If you decide to compile your own tenancy agreement, it is vital that you include every vital detail to keep your investment safe and your tenants happy.
Fundamentally, your tenancy agreement outlines the contractual obligations between you and your tenant. Thus, it is important that your tenants understand what you expect from them and what they should expect from you.
Similarly to an inventory, the tenancy agreement can be used at the end of the term if any deposit disputes arise. It can be used as evidence if needs be.
What it should include
In basic form, a tenancy agreement should detail:
- How much the rent is.
- How and when the rent should be paid.
- Deposit protection information.
- How and when the rent will be reviewed.
- Landlord and tenant obligations.
- Bills that the tenant must pay.
- Rules on sub-letting.
- Any end of tenancy requirements.
- Notice periods.
You could also include whether the tenancy can be ended early and how the tenant would do this.
Additionally, you can add any other clauses that you believe are necessary.
It is also important to consider other factors, such as:
- Smoking in the property
- Garden maintenance.
Remember that any fees must be reasonable and justified.
You should always ensure that clauses in your tenancy agreement are fair to the tenant. The Office of Fair Trading states that a clause is not deemed fair simply because it is included in the agreement. If a dispute arises, each case will be reviewed independently.
If your letting agent creates a tenancy agreement on your behalf, you should check over it and add in any clauses that you believe are essential. Remember that it is your property and you have a right to keep it in a good condition and ensure that your tenant sticks to their responsibilities.