy for people, often quite genuinely, to have different recollections about matters discussed and agreed. However, if things are set out clearly in the form of a legal agreement which both parties sign, then there can be no argument.
All tenancy agreements will set out such things as the rent, the names of the parties, the address of the property, and the length of the fixed term (or period if it is a periodic tenancy) together with what is generally a standard set of terms and conditions, setting out such matters as what the tenant should or should not do while in the property, arrangements for the payment of bills, and rules for ending the agreement.
This is perhaps the most important reason for having a written document. However there are others, for example:
- A written tenancy agreement will often be a requirement under buy to let mortgages and insurance policies
- If the tenant wishes to apply for housing benefit, the benefit office will want to see one
- If the landlord ever wishes to evict the tenant, the Judge will want to see a tenancy agreement, and if one is not available a landlord will not be able to use the special ‘accelerated’ possession procedure.
It is now generally accepted that good landlording practice requires a tenancy agreement. Indeed there are now proposals to make this a legal requirement.
Landlords are advised therefore to always use a written agreement. Do not hand the keys of your property over until you hold one which has been signed by the tenants. Because once they are in occupation the tenants may refuse (and are quite within their rights to refuse) to do so.
Do you have any comments on this section? Are here any other reasons for having a tenancy agreement? Do you know of problem which have arisen because the tenant did not have one? Do you think the government are right to propose mandatory tenancy agreements?
Tomorrow I will be looking at the differences between tenancies and licenses
NB Read about my tenancy agreements service here.
Related posts:
