Tenancy Agreements tips and traps. By Tessa Shepperson

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1 Tenancy Agreements tips and traps By Tessa Shepperson

2 Welcome! Tessa Shepperson BA, LLB Editor of the Landlord Law ( ) Specialist in residential landlord & tenant law Director Easy Law Training ( 2

3 If you would like a copy of this powerpoint Leave your address in the box or and ask for it 3

4 What this talk will cover: Why you need a tenancy agreement at all Types of tenancy Important issues, guidance and tips Further information / my services Landlord Law Conference 4

5 Why are they necessary? (1) They protect the landlords interests They prevent disputes later You can only use the accelerated possession procedure if there is one The tenant cannot be made to sign once he is in occupation 5

6 Why are they necessary? (2) To provide for rent to be payable in advance To include tenancy deposit clauses To give protection under the Right to Rent check regulations To include clauses allowing you to use HA1988Sch2 ground for possession 6

7 What type of tenancy agreement do you need? NB: 7

8 The different types of tenancy / occupation Assured Shorthold Tenancy Assured Tenancy Rent Act Tenancy Common law tenancy Company let Resident Landlord Rent over 100,000 pa, below 250 ( 1,000 in Greater London) (Licence) 8

9 What sort of letting is it? Let of whole house or flat Rent of a room in a shared house Common law resident landlord Common law company let Landlord pays the bills Pets allowed 9

10 Shared houses: Joint and several Less paperwork Joint and several liability Tenants names can go on the bills so L not liable Tenants like to choose who they live with But difficult if they want to leave at different times Room in a shared house Easier where tenants stay for different times Can be more lucrative Tenants cannot prevent you going into the common areas But bills / Council tax have to be in your name NOT normally licenses Will NOT affect whether the tenancy is an HMO or not 10

11 The Changing Tenants Kit 11

12 Important issues 12

13 The term: Fixed or periodic terms No longer needs to be 6 mths Can only evict during the fixed term for bad tenant grounds So don t give new tenants long fixed terms Tenant liable for rent during the fixed term Break clauses Over 7 yrs needs Land Registry regn & no repairing obligations 13

14 Rent Monthly or weekly rent will govern the period of statutory periodic tenancies Weekly tenants must be given a rent book Can only increase during the term via a rent review clause Periodic tenancy increases s13 notice 14

15 Tenancy Deposits Deposit must be registered in an authorised TDP scheme, but TDPSs do not apply to common law tenancies, licenses or lodgers Need also to serve Prescribed Info notice (all the info) Failure to protect and serve PI means: Can t use s21 Tenant can apply for penalty 15

16 The Deposit Error Repair Kit 16

17 Further tips 17

18 Guarantors Do the same checks as you do on the tenant! Separate deed or incorporated into the tenancy agreement Don t give to tenants to arrange signature they may forge it! A new deed will be needed: When a new tenancy is signed If the terms (eg rent) are changed Best as well as not instead of a deposit 18

19 Inventory/schedule of condition ESSENTIAL if you take a deposit Make it as detailed as possible walls, doors etc as well as contents. Consider photos (but must be clear), video, phone apps Should be checked over with tenants when they go in and when they go out Fair wear and tear Consider using a inventory clerk 19

20 Practical notes Do not hand over the keys until: All forms have been signed (& you have the originals) The first months rent and deposit payments have cleared (HB tenants) you have a signed letter of authority Remember to serve TDPS notice, gas certificate, EPC, How to Rent booklet, etc 20

21 Renewals No need to sign a new tenancy can run on as a periodic Or can use a renewal form (if you are happy with your tenancy) Tenants who stay on after the fixed term ends are NOT squatters! 21

22 My services and further information 22

23 Landlord Law Conference 19 May 2017 Sprowston Manor just outside Norwich 23

24 Tenancy agreements - the Landlord Law service: Over 22+ plain English style tenancy agreement templates Also renewal form, inventory, deed of guarantee, TDPS notice, etc Can customise via our document generator system Which tenancy guide 24

25 My Landlord Law membership site: Subscription service ( 20 pm/ 180 pa) Online information (articles, FAQ, tips) Tenancy agreements, possession notices and other forms Rent Arrears Action Plan & trails Members discussion forum Q&A, Regular newsletter (free) 25

26 Further information Landlord-Law Landlord Law Blog uk Your Law Store Other useful websites:

27 That s all folks!

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