Letting a Property
The key to peace of mind
Letting a property may seem like an easy source of income, but it can also be a legal minefield. Disagreements between you the Landlord and your Tenants can quickly become a drain on your time and resources. The best way to avoid this is to take legal advice at the start.
King and Co Solicitors deal with all areas of Landlord and Tenant Law and can assist in settling disagreements. But prevention is better than cure. Before you look for a tenant, King & Co can help you decide what the terms of the tenancy will be and can build these terms into a written tenancy agreement to suit your needs.
Tenancy agreements
A tenancy agreement is a contract between a Landlord and a Tenant. This contract can be written or verbal. In England there is no law saying Landlords must provide a written tenancy agreement, but it is a good idea to have one. Otherwise, if you have a dispute with your tenant about the terms of the agreement, it is your word against theirs as to what was agreed.
The main advantage of a written tenancy agreement is that it sets out your rights and responsibilities as a landlord in a legally enforceable way. This helps keep disagreements to a minimum because each side knows where they stand.
There are several types of tenancy agreement. Of these, the two most common types for residential property are the "assured shorthold" tenancy and the "assured" tenancy.
Assured shorthold tenancy
This is normally for at least 6 months. The tenant has fewer rights to stay at the end of the tenancy period.
Assured tenancy
This is used mainly by housing associations and registered social landlords. It gives a tenant greater rights to stay at the end of the tenancy period.
Getting advice
Ideally, you should contact a Solicitor at King and Co as soon as you start thinking about letting your property. This will give you a clear idea of the terms to offer to any tenant you are considering.
King & Co can:
- explain the different types of tenancy agreement and identify the most suitable type for you;
- draw up or check a tenancy agreement for you;
- highlight the essential requirements and terms of your tenancy agreement;
- explain any related legal issues;
- explain the effect of the two Office of Fair Trading reports on tenancy agreements;
- warn you of any pitfalls, including advice on how to end an agreement; and
- give you advice on the type of tenant references to ask for.
Drawing up your agreement
Once you have instructed King and Co, we will explain you rights and responsibilities as a Landlord. You then have the opportunity to explain your specific needs and concerns. This will help King & Co to draw up a tenancy agreement that is tailor-made to your needs. During this process, your solicitor will cover the following issues with you:
Length and type of tenancy
What type of tenancy do you want? How many tenants will live in the property? Will the property need to be registered as a House in Multiple Occupation ("HMO")? What notice will you or your tenant need to give to end the tenancy? How long will the tenancy last?
Covenants
What covenants or restrictions do you want to place on your tenants about keeping pets or playing loud music? How far are you allowed to go without breaking the Office of Fair Trading guidelines on tenancy agreements?
Rent
How much can you charge? When must the tenant pay the rent? What penalties are there for paying late? When can you increase the rent? Are Council Tax and utilities to be included in the rent?
Deposits
What deposit must the tenant pay? Are you aware of the rules affecting deposits and the Deposit Protection Schemes? Is the property furnished? If so, will the agreement include a list of furnishings and fittings? When should you return the deposit and when can you keep it? What information do you need to give a tenant about a deposit you have taken?
Service charges and repairs
Will you provide any services such as laundry, maintenance or meals? Will you be makding separate service charges for these? What are you duties to make repairs?
Access
What are your rights to enter property?
Is it a good idea to give all these issues some thought before you visit King and Co, and to bring any documents which may be relevant.
Using the agreement
Once you ahve a tenancy agreement, make sure that both you and your tenant sign it at the start of the tenancy. You must give your tenant a copy of the agreement if they ask for it.
Related matters
King & Co can also give you some advice on the broader issues involved in being a landlord, such as income, capital gains and inheritance tax liability and what to do if the property you want to rent out is mortgaged.
Disagreements
If you have a disagreement with your tenants, there are several ways King and Co can help. Whether it's a simple case of checking your rights, or something more complicated such as adapting your tenancy agreement, negotiating a solution or even commencing Court proceedings using the Accelerated Possession Procedure, King and Co may be able to assist.