A tenancy agreement is a legal document between a tenant and a landlord stating the terms and conditions applicable to the tenancy. It helps if it also states the rights and duties of both parties. Under the present laws, an agreement cannot be enforced in England; Scotland and Northern Ireland, however, are both going through a spate of reviews concerning this, and a tenancy agreement is required in most provinces already. Though many people still go for an oral agreement (mainly based on trust or to save costs radically), this is being increasingly discouraged.
What does the Agreement Have?
Tenancy agreements are of two types – assured shorthold tenancy (for all private sector lets) and assured tenancies (for public or council house tenancies). In the latter case, the rules are quite stringent and formal; therefore, there is no question of going for a lease without an agreement. As for the first instance, there are two ways of classifying the document further. One is on the basis of time (i.e. how long the tenant would stay), and the other is based on space available (i.e. room, floor, or house rent). The agreement must contain certain information to have any validity.
The amount of rent agreed upon.
When it's due (monthly or weekly).
Amount of deposit required, and when it should be deposited.
Notice period from both the tenant and landlord’s side if either party wishes to discontinue.
Who is handling the council and other taxes, what is the mode of payment and other details concerning this?
Is the property centrally heated, and if so, who is paying for it, and maintaining it?
Who is taking care of the water, electricity and other costs?
Whether pets are allowed.
Can the apartment be shared, if the tenant so wishes, and the number of people staying in it?
Who is taking care of repairs as and when it may be required?
What are the other amenities to be provided – like food, furniture etc?
Apart from this, counsellors suggest that a tenant should take two more precautions. One is to take photographs of the premises while moving in, so that disputes concerning repairs or damages may be avoided later on. The other is an inventory of items that come with the premises – for example television, refrigerator, furniture etc.
The Uses of the Agreement
The obvious use of the agreement is to avoid conflict between the two parties over petty issues like the gas and electricity bills, who will repair the refrigerator, and what is to be done about the heating in winter. Apart from the obvious, there are some other factors too, that may not strike either landlord or tenant at the time of drawing it up, but are important nevertheless.
The agreement is an identity proof of sorts. If the landowner needs to validate the presence of his tenant, it will be needed.
The tenant would need to show address proof in a number of places if he is new to town. The agreement helps at bank, university, work, just to name a few vitally important places.
Any disputes over money can be eradicated, if the conditions are stated clearly in the agreement.
For security reasons, it is best to have the agreement formally in writing. Maybe everything will be normal, but what would you do if the unassuming-looking boy who rented your room turns out to be a terrorist? And what if the landlord is using his premises for some illegal purposes and the tenant becomes implicated one fine day?
Needless to say, an oral agreement is of little use to the law. If you ever have to go for any legal help, it would be very difficult without a written agreement.
The points discussed above illustrate adequately what can go wrong if the tenancy agreement is not drawn up. There is no guarantee that there won’t be little tiffs even then, but it is better to be cautious.
