Tenancy Contracts Explained

Tenancy contracts are agreements made between the landlord who is letting the property and the tenant who will be renting a property. As with any contract there will be terms and conditions included and agreed between landlord and tenant. But with tenancy contracts there are certain conditions that have been laid down by law and must be adhered to.

Written or Verbal Tenancy Contracts

There is nothing legally wrong with a verbal contract between landlord and tenant, and in most cases a verbal contract will be legally binding. However, it is always wise to set down the contract in writing, and in some countries, such as Scotland, it is the legal right of the tenant to have a contract. Most landlords do provide tenancy contracts as a way of protecting the rights of both parties.

The contract will set out the rules, requirements and obligations of both landlord and tenant. The written contract is particularly useful as a reference point if any dispute does occur. The terms and conditions should be specific and clearly defined on issues such as rent payments and periods of notice to quit. If any of the terms and conditions is broken and the matter does come to a legal court then the written contract can be used as evidence during the case.

Terms and Conditions

Each landlord will usually have their own standard contract that will be issued to the tenants. There are certain statutory rights that have been set down in law and must be adhered to. A tenancy contract can give more rights to the tenant than is required by law but it cannot give less than is required. Any tenancy contract that has less than the required statutory rights may be unenforceable in a court of law.

Tenancy Contracts

Although contracts will differ on such aspects as the property types and rental prices there will be a few details that are common to all. These should include:

• The names and addresses of tenant and landlord.
• The property address that is being let.
• The Date of entry to the property.
• The termination date.
• The rental amount and frequency of payment.
• The amount of deposit.
• Type of tenancy, for example short term or assured tenancy.
• Details of notice needed to quit the property.

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Other Tenancy Contract Details

Also include in the contract will be information on eviction, the right to apply for a rent assessment, and which housing act applies to the tenancy. There will also be clauses on the responsibility of repairs to the property, whether the flat is to be furnished or not, and inventory details.

There may also be details on whether pets are allowed and details on permission needed to make alterations to the property. There will also be a page for signatures, dates and witness signatures. Once all the terms and conditions have been agreed and the contract has been signed, and agreed monies have been paid then the contract is legally binding.

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Implied Terms

There may also be certain terms and conditions that were agreed between tenant and landlord but not set down in writing, these are known as implied terms. These agreements usually cover such issues as repairs to the property, taking appropriate care of the property, and the right to be treated fairly with regards to religion, race, and sexual issues. The implied terms will still form part of the binding contract even if they have not been written into the actual tenancy contract.

Breach of Contract

A breach of the tenancy contract may occur if either the landlord or the tenant breaks any of the contract’s terms and conditions. For example a landlord who decides that they want their tenant to vacate the premises immediately without giving notice can be in breach of contract. The matter can then be taken to a court of law where the contract’s terms and conditions will be reviewed and a judge will make a decision as to whether to uphold the breach of contract.

Changes to a Tenancy Contract

Tenancy contracts are legally binding contracts and as such there should be no changes to the original contract without agreement from both landlord and tenant. If both parties agree to the changes then a new contract can be put in place or amendments can be made to the original contract.

Tenancy contracts are important documents as they provide both proof of the agreement and give protection to tenants. If any tenant has doubts over their contract then they should contact their local Citizen’s Advice office. Any contract terms that are found to be unfair to the tenant can mean that the contract is unenforceable in a court of law, and there could be serious consequences for the landlord.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Contract Red Flag Checker lets you describe a contract you are about to sign and get a plain English summary of the clauses that could hurt you. Takes about 2 minutes. Try it now →