Important Top Tenancy Agreement Tips For Landlords
Although it can be a great way to gain an additional source of income, renting out a house – whether it is an investment property or your own home – can be more hassle than it’s worth sometimes. However, a lot of the stress and anguish caused by renting a property or home out to residents can be avoided if you plan things out properly and most importantly, have a comprehensive and well thought-out tenancy agreement.
This is the contract that protects you, your property and the money you make from your tenants; as well as protecting your tenants too. An effective tenancy agreement can make the world of difference and can prevent issues further down the line, such as tenants avoiding paying rent or not leaving when they are contractually obliged to.
In order to help you write up an effective and clear tenancy agreement, the list below will help you avoid the mistakes others have made in the past.
Make Sure You Use The Right Kind Of Tenancy Agreement
It is important to make sure that the type of tenancy agreement you use is the right one for the type of letting you are offering. If, for instance, you are letting rooms, or live in a self contained accommodation in the same building that you are letting or are letting to a limited company, you should make sure the tenancy agreement is applicable.
Make Sure The Tenancy Gives an English or Welsh Address for the Landlord
To ensure that your tenancy agreement falls in line with Section 48 of the Landlord and Tenant Act of 1987, it is important that the landlord address stated on the tenancy agreement is either in England or Wales. If it is listed as being in Scotland, your tenants do not have to pay rent, according to the mentioned regulations. If you are going to be living in Scotland during the rental period, use an agent’s address, to ensure you follow the guidelines.
Outline Full And Clear Details Of Who Is Expected To Pay What
It is crucial that you explicitly outline in as much detail as possible, the payments that are to be made by the tenant (such as the utility bills, council tax and water) and the payments that should be made by you, the landlord. There should be provisions outlined in the agreement if any of these payments are payable by the landlord so that rent is increased to ensure you are not out of pocket. If your tenants will be paying weekly, they should be given a rent book.
Is A Property Considered to Be Furnished If It Has White Goods?
This is another thing that many people misunderstand, but no; a property having white goods would still be being unfurnished. Whether a property is furnished or not, is determined by whether it comes with any pieces of furniture.
Take Care Not To Use Old Forms Of Tenancy Agreements
When choosing a suitable template for your tenancy agreement, be careful not to use an old form of one. If you are using an old tenancy agreement, be sure to check whether it needs to be altered to accommodate the Unfair Terms In Consumer Contracts Regulations, as a lot of clauses that were commonly used are now legally unenforceable and seen as unfair.
Always Prepare a Comprehensive Inventory For The Property
The Inventory is one of the most important parts of your tenancy agreement. You should be sure to give full details of the contents of the property and their detail. Before anyone agrees or signs anything, go through it with your potential tenants and make sure they agree to it before they start renting the property and when they leave the property. Even if you have an unfurnished property you should still include a thorough inventory featuring aspects such as light fittings, doors, walls, carpets and the condition of these things. You could find it impossible to justify and uphold any deductions from your tenants deposit, if there is any damages or issues, without a full inventory.
If you are looking to rent your property out, contact Newington Estates in London to see how they could help make the process easier for you.