Advice for landlords-check your agreements are compliant!
By |Published On: 6th April 2016|

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Advice for landlords-check your agreements are compliant!

By |Published On: 6th April 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Concerning new research from landlord insurance provider Direct Line for Business suggests that some landlords have no formal tenancy agreement with their tenants.

According to the firm’s investigation, 10% of landlords have no legally binding contract with their renters.


Data from the research shows that where contracts are place, landlords could be unknowingly asking tenants to sign forms that are not legally compliant. Of landlords who do not use a letting agent, 58% said that had used modified agreements for old agent contracts, other landlords (38%) or a template they found on the internet (20%).

Most commonly, the investigation found landlords utilise agents when they first rent out their property, but then use older contract templates when agreeing renewals. This lack of legally reviewed tenancy agreements could be an explanation why 13% of landlords said they have had difficulties with disputes coming from tenant’s rental contracts over the past two years.

More reason for concern was highlighted with the news that 9% of landlords admitted to not informing their tenants that their deposit had be held in a tenancy deposit scheme. This is a legal requirement and must be done within 30 days after a deposit has been taken. Alarmingly, 4% of landlords said they had not taken any deposits from their tenants!

Advice for landlords-check your agreements are compliant!

Advice for landlords-check your agreements are compliant!


Nick Breton, Head of Direct Line for Business, noted, ‘tenants and landlords need a contract in place to protect both their interests. Contracts, deposits and deposit protection all help to make clear what is expected from each party when renting a property and which can help minimise disputes where possible. If an old contract is adapted it may not comply with new legislation or be relevant for the current market. Given the volume of disputes arising from tenancy agreements it’s important to get the contract seen by a legal professional before it’s signed.’[1]

‘We understand that getting legal documents in place can be complicated which is why we’ve launched our new Legal Documents Service for landlords. Not only can this save landlords time and money, but creating the documents is both quick and easy and most importantly, they can be reviewed by a Solicitors Regulation Authority regulated law firm to ensure they are legally compliant. Based on our research of solicitor prices, it is estimated each landlord using the service would save over £2,503’ Breton added.[1]


About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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