What should a Tenancy Agreement include?
What should a tenancy agreement include?
Drafting a tenancy agreement can be confusing and stressful. Recent research carried out by The Citizens Advice Bureau revealed that nearly one in four tenants have received a tenancy agreement where they felt the terms were unfair, but over half of them still signed the agreement. Additionally, one in three tenants had signed a tenancy agreement with their landlord or letting agent without fully understanding the agreement. These statistics show how important it is to have a tenancy agreement that is clear and negotiated effectively and to make sure that all tenancy agreements comply with the law.
A tenancy agreement is a contract between a landlord and tenant that allows the tenant to live in the property in exchange for rent. A tenancy agreement gives certain rights to the landlords and tenants involved. Tenancy agreements can be oral or written; however, it is always beneficial to have a written copy of the tenancy agreement to keep on record.
Amongst other information, tenancy agreements should include:
- The names of all individuals involved, including the names of all landlords and all tenants
- The address of the property that the agreement relates to
- The landlords address and contact details
- The start and end date of the tenancy
- Any obligations of the landlord and tenant
- The rental price and how it should be paid
- Information on how and when the rent will be reviewed
- Details of how the landlord will increase the rent if they wish to do so
- The deposit amount and how the deposit will be protected
- Details of when the deposit can be fully or partly withheld from the tenant
- Which bills, if any, that the tenant must pay
- If permitted, details of how the tenancy agreement can be terminated early
There are other rules and information that can be included within a tenancy agreement. It is important that the tenancy agreement complies with the law and does not discriminate against anyone involved, as any unfair or illegal terms will not be able to be enforced by the landlord.
Section 48 Landlord and Tenant Act 1987
Section 48 of the Landlord and Tenant Act 1987 places various obligations on landlords, which often triggers disputes. Under Section 48 of the Landlord and Tenant Act 1987, landlords must provide an address in England and Wales where notices may be served on them. It is possible for landlords to provide the address of a managing agent, if there is one.
The importance of a Section 48 notice is that if a landlord has failed to include it within the tenancy agreement, then rent cannot be demanded from the tenant.
For further guidance and advice, please do not hesitate our Landlord and Tenant team, headed by Partner Fiona Squire, on 01803 403403 or [email protected]