Why you need a property inventory

Lawpack on March 27, 2020

It is frustrating for a landlord to be left covering the cost of damages or loss made to their property during their tenants’ residency.

Floors can be scuffed, carpets stained and doors unnecessarily snapped from their hinges, as well as basic furnishings disappearing, among many other inventory issues.

But when it comes to returning a tenant’s deposit, it is not as simple as taking the required fee from the sum. The landlord must be able to prove to both a court and a tenant that damage or loss has been suffered.

Conversely, it also covers the tenant from being penalised for damages that were already in place before they took up their residency, and thus, ensures landlords do not miss sufficient damage caused by a former tenant.

‘Sufficient damage’ refers to damage that is caused unfairly, and is opposed to Fair Wear and Tear. This is, as the House of Lords described it, ‘reasonable use of the premises by the tenant and the ordinary operation of natural forces’.

This is a contentious area because wear and tear can be a subjective matter. However, a detailed property inventory, perhaps composed by an experienced inventory clerk, should ensure appropriate standards of wear and tear are defined.

Landlords are subject to the Tenancy Deposit Scheme (TDS) and must place their tenant’s deposit into either a Custodial or Insurance scheme run by an independent provider.

Discrepancies arise when there is a dispute regarding the return of the deposit, often to do with issues surrounding property damage.

A detailed property inventory form must then be produced to prove exactly what damage was caused by the tenant, based on the condition of the premises prior to their arrival.

A property inventory is a legally binding document that provides an accurate in-depth review of the conditions and contents of a property at the start of a tenancy.

It is not enough to list an array of items the property is equipped with, nor is it sufficient to simply say where a scratch or crack lies.

The property inventory is part of the tenancy agreement between the landlord and the tenant, and as such, all defects must be carefully noted in the inventory to ensure that the landlord can prove a tenant caused harm to the property, which subsequently led to refurbishment, repair and/or cleaning costs.

A detailed account of a property will include the condition of fixtures, fittings and decorations, including walls, carpets and equipment.

It will also feature a full list of furniture and accessories, as well as an overview of the garden and outdoor vicinities.

It is less likely that areas like lofts and cellars will need to be covered, unless expressly requested.

There are a variety of reasons why a landlord should at the very least, make their way through a property inventory template.

However, it is most advisable they invest in a property inventory that could save them a lot of unnecessary, and often unfair, expenses.

The greatest reason for this is the fact that it gives landlords a level of security when claiming a fee from a tenant’s deposit.

It also ensures tenants are not held responsible for loss or damage they did not cause, which helps promote a healthy relationship between them and the landlord.

A detailed inventory will help speed up negotiations regarding deposits, and makes the process easier.

Lastly, a property inventory will ensure tenants realise the landlord values their property and takes offences against it seriously. This should go towards encouraging them to take greater care of their accommodation.

Landlords interested in making an inventory should consider downloading Lawpack’s solicitor-approved Property Inventory template.

Other information

How to vet your prospective tenants

Lawpack on March 27, 2020

You’re a landlord who is letting out your investment property. Who is your ideal tenant?

Here are the qualities you should be looking for in the ideal tenant. They should:

  • not smoke, and be professional, well mannered and well presented;
  • pay the rent on time, not bother their landlord very often, and never complain;
  • never have noisy parties, never bother their neighbours, never sublet, and generally not be any trouble to their landlord.

But the most important quality in a tenant is that they are HONEST. Landlords who have honest tenants can manage their investment property effectively and simply, as an honest tenant usually pays their rent on time, communicates well, and resolves any problems concerning the tenancy efficiently.

But how can landlords spot an honest tenant? You may think that you can trust your instincts when you meet a tenant for the first time, but there are some very plausible tenants who make a profession from ‘scamming’ landlords. These tenants are usually polite, well presented and have good jobs, but once they’ve signed the tenancy agreement, they can make a landlord’s life hell!

If you’re thinking of trusting an ‘honest face’, note that research undertaken by the Residential Landlords Association has shown that where no tenant checks are undertaken; landlords are seven times as likely to end up taking court proceedings.

Make sure that you’re not duped by these tenants, by following our five essential steps to tenant checking:

1. Credit referencing

A tenant referencing agency carries out checks on a prospective tenant’s credit worthiness and verifies the tenant’s personal details. These agencies offer various levels of service, but landlords should at least opt for the basic package which will check the following:

  • Electoral Roll to check out the tenant’s current and previous address
  • County Court Judgments (CCJ), bankruptcy and any court-based voluntary financial arrangements to find out whether the tenant has a poor credit history
  • An affordability check to make sure that the tenant can afford the rent on their stated income
  • Validate the tenant’s bank sort code and address to make sure that it’s legitimate
  • Check the details that the tenant has given the tenant referencing agency against any relevant stored data

The most important information a tenant referencing agency gathers is whether the tenant has a County Court Judgment (CCJ). If the tenant has a County Court Judgment (CCJ), this isn’t good news as it means that a creditor has previously taken the prospective tenant to court because of their non-payment of debts. If you find out, during the tenant checks, that the tenant has a number of County Court Judgments (CCJs) against them, DON’T let them sign a tenancy agreement.

Often the tenant reference agency will provide the landlord with a score of the tenants’ suitability as a tenant and it may suggest to the landlord a course of action. If the tenant gets a really low score, it may be due to the fact that the tenant has:

  • never used a credit card or borrowed money
  • no fixed address and/or they are not listed on the Electoral Roll
  • lived at their current address for a period of less than six months
  • been in employment for less than six months
  • been, or is, a student, or has a low income
  • a history of debts, late payments or Count Court Judgments (CCJs)

The tenant referencing agency’s scores should be used as guidance, but landlords shouldn’t read them too literally. For example, students will have a bad record as they move around frequently and they have a limited credit history. If this is the case, you can use a guarantor if you want to let out your investment property to students.

The tenant verification process should also involve an identification check to prevent ID fraud. Ask your prospective tenant to show you their passport to prove their identity.

2. An employer’s reference

With tenant referencing landlords can find out whether a prospective tenant is in permanent or temporary employment. If the tenant’s contract is about to expire, can they pay rent in the future?

What is the tenant’s salary? Landlords can use an employment reference to find out if the tenant can afford to pay the rent and, as a guide, you can calculate the tenants’ affordability of the rent in respect to their income by multiplying the monthly rent by 30. This will give you a rough indication of what the tenant’s minimum salary should be to be able to pay the rent. For example, a landlord wants to charge a monthly rent of £1,000. Multiply this by 30 and it equals £30,000. If the prospective tenant’s salary is £20,000, how is the tenant going to afford the rent without receiving benefits or sub-letting the investment property?

3. A bank reference

Landlords will find these tenant references to be the most difficult and time consuming to obtain, as they need written authorisation from the prospective tenant to allow the bank to respond. The bank will then charge a fee for their services and, even then, the bank will probably respond with a non-committal answer (e.g. ‘We see no reason why the tenant will not be able the meet the rent’). As the tenant could easily delve into their huge overdraft to pay the rent, a bank reference is probably not worth the bother.

If you can and the tenant is willing to give them to you, it may be wise to ask the tenant to provide you with copies of their last six months’ bank statements. These will show you the tenant’s monthly outgoings and they will flag up any worrying habits, such as a gambling addiction.

4. A landlord’s reference

If your prospective tenant is currently in rented accommodation, obtain a reference from their current landlord. Ask the following questions:

  • How long has the landlord had them as a tenant?
  • What rent do they pay?
  • Did they pay the rent promptly and in full each month?
  • Did they ever get into, or are presently in, rent arrears?
  • Have they cared for the investment property and its contents?
  • Would the current landlord accept them as a tenant again?

To prevent a prospective tenant from falsifying their landlord’s reference, you could always check it by ringing the current landlord up to verify the details.

Also, remember that a current landlord may give a glowing reference just to get rid of a bad tenant, so it may be wise to check with the tenant’s landlord before the current landlord as they will have nothing to hide. Also, you can check the tenant’s bank statements to make sure that the rent is being paid each month.

Bear in mind, too, that letting agents are on a ‘finder’s fee’, so they may not be as thorough in their reference checks.

If your prospective tenant has not rented before and is a homeowner who has decided to sell their property and rent, you obviously won’t be able to get a landlord’s reference. In this case a landlord should ask for copies of the tenant’s last six months’ mortgage statements to check that they were not behind with their mortgage payment. If the tenant refuses, has the tenant got something to hide?

5. The tenants’ personal reference

As with the landlord’s reference, a personal reference is very subjective. So, again, don’t worry too much about it.

Related Link:

Letting to students: choosing a house share agreement

Lawpack on March 27, 2020

When deciding to let out accommodation to students it is important for landlords to decide on what sort of tenancy agreement to use.

The main choice landlords have is between joint or single shared tenancies, the benefits of which are subjective depending on your preferences and priorities.

In a joint tenancy, tenants have full access to all of the accommodation’s amenities with no one holding exclusive rights to a particular area. Tenants agree among themselves who will get which bedroom and one agreement is used to encompass all occupants.

With a tenancy agreement for a room, on the other hand, rooms are let out individually with tenants holding joint access to communal areas only. They hold exclusive rights to one room.

Under the Housing Act 2004, landlords should also familiarise themselves with the conditions of letting a House in Multiple Occupation (HMO).

The benefits of a joint tenancy

Joint tenancies are generally ideal for groups of people who already know each other and have a loyalty to one another.

This typically prevents one occupant from leaving the accommodation unannounced, placing pressure on its existing occupants to cover their fees and can make life easier for landlords as a result.

The benefit for landlords is that tenants are jointly responsible for all costs and must come to an agreement about how to deal with these themselves.

They also carry a lot or responsibility because if one or all of the them cause a loss to the landlord, perhaps by vacating without notice, the landlord can demand total arrears from any one of the occupants. This prevents the landlord from having to track down each individual.

Although students are exempt from council tax, it is worth landlords noting that under an Assured Shorthold Tenancy (AST), any other residing occupants are required to pay council tax directly to the local authority.

Under an AST, they will also be jointly responsible for paying utility bills directly to their providers.

If a tenant decides to leave, it is the obligation of the remaining tenants to ensure their rent is paid. In most cases, they will find a new tenant, but again, this is their responsibility and not that of the landlords.

If a new occupant is brought in, they must be signed up to a new joint tenancy agreement for the remainder of the term or start a new term.

When an occupant leaves, the matter of the deposit is another issue. The newcomer can pay their deposit to the leaver, allowing the landlord to keep hold of the original deposit.

Furthermore, under the custodial tenancy deposit scheme, landlords can choose whether to hold the deposit as one lump sum or break it down into individual payments for each tenant.

The benefits of a tenancy agreement for a room

Individual tenancies with shared facilities enable occupants to come and go as they please in either short or long-term tenancies.

The benefits of landlords issuing a tenancy agreement for a room to individual tenants is that the landlords then have the right to inspect communal areas without prior notice, whereas they do not have the right to ‘drop in’ unannounced on a joint tenancy household.

In most instances, the landlord is also able to charge higher rates of rent.

One of the minor problems with a tenancy agreement for a room is compatibility among residents. Because they are effectively strangers coming together with no prior friendship, they could clash or fail to make compromises for one another.

This clash could result in a poor occupant driving more reliable residents from the accommodation, which is often a disappointment for landlords.

Moreover, tenants are not jointly responsible for bills, meaning landlords risk picking up the costs of amenities if occupants turn out to be unreliable. However, the property owner can counteract this threat by including bill payments in the rent sum.

This outline is meant as a guideline only for landlords and is not an exhaustive list of the conditions of joint and individual agreements.

Download Lawpack’s tenancy agreement for a room, an agreement for an individual tenancy, approved by Anthony Gold Solicitors.

Boost your income by renting out a parking space

Lawpack on March 27, 2020

Need extra cash during these hard times? Then renting out your parking space can be a great way of boosting your income.

If parking is difficult where you live, you can earn around £100 a month – and can even reach as much as £250 per month in the capital – for renting out a parking space.

The rental of parking spaces has boomed in the last few years. Since the introduction of the congestion charge the demand for parking spaces in London, in particular, has increased.

But it’s not only London where the demand is. With the enforcement of stricter parking restrictions, more and more people are looking for parking places.

But how do you go about renting out a parking space?  Find out more on how to advertise your parking space rental and what you can earn.

Can I rent out my parking space?

Yes, as long as the parking space is owned by you and not by a landlord or third party.

Remember that it doesn’t have to be a driveway. Renting out a parking space in underground parking in a block of flats is also very popular.

If I rent out my driveway, can I ever use it myself?

If you rent out one parking space on your driveway, you can, of course, still use the other. You could also rent out the parking space for a set amount of time (e.g. office hours) so you can use it at other times.

How much is my parking space worth?

The rental income you will get will depend, of course, on where you live and how much people are prepared to pay. London is always popular and most desirable in terms of rent.

The price will depend on various factors and how desirable the space is. This involves whether it’s close to a town centre or to transport links, such as train stations or major roads.

If your parking space is covered and secure, people with more expensive cars, or with vans full of expensive equipment, will find it more desirable.

If your area has parking permits, which are usually for residents in the area, then businesses may also be keen to get their hands on your parking space as permits may be scarce.

The average price is £100 per calendar month, but in London you can earn up to £250 per calendar month.

Where can I advertise my parking space?

There are various websites where you can advertise your parking space. These include:

These websites will give you a good estimate of how much your parking space is worth based on your postcode and they will put you in touch with potential customers. You can then meet them and come to an agreement.

Do I need a contract?

Yes. It’s wise to use a Parking Space Let Agreement to get the rental agreement in writing.

The agreement should specify how long the tenant is going to rent the space, between what hours and for how much. It should also provide a notice period. Lawpack’s Parking Space Let Agreement includes all these terms.

Both parties should sign the agreement.

Do remember that the income you get is taxable.

Are there any disadvantages to renting out a parking space?

If you rent out a parking space, you obviously must make sure that the space is available when the tenant needs it and that no-one is in the space at that time.

To do this you may have to put up notices to say that unauthorised vehicles will be removed or you may need to put up a parking post.

If the renting of your parking space ends up not working well, then you can always terminate it. Lawpack’s Parking Space Let Agreement includes a clause for you to provide a notice period to the renter of your parking space.

Why a written tenancy agreement is necessary

Lawpack on March 27, 2020

Having a tenancy agreement is vital for any landlord. It’s so important to get the tenancy in writing as it protects your property, sets out your obligations and that of your tenant’s, plus it prevents potential disputes between you and your tenant in the future.

Although there is no legal requirement for you to create an assured shorthold tenancy (AST) in England and Wales, all landlords should ensure that their tenants have signed a written tenancy agreement prior to letting them into the rental property.

But in Scotland all landlords must have a written tenancy agreement for the tenancy to be a provate residential tenancy (PRT).

The disadvantages of not getting it in writing 
  • If you make arrangements informally with your tenant, there may be arguments later about the tenancy terms, even if these were clearly discussed when the tenant moved into the property.
  • Once a tenant is in occupation, you cannot then force them to sign an agreement that varies the terms of their tenancy, so it’s essential that this is done before the tenant goes in.
  • You will not be able to use the accelerated possession procedure to evict the tenant, where there is no written agreement.

The advantages of getting it in writing 

  • A formal agreement protects your position and regulates the tenant’s use of the property.
  • If you intend to take a damage deposit, which has to be protected under one of the statutory tenancy deposit schemes, you will need to make an agreement.
  • If no written tenancy agreement is provided, you’re required, by law, to provide the tenant with written details of the main terms of their tenancy within six months; so you may as well provide a proper written agreement to begin with.
  • Housing Benefit offices require tenants claiming benefit to produce a signed tenancy agreement.
Lettings not needing an agreement

Although all tenancies should have a formal written agreement, licences don’t always need them. For example, written agreements are not necessary in the following circumstances:

  • Letting a room in your house to lodgers. However, we still do advise you to get it in writing with a Lodger Agreement.
  • Bed-and-breakfast accommodation.

But even if a formal tenancy agreement isn’t provided in these circumstances, there should always be some paperwork to prove the terms of the letting, in case there is a dispute at a later date.

More information

Landlords: why you can’t disturb your tenants

Lawpack on March 27, 2020

Every tenancy agreement contains what is called the ‘covenant of quiet enjoyment’. This doesn’t just mean that tenants are entitled to a noise-free environment, but that they have the right to live in the property undisturbed.

This means that not only do they have the right not to face eviction, but also that you, as the landlord, should respect their rights and not do anything that will adversely affect their occupation of the property.

The covenant of quiet enjoyment is most commonly invoked to protect tenants whose landlord is trying to ‘persuade’ them to leave, perhaps because they are in rent arrears or because they want the property back for their own use, but they are reluctant to go to court for an eviction notice.

For example, such landlords may constantly visit the property, shout threats at the tenant, and interrupt the gas and electricity supply. This sort of behaviour is illegal and can attract both a criminal charge and make the landlord liable for civil proceedings for an injunction and/or damages.

But the covenant for quiet enjoyment can also apply to other matters. For example, it can cover your failure to comply with tenancy law by not repairing the property

It’s important that you keep the property in proper repair, and that you don’t intrude on the tenant’s privacy. These may conflict, as clearly you will have to go to the property from time to time to carry out your inspections and repairing obligations.

Some tenants may object to this and call it harassment (particularly if they are in rent arrears). If there is a problem of this nature or is likely to be, then you should take care to only visit the property by appointment or by the invitation of the tenant.

You should never use your keys to enter the property without the tenants’ knowledge or permission, other than in cases of genuine emergency.

If the tenant objects to you attending to do inspections or carry out repairs, then you cannot enter the property. This situation is rare, however, and if it occurs, then you should consider whether you should bring proceedings for eviction.

Note that if the tenant’s failure to allow access for repairs is causing the property to deteriorate, this may in itself be a ground for possession. But this should only be used if the deterioration is very serious and urgent remedial work is needed.

If you treat your tenant with respect and comply with your obligations under tenancy law, you will be protecting yourself from any potential claims from your tenants. You will also find it easier to enforce your own rights against the tenant, should this be necessary.

Although a covenant of quiet enjoyment is not implied into licence agreements, licensees have the right to use the property for the purpose for which occupation was granted, which gives them a certain amount of similar protection for the duration of the licence agreement.

When landlords need a rent book

Lawpack on March 27, 2020

Rent is the money which a tenant pays the landlord in exchange for their right to occupy the property.

In England & Wales and Northern Ireland the payment of rent isn’t absolutely needed to create a tenancy, but in Scotland it’s vital.

For lodgers the money paid isn’t rent but is simply a licence fee as lodgers don’t have tenancies.

Homeowners should be careful not to describe money paid as rent if they’re not creating a tenancy as it causes confusion and may give the occupier more rights than they intend, but you cannot avoid creating a tenancy by falsely describing a rent payment as something else.

Providing a rent book to a non-tenant will not in itself be enough to allow the tenant to assert that they are paying money as rent despite its title.

The requirement for a rent book

It’s compulsory for all landlords in Northern Ireland to provide a rent book for all tenancies and landlords commit a criminal offence if they fail to do so.

The offence is committed every time the rent is demanded and every 14 days during the tenancy in any case, so landlords who don’t provide one can find themselves being prosecuted for multiple counts of failing to provide the document.

Each carries a substantial fine.

In England & Wales and Scotland a rent book is only required:

  1. where the rent is described in the tenancy agreement as being paid weekly; or
  2. where the rent is actually paid weekly by agreement irrespective of the wording of the agreement.

Where rent is being demanded or paid weekly, it’s a criminal offence to fail to provide a rent book.

Keeping it up to date

Where a rent book is required to be provided it’s also an obligation that it’s kept reasonably up to date.

The purpose of one is to provide a receipt for payments for the tenant and a log of rent paid for the landlord.

Therefore it’s useless to have such a book and then allow it to become hopelessly outdated.

Rent in advance or arrears?

Where payment is due it falls due on the morning of the day stated in the agreement, but the tenant has the whole of that day (until midnight) to make payment.

Where it is stated in the tenancy agreement that rent is payable in advance (such as in Lawpack’s agreements), the tenant will be deemed to be in arrears for the whole period that they are obliged to make payment for once that payment is outstanding.

So if a tenant is supposed to make a payment on the first day of each month in advance for the coming month the tenant will be one month in arrears if they don’t make payment on that day.

Where rent is payable in advance there is no requirement in law that the payment be apportioned and this is only required if the tenancy agreement allows for it.

So if a tenant makes advance payment for a full month and then departs the property part way through the month (even if they do so with the landlord’s agreement), then the landlord is under no obligation to refund the money for the unused portion of that month (even if they relet the property) unless they have specifically agreed to do so.

How to make a property inventory

Lawpack on March 27, 2020

Landlords – protect your property and avoid complications at the end of the tenancy by making sure that your tenant completes a property inventory when the tenancy starts.

One of the most common ‘flashpoints’ between landlord and tenant is arguments about the condition of the property and its contents, and deductions from the damage deposit. Most of these arguments can be prevented by drawing up a detailed property inventory.

Since the introduction of the Tenancy Deposit Scheme too, landlords who want to claim money from their tenants’ deposits now have to prove that damage has been caused. So if you’re a landlord and you don’t keep an accurate inventory, you’ll find it difficult to justify deductions to a tenant’s deposit.

Here is our quick guide to how you can protect your property, your contents and your pocket!

1. Go through the house room by room.

Note on the property inventory all of the contents in each room. Even if you’re letting a property unfurnished, it’s a good idea to have a inventory to record the condition of the walls and carpets, etc., in case of future dispute.

For example, if there is a stain on the carpet or rug before the tenancy starts, include it in the property inventory. Then the tenant cannot be blamed for it at the end of the tenancy and there won’t be a dispute over the tenant’s damage deposit.

2. Check the property inventory form with the tenant.

The property inventory should be prepared in duplicate and then checked with the tenant before they move into the property. The landlord and tenant should each sign of the inventory forms at the foot of every page.

3. Note down any changes to the property inventory.

Any alterations made at that time should be marked on both copies so that they are identical. One of the signed copies of the property inventory should be attached to the tenant’s tenancy agreement and given to the tenant, and the other attached to the landlord’s tenancy agreement and kept safely.

4. Go through the property inventory form at the end of the tenancy.

When the tenant is about to leave, you (or your letting agent) should meet them at the property and go through the inventory with them again, room by room. If some contents are missing or damaged, it’s often possible to sort out how much should be deducted from the damage deposit there and then.

Download and complete an inventory form now, with our Property Inventory eKit. It lists all of the contents of a property, so you don’t have to remember every item, and includes instructions on how to correctly perform a ‘check-in’ and ‘check-out’, as well as guidance on how to calculate damage costs.

Top tips on letting for first-time landlords

Lawpack on March 27, 2020

As the housing market slows, more and more people are being driven to rent property and rents are reaching record highs. Many people are also becoming landlords for the first time as they can’t sell their property and decide to rent it out instead.

Demand for rental property has never been so high and it’s a great time to generate extra income as a landlord.

But what are your obligations as a landlord and how do you get ready for tenants? Here are our top tips on what you need to think about when renting out a property and what you need to do to protect yourself, your property and maximise your rental income.

1. Preparation

Before potential tenants view the property, make sure that it’s clean and that you have finished any DIY. Will you let the property out as furnished or unfurnished? Remember that if you’re providing ‘contents’, then you need wider insurance cover.

2. Health and safety

It’s vital that you comply with fire, gas, electric and furniture regulations. These obligations are discussed in detail in our book The Complete Guide to Residential Letting, written by a solicitor specialising in landlord and tenant law.

You must make regular safety checks and keep records to protect your tenants. Safety checks also help to ensure that your insurance is valid.

3. Using a letting agent

Letting agents are useful if you don’t have time to manage your rental property, but they take between 8-15% of the rental income profit. Although they help you to find tenants, do still get involved with the tenant interviews as it’s important that you’re comfortable with the person moving in. Also, do make sure that you’re getting the most competitive deal from your letting agent.

4. Finding tenants

If you’re letting out the property without using a letting agent, then you need to reference the tenants yourself. Websites, such as Rentcheck’s Tenant Checking Service, can do it for you at a fixed price. It’s vital for you to find out if your tenant is able to pay the rent with a credit check.

5. Know landlord and tenant rights

When renting out a property it’s important that you know your obligations as a landlord. If you want to enter the tenant’s home, for example, then you must give the tenant at least 24 hours’ notice. Lawpack’s Landlord’s Letters provides you with all the template letters you need to help you easily liaise with your tenant.

6. Draw up a tenancy agreement

A tenancy agreement is a great way of protecting your rights and the property. Lawpack’s tenancy agreements are all solicitor-approved and include a long list of terms and conditions, which outline, among others, whose responsibility it is to upkeep the property. A tenancy agreement outlines in writing how long the tenancy will last and the notice period needed to evict the tenant.

Find out more on the dangers of not making a tenancy agreement.

7. Take a deposit

Getting a deposit is a good way of protecting against any damage and all landlords must register a tenant’s deposit with an approved Tenancy Deposit Protection (TDP) scheme. It’s usual for the deposit to be 4-6 weeks’ rent.

8. Make a property inventory

Making a detailed and accurate property inventory is vital if you want to protect your rental property, particularly if it’s furnished. A property inventory proves how the property looked and what was provided the day the tenant moved in and is proof of evidence should there be a dispute over the deposit or any damage to the property.

9. Get insurance

It’s important that you get landlord insurance cover, as most standard house insurance policies don’t provide the level of protection landlords need. A good insurance policy should cover professional tenants, students and DSS tenants, loss of rent, unoccupied periods, alternative accommodation, tracing and accessing leaks, accidental damage, legal expenses and liabilities, plus rent protection.

10. Create an Energy Performance Certificate

By law landlords need an Energy Performance Certificate, detailing the energy efficiency of the property, in order to let or sell it.

10. Eviction

If your tenants are becoming a nuisance and you need them to leave, then you need proof that the tenants have broken the terms of their tenancy agreement. If the tenants are in rent arrears you can start eviction proceedings with Lawpack’s Section 8 Notice.

Find out more on the eviction process with Lawpack’s Tenant Eviction Kit.

More information

Which tenancy agreement do I need?

Lawpack on March 27, 2020

You’ve got your rental property and found your tenant – all you need to do is get them to sign a tenancy agreement. But which one do you need.

If you’re a landlord who thinks tenancy agreements are unnecessary, think again! A tenancy agreement is vital as it sets out the rights and obligations between you and your tenant and, as a result, protects your property and your finances. But you must use the correct tenancy agreement for the right type of tenancy concerned.

Lawpack has a wide range of tenancy agreements, including assured shorthold tenancy agreements, non-assured shorthold tenancy agreements, private residential tenancy agreements, company let tenancy agreements and lodger agreements. But which tenancy agreement should you use?

England and Wales

AST or non-AST?

Most tenancies in England & Wales are assured shorthold tenancies (ASTs) and are regulated by the Housing Act 1988.

Some tenancies are exceptions, however, and you may need to use a non-assured shorthold tenancy agreement if any of the following applies:

  • The rent is at the rate of over £100,000 a year
  • The tenant is living in self-contained premises in the same building as you
  • The tenant is a limited company
  • The property isn’t the tenant’s main home (e.g. a weekend cottage)
  • It’s a holiday let

Find out more about non-AST tenancy agreements and which one you need to use below.

Assured Shorthold Tenancy (AST)

Assuming your tenancy is an AST, slightly different forms of tenancy agreement need to be used depending on whether:

  • there is one or more tenants living in the whole flat or house, or
  • there are a number of tenants who all have separate tenancy agreements for their own room, with shared use of the rest of the property

Lawpack publishes the following AST tenancy agreements you can use:

Unfurnished Tenancy Agreement / Furnished Tenancy Agreement

You can use either of these AST tenancy agreements if you, as the landlord, don’t live at the property. Both tenancy agreements can be used for a single tenant who occupies the property on their own, or a group of tenants who jointly occupy the property and share responsibility.

If the tenants are sharing and sign this tenancy agreement as a group, it’s best if they are all family or friends as problems can arise if you’re letting to people who don’t know each other and they want to leave the property at different times.

Tenancy Agreement for a Room

It may be preferable for you to get them to sign a tenancy agreement for their individual room, which gives them shared use of the rest of the property. When giving your sharing tenants a separate tenancy agreement, it’s best to use a non-resident house share/flat share agreement.

This tenancy agreement can be used if the tenant is living in a room in the property where you, as the landlord, are not resident.

Under this AST tenancy agreement, the tenant has exclusive occupation of their designated room and will share the use and facilities of the house or flat (e.g. bathroom, toilet, kitchen and sitting room) with other occupiers of the furnished property.

Non-Assured Shorthold Tenancy

In England & Wales non-assured tenancy agreements are also known as ‘common law’ tenancy agreements as they are governed by underlying common law and are not regulated by the Housing Act 1988.

Lawpack has the following non-AST tenancy agreements you can use:

Contractual Tenancy Agreement (Non-Assured Shorthold Tenancy Agreement)

This non-AST tenancy agreement (for England & Wales) should be used if:

  • The annual rent exceeds £100,000 a year
  • The premises being let is self-contained accommodation in a property that has been converted from a single property to multiple units (e.g. a house converted into flats), where you (the landlord) live
  • The property isn’t the tenant’s principal home (e.g. a weekend cottage)

This common law tenancy agreement can be used for a single tenant who occupies the property on their own, or a group of tenants who jointly occupy the property and share responsibility.

Company Let Tenancy Agreement

This Company Let Tenancy Agreement should be used if you want to let a house or flat in England or Wales to a company.

This common law tenancy agreement should be used where the tenant is a company and the occupier of the property is an employee or visitor of the company, with their family.

What if I use an AST by mistake?

If you accidentally use an AST instead of a common law tenancy agreement, don’t panic. It doesn’t mean that your tenant isn’t entitled to live in the property and doesn’t have a proper tenancy. But some parts of the tenancy agreement – those relating to the AST – will be misleading and could cause problems later down the line (e.g. you may have difficulty evicting the tenant at a later date).

Other letting agreements

Holiday Letting Agreement

This rental agreement can be used if you’re letting out a furnished property in England & Wales on a holiday let basis (e.g. for a limited period or holiday). It can be used with most types of holiday let properties (e.g. a house, apartment, flat, caravan or cottage).

The Holiday Letting Agreement is specifically excluded from the Housing Act 1988, so tenants have no security of tenure and must vacate the property at the end of the fixed term, or if found to be in breach of the terms of the Holiday Let Agreement.

Lodger Agreement

You can use this Lodger Agreement when you want to rent a room in your furnished home and are happy for the lodger to share the common parts of the property (e.g. bathroom, toilet, kitchen and sitting room) with you. But this Lodger Agreement can only be used in situations where the property is your principal home.

Scotland

Private Residential Tenancy agreement (PRT)

PRTs are similar to ASTs in England & Wales. You can use a short assured tenancy agreement if you, as the landlord, don’t live at the property.

Lawpack has the following Scottish PRT tenancy agreements you can use:

Unfurnished Tenancy Agreement / Furnished Tenancy Agreement

Both of these PRT tenancy agreements can be used for a single tenant who occupies the property on their own, or a group of tenants who jointly occupy the property and share responsibility.

Tenancy Agreement for a Room

This tenancy agreement can be used if the tenant is living in a room in a furnished property where you, as landlord, are not resident.

Under this PRT tenancy agreement, the tenant has exclusive occupation of their designated room and will share the use and facilities of the house or flat (e.g. bathroom, toilet, kitchen and sitting room) with other occupiers of the property.

Other letting agreements

Holiday Letting Agreement

This agreement can be used if you’re letting out a furnished property in Scotland on a holiday let basis (e.g. for a limited period or holiday).

It can be used with most types of holiday let properties (e.g. a house, apartment, flat, caravan or cottage).

The Holiday Letting Agreement is specifically excluded from the Housing Act 1988, so tenants have no security of tenure and must vacate the property at the end of the fixed term, or if found to be in breach of the terms of the Holiday Let Agreement.

Lodger Agreement

You can use this Lodger Agreement when you want to rent a room in your furnished home and are happy for the lodger to share the common parts of the property (e.g. bathroom, toilet, kitchen and sitting room) with you. But this Lodger Agreement can only be used in situations where the property is your principal home.

Northern Ireland

Private Tenancy

Lawpack has a Northern Ireland Tenancy Agreement which complies with the regulations that apply to private residential tenancies in Northern Ireland.

This private tenancy agreement can be used for a single tenant who occupies the property on their own, or for a group of tenants who jointly occupy the property and share responsibility.

The terms and conditions included in this tenancy agreement meet the legal requirement in Northern Ireland that a ‘Statement of Tenancy Terms’ must be given to the tenant. Plus it includes a Property Inventory of Furnishings, which all tenancies are required to have by law in Northern Ireland.