Coulter Hurst & Co - Insurance & Risk Management

6 reasons why your tenancy agreement may be your tenants’ best friend and your own worst enemy

Source: Residential Landlords Association (RLA) | May 2012

Do you use an Assured Shorthold Tenancy (AST) agreement?

If not, here are six reasons why you may be putting yourself at risk.

1. If your agreement does not comply with the latest tenancy deposit legislation, you can be fined up to three times the deposit and lose the right to eviction.
2. If your agreement does not include crucial conditions for your tenants to adhere to, you cannot later find them in breach of these conditions.
3. Your agreement must include a postal address in England or Wales, otherwise you may not have a legal right to collect rent.
4. If your tenancy agreement has not been updated since before 1996, it may be an ‘assured tenancy’. You might not be able to increase the rent and it could be an invalid tenancy.
5. If your tenancy agreement has not been tested in court, you’ll never know it works until it’s too late.
6. If your tenancy agreement is not easy to read and understand, it may go against you in court or in a deposit dispute.

Both new and experienced landlords can get caught out by their tenancy agreements. With a growing sector and continual tightening of legislation, thousands of landlords each year get into bitter disputes with tenants.

You need to be sure that your AST is:

-    Tried and tested throughout courts in England & Wales
-    Easy to read and understand
-    Drawn up by an industry leading solicitor
-    Constantly monitored and updated

For further information please call Coulter Hurst today or you can download the RLA AST today at www.rla.org.uk/bestfriend