Tenancy agreement solicitors

What is a tenancy agreement?

A tenancy agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property. It specifies details such as the rent amount, duration of the tenancy, responsibilities for repairs, and the rights of both parties. This agreement ensures that both the landlord and tenant are clear on their obligations and protections under the law.

Types of tenancy agreements

There are several types of tenancy agreements in the UK, each suited to different rental situations. The most common is the Assured Shorthold Tenancy (AST), which offers landlords the right to regain possession after an initial fixed term, typically six months. Assured tenancies provide tenants with more security, allowing them to stay indefinitely unless the landlord can prove a reason for eviction. Excluded tenancies or licences, often used for lodgers, offer fewer protections and more flexibility, with landlords retaining significant control over the property. Each type has distinct legal implications, so it's crucial to choose the right one for your circumstances.

Assured shorthold tenancy agreements

Assured shorthold tenancies are one of the most common forms of letting arrangement for residential properties in England and Wales. Though not an exhaustive list, assured shorthold tenancies are not suitable in the following circumstances:

• If you will be living in the same property as your tenant
• If the rent is in excess of £25,000 per annum (for Wales) or £100,000 per annum (for England)
• If the property is not your tenant’s principal home
• If your tenant is not an individual. For example, if the tenant is a limited company or housing association

If you have any doubt that the proposed tenancy may not be an assured shorthold tenancy then we strongly advise that you speak to a member of our property department before proceeding further as there could be implications for you.

Assured tenancy agreements

An assured tenancy offers tenants greater security than an AST. Under an assured tenancy, tenants have the right to remain in the property indefinitely unless the landlord can provide a legitimate reason for eviction, such as rent arrears or breaches of the tenancy agreement.

Key features of assured tenancy:

• Security of tenure: Unlike ASTs, assured tenancies do not automatically end after a fixed term. Tenants can remain in the property as long as they adhere to the terms of the tenancy.
• Eviction: Landlords must have a valid ground for eviction under the Housing Act 1988, such as significant rent arrears or property damage, to terminate an assured tenancy.
• Rent control: Rent increases are more regulated under assured tenancies, and tenants can challenge unfair rent hikes through a rent assessment committee.
• Long-term stability: Assured tenancies are often used in the social housing sector, providing long-term stability for tenants.

Excluded tenancy or licence

Excluded tenancies or licences are typically used in situations where tenants share accommodation with their landlord, such as renting a room in a landlord’s home. These agreements offer less protection for tenants and provide landlords with greater flexibility.

Key features of excluded tenancy or licence:

• Notice period: Landlords can end an excluded tenancy or licence by giving "reasonable notice." What constitutes reasonable notice varies but is often based on the rent payment frequency (e.g., a week’s notice for weekly rent).
• Limited protection: Tenants under an excluded tenancy or licence do not have the same protections as those under ASTs or assured tenancies. For instance, the landlord does not need a court order to evict the tenant.
• Informal agreements: These arrangements are often less formal, and written agreements may not be required, although they are recommended for clarity.

Other types of tenancy agreements

In addition to the commonly known tenancy agreements, there are several other types that cater to specific rental situations. Understanding these can help you choose the best option for your circumstances.

Short-term tenancy agreement

A short-term tenancy agreement is typically used for rentals lasting less than six months. It offers flexibility but is less common due to limited legal protections for both landlords and tenants.

Periodic tenancy agreement

A periodic tenancy agreement occurs when a fixed-term tenancy ends but the tenant continues to occupy the property with the landlord’s consent. It rolls from one rental period to the next, such as month-to-month or week-to-week, without a new fixed term being set.

Rolling tenancy agreement

A rolling tenancy agreement is similar to a periodic tenancy, where the tenancy continues on a periodic basis after the fixed term ends. It can be terminated by either party with proper notice, offering flexibility.

Joint tenancy agreement

In a joint tenancy agreement, two or more tenants share equal responsibility for the entire rent and the property’s condition. All tenants have equal rights and obligations, and if one tenant leaves, the others may be liable for the full rent.

Regulated tenancy agreement

Regulated tenancies are rare today but offer significant protection to tenants who began renting before 15 January 1989. Tenants under this agreement have the right to remain in the property at a "fair rent," which is often below market value and controlled by a rent officer.

Choosing the right tenancy agreement is crucial for establishing clear expectations and legal protection in any rental arrangement. Whether you need the flexibility of a short-term or rolling tenancy, the security of an assured tenancy, or a specialised agreement like a regulated tenancy, understanding the nuances of each can help ensure a smooth rental experience.

Consulting with our solicitors is highly recommended to navigate these options effectively and ensure compliance with the law. Call us on 0161 696 6170.

Do I need a solicitor for a tenancy agreement?

While it's not legally required to have a solicitor for a tenancy agreement, their expertise ensures the contract is clear, legally compliant, and protects your interests. A solicitor can help avoid disputes by ensuring all terms are correctly drafted and understood by both parties.

Can I write my own tenancy agreement?

Yes, you can write your own tenancy agreement, but it's crucial to ensure it meets legal requirements and clearly outlines the rights and responsibilities of both landlord and tenant. Poorly drafted agreements can lead to disputes, so it's often advisable to have a solicitor review the document to ensure compliance and clarity.

How do I get a tenancy agreement drawn up?

To get a tenancy agreement drawn up, you can contact Stephensons. Our expert solicitors will work with you to draft a legally sound agreement tailored to your specific needs, ensuring it complies with all relevant laws and clearly outlines the rights and responsibilities of both parties. This will help you to avoid potential disputes and ensures a smooth rental process.

How long does a guarantor stay on a tenancy agreement?

A guarantor typically remains responsible for the tenancy agreement until the tenancy ends or until they are formally released from their obligations by the landlord, which usually occurs when the tenant has fulfilled all the terms of the tenancy. This includes the payment of rent and any outstanding amounts or damages. If the tenancy agreement is renewed or extended, the guarantor's liability may continue unless specified otherwise in the agreement.

No tenancy agreement how much notice?

If there is no formal tenancy agreement, the notice period typically depends on the type of tenancy and the rent payment frequency. For most periodic tenancies (rolling contracts), the notice period is usually equal to the rent period (e.g., one month if rent is paid monthly). However, legal advice is recommended to ensure compliance with specific circumstances.

I don't have a tenancy agreement what are my rights in the UK?

Even without a formal tenancy agreement, a tenant still has rights in the UK. A tenant is entitled to a safe and habitable living environment, protection from unfair eviction, and the right to reasonable notice before a landlord asks a tenant to leave.

As a landlord you must also respect a tenants right to live in the property undisturbed. For periodic tenancies, the notice period usually corresponds to the rental payment frequency, such as one month's notice if rent is paid monthly.