For England and Wales there are many landlords who working in private housing aren’t legally required to have written agreements in place and many leases are signed by verbal agreement.
However, a verbal lease agreement can be a risky one and has possibility of misinterpretation, which could cause difficulties (and cost-intensive expenses!) later on. That’s why we suggest every landlord to get a written tenancy contract which is signed by the tenant before moving in and even when renting to family members or friends.
There are many advantages of having a written agreement for tenancy:
It is easier to prove that what was agreed upon by the parties. Without a written contract, it is hard to establish what the parties had in mind at the time of signing. Writing down an agreement will prevent any future disputes. If there is a dispute the written agreement could aid in resolving the dispute quickly.
Both parties are aware of exactly what they are expected to do. A written tenancy usually contains conditions that prohibit subletting and requires tenants to inform their landlord in the earliest time possible of any repairs, spells out the amount of utilities to be paid to the tenant. It and require the tenant to maintain the property in good and orderly condition. It will clearly define how the tenant must give notice to give the landlord in order to end the tenancy. end.
A landlord must give the tenant an address within England and Wales where notices may be served to the tenant. If the notice isn’t provided to the tenant then rent is not considered to be due to tenants until landlord has complied with their obligation to give an address. Although a written lease does not require the address, it’s an easy way to prove that the address was provided and received by tenants.
Additional clauses may be added. For instance The Tenant Fees Act 2019 caps any interest owed on rent arrears to three percent over the Base Rate in England. For the landlord to claim interest for rent arrears it must have a clause in your UK tenancy agreement. Additionally, certain Tenancy agreements contain a provision that the tenant is responsible to reimburse the landlord for reasonable expenses that the landlord incurs as result of any violation of the agreement, or in connection with the possession process in court. Without this clause in a written lease, it is likely that landlords is able to recuperate their expenses.
It’s an opportunity to offer, and provide evidence of service of an Gas Safety Certificate, How to Rent: The Checklist of leasing from England, Energy Performance Certificate and Deposit Prescribed Information.
Some insurance companies may need a written tenancy contract to issue a policy for landlords.
Law in this sector is constantly changing and expert advice and guidance is required to make sure that landlords are secured and that the agreements are up to current with the laws. We’ve come across a variety of Tenancy agreements that actually created a worse situation for landlords since they didn’t consider consulting an attorney prior to drafting the agreements. This could be an expensive and stressful mistake in the event that things don’t go well with the tenant!
