Making sure you have the tenancy agreement is crucial to any property owner. It will protect your property. defines the obligations of both you and your tenant and helps avoid any dispute that might arise later on.
The establishment of an assured shorthold lease (AST) does not constitute a requirement of law for England or Wales. It is however recommended for landlords to supply their tenants with a completed written tenancy agreement form prior the day of their move in.
In Scotland the situation is a bit different. A landlord has to sign the tenant with a signed tenancy agreement to permit the tenancy’s classification as an assured short-term tenant (SAT).
The dangers of not having it down in writing
Even after a clear and thorough discussion of the conditions of tenancy may continue to arise, so it’s better not to create informal agreements and to get everything written.
After he or she is in possession the tenant is not able to be forced to sign an agreement which alters the conditions of their tenure.
The accelerated procedure for possession is not a valid method to expel an owner who has not provided an written agreement.
The benefits of having it written
A formal contract protects and regulates the position of the landlord as well as the use by tenants of the property.
Deposits need to be secured by an legal tenancy deposit scheme which provides clear guidelines for all in the case of a claim on the bonds.
If a landlord does not sign a tenancy agreement in writing The law will force that they implement the agreement within 6 months. You can avoid legal hassle by drafting this done from the beginning.
If the tenant is entitled to welfare benefits for housing benefits, such as payments The Departement of Work and Pensions requires a tenancy contract for processing the claim.
Lettings do not require an agreement
Each tenancy must have an agreement in writing, however licenses aren’t required in all cases. The following situations do not need tenancy contracts.
The idea of renting a room in your home to guests.
Bed-and-breakfast accommodation.
While a tenancy contract isn’t mandatory in these circumstances, it’s recommended to create a paperwork, like an outline of the rules for the house, in order to control the expectations of everyone and their the responsibilities of each.
