What Is A Tenancy Agreement And Do I need one?
What is a Tenancy Agreement and do I need one?
This is a contract that is drawn up between a landlord and the tenant of property. This type of contract differs from many other types of landlord policies as it allows the tenant to live in the property as long as the pay rent and follow the rules and regulations. This is a document that that is agreed between the landlord and the tenant and is legally binding.
It is very important that both the landlord and the tenant are fully aware of what the agreement consists of. Should the document be signed and either party does not understand then they could be at risk should anything goes wrong. If you are every unsure when it comes to signing a document you should seek professional help.
Renting out the Family Home?
Renting the family home as a way of generating a little extra pocket money is not an uncommon these days. As the credit crunch hit, people are increasing turning closer to home to make up their shortfall in earnings.
There are many different types of let when it come to renting a property, if you are considering this it is most likely that you will be looking into an assure short hold tenancy or AST for short. There are a number of things that an AST will mean you will be entitled too. You will have guarantees and rights that you would not have had before if you were renting a property.
What are the Advantages to AST’s?
One of the key advantages to having an AST in place is that you can get your property back after the six months is up, it is important that you provided your tenants with a notice of two months before they are required to leave.
The Assured Short Tenancy offers you as the landlord a number of advantages. A good example of this is if a tenant refuses to pay their rent. The AST allows the landlord to end the tenancy at anytime if you tenants dot pay the rent, behave in an antisocial manner or damage the property.
When taking on the tenant, as the landlord you should agree with the tenant the period of time that they will be renting the property for. This will be added into the tenancy agreement which is signed by both the tenant and that landlord. This is a legally binding document.
The tenant should agree with the landlord the length of the tenancy, this should be added to the tenancy agreement before the tenant moves in. It is possible, for an arrangement to be made so that you can set a period know as s ‘fixed term’ or it is possible to leave the contract opened ended.
The tenancy agreement can either be a verbal or written contract between the landlord and the tenant. This agreement will outline the terms and conditions of the agreement. Ideally, it is best to have a written agreement ready that both parties and that they have a copy of before the tenancy begins. It is possible to have a verbal agreement, however they offer no proof if disputes need to be settled.
If you are looking for landlord insurance there are plenty of place to search form on the internet. It is a good idea to shop around so you get the best deal.