Tenancy agreements provide landlords and tenants with both the express rights and obligations spelled out in the agreement (always provided these are not at odds with the Housing Acts – so, for example, a landlord may not require tenants to give longer periods of notice than is laid down, or claim the right to give shorter notice than required by legislation) and with implied rights. The latter may or may not be referred to, but are included in statute or are common law rights.
So, for example, tenants are entitled to the “quiet enjoyment” of their home and landlords may not demand access without notice, or enter the premises when the tenants are not present. Landlords have a duty of care towards their tenants, and tenants have a duty of care towards the property they are renting. Tenants have a right to know the name and address of their landlord and to know how their deposit has been protected (if this information is not included in the tenancy agreement).
Assured Shorthold Tenancy Agreements (ASTs) are the default form of tenancy agreement where annual rent does not exceed 100,000GBP. The basic elements of the agreement are:
As in any legal agreement, tenancy agreements should set out the parties to the agreement and the date on which the agreement is made.
ASTs should also include the start date and duration of the tenancy.
And, of course, the amount and frequency of rental payments.
If the tenancy is for more than six months, the AST can include break clauses and also agreed rental increases at specified future dates.
Responsibilities for general outgoings (rates, utility bills, repairs and maintenance) and other responsibilities of the two parties should be recited.
Landlords have an opportunity to include restrictions that they deem necessary – for example, a bar on redecoration without prior written consent from the landlord or restrictions on the number of people who may live or stay in the premises.
There may be peculiarities to the property, such as a right of way over part of the garden, which need to be specified.
It is also good practice to include clauses dealing with late payment of rent and also with the termination of the tenancy.
When it comes to late payment of rent, landlords can specify a (reasonable) rate of interest that may be charged on overdue amounts and also make tenants responsible for any debt collection costs should these arise because of late payment of rent.
Sometimes tenants leave possessions behind. Dealing with these can be a nuisance if nothing is said about them in advance. A reasonable condition would be to say that the landlord may remove and store any possessions left by a tenant for (say) 28 days after which he or she may, after giving the tenant due notice, dispose of them – the tenant remaining liable for reasonable removal, storage and disposal costs.
It is also reasonable to say that the premises must not be left unoccupied for more than, say, 21 days (or the maximum specified in the relevant insurance policy). The tenancy agreement can specify that if the property is left empty for any longer period the landlord will have reasonable cause to believe the tenant has abandoned the property when he or she may (even though the tenant has not given formal notice), treat the tenancy as ended and enter the premises.
Other possible restrictions include specifying that a particular room or area may not be used and is to be kept locked, requiring that tenants or their guests do not smoke indoors, or do not keep pets in the house. However, any clauses of this nature should not be so restrictive as to be unreasonable.
There are other additional clauses that, if appropriate, it benefits the landlord to include.
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