Need of Drafting Tenancy Agreement For Letting Houses in UK

By: Cathrine Mckay


Drafting a tenancy agreement when letting houses in UK is not compulsory upon you. However, it is always better to write down the tenancy agreement. It is a legal document that creates rights and duties upon a landlord and tenant. None of the party can forego the terms of the agreement and the agreement is to be fully complied with. If there is default on part of any one, he has to follow the consequences thereof. Similarly, if any dispute arises in future relating to the tenancy, it will be easy to sort out the things in the light of tenancy agreement. In absence of such an agreement, any party may suffer relating to his rights and counter responsibilities.

The tenancy agreement for property to rent in UK must set out the duration of tenancy. The law does not set any number of months or days with regard to maximum and minimum duration of tenancy for letting house in UK. The tenancy agreement must clearly speak about whether the tenancy is for a fixed term or it is a periodic tenancy.

In a periodic tenancy no duration of time is fixed. It runs indefinitely on month to month basis. Although it is not common yet a periodic tenancy may run from week to week. In some tenancies the period is also set as quarterly or sometimes annually. Majority of the times, the landlords opt for monthly periodic tenancies. Sometimes, the periodic tenancies start to begin when the fixed term of the tenancy expires.

On the other hand, a fixed term tenancy sets outs the number of months or even weeks for which the tenancy will operate and sets the specific time for termination of tenancy. As it was said earlier that it is not compulsory to write down the tenancy agreement when letting property to rent in UK, however, when a fixed term of tenancy is set out to be three years or more, then it is obligatory to draft a tenancy agreement. If the agreement is silent about the tenure of tenancy, then it is presumed to be a periodic tenancy.

In the same way, licence to occupy houses in UK is also fixed or periodic licence. However, when there is an informal arrangement then a licence may also be flexible. The best example of informal arrangement is when you let some of your friend or relative to stay in a room of your house. For such an informal arrangement to be termed as licence to occupy, there must be rent paid by the occupant to you on regular basis.

You should also set the amount of rent payable by the tenant in the tenancy agreement. You may also set mode of payment of rent, for example whether it is payable to you directly or you have hired a letting agent for this purpose. Also set out whether the rent is payable weekly or monthly.

It is advised to consult the services of a lawyer for drafting the tenancy agreement. A lawyer has the up-to-date knowledge of the tenancy legislations and will advise you the best with his experience. He will clearly set out the responsibilities of each party and also let you understand if there is any ambiguity inyour mind with regard to your responsibilities as a landlord of property to rent in UK.

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Cathrine Mckay is a marketing officer for Greenlet, property lettings website in Edinburgh. If you want more information on Greenlet.co.uk,or Please visit us.

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