Types of Rental Agreements in England and Wales
In England and Wales, there are different types of rental agreements that landlords and tenants can enter into. Each type serves different purposes and offers various levels of protection and flexibility. Our team of expert solicitors can provide top-notch legal advice and guide you on any of the below:
Type of rental agreement | Summary |
|---|
Assured Shorthold Tenancy (AST) | - Highly common and typically lasts for 6 months to a year. - Landlords can evict tenants using a Section 21 notice (no fault) or a Section 8 notice (specific grounds) after the fixed term ends. |
Assured Tenancy | - Provides more security for tenants compared to ASTs. and often continues indefinitely unless the tenant breaches the agreement - Landlords must have specific grounds for eviction, similar to Section 8 notices |
Regulated Tenancy (Rent Act Tenancy) | - Applies to tenancies that began before 15 January 1989. - Rents are controlled and set by a rent officer. Tenants have strong protection and can only be evicted under specific circumstances. |
Excluded Tenancy or Licence | - Commonly used for lodgers who live with their landlord. - A more flexible and informal agreement that is suitable for short-term arrangements. |
Non-Assured Tenancy | - Used when the tenancy doesn’t meet the criteria for an AST, such as low rent (less than £250 a year) or high rent (more than £100,000 a year). - Landlords must give a reasonable notice period, typically equivalent to the rent payment period. |
Company Let Agreement | - Used when a company, rather than an individual, rents a property. - This agreement is not governed by the Housing Act 1988, so different rules apply. |
How Our Rental Agreement Solicitors Can Help
Our team of landlord and tenant solicitors can help manage rental agreements smoothly by:
Drafting a Customised Agreement: Having a solicitor draft a rental agreement tailored to a specific property and tenancy arrangement is essential, it ensures it complies with UK law and includes all necessary provisions protecting both tenants and landlords
Reviewing Existing Agreements: Our network of solicitors can review current rental agreements to identify any legal issues or missing clauses that may expose either party to risk.
Resolving Disputes: Solicitors can also assist in resolving disputes arising from rental agreements, whether through negotiation, mediation, or litigation.
Common Disputes in Rental Agreements
Deposit Disputes: Disputes over the return of deposits often arise. When protected by the Tenancy Deposit Scheme (TDS), the TDS can adjudicate a deposit dispute. They review the evidence provided and decide how much to award to each party
Unpaid Rent: When tenants don’t pay rent, landlords can serve a Section 8 notice and pursue eviction through the courts.
Property Damage: Tenants are liable for damage beyond wear and tear, both tenants and landlords can protect their interests by creating detailed property inventories to avoid disputes. Tenants can take photos when they move in and out to show that the condition of the property hasn’t changed
Ending a Tenancy Early: Tenants and landlords can agree to end a tenancy early, known as a surrender, though landlords don’t have to agree to a surrendered tenancy.
How Can Rental Agreement Disputes Be Resolved?
Rental agreement disputes can often be solved without legal help. However, for more serious issues, you can consider mediation using a neutral third party to help mediate the dispute. Mediators can facilitate discussions and help both parties reach a mutually acceptable agreement. Taking the dispute to court or eviction may also be necessary. The court can enforce the terms of the rental agreement and order remedies such as compensation or specific performance.
Why Choose Lawhive to Find a Rental Agreement Solicitor
We're not like any other law firm. We strive to connect you with the best rental agreement lawyer for your needs as quickly as possible. Here are some of the top reasons to seek advice from our team:
Extensive Experience in Property Law: Our solicitors are experts in drafting and reviewing rental agreements that comply with UK law, providing peace of mind for both landlords and tenants.
Tailored Solutions for Landlords and Tenants: Our team of experts customise rental agreements to meet the unique needs of each client, ensuring all legal requirements are met.
Transparent Pricing: Whatever your query, we'll provide you with an instant fixed fee price.
Average Costs and Fees Involved
The cost for a licensed solicitor to help with a rental agreement is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £200-£249 but in some cases, it could cost as much as £299.
Landlord legal fees involve solicitors drafting or reviewing rental agreements, and the potential costs of legal representation in disputes or evictions. Tenant legal fees include tenants seeking advice on their rental agreement or legal assistance in the event of a dispute with the landlord.
6 Key Terms of a Rental Agreement
When drafting or reviewing a tenancy agreement, there are key elements that you need to be aware of. Here are the most common terms of a rental agreement:
This includes the full legal names and contact details of all parties involved including landlords, tenants, and guarantors is essential. This ensures individuals and businesses are correctly identified. It’s worth taking the time to make sure these details are correct, as misspellings of names and addresses, or using old names and addresses can mean the agreement is not legally binding.
2. Rent Amount and Due Date
Rental clauses should cover how much rent is to be paid, the due date, the method of payment and any provisions for late payments or rent increases. This ensures clarity for all parties over how much rent is due, when it must be paid and whether there is a mechanism for late payment, including the consequences of paying late, such as fines. It also sets out the basis for potential rent increases.
3. Deposit Terms
There is a legal requirement for landlords to protect a tenant’s deposit in a government-approved Tenancy Deposit Scheme (TDS). Deposit terms should specify how much can be requested, how it will be protected when it should be returned and how and when the deposit can be partly or fully withheld, such as when tenants cause damage.
4. Term of the Tenancy
The length of the tenancy should be defined in a rental agreement with a start date and end date included. Additionally, an agreement should specify whether the tenancy is a fixed-term tenancy, or becomes a rolling periodic tenancy – a tenancy with no specific end point, where tenants typically only need to give one month’s notice before moving out – after the initial term ends.
5. Responsibilities for Repairs and Maintenance
This should cover the responsibilities of the landlord and tenant. Landlord responsibilities typically include:
Property maintenance
Structural repairs
Ensuring the house’s utilities are in good working order
Ensuring the security of the property
The property meets health and safety compliance requirements, so it’s in a safe and habitable condition
Tenant responsibilities typically include:
Reporting maintenance issues and repairs to their landlord or property manager
Avoiding damage to the property that exceeds normal wear and tear
Keeping the property clean and tidy
Ensuring it’s in the same condition as when they moved in, including the garden
Carrying out minor repairs, such as replacing lightbulbs, replacing fuses
Maintaining the safety of the property and other tenants
Utilities and bills – An outline should specify who’s responsible for paying utilities and bills, such as gas, electricity, water, and council tax, how much this is per month if known and when it should be paid
6. Subletting and Assignment
There should also be clauses that state whether the tenant is allowed to sublet the property or assign the tenancy to someone else, and under what conditions. If landlords don’t want their tenants subletting, they can include a clause to that effect, or if they allow it set out the specific conditions for subletting.
What Legal Documents Should Accompany a Rental Agreement?
When entering into a rental agreement, the legal documents that should accompany a rental agreement include:
Inventory and condition report;
Energy performance certificate
Gas safety certificate
Electrical safety certificate
How to rent guide
Tenancy deposit information
Right to rent documentation
Emergency contact information
Insurance details
Terms and conditions for shared facilities
For assistance in preparing these documents and ensuring they meet legal standards, contact Lawhive for expert legal support.
What Should Landlords Do if a Tenant Breaches a Rental Agreement?
If a tenant breaches the rental agreement, landlords should follow these steps:
Review the Agreement: Carefully review the rental agreement to understand the specific terms and conditions that have been breached.
Document the Breach: Collect evidence of the breach, such as photos, emails, or witness statements. This documentation can be crucial if legal action becomes necessary.
Communicate with the Tenant: Contact the tenant to discuss the issue. Sometimes, a simple conversation can resolve the problem if the tenant is unaware of the breach or willing to rectify it.
Send a Formal Notice: If the issue is not resolved through communication, send a formal notice to the tenant outlining the breach and requesting that it be corrected. This notice should specify a reasonable timeframe for the tenant to remedy the situation.
Seek Mediation: If direct communication and formal notices fail, consider mediation. A neutral third party can help facilitate a resolution between the landlord and tenant.
Legal Advice: If the breach persists, seek legal advice to understand your rights and options. A solicitor can provide guidance on the best course of action and represent you if needed.
Consider Eviction: In serious cases where the breach is not resolved, you may need to consider eviction. Follow the legal procedures for eviction, including serving the appropriate notice (like a Section 21) and potentially taking the case to court if the tenant does not vacate voluntarily.
Court Action: If necessary, file a claim in court to enforce the terms of the rental agreement or seek compensation for any damages caused by the breach.
By following these steps, landlords can effectively address breaches of the rental agreement and ensure their rights are protected.
What Rights Do Tenants Have If Their Rental Agreement is Breached?
If a rental agreement is breached, tenants have several rights of protection. They can request the landlord to fix the issue, such as making necessary repairs, and if the landlord fails to comply, tenants can report the problem to the local council or relevant authority. Tenants may also seek compensation for damages or any inconvenience caused by the breach. In serious cases, they can take legal action to enforce the agreement or terminate the tenancy early without penalty.
Seeking advice from a legal professional can help tenants understand their options and the best course of action.
Can a verbal agreement be considered a rental agreement?
Yes, a verbal agreement can be considered a rental agreement and is legally binding. However, it is harder to prove and enforce compared to a written agreement. Written agreements provide clear evidence of terms and conditions, making it easier to resolve disputes. So, for clarity and legal protection, it is always recommended to have a written rental agreement.
What Happens If a Rental Agreement Does Not Comply With Legal Requirements?
If a rental agreement does not comply with legal requirements, it can lead to several consequences. The agreement might be considered invalid or unenforceable, leaving both the landlord and tenant without legal protection. Landlords could also face fines, penalties, or legal action for not meeting regulatory standards and tenants might be entitled to compensation or the right to terminate the tenancy without penalty.
Lawhive provides expert legal advice and support for both landlords and tenants in managing rental agreements. We help draft, review, and ensure compliance with all legal requirements, preventing disputes and protecting your rights.
Contact Lawhive today for professional assistance with your rental agreements.