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The Rental AgreementBy comparing and contrasting the different kinds of tenancies, you can get an idea of how important the rental agreement is. If you’re struggling for inspiration, check out estate agencies, websites and rental owners’ associations. A tenancy is basically granting the right to exclusive use of a property for a fixed period of time and must comply with statutory law. Anyone can draw one up but it is important to know what to say in it so that you’re complying with the law, acting responsibly and being fair to the tenants. The four most popular UK residential tenancies are as follows: 1. Protected Tenancies Rent Act 1977 2. Protected Short hold Tenancies Housing Act 1980 3. Assured Tenancy Housing Act 1988 4. Assured Short hold Tenancy Housing Act 1996 Protected Tenancies Rent Act 1977 Otherwise known as Regulated Tenancies, these are governed by the Rent Act 1977 and the Housing Act of 1988 had no effect on them whatsoever. In order for a tenancy to be legitimately a Protected Tenancy under the 1977 Act, the dwelling must be let as a separate dwelling under section 1 of the Act and must not fall into any of the express exclusions under Part 1 of the Act. A protected tenancy is a statutory tenancy rolling on from month to month giving the tenant the right to a fair rent, not a market rent! At no time can this type of tenancy be changed to An Assured Short hold Tenancy, even if ownership changes or a new tenancy was granted after January 15th 1989. Protected Short hold Tenancies Housing Act 1980 This Act was introduced to encourage residential lettings in the private sector. This type of agreement cannot be created nowadays, since the Housing Act of 1988 cam into force. Whilst the tenant is still protected by rent control, the tenant has no right to possession at the end of the fixed term and the landlord can invoke mandatory grounds for possession, as long as the landlord has abided by his statutory requirements. The Assured Tenancy: This type of tenancy gives the tenant the right to possession of the property even after the fixed term has come to an end. The only way a landlord can get rid of a tenant is by court order or the tenant leaves voluntarily. Note that the tenancy must include at least one tenant for whom the property is their principal home. If at any time this is not the case, then the tenancy ceases to become assured. It is very difficult to prove this and the courts do not tend to favour landlords. Once the fixed term of the tenancy comes to an end, unless the tenancy is renewed, it becomes a statutory periodic tenancy. This means that the tenancy is governed by law to run from period to period, usually monthly. Assured Short hold Tenancies: A much improved type of tenancy than the Assured Tenancy but with some crucial points: 1. The tenant must be an individual or group of individuals for whom at least one the property is their principal address. 2. The tenancy commenced after January 15th 1989 3. The Landlord cannot terminate the tenancy unless he has given two months written notice in the form of Section 21 of the Housing Act 1988. If the tenancy becomes periodic i.e. the fixed term has run out, then the tenancy continues until the tenant gives one months notice or the landlord gives two months’ notice. Possession of the property is guaranteed to the tenant for a minimum period of six months. Possession will not be given to the landlord unless the tenant has been in situ for a minimum of six months. The periodic tenancy can continue with no time limit. Subletting is another reason to have a watertight written agreement with very clear clauses so that there is no ambiguity or room for confusion. It is worth remembering that the sub letter does not have to pay rent or perform any of the original tenant's obligations to the landlord under the rental agreement, unless the lease specifically requires it. If you are unsure about drafting an agreement, we advise you to contact the Leeds citizen’s advice bureau who can recommend further guidance or log on to www.landlordlaw.co.uk. Once you have created your agrement, please do not forget to ensure all parties sign up to its content! |
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