Hints & Tips Tenancies

Starting a Tenancy Agreement

Who is in your property? Always have the Tenant complete our Tenancy Application form (this provides vital information should the Tenant default in their obligations). Ask to see suitable proof of identification. Included in the Tenancy Starter Pack
Cash Flow Always ask the Tenant to complete a standing order form. Included in the Tenancy Starter Pack
Section 21 Notice Always issue a Section 21 Notice after the start of every Tenancy. Why? Included in the Tenancy Starter Pack
Always ask for a Guarantor. Where Tenants default it can be cumbersome recovering monies from non property owners. Whereas, if you have a Guarantor it is easier to secure a charge order over their property and the debt accrues interest. Also see Rent Arrears Guarantors and Tenancy Agreements
Inventory If a Landlord fails to prepare a quality Inventory and there is a dispute over damage you have less than 9% chance of the dispute being resolved in your favour. The burden of proof is on the Landlord.
The Tenancy Agreement should always be signed and if required witnessed prior to move in.
Be diligent in your Tenant Vetting Process Mistakes are expensive should you pick the wrong tenant it can take you 5 months to lawfully end the Tenancy Agreement and remove them and you may not receive any rent more
Consider Charging an admin fee this is a fee to cover costs such as a tenant credit check, inventory and Tenancy Agreement.
Tenancy Length Ideally, the first tenancy should be no longer than 6 months, where longer, consider inserting a Break Clause- The Tenancy can be no more than 3 years see Tenancy Length
New Landlord - The basics If you are new to Letting please review New Tenancy check list and What are my legal obligations as a Landlord?
Using a Letting Agent check your Management Agreement for Unfair Terms more
At the End of the Tenancy What do you do if your Tenant refuses to leave at the end of the Tenancy Agreement? more.
Lodger if you live in the premises then use our Lodger Agreement

If Taking a Deposit

The 2004 Housing Act requires that you must protect a Tenants' Deposit and provide the tenant and any other person who paid the deposit Legal information.
Protecting a Tenant's deposit is not enough, you MUST also issue the Prescribed Information
If you fail to comply with the Legislation, the consequences are punitive three times the Deposit can be awarded to the Tenant in compensation. The Landlord must pay the Tenant within 14 days.
Contrived Deposits If you intend taking more than one months' rent in advance, please ensure this is not contrived to circumnavigate the deposit laws see rent in Advance- More Than One Month, account for these monies correctly.