Category Archives: Tenancy Agreement

Tenancy Agreement

How do you Renew a Tenancy Agreement?

In an assured shorthold tenancy, signing an original agreement at the end of the original contract is unnecessary, contrary to many landlords’ beliefs.

If a tenant stays in the property after the fixed term ends, it becomes what is known as a ‘periodic tenancy’. This means the tenancy continues indefinitely (potentially many years) on the same terms and conditions in the original tenancy agreement unless both landlord and tenant agree otherwise.

Why sign a new fixed-term tenancy agreement?

The advantage for landlords and tenants is security. This is because the renewed shorthold tenancies will give an initial minimum fixed term of 6 months, and the monthly rental income will typically be fixed during this period.

Suppose the original fixed term of a tenancy agreement has ended and turned into a ‘periodic tenancy’. In that case, the landlord can notify the tenant if there is no new tenancy agreement. However, if the landlord agrees to a different notice period, this exception to the notice period applies.

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When renewing a tenancy agreement, landlords (or their agents) often request a renewal fee to cover administrative costs. However, in reality, this fee is usually waived because if a suitable tenant moves out, the property may remain empty for several weeks or longer, and the landlord will have to incur advertising expenses, which will cost significantly more than any renewal fee. It’s important to note that renewal fees are now considered illegal under the Tenant Fees Act 2019.

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What is meant by a Tenancy Agreement?

A Tenancy Agreement is a contract that serves as an Assured Shorthold Tenancy between a Tenant and a Landlord, with all stipulated terms and conditions about their rental Agreement.

There is no need to get a written Tenancy Agreement as long as the fixed period tenancy is more than three years; in this case, it can become an Oral Tenancy Agreement. However, it is strongly recommended that there be a written agreement so that all terms and conditions can be clarified and used as proof in case of any dispute.

There are many forms of Tenancy Agreements available, and all of them should consist of the following aspects:

  • Dates: The exact date when the Agreement was prepared
  • Landlord Details: It contains all the addresses and other details about the landlords.
  • Tenant Details: It contains all the addresses and other details about the Tenant (s).
  • Property Details: It contains all the addresses and other details about the property being used for renting.
  • Term: The starting and ending date for tenancy. Sometimes, this is also called a “fixed term.”
  • Rent: This is the rent to be paid by the Tenant to the Landlord. This may also contain the method and the exact date of payment of rent.
  • Deposit: This part contains the total amount of the deposit that needs to be deposited and what things this deposit will cover.
  • Deposit Scheme: This part consists of a Tenancy Deposit Scheme in which the deposit is usually secured.
  • Landlord’s Obligations: This usually contains the responsibilities and duties of the Landowners.
  • Tenant’s Obligations: This usually contains the responsibilities and duties of the Tenant towards his Landlord and property.
  • Other Special Provisions: This usually contains other special provisions agreed upon between the Tenant and Landlord, for instance, pets, sub-letting, smoking, etc.
  • Signatures: It’s mandatory to sign Tenancy Agreements by both the Tenant (s) and the Landlord (s).
  • Witnesses: Though it is not legally necessary to have any witness sign the Agreement, it can be beneficial in cases where the signatures can be disputed by the Tenant(s) or the Landlord(s).

The guidelines for what should be mentioned in a Tenancy Agreement can be found in the Housing Act 1988.

How to Obtain your Tenancy Agreement?

You can obtain a Tenancy agreement using many sources or even for free. However, getting your copy from a trustworthy supplier with an up-to-date and utterly legal version is crucial. We are here to provide Tenancy Agreements prepared by award-winning and reputable professional solicitors.

We sell all our Tenancy Agreements at an unbelievably low price of £14.95. Contact us to Buy a Tenancy Agreement right now.


TENANCY AGREEMENT
SECTION 21 NOTICE
RENEWAL OF TENANCY AGREEMENT
SECTION 8 NOTICE
LODGER AGREEMENT
COMPLETE LANDLORD PACK
PROPERTY INVENTORY
COMPANY LET AGREEMENT


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How to change the various Terms and conditions in a Tenancy Agreement

It’s a fact the various terms and conditions mentioned in a Tenancy Agreement can be effectively changed; however, it requires that both the tenant and the landlord must agree upon these changes.

All the changes made by mutual agreement are recorded in a written document. This can be achieved by preparing a new tenancy agreement or modifying the existing deal.

There can be several reasons to make amendments to a Tenancy Agreement. Here are a few of the most important ones.

  • I am changing the rent amount, e.g., rent increases or decreases.
  • The tenant has bought a pet. There can be new terms that need to be included in the agreement, including the liability for pet damage.
  • The tenant may want to transfer the tenancy to any other household member living with them for more than one year.
  • The tenant may decide to modify the tenancy type to a joint tenancy.

Changes can also be made verbally, but it is highly advisable to record everything in writing. The reason is that confusion may crop up later on if there is no written record of the agreement. Therefore, it’s a safer practice to record everything in writing.

Another essential thing to notice is that all the amendments to the Tenancy Agreement should be by the Housing Act. There are statutory rights for tenants and landlords that can’t be overwritten. In conflict, the Housing Act will serve as the ruling law.


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Discrimination in context to Tenancy Agreements

Landlords must not discriminate against tenants because of any of the following reasons:

  • Sex / Gender-based discrimination
  • Disability based discrimination
  • Racial discrimination
  • Discrimination based on Beliefs or Religion

It is illegitimate for any landlord to discriminate against his tenants due to any of the above reasons. As a result, the following aspects of discrimination are entirely against the law.

  • If a landlord Rents out a property to specific tenants by providing them worse terms and conditions than the other tenants.
  • If a landlord treats some of his tenants differently when determining various policies about access to certain facilities like garden access and laundry,
  • They are harassing or Evicting tenants because of gender, disability, race, sexuality or even religion, among others.
  • If a landlord refuses to entertain reasonable requests from disabled persons, for instance, if he doesn’t allow a dog to reside with a blind tenant on his property, etc.

If the landlord lives on the same property as the tenant, some of the above rules may not apply; however, the landowners are still prohibited from discriminating against any of their tenants because of their race.

Sex / Gender-based discrimination

The Sex Discrimination Act 1975 (SDA) was introduced not only for sex discrimination against women, but this law also applies to various acts of sex discrimination against men. This Act states two types of sex discrimination. The first one is direct, and the second one is indirect.

Direct:

A typical example of this type of sex discrimination is a landowner who treats a female tenant as an inferior tenant as compared to the male tenants due to her sex.

Indirect:

A typical example of this type of sex discrimination is a landowner who applies a specific requirement or condition for a female tenant—a female tenant must comply with this condition or requirement to obtain a tenancy.

Victimisation

If a landowner victimises his tenants due to their sex by treating them differently and less favourably than his other tenants, it would be considered an act of sex discrimination and is entirely against the law.

Disability Discrimination Act

This Act makes it illegitimate for any landlord to discriminate against his tenants due to any disability. A ‘disabled person’ in this Act is defined as follows:

“A person has a disability if he or she has a physical or mental impairment which has a substantial and long-term adverse effect on his/her ability to carry out normal day-to-day activities.”

According to this Act, a landlord can be discriminating if:

  • He treats a tenant differently due to some reasons based on his disability.
  • If the landlord cannot justify the mentioned treatment
  • The landowners fail to fulfil Part 2, Sec 6, as mentioned in the Disability Discrimination Act. This section describes the various adjustments to such agreements to make them suitable for a disabled tenant.
  • The landowner cannot justify failing to fulfil the requirement in Sec 6.

Various reasons are acceptable and can be used to treat a disabled tenant differently.

Below are the various circumstances whereby it’s acceptable to treat a disabled tenant with a difference.

  • Sometimes, disabled persons can be treated differently based on their safety and health.
    • It is quite acceptable to refuse access to a facility to a disabled person when it is known that allowing access to a particular facility may pose a danger to others’ safety.
    • If a disabled person cannot sign an enforceable agreement legally or has not given any legal consent, it can be acceptable to treat him differently.

Making Adjustments to Properties

Landlords are not required to make any special modifications to their properties to make their property easily accessible to disabled persons.

Racial Discrimination Act

According to the Race Relations Act, it is illegitimate for a landowner to discriminate against his tenant based on racial grounds. This Act describes various racial grounds such as colour, race, ethnic group, nationality, national origins, etc.

Under this Act, there are four main types of discrimination related to various racial backgrounds: direct, indirect, victimisation, and harassment.

Direct

Direct: 

A typical example of this type of racial discrimination is a landowner who treats a particular tenant as an inferior tenant as compared to the other tenants due to their racial background.

Indirect: 

In this type of racial discrimination, a landowner applies an additional requirement or condition to a tenant because of his racial background. A tenant must comply with this condition and the requirement to obtain tenancy. This is an example of indirect racial discrimination.

Victimisation

If a landowner victimises his tenants due to their race by treating them differently and less favourably than his other tenants, it would be considered an act of racial discrimination and is entirely illegitimate.

Harassment

According to the Race Relations Act 1976 (Amendment) Regulations 2003, any racial harassment on the grounds of ethnic, race or national origins is considered illegal, excluding racism based on nationality or colour. Harassment based on ethnicity or colour may be regarded as unlawful direct discrimination.

A landowner harasses his tenants based on race, national, or ethnic origins, or if the landowner indulges in some form of unwanted conduct that can affect the dignity of tenants or create a degrading, hostile, offensive, humiliating environment for them.

How to Tackle Discrimination

If you feel that your landlord may have discriminated against you, you have all the right to take legal action against them. The first step is to get reliable advice from a qualified and reputable attorney, the Citizens Advice Bureau, or a legal advice centre.


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How to Increase Tenant’s Rent?

There may be many reasons why a property owner can decide to increase rent; the following are two of the most common ones:

  • To keep up with the rising levels of inflation
  • To take benefits from the profitable rental market

A legal way to increase rent

The most common way many landlords use to increase rent is to prepare a new tenancy agreement and get it signed by the tenants at the end of the fixed term. This is one of the best ways to increase rent.

It’s worth mentioning that it’s not always necessary to prepare a new tenancy agreement as it’s pretty understood that the existing tenancy can become a periodic tenancy with similar terms and conditions. So, you can quickly get your tenant to agree to the increased rent by just sending him a letter regarding the increase and getting it signed by him. This dated letter will prove the agreement regarding the rent increase.

Rent Review Clauses

A tenancy agreement may sometimes contain rent review clauses. It would help if you ensured that all the clauses are fair and by Unfair Terms in Consumer Contracts Regulations 1999.

An effective way to make a fair rent review clause is to specify new figures for the rent after a specified period. For instance, let’s say £700pcm is the rent right at the start of the tenancy period; the clause should specify that after six months, the rent for the property will increase by, say, £50 and become £750. This will be considered fair because the tenant will automatically approve the increased amount when signing the agreement. At the same time, if the clause states that the landowner may increase the rent by whatever amount he likes and feels, this will not be considered fair.

Don’t ever try to increase the rent by too much amount.

What is the extent to which you want to increase rent is of utmost importance. Therefore, the rent increase should be fair and justified. Even if you state the new amount in your Tenancy Agreement, which is a pretty excessive increase, the court can deem your increase rent clause invalid. It doesn’t matter if the tenant has signed it or not.

For example, in the bank way case, the tenancy agreement consists of a rent increase clause that states the rent increase from £4,680 to a whopping 25,000. However, when the rise in rent became effective, the tenant refused to keep up with the increased amount; thereby, the landlord sued him for possession.

The Court of Appeal stated that the rent increase clause was invalid as the increase in rent was quite substantial, and it was solely devised to bring the assured tenancy of the property to an end. The tenant could not pay the new increased amount. So, high rent increases are not at all recommended.


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Is your Tenancy Agreement fair or unfair?

All terms and conditions mentioned in a Tenancy Agreement must not be unfair. If there are unfair Terms in the agreement, the Consumer Contracts Regulations 1999 has been established to provide protection and safety to Tenants. This Regulation states that if any term or condition in the deal is considered unfair, it will be entirely unenforceable for the Tenant.

When are the terms considered Unfair in a Tenancy Agreement?

To consider a tenancy agreement entirely fair, it must meet the following needs and requirements:

  • All the terms mentioned in the contract should be in a language that is easy to understand.
  • All the terms of the agreement must pass the fairness test
  • The contract’s parties must conclude that the deal is entirely fair.

Examples of some unfair terms

Following are some examples of unfair terms which you should never use in a tenancy agreement, and you cannot enforce these terms on your tenants:

  • Terms and conditions that direct the Tenant to pay for maintenance and repairs, which the Landlord legally requires, allow the Landlord to order the home during the tenancy period without any permission or prior notice.

How do we act on unfair terms?

If you think your tenancy agreement consists of unfair terms, you should contact an experienced legal adviser.

To avail of any free legal advice on these matters, you can also consult your local Citizens Advice Bureau.


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Joint Tenancy Agreements

What exactly is a Joint Tenancy?

A joint tenancy is an agreement whereby you can have two or more than two individuals for the same tenancy. In this agreement, all involved individuals have exclusive possession of the complete property and equal rights to the rented property.

A Joint Tenancy agreement is a legal agreement between the landlord and all his tenants. According to this agreement, all the tenants are equally responsible for adhering to all the terms and conditions mentioned in the Tenancy Agreement.

An important point to note here is that a joint tenancy is not similar to a ‘tenants in common’ agreement, although they appear quite similar and often cause a lot of confusion.

What is ‘Tenants in common’?

This is similar to a joint tenancy in the context of two or more tenants living under the same tenancy. However, each tenant has exclusive ownership of their specific bedroom within the property. He can also make use of their communal areas.

Essential Requirements for Obtaining Joint Tenancy

  • Each tenant must be 16 16yrs of age or older
  • A single legal document is used to hold the tenancy of all the tenants.
  • The starting and ending dates for all the tenants must be the same
  • All the tenants must exercise equal rights to the whole property
  • All Tenants must be entitled to possess the entire property with equal rights

Liability for Joint Tenants

All the tenants involved in a Joint Tenancy are usually liable in a joint manner for any damages to the property or rent arrears. This means that if any joint tenants violate any of the terms and conditions of the cooperative tenancy agreement, the landowner has all the rights to claim all of them or even against the individual tenant. This is considered a great advantage for the landowner in this regard.

Joint Tenancy Guarantor

Each tenant will have a different Guarantor that will provide additional security to the landowner.

How to Change the Joint Tenants

If you want any of the joint tenants to leave your property and rent out your property to new tenants in place of any of the older joint tenants, you need to include a new tenancy agreement. This can be quickly done by Deed of Variation, which can be attached to your Tenancy Agreement, or you can prepare an entirely new one for this purpose.

How to end a Joint Tenancy

To end a joint tenancy, you must give written notice to every individual joint tenant, assuming that this notice complies with the tenancy agreement about the termination date of the tenancy period.

What to do in case of arrears at the time of ending the joint tenancy

As mentioned, tenancy liability will be shared evenly between all tenants in joint tenancy. If there are any types of arrears, each one of the tenants in joint tenancy will be considered responsible for the amount overdue. This is precisely why it is often recommended that you be extra careful when you opt for joint tenancy.


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Oral Tenancy Agreement

Any verbal or oral agreement made between a Tenant and a landlord, by all the terms mentioned in the Tenancy Agreement, is referred to as an oral tenancy agreement.

The main aspects of this type of agreement are discussed in great detail by all the parties involved, primarily the Tenant and the landlord. It doesn’t matter if the tenancy agreement is discussed orally or if they are mentioned in writing; the following conditions are included in this type of contract.

  • Property Details: This part contains all the details about the address of the property that is being rented out.
  • Term: This part is used to specify the starting and ending date of the tenancy period, also known as “fixed term.”
  • Rent: This is the rent to be paid by the Tenant to the landlord. This may also contain the method and the exact date of payment of rent.
  • Deposit: This part contains the total amount of the deposit and what things this deposit will cover.
  • Deposit Scheme: This consists of a Tenancy Deposit Scheme in which the deposit is usually secured.
  • Landlord’s Obligations: This usually contains the responsibilities and duties of the Landowners.
  • Tenant’s Obligations: This usually contains the responsibilities and duties of the Tenant towards his landlord and property.
  • Other Special Provisions: This part usually contains other special provisions agreed upon between the Tenant and landlord, for instance, pets, sub-letting, smoking, etc.

Oral/Verbal Tenancy Agreements are legal. However, they are only sometimes recommended because there is no way of knowing and proving anything during the dispute. For instance, if a dispute arises between the Tenant and the landlord about the amount of money in rent, it can become quite challenging to make a ruling about who is right or wrong with a written document.

There can also be legitimate issues where the landlord or tenants don’t remember the agreed terms and conditions. The problems that usually occur with verbal or oral agreements are not always serious but can still cause significant complications. Therefore, it is always recommended to have a written tenancy agreement to avoid all these problems.

As with assured shorthold tenancy, proper statutory rights are given to tenants and landlords; it doesn’t matter if the agreement is written or oral. All these rights are mentioned in the Housing Act 1988Housing Act 1996, and Housing Act 2004.


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Tenancy Deposit Scheme

According to the Tenancy Deposit Scheme, it’s mandatory for every landlord or even letting agent to protect the tenant’s deposit through this scheme. The Government started this scheme on April 6, 2007. This is a legal requirement for all landlords wanting to rent out their property.

What is the reason behind the introduction of the Tenancy Deposit Scheme? 

The Government has introduced this scheme primarily to protect and safeguard the tenancy deposits and offer a fair system to settle all the disputes concerning the return of deposits at the end of the tenancy period. Before introducing this scheme, there used to be many complications about whether the dispute was getting resolved relatively or not. With this scheme, the Government has introduced an independent service that helps resolve these disputes effectively. Any tenant can avail of this service completely free of cost.

What will happen if I pay the deposit before April 6, 2007?

If your tenancy period started before April 6, 2007, the landlord is not required by law to protect your deposit under this scheme. At the same time, if any new tenancy agreement has been signed since the original date, your deposit will automatically come under the tenancy deposit scheme. An important point to note here is that the law does not explicitly state that the landlord has been bound to protect this deposit. Still, the Government suggests watching the deposit under various circumstances.

What do the letting agents or landlord have to do?

After a tenant has paid the required deposit, the landlord or the letting agent is responsible for protecting this deposit by following all the terms mentioned in the tenancy deposit scheme. In this scheme there are two types of schemes available:

  • In a custodial scheme, the agent or the landlord pays a certain deposit to this scheme, and this independent service will keep it until the end of the tenancy period.
  • In an insurance scheme, the agent or the landlord can keep all the deposit; however, he pays all the insurance premiums in this scheme. So, it just means that the deposit is completely insured. In case of any dispute, this scheme will repay the amount to the tenant directly. This insurance scheme can also charge a certain fee from landlords for getting a membership. This scheme can also require specific contributions concerning the incurred costs of insurance.

It is entirely up to the agent or landlord to decide what scheme they want to use. All the required information about the scheme must be provided to the tenants within 14 days at the time of deposit payment. This information can include:

  • Contact details of the agent or the landlord
  • The type of tenancy deposit scheme which is being used and other contact details regarding the scheme
  • Any information about the primary purpose or use of a tenancy deposit
  • The procedure that a tenant can use to apply to get his deposit back after the end of the tenancy period
  • The process that the tenant should follow in case any dispute arises due to the deposit

What happens if the agent or the landlord doesn’t agree to provide the required information or if they still need to protect and secure the tenant’s deposit?

In these cases, the tenant can easily apply for an order against the agent or the landlord in the county court, stating that the landlord should pay his deposit back or secure it in any of the schemes under the tenancy.

In addition to the deposit, the court can make an agent or the landlord pay the required compensation to the tenant, which is usually equal to 3 times the original value of the deposit paid by the tenant.

What happens at the end of the tenancy?

At the end of the tenancy period, if the letting agent or landlord agrees on the amount of deposit that should be returned to the tenant, then within ten days, the tenant should get their deposit back without any hassle.

The tenants will also receive specific interest if the deposit was secured in any custodial schemes. The tenant can get their deposit from the custodial scheme via electronic transfer or Cheque. If the deposits are held in an insurance-based scheme, then they will be repaid to you by your landlord either by Cheque or in cash. An important point to note here is that interest in the deposits invested in any insurance-based scheme will not be passed to the tenant.

Central Government-approved Deposit Schemes


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