Changes to Tenancies to make them Longer
In most of Europe there are longer tenancies provided to residential tenants. The United Kingdom has always had shorter tenancy agreements, most often being less than one year. However, the United Kingdom asked for a round table discussion to decide if there is a need for a longer standard tenancy contract. In the last three years more and more residents of the United Kingdom have moved into rental accommodations.
This is a direct result of the subprime mortgage crisis that turned into a global credit crunch and recession. It has meant a great deal of foreclosures have occurred in the last few years, which is why there are more tenants paying rent than in previous years. Mike Fitzgerald is a marketing director for Emba. He stated younger people have a “rent mentality.” In other words they are not looking to buy a house, but to find a place they can affordably rent.
The younger generation is beginning to feel they do not need to buy a house. Instead they feel renting is good enough to fit their lifestyle. A mortgage director, Robert Sinclair stated the UK should become more like Europe with longer tenancy terms.
A longer tenancy would mean the tenants have more control over the property. For example, a year is not really a worthy time to make improvements to a property, whereas a tenure tenancy would mean there is a point to upgrading a few things. The upgrades would have to be approved by the landlord, but the point is if there was a tenure it would be more reasonable to convince landlords the upgrades are needed. Short term contracts also make it harder to get rid of bad tenants who have breached their contract. Most feel longer contracts are needed and that they will come about eventually.
A few recent questions have come up on the letting front. Some landlords want to know what will happen if they have a local housing allowance. The new rates are being discussed, so what happens if the housing benefit is not covering the tenants rent? This is just one of the questions about letting landlords have.
The answer is fairly simple. The new rates are not going to be used until April 2011. They will be announced when the Chancellor is done with the budget. However, there are some key elements known right now regarding the new local housing allowance rates. A maximum payment is going to be implemented for 2011. The rate will be 250 pounds a week for a one bedroom and up to 400 pounds for more than a one bedroom. There is no five bedroom rate, though.
Another change will affect the local housing allowances. It will be based on the 30th percentile instead of the 50 it is now. That means it is going to be averaged on the lowest third of rents. Since rents are likely to change during the next year for none housing allowance places it might be the state will have to change the rates again before they are actually implemented.
For the immediate future, any landlord who has a LHA will need to get tenants who can afford to pay the extra rent out of their own pockets. If they will not be able to cover the rent you require then these tenants will have to move on. It is possible to ask the tenants to move on based on insufficient funds. As the landlord you have the right under tenancy laws to be paid sufficient rent for the place you are letting. The housing allowance can help, but it should not be the only amount you earn from the tenant, especially dependent on the size of the place you have to let. Before April 2011 any tenant who cannot pay should be given notice of your intention to quit the tenancy. With a little less than a year left, you have plenty of time to find new tenants.
When you have come to the end of a tenancy there are a lot of things you must think about. Where will you move, will you stay in the same flat, are you buying a home? Chances are you have already made some decisions about your new tenancy arrangements. If you have elected to end the tenancy and are going to move, you want to ensure the return of your tenancy deposit.
The landlord must put your deposit in a tenancy scheme. They must also repay the tenancy deposit to you, unless there has been a breach of contract. With the many things you have to do before you move, you do not want to be concerned about getting your deposit back, especially if you have to use the deposit in your new living arrangements.
Luckily, there are certain things you can do in order to speed up the return of your deposit. The most important will be what you do during your tenancy. In other words, did you pay all the rent owed, did you keep your pets from damaging the property, and did you keep the house in good shape like it was when you first rented it? If you have been a model tenant there should be no reason for the deposit to be withheld.
You can further ensure your deposit’s return by cleaning the house. You may not have the time to do a thorough cleaning of windows and all, but hiring an end of tenancy cleaning company is an option. At the very least you should have the carpets professionally cleaned. Carpets tend to get dirty and wear down. However, you can keep them looking great by renting a carpet cleaning machine during your tenancy and then having a professional come in after all the furniture has been removed. Even if your tenancy contract doesn’t require this, it will put you in a favourable position with your landlord.
They will be more inclined to see your deposit is returned. They will also move a little quicker to get the money back to you in most instances.
If you are going to enter into a tenancy agreement with a landlord there are a few things you need to know before signing any agreement. The Housing Act of 1988 assures that both the landlord and tenant are protected. This act states that a landlord has the right to get his property back when the tenancy agreement comes to an end. However, in order to protect the tenant the landlord must file a Section 21 notice on his tenant. There are subsections of this act so that the rules apply to both fixed term tenancy agreements and statutory periodic tenancy.
The fixed term tenancy part of the Housing Act of 1988 states that the landlord must deliver the Assured Shorthold Tenancy (AST) with at least two months notice in writing. That means the tenant receives it in time to find another place to let. It is important to note that the two month period begins once the tenant has received the AST so if it is going through the post a few extra days should be given to the tenant.
There is a section in the AST that lets the tenant stay in the flat or home for two months after the expiration of the lease. This stipulation can be used if the tenancy agreement has expired. An example of when this can be used is if the AST is delivered on the day that the tenancy expires.
If a Section 21 notice was given during the lease agreement term but both parties agree to renew the lease agreement a new Section 21 notice would have to be given. If this is not done then the tenant does not have to leave the premises.
It is not necessary to deliver the notice by post. It can also be given directly to the tenant in person. When sending the notice by post it is a good idea to have it sent by registered or recorded delivery service. This will give you the time that the notice was received which makes counting the two month period accurate. If you are delivering the notice in person it is a good idea to take a witness with you so that the date is again accurate.
If you are about to become a tenant for the first time there are some questions you will want to have answered. These questions are outlined below with the answers. Keep in mind your situation might differ. Also these questions can help a landlord understand where a tenant might be coming from regarding certain tenancy requirements. If you are a landlord you might want to read over the information here as well.
What is a deposit on the application for?
Some landlords may ask you for a deposit when they accept your application. The deposit is a “goodwill gesture,” helping a tenant secure a place to live. A secondary question about application deposits is whether it is refundable. It will depend on how the deposit is recorded. There is an application fee that can be charged for running a background and to secure the tenant as a first choice. An application fee is generally not returned. If a larger deposit is accepted then it becomes part of a deposit scheme. If the tenant elects not to take the tenancy the landlord can keep the deposit. If they accept the tenancy the deposit should be returned at the end of the tenancy as long as no tenancy agreement has been breached by the tenant.
Do I have to put References on the Application?
Yes, references are required to help the landlord assess your risk. They want to make sure you will be able to make the rent payment each month. References help the landlord learn your previous rental history, income, and even do credit checks. Any landlord has the right to ensure they are not taking unnecessary risks. Landlords depend on the rent from their property to meet their own financial needs.
What does Fair Wear and Tear Mean?
Standard tenancy agreements state fair wear and tear of a property is acceptable, and a deposit will be returned. Basically, this means normal use will cause certain deterioration on a property. Cigarette burns, animal damage, stains, etc. are beyond normal use and subject to a refusal of partial or full deposit refund.
Landlord Inventory of Furniture
Whether you are in a buy to let situation or just renting a furnished property you owe it to yourself to protect all assets. An assured shorthold tenancy will cover most aspects of the tenancy situation. For example it discusses the parties involved, time the letting begins and ends, the rent amount, clauses regarding rent and termination, as well as other addendums like pets. If you have furniture in the property you let you want to make sure one of the addenda discusses any damage or loss of that furniture. You also want to add in the Landlord Inventory of Furniture document.
A landlord inventory of furniture document outlines specifics regarding those furnishings. Some aspects you might need to record include:
· The colour of the furnishings
· Brand
· Any damage already done to the furniture
· How many pieces are there
· Where the pieces are located
You need to be as detailed as possible regarding the furnishings. The inventory template offered here provides you with a room by room description of the furniture you are leaving behind. For example, the living room might list tables, couch, chair, and lamps. You may be further detailed in the brands of these items, their colour, and their condition. Once the inventory is complete you can have the tenant sign the addenda stating they have read the inventory list and agree. As part of the tenancy agreement you might have a section in the inventory and furnishings section outlining how the deposit can be split up in the event damage to the furniture results from tenant use.
The template offered on this site can be modified to fulfil your needs regarding inventory of furniture. Remember, the more detailed you are regarding the furnishings the better off you will be in a legal situation. If you fail to mention a piece of furniture or that a portion of the deposit can be kept due to damage or loss of furniture you might not have a legal stand. The inventory of furniture is not a legal document on its own, which is why it must be incorporated with the tenancy agreement.
Do you rent or lease? Some people think that lease agreements are the same as tenancy agreements, yet contrary to their thinking, this is not true entirely. Despite that lease agreements and tenancy agreements are different, both are legal binding documents that establish the terms of our residency. Some similarities of the lease and agreement are that they can be either oral or written. However, if you are renting or leasing property legal counsels recommend that you demand a written agreement, which pulls more weight over oral agreements. Both lease and rental agreements cover common issues, i.e. rent amount, deposits, tenants, and so forth. Length of tenancy is the main difference noted between a lease and rental agreement. In between the lines of both lease and rental agreements you will find “term” used often. This term is described in two fashions. Synonyms are used to define conditions or rules in agreements. You may see clauses throughout the agreements or lease as well, which terms are used such as no pets, $600 monthly rent, duty of the tenant to move snow, or mow the lawn,” etc. What this means is that you must pay $600 per month to the landowner for rent, not have any pets, and mow the lawn and move the snow. Tenants who do not follow the rules, conditions, or terms in the agreements or lease is considered in breach of contract. The landowner in this case can terminate the lease or agreement by sending you an eviction notice. Rental agreements are different from lease because of the length of time differences. Most leases are written for one year while rental agreements can be written for a shorter time. In this case, a month-to-month rental agreement is renewed each month after the rent is paid. If your landowner however gives you, a 30-day notice that he or she intends to change the length of the agreement, then that could change. Landowners have more power with rental agreements than leases. If a landowner gives proper written notice, he or she can change your rent amount providing that it does not recede past the laws that state what is considered unreasonable rent. When you sign a lease, both you and the landowner are obligated to that legal document for a set time, which is normally one year. Until that lease expires, your landowner cannot legally change the amount of rent, or terms in that lease. If you have lease then your landowner will not be able to force you to leave unless you are in breach of the lease. The landowner could feel that you are a real pain in the butt, but without breach of contract by law, you do not have to leave until that lease expires.Once a lease expires, you or your landowner can decide if you want to renew the lease. If one or the other decides that they do not want to renew the lease then by law both you and the landowner is free of the binds that tie you with the lease.
A tenancy agreement is one of the most commonly used legal contracts available online. With many people renting across the globe, especially since economic downturn in 2008,why is a verbal tenancy agreement not sufficient?
A verbal tenancy agreement is not sufficient is because these types of agreements may not stand up in court. If something is spoken, it is difficult for it to be recorded so that it can be relied upon at a later date, should any dispute arise. In this situation, the most fair-minded and seemingly honest party may have more weight in a courtroom. Verbal agreements can easily become a “he says, she says,” situation. In such cases, the judge will only be able to go on the conduct of the parties throughout the tenancy and any evidence to support this, meaning that the result is not always the right one, because proof is limited.
Tenancy agreements are considered as legal binding documents or contracts that bind both the tenant(s) and landlord to certain requirements. When there is a tenancy agreement, the tenant has more rights, which includes the exclusive right to enjoy living in their described resident in exchange for money that is paid to the property owner.
Outlines are written in agreements, which include responsibilities and rights of both the tenant and landowner. Both parties must adhere to the contract during the agreement term.
Government laws are followed to pursue court cases that involved agreements. If there is a verbal agreement, it may be difficult to follow or enforce. If for some reason conflicts develop, the judge must hear evidence in order to decide whose version he will accept as true. If you have a written agreement however, the judge will base his decision on the terms that are written in the documents, despite if you agree or not.
Thus, promises or handshakes between landowners and tenants often do not stand up in court. Verbal contracts in comparison to lease or contracts have less weight. Therefore, tenants should always ask for a written contract or lease to protect his or her rights.
Lease
A lease is an agreement that usually contains rules and conditions like contracts. Lease agreements pull more weight in courts than contracts. A lease will cover common issues, such as security deposit, rent amount, and tells the judge if you are allowed to have pets, or how long you can live at the residence. The judge will consider all aspects of a lease as well as a written contract.
A lease will provide you with a rental, and legal contract that allows you to exclusive possession of someone else’s property for a set time in return for payments. Most leases cannot be broken easily by the landowner or the tenant unless some legal activities are occurring or a breach of lease occurs.
Contracts on the other hand are short-term agreements between the landowner and tenant. Most contract agreements are set up on a month-to-month basis, which the tenant could be at risk of eviction in the event the landowner decides that he or she does not like the person, or if the tenant is not adhering to the rights and responsibilities that are written in the document. Thus, a lease is a more powerful document, which should tell you exactly Tenancy- why a verbal tenancy agreement is not sufficient.
Tenancy - why a verbal tenancy agreement is not sufficient because it is not smart – a promise or handshake will not stand up in a court. If you have had problems with your property owner in the past, it is unwise to accept verbal agreements. It is irresponsible in fact to not ask a landowner to provide you with a written lease or tenant agreement. Yet, those agreements in writing should comprise of specific details that has been agreed upon by both the landowner and you.
Tenancy - why a verbal tenancy agreement is not sufficient – because verbal communications will not stand up in court, you should have a written agreement. Yet, you may find yourself reading up to ten pages of content that is confusing as the landowner may add legal terms that you may not understand.
Landowners can turn you down if you refuse to sign a legal tenancy agreement or lease. Yet, if you sign a legal tenancy agreement or lease and cannot understand the terms, you may as well accept a verbal agreement. Either way you are at risk. If you cannot understand the terms and conditions, you will never know if the landowner is being fair. In this case, you will not be able to take legal action, as the advantage will probably be in the hands of your landowner.
Both leases and tenancy agreements are legally binding documents that address your terms as a renter. You should always ask for a written lease or tenancy agreement instead of accepting a verbal contract. Both leases and tenancy agreements cover common issues, which include rent amount, security deposit, and inform you who can live in the residential property. The length of tenancy is considered, as it is the prime difference in lease and tenancy agreements.
Rental agreements often stipulated that you could live in the residence on a short-term basis whereas a lease is a year-to-year agreement. Each month the tenancy agreement is renewed. Leases are renewed each year.
If you sign a lease then both you and the property owner is obligated to the rules, terms, and conditions for the term of the lease. Your property owner cannot force you to move out of the property just because they don’t like you. Thus, the property owner is obligated to fill his obligations to the lease otherwise; it becomes a breach of contract issue in which the courts will review.
Both leases and tenancy agreements contain rules or conditions. Yet with lease, the rules and conditions are respected by the courts more so than that of tenancy agreements. Thus, Tenancy - why a verbal tenancy agreement is not sufficient because if you verbally agree to rent amount, pets, or other terms verbally, and the landlord changes his or her mind later, the courts are more prone to favor the property owner, which means that you will not have legal grounds in the court of law.
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