subject: What Should I Know Before Entering Into Residential Tenancy Agreement? [print this page] Preamble Preamble
A residential tenancy agreement is made between the landlord and tenant to use the residential property by paying the rent. Housing legislation regulates the residential tenancy agreement. There are three types of residential tenancies. Such as:
The Assured Shorthold Tenancy (AST)
The Assured Tenancy
The Protected (Rent Act) Tenancy
What is the most common form of tenancy?
The most common form of residential tenancy is assured shorthold tenancy. You may have an assured shorthold tenancy agreement if:
your rented property is private;
your residential tenancy started on or after 15 January 1989;
the property is your main accommodation;
your landlord doesn't live in the property.
You are paying less than 100,000 per annum in rent.
Which tenancy is suitable to me?
All new tenancies are automatically assured shorthhold tenancies. Assured short hold tenancy ensures the landlord to regain the possession of the property by giving two month notice after the six month of the commencement of the tenancy.
However, the assured tenancy provides protection to the tenant. The tenant has the right to remain in the property unless the landlord has proven to the court that there are valid grounds for possession.Landlord cannot automatically gain the possession of the property after the end of assured tenancy. Assured tenancy agreement is used for properties let by a housing association or by a housing trust.
When the tenancy is not a shorthold tenancy?
A tenancy cannot be an assured shorthold tenancy agreement if:
it began - or was agreed - before 15 January 1989;
the rent is more than 100,000- this is then a bare contractual tenancy;
it is rent free;
the rent is less than 250 a year - or less than 1,000 in London;
it is a business tenancy or tenancy of licensed premises;
it is a holiday let;
the landlord is a local authority.
Is the Protected (Rent Act) Tenancy obsolete?
If a tenancy began before 15 January 1989, this type of tenancy agreement may be in place. A regulated tenancy offers the tenant the highest level of protection against eviction and increased rent.
Can the landlord charge a deposit?
Yes, the landlord can ask to pay a deposit before occupying the property as a security in case:
You leave the property owing rent;
To pay for damage;
To pay unpaid bills at the end of tenancy.
Since 6 April 2007, Landlord is required to protect the deposit for all assured shorthold tenancies in an approved scheme.
What must be included in the residential tenancy agreement?
Net Lawman provides the comprehensive residential tenancy agreement. The main features are:
Basic provisions common to all assured shorthold tenancy agreements
Guarantor: essential if tenant is not in full employment
Agent: should the landlord wish to appoint someone to act on his behalf
Rent: by default paid monthly in advance, but the terms can be changed
Deposit by tenant
Deposit Protection Details (provisions in line with the Deposit Protection Regulations)
Landlord's access: to view or show prospective lenders or buyers
Landlord's choice of 30 tenant's promises setting out what tenant can and cannot do
Includes sensible, practical provisions
Fair to both parties but drawn primarily to protect the interest of the landlord. It is for a tenant to challenge those paragraphs which may not suit his circumstances
Can I sublet the tenancy?
You cannot sublet the tenancy unless it allowed by the landlord or by the agreement. You can sublet the property if you have paid the premium of the property unless the tenancy agreement forbids you to do so.
Conclusion
The residential tenancy agreement can be oral or written. However, it is the legal obligation of the landlord to provide written terms of the tenancy within six month after the commencement of the tenancy. The written agreement is considered as primary evidence and it records the intentions of the both parties.
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