Introduction
- The Assured Shorthold Tenancy Agreement protects you, the
landlord, and the tenant�s statutory rights. Its most important feature is
that it provides mechanisms for you to evict the tenant (following a
breach or completion of the agreed term and proper legal notices have been
served) should the tenant refuse to leave. The contract term must be for a
�fixed period� of a minimum of six months, with a two-month period of
notice required to regain possession of the property by the landlord. This
six-month term, provides the tenant with a security of tenure. The tenancy
agreement cannot permit you to terminate the tenancy early except for
non-payment of rent or other breach of contractual agreement.
Possession
- You will be entitled to regain possession of the property at the end of
the fixed term. When the agreement reaches the end of fixed term, the
replacement tenancy automatically reverts to short hold terms unless
otherwise agreed by you and the tenant. Therefore, an assured or short
hold tenancy may either classed as a fixed term tenancy or a contractual
periodic tenancy (running from one period to the next).
Personalise Your AST - It is important to personalise your own
AST to ensure it protects your interests. It is highly advisable to have
your solicitor or letting agent amend your or even produce the AST as it
may well need to contain additional clauses specific for the property,
local area or to ensure recent updates in the law are incorporated. The
AST is generic and so you should make some proactive decisions about how
you are going to customize it (before you give it to your tenant to sign).
In particular, you should add clauses regarding allowing or disallowing
pets, children, restricting access to loft or shed, smoking, access by you
(your contractors) for building repair work, allowing viewings for future
tenants near the end of the term etc. If you do not think about what
clauses to add now, it will be too late to change the contract once it
commences
Fair Terms
- your
additional clauses must be fair. The Unfair Terms in Consumer Contracts
Regulations 1999 means you or your agent must deal fairly and equitably
with your tenant(s), respecting their legitimate interests and dealing
with them in good faith. Tenants are not bound by a standard term in a
contract with a landlord if that term is unfair. The exceptions to this
are price-setting terms, details of the property and length of the
tenancy. Make sure you final tenancy agreement complies with these
regulations and is simple to understand and jargon free.
Stamp Duty
- if
you are not using an agent, make sure your tenancy agreement is sent away
to the Stamp Office with your stamp duty (usually the minor sum of �5), so
that it is legally valid, if needed in court at any future date! If your
expected rent is approximately less than �5,000 you will not have to
submit the duty � if it is more you must submit your duty. For
instructions on how to do this, visit http://www.inlandrevenue.gov.uk/so/so8.htm
that�s provides instructions on what to do or ring their helpline on 0845
603 0135.
Other Clauses
- with the AST, you will be
entitled to increase the rent periodically with the addition of a clause
in your AST. If you are letting to sharers, you need to make sure a clause
is added making each individual jointly named and responsible for the
rental commitment (a �joint tenancy�). If one person leaves, for whatever
reason, the remaining sharers are responsible for all of the rent....
Tenancy Deposit
Scheme (TDS) - from the 6th April 2007 tenancy deposits
retained by landlords in England and Wales should be protected by that
tenancy deposits scheme. The
www.housing-ombudsman.org.uk from here is the main body
appointed by the Housing Act 2004 to oversee the scheme.
The purpose of tenancy deposits used by is
to pay for any damage caused by the tenant. This new scheme will make it
mandatory for police deposits to be held independently so that in the
event of a dispute between that and landlord and their tenant, those
tenants can be confident no monies will be withheld. The deposit
protection service will allow letting agents and landlords to enter the
deposit. All interest generated from this service will pay for this
service. The aim of there scheme are to provide good process in the event
of a dispute bands to encourage landlords to use in of inventories and
clear tenancy agreements.
It is probable that most landlords may not
be aware of the existence of the best gain or just will not use it. This
is because that is a perception that there scheme will be expensive and
administratively slow. Some landlords might just give up the deposits be
entirely and rely more heavily on tighter tenancy agreements. In addition,
a better use of credit checking may become a simpler and cheaper option.
