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Understand the enforceability of your tenancy agreement. Protect your rights with our comprehensive guide on property law and consumer protection. Ensure compliance and avoid legal pitfalls.
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Assured Shorthold Tenancy Agreements This guide is to assist you when considering the contents and enforceability of your tenancy agreement. If your tenancy does not cover these basics, we strongly recommend you invest in purchasing a new tenancy agreement. Remember this is one of your most important documents and there can be fundamental consequences if its incorrect. "A fresh approach to law." Woodstock Property Law is the trading name of Woodstock Property Law Limited (registered in England and Wales with company number 09002137). Authorised and regulated by the Solicitors Regulation Authority (SRA No. 614145) see www.sra.org.uk/rules Postal Add: 7-9 Haven Road, Poole, Dorset, BH13 7LE Registered address: The Barn, Course beer Farm, Whiddon Down, Devon, EX20 2QZwww.woodstockpropertylaw.com
Consumer Protection Law Guidance from the Competition and Markets Authority sets out the obligations placed on agents and landlords by consumer protection law. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/319820/Lettings_guidance_CMA31.PDF Agents should check that the property is ready on the date agreed with the tenant, that any promised work has been carried out and that the landlord has provided any furniture or appliances that were agreed with the tenant. Tenants should be supplied with all relevant material information related to the tenancy; such as a gas safety certificate, rent book, tenancy agreement, guarantor agreement. Tenants should also be provided with information explaining who to contact in case of any problems with the tenancy. The guidance also stressed the importance of giving the tenant sufficient opportunity to review the inventory and challenge any points of disagreement. Failing to do this, or to provide the tenant with an incorrect inventory, could be a misleading action and a breach of consumer protection law When dealing with Consumer Protection law, you must ensure you have a balanced and fair approach. Signatures We do recommend where possible every page of a tenancy agreement and its attachments are signed to avoid any risk of the tenant arguing that they did not receive a copy of those pages. It is also useful to provide a check list at the back of the tenancy confirming the tenant has received important documents such as Gas Safety Certificate, How to Rent Guide, EPC. Remember a valid Gas Safety Certificate must be served prior to the tenant occupying the property, Do not leave it in the property! Possession Grounds and forfeiture clause In order to rely on a section 8 notice and the applicable ground, technically, a Judge will expect to see the entire grounds in the tenancy. If you do not have the entire grounds you could be challenged by a Judge at court. It is fundamental that your tenancy agreement has a forfeiture clause, allowing the landlord to terminate the tenancy through the courts in the event the tenant is in breach of the tenancy.
Tenant Fees Act This is a particularly tricky area of law at the moment due to the ambiguous language used. The approach should be to play safe until such time the Court has confirmed some of the more ambiguous requirements. To not play safe may result in hefty fines, not being able to serve a valid s21 notice or protracted litigation – let someone else be the test case! Please see further our guides on the Tenant Fees Act. Further points to consider (not exhaustive) There are several things you should be considering to ensure that the letting can proceed without delay and that your property is compliant for your new tenant: Right to rent • You must check the immigration status of the tenant(s) and any other authorised occupiers of the property to ensure that they have the right to occupy the property before renting it to them. Failure to do this could lead to a civil penalty of up to £3,000 or a criminal offence with a penalty of up to five years of imprisonment, a fine, or both. The government has produced a variety of useful guides including this one https://www.gov.uk/government/publications/right-to-rent-document-checks-a-user-guide Housing Benefit Letter of Authority • If the tenant is claiming housing benefit you will need to get a letter of authority allowing you to speak about your tenant’s claim with the benefit office. It is advisable to obtain the letter of authority at the outset of the tenancy, to avoid problems in the future. Deposit • It is advisable to take a deposit from the tenant in advance. The deposit should be no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the annual rent is £50,000 or more.
The deposit should be paid into a Tenancy Deposit Scheme and you must provide the tenant (or, where relevant, the person who has paid the deposit on the tenant’s behalf) with prescribed information about the Tenancy Deposit Scheme within 30 days from receipt of the deposit. The prescribed information should not be served before the deposit is paid otherwise you will not be compliant. It must be served after the deposit is paid. • There are currently three government approved deposit schemes: • https://www.mydeposits.co.uk/ • https://www.depositprotection.com/ • https://www.thedisputeservice.co.uk/ Fire resistance requirements. • Ensure that any furniture that you provide has a manufacturer’s label stating that the furniture meets fire resistance requirements. Smoke alarms. • You must ensure a smoke alarm on each storey of the property that is wholly or partly used as living accommodation and test that this is in working order on the day the tenancy begins. There is no requirement to do this if the property is in Wales, but it may be advisable to do so in any event. Be sure to let the tenant know if the alarm is connected to the mains supply or if it is battery operated. Carbon monoxide alarms. • Carbon monoxide alarm in any room used wholly or partly as living accommodation that contains a gas appliance and test that this is working on the day the tenancy begins. There is no requirement to do this if the property is in Wales, but it may be advisable to do so.
Gas fittings • Gas appliances and flues checked by an engineer registered with the Gas Safe Register at least every 12 months. You must provide a copy of the safety certificate you receive to the tenant. Electrical equipment • Electrical equipment is safe. However, you are not required to provide the tenant with a certificate of electrical safety (yet). Energy performance certificate. • You must obtain an energy performance certificate (EPC) for the property and provide a copy to the tenant. If the EPC gives the property an energy efficiency rating of F or G, it will be unlawful for you to enter into the tenancy agreement without first having either made sufficient energy efficiency improvements to the property or claimed a legitimate reason not to do so. Prescribed information • You should provide the tenant with a copy of the current version of MHCLG: How to rent: The checklist for renting in England unless you are a registered provider of social housing or the property is in Wales. It is important to keep up to date as the guide will change. Maintenance • The landlord must always keep the property in good order. The landlord is responsible for maintaining the following items at your own cost: • The structure and exterior of the property. • Sinks, baths, toilets and other sanitary fittings, including pipes and drains. • Heating and hot water installations. • All gas appliances, pipes, flues and ventilation. • Electrical wiring.
It is imperative that you keep on top of maintenance works. If a local authority has concerns over any aspect of safety of your property, it can carry out an inspection and insist on repairs being carried out. House in multiple occupation (HMO) • The property may be an HMO if you let it to at least three tenants who form more than one household and who share toilet, bathroom or kitchen facilities. You will need to contact your Local Authority Housing Officer to see if you need to apply for a licence and if you or the Landlord will be applying for the licence. Keep secure the personal data of the tenant and any lawful occupiers • Under the General Data Protection Regulation (GDPR), landlords and agents are required to keep secure any personal data that they acquire in connection with the tenant and any lawful occupiers. Such data should be kept for no longer than is necessary for the purposes for which it is processed. Failure to comply with the requirements of the GDPR could result in significant fines and liability. Template – Get it Right! • If you require assistance with updating your tenancy agreement or require a new tenancy agreement, we offer a template document or a review of your existing documents for a fixed fee. Please get in touch; by email: contact@woodstockpropertylaw.com . Or by telephone: 0330 0885792. This guide is to provide general information and a general understanding of the law, not to provide specific legal advice nor does it create a client relationship.