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Category: Assured Shorthold Tenancy Agreements

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Assured Shorthold Tenancy Agreements Evicting Tenants & Ending Tenancies Landlord Legal & Compliance Managing Your Rental Property

A Comprehensive Guide: How Landlords Can Prepare for Bailiff Evictions in the UK

A Comprehensive Guide: How Landlords Can Prepare for Bailiff Evictions in the UK

Evictions can be a challenging and distressing process for landlords in the UK, particularly when the tenant is uncooperative or has failed to pay rent. If all other methods to resolve the situation have been exhausted, landlords may need to consider the last resort – applying for a bailiff eviction. This blog will provide landlords with a comprehensive guide on how to prepare for bailiff evictions in the UK.

1. Understand the Legal Process

Before embarking on a bailiff eviction, landlords must have a solid understanding of the legal process. Landlords should know the grounds for eviction, which include non-payment of rent, anti-social behavior, and other breaches of the tenancy agreement. Familiarize yourself with the various types of notices and the specific notice period required for each case.

2. Serve Proper Notices

One of the first steps in preparing for a bailiff eviction is to serve the tenant with the appropriate legal notices. Ensure you use the correct form and follow the statutory guidelines. These notices will include the Section 8 or Section 21 notice. Timing is crucial here, so make sure you serve the notice in the right sequence and that it complies with the law.

3. Communicate with Your Tenant

Open communication can sometimes resolve the situation without resorting to eviction. Before applying for a bailiff, make an effort to discuss the issues with your tenant. They might be willing to leave voluntarily or agree to a repayment plan. This can save time and money, and it’s a less stressful option for both parties.

4. Check Your Paperwork

Make sure all your paperwork is in order. This includes the tenancy agreement, proof of rent arrears, and records of any communications you’ve had with the tenant regarding the arrears or the breach of the tenancy agreement. Having a complete and organized file will be beneficial in court.

5. Court Proceedings

If communication fails and the tenant doesn’t leave, you may have to take legal action. Start court proceedings to obtain a possession order. This will involve a court hearing where a judge will decide on the eviction. It’s vital to attend this hearing prepared and with all necessary documentation.

6. Obtain a Possession Order

If the court rules in your favor, you will be granted a possession order. Depending on the type of possession order, you might need to wait for the tenant to leave voluntarily or apply for a warrant of possession to involve bailiffs. Consult with legal professionals to choose the right course of action.

7. Bailiff Application

If the tenant doesn’t leave by the date stipulated in the possession order, you can apply for a warrant of possession, which authorizes the use of bailiffs to evict the tenant. Ensure you complete the necessary paperwork accurately, as any errors could result in delays. Pay the required fees as well.

8. Arrange for Bailiff Eviction

Once the bailiff appointment is confirmed, plan for the eviction day. Make sure the property is ready for possession, and any tenant belongings are securely stored in accordance with the law. The bailiffs will execute the eviction on the appointed day, and you should be present during this process.

9. After the Eviction

After the tenant is removed, change the locks immediately. Document any damage to the property or missing items. You can then start the process of re-letting the property.

10. Dealing with Tenant Belongings

UK law requires landlords to store the tenant’s belongings for a specific period, usually 14 or 28 days. Notify the tenant about the storage arrangements. If they don’t collect their belongings within the specified period, you can dispose of them. Ensure you follow the legal guidelines in this process.

11. Record Keeping

Maintain meticulous records throughout the eviction process. This includes copies of all correspondence, court documents, notices served, and records of any property damage. Detailed record-keeping can be invaluable if any disputes arise later.

12. Seek Legal Advice

Legal proceedings can be complex and challenging. It’s highly recommended that you seek legal advice or hire a solicitor experienced in landlord-tenant matters to guide you through the process. They can ensure you follow all the legal procedures correctly.

Conclusion

Bailiff evictions are a last resort for landlords in the UK. While they can be emotionally and financially challenging, it’s crucial to follow the legal procedures meticulously. Understanding the process, serving proper notices, and maintaining open communication with your tenant are all key aspects of a successful eviction process. Seek legal advice, keep thorough records, and ensure your actions are in accordance with the law at every step. Remember, the goal is not only to regain possession of your property but also to handle the process as professionally and smoothly as possible.

 

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Mastering the Art of Rent Setting: A Landlord’s Guide to Optimizing Rental Income in the UK

Mastering the Art of Rent Setting: A Landlord's Guide to Optimizing Rental Income in the UK

Setting the right rent for your property in the UK is a crucial decision that can significantly impact your rental income and the overall success of your property management venture. Whether you’re a seasoned landlord or just starting out, understanding the factors that influence rental prices in the UK market is essential for making informed decisions. In this comprehensive guide, we’ll walk you through the key steps to help you determine the optimal rent for your property.

1. Know Your Market

Before you can set the right rent for your property, you need to have a solid grasp of the local rental market. Start by researching comparable properties in your area. Look at listings on popular property websites, speak to local real estate agents, and attend open houses. This will give you insights into what similar properties are renting for in your vicinity.

Example: Let’s say you own a two-bedroom apartment in a suburb of London. By researching similar properties in your area, you find that other two-bedroom apartments within a 10-minute walk of public transportation and local schools are renting for around £1,500 per month. This gives you a benchmark for your property’s potential rental price.

2. Evaluate Your Property’s Features and Condition

Your property’s rent should reflect its unique features and overall condition. Take a critical look at your property and make a list of its attributes. Consider factors such as size, number of bedrooms and bathrooms, outdoor space, parking facilities, and any special amenities like a pool or gym. Be honest about your property’s condition and any necessary repairs or upgrades.

Example: If your property has a newly renovated kitchen and a private garden, you can justify setting a slightly higher rent compared to similar properties in your neighborhood with older kitchens and no outdoor space. Highlighting these features in your rental listing can attract tenants willing to pay a premium.

3. Calculate Operating Expenses

To ensure your rental income covers your costs and generates a profit, you must calculate your operating expenses. These may include mortgage payments, property taxes, insurance, maintenance and repair costs, property management fees (if applicable), and any utilities or services you provide as part of the rent. Subtract these expenses from your expected rental income to determine your net profit.

Example: Suppose your total monthly expenses, including mortgage, taxes, insurance, maintenance, and utilities, amount to £1,200. To achieve a desired monthly profit of £300, you would need to set the rent at £1,500 (£1,500 – £1,200 = £300).

 

4. Consider Location

Location plays a significant role in rental pricing. Properties located in desirable neighbourhoods with good schools, access to public transportation, and proximity to amenities like shopping centers and parks tend to command higher rents. Take into account the convenience and attractiveness of your property’s location when setting your rent.

Example: A property located in a bustling city center with easy access to restaurants, shops, and public transportation can command a higher rent than a similar property in a less central location, even if the interior features are similar.

 

5. Factor in Market Trends

The UK rental market is subject to fluctuations, and rental prices can change over time. Stay informed about current market trends by reading industry news, consulting property experts, and monitoring rental price indices for your region. Understanding market trends will help you adjust your rent accordingly.

Example: You’ve noticed that rental prices in your area have been steadily increasing over the past year due to high demand. To stay competitive and maximize your income, you decide to raise your property’s rent by 5% when the lease comes up for renewal.

6. Be Competitive

While you want to maximize your rental income, it’s essential to remain competitive in the market. If your rent is significantly higher than similar properties in your area, you may struggle to find tenants. Conversely, setting your rent too low could leave money on the table. Aim for a balance that reflects the property’s value while remaining competitive.

Example: If most two-bedroom flats in your area rent for around £1,500 per month, setting your rent at £1,700 may discourage potential tenants. To remain competitive, you decide to set the rent at £1,550, offering good value without leaving money on the table.

 

7. Conduct Regular Rent Reviews

The rental market is dynamic, and what was the right rent a year ago may not be the same today. Consider conducting regular rent reviews to ensure your property’s rent remains competitive and reflective of market conditions. Many landlords choose to review rent annually or upon lease renewal.

Example: You’ve been renting out your property for three years at the same monthly rate. During a rent review, you realize that similar properties in your area are now renting for £100 more than your current rate. You decide to increase the rent for the next lease term to align with market rates.

 

8. Understand Local Regulations

Be aware of any local regulations or rent control laws that may affect your ability to set or increase rent. In some UK cities, there are restrictions on how much you can raise the rent, and failure to comply with these laws can result in legal consequences. Consult with a legal professional or property management expert if you have concerns about rent control regulations in your area.

Example: Your property is located in a city with strict rent control laws that limit rent increases to 3% annually. It’s essential to follow these regulations to avoid legal issues and ensure compliance with local laws.

 

9. Use Online Tools and Resources

There are several online tools and resources available to help you determine the right rent for your property. Websites like Zoopla, Rightmove, and OnTheMarket provide data on rental prices in various regions across the UK. Additionally, there are rent estimation tools that can provide valuable insights based on your property’s specifications and location.

Example: You utilize an online rent estimation tool to get an estimate for your property’s rent based on its specifications and location. The tool suggests a monthly rent of £1,450, which helps you make an informed pricing decision.

 

10. Seek Professional Guidance

If you’re unsure about how to set the right rent for your property or prefer to leave this task to experts, consider hiring a professional property management company. Property managers have extensive knowledge of the local market, can conduct thorough property assessments, and have access to valuable market data to help you make informed pricing decisions.

Example: You decide to hire a professional property management company to handle pricing and tenant management for your property. Their expertise in the local market and access to market data allows them to optimize your rental income and ensure you remain competitive.

 

In conclusion, setting the right rent for your property in the UK requires a combination of research, assessment, and market awareness. By understanding your local market, evaluating your property’s features, and considering expenses and trends, you can ensure that your rental income aligns with your investment goals. Regularly reviewing your rent and seeking professional guidance when necessary will help you maintain a competitive edge in the dynamic rental market.

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Ending a tenancy – dealing with a tenants’ notice to the landlord UK

ending a tenancy

Ending a tenancy - dealing with a tenants’ notice to the landlord UK

Ending a tenancy is a legal process and there are certain steps a landlord must take in order to ensure that they have followed the appropriate procedure.

Ending the tenancy by giving notice

Before ending the tenancy itself the landlord will need to give the correct “Notice” to the tenant.

The notice can be used to end a fixed or periodic tenancy or to request early termination also known as a ‘surrender’ of a tenancy.

The notice document allows you to include the following;

  • Tenant’s name and address
  • The landlord’s name and address
  • The date the notice period ends
  • A forwarding address
  • A request for tenancy documentation such as the tenancy agreement or deposit details
  • A reason for a request to terminate the tenancy early (if applicable)
ending a tenancy

What type of tenancy is in place

A fixed-term tenancy ends on a particular date so ending a tenancy like this is usually more straightforward. This type of tenancy is usually set for an initial period of six months and should the parties agree, it can be up to 12 months or more. After the agreed fixed-term has expired, the landlord can offer a new fixed term agreement, the tenant could give notice that they no longer wish to live at the property or the landlord could give notice to have the property back. The only ways to end your fixed term tenancy early are:

  • If the landlord agrees and allows the tenant to exit the contract early. 
  • If your contract mentions certain conditions for ending your tenancy early. 

If there is no fixed term or the initial fixed term has finished and wasn’t renewed, the tenant would be said to have a periodic tenancy.

Unlike a fixed-term tenancy, a periodic tenancy doesn’t have an end date and either rolls from month to month or week to week.  If the tenant is under a periodic tenancy, they would still be required to give the landlord written notice to end the periodic tenancy. This is called a “notice to quit”.  A notice to quit must give at least 4 weeks’ notice to end on the first or last day of a tenancy period.

Ending a tenancy by surrendering your tenancy 

If there is no break clause (usually 6 months) in your fixed-term tenancy then the tenant can surrender the tenancy but only if your landlord agrees. A surrender can either be expressed or implied:

  • Express surrender – the landlord and tenant are both in agreement to end the tenancy in writing by using a deed of surrender.  
  • Implied surrender – this type of surrender is based on a series of actions of both the landlord and tenant that are inconsistent with the continuation of the tenancy. For example, the tenant gives the keys back to the landlord and both agree to end the tenancy.

Ending a tenancy and the minimum amount of notice to give

At the end of the fixed term

The tenancy agreement will state the process regarding when to give notice.  Alternatively, if nothing is mentioned then the landlord or tenant can give notice on the last day of the fixed term.

Using a break clause

The break clause stated within the agreement will state the minimum notice period.

Surrender

A notice period is not required as the tenancy is terminated with immediate effect whether expressly or implied.

Ending a tenancy without giving notice

Just because the tenant has physically left the property doesn’t mean that they are no longer liable for paying rent for the remainder of their tenancy term.

Should the tenant leave without giving notice, a landlord will be able to go to court to obtain a court order, legally compelling the tenant to pay the due amount of rent and the accumulated arrears. 

Although landlords could recoup the arrears from the tenant, it is important to highlight that the Tenant Fees Act 2019 placed a limit on the amount landlords can request their tenants pay for the security deposit, which is typically five weeks rent. So landlords will unlikely be able to use the deposit to recoup all their costs.

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Fixed term tenancy – Steps landlords can take if your tenant wants out

fixed term

Fixed term tenancy – Steps landlords can take if your tenant wants out

A fixed term tenancy agreement details the legal rights and responsibilities of landlords and tenants detailing things like how long the property will be rented out for, rent rates, tenant obligations, landlord repair obligations and much more.

The difference between a fixed term tenancy agreement and a periodic tenancy is that one is for a fixed term, i.e. 6 months, 1 year 2 years and the other is rolling either monthly or weekly.

Fixed term tenancy process if your tenant wants out

When a tenant signs a new tenancy agreement they are essentially committing to rent your property for a fixed period of time but, there may be times when a tenant may decide they want to leave the tenancy early for various reasons. When this happens it is usually in the landlord and tenant’s best interest to reach an agreement as soon as possible.

How can you end a fixed term tenancy?

You can end your fixed term tenancy early if

1. Your tenancy agreement says you can, this means you have a break clause.

2. You can negotiate a surrender of fixed term tenancy with the landlord which could involve a re-assignment of the tenancy agreement or the tenant agreeing to pay rent for an agreed amount of time in order to allow the landlord reasonable time to find a new tenant.

The alternative for both parties when it comes to ending a fixed term tenancy before it contractually comes to an end would be to seek redress from the courts however in most cases it is usually more cost-effective and less time-consuming to come to an agreement.

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Redress scheme update for private landlords

Redress scheme update for private landlords

A redress scheme is an independent body set up to resolve complaints made by consumers against a member of the scheme. From 1 October 2008, every person in England who engages in estate agency work (property managers and letting agents) must be a member of an independent approved redress scheme. Private landlords can also join a redress scheme should they wish to do so, however, this is not a legal requirement.

There are only three redress schemes that an agent can join. They are:

How does it work?

The scheme allows consumers to escalate a complaint they have against a member of the scheme. The main aim is to resolve or settle unresolved complaints from consumers who have suffered a loss as a result of the actions of the member of the scheme. Redress schemes can order their members to pay compensation, with the threat of expulsion if the compensation is not paid.

What is the update for Private Landlords?

In January 2019 the Communities Secretary announced that all private landlords would be legally required to join a ‘housing redress scheme’ but since then there has been no sign of detailed proposals, however, in January 2020, the Government confirmed that leaseholders would be benefitting from a redress scheme, and as recently as March 2021 the current Housing Secretary, Robert Jenrick, stated in a speech to the National Housing Federation Summit that “tenants should be able to seek redress in a reasonable time without an uphill struggle and know that they will be heard”.

To this end, they have partnered up with the Property Redress Scheme and more recently The Dispute Service to set up a pilot scheme for their members. The scheme which will be free to NRLA members will provide a route for tenants to have their unresolved complaints dealt with by an independent third party in a confidential and non-confrontational process.

How can Property and Homes Management help Private Landlords with the scheme?

Our platform is all about helping landlord manage their properties more efficiently when it comes to repair and maintenance issues. By using our self-management service, landlords are able to act quickly when dealing with repair requests from their tenants, which in turn will help to reduce the need for the tenants to make complaints.   

By also keeping a track of the repair logs, a landlord can use our service to show a clear history of their dealings with tenant repair requests.

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Energy performance certificate updates for landlords

energy performance certificate

Energy performance certificate updates for landlords

Landlords renting their property in the UK are expected to have an energy performance certificate (EPC), which confirms how energy-efficient the property is.

What is an Energy Performance Certificate?

An EPC gives detailed information about your property’s energy efficiency and carbon dioxide emissions. They were first introduced in England and Wales in 2007 and they are valid for 10 years, so depending on when you bought the property, you may still have a valid EPC.

An assessor will carry out a full inspection and the property will be given an energy-efficiency grade between A and G, with A being the best (he most energy-efficient) and G being the worst (least efficient). Click here to view an EPC sample.

Your EPC will also come with a recommendation report containing advice and improvements that will make your property more energy-efficient.

As a landlord, you have a legal responsibility to carry out the changes suggested in your EPC report and you may spend up to a maximum of £3,500 on these energy efficiency improvements, including any funding or grants given by the government, local authorities or energy companies.

If your suggested improvements exceed £3,500, you can apply for a high-cost exemption via the PRS Exemptions Register.

What are the current EPC requirements?

The Minimum Energy Efficiency Standard regulations set a minimum energy efficiency standard of Energy Performance Rating E for domestic private rented properties in England and Wales however the Government has committed to upgrading as many private rented sector homes as possible to an EPC Band C by 2030, where practical, cost-effective and affordable.  

When do I need to renew my EPC?

If an EPC expires after the 10-year period, landlords are not automatically required to get a new one unless you intend to let to a new tenant, or you wish to sell the property. Remember, you are legally required to provide your tenant with a copy of the EPC.

What are the new EPC regulations for landlords in 2021?

So in 2021, changes to the Minimum Energy Efficiency Standards were announced that will affect landlords and rentals from 2025.

The Government’s preferred policy scenario which is currently under consultation for improving the energy performance of privately rented homes comprises of four elements:

  • Raising the energy performance standard to an EPC energy efficiency rating of Band C;
  • A phased trajectory for achieving the improvements for new tenancies from 2025 and all tenancies from 2028;
  • Increasing the maximum investment amount, resulting in an average per-property spend of £4,700 under a £10,000 cap
  • Introducing a ‘fabric first’ approach to energy performance improvements.

The findings of the Government’s consultation are expected to be published in 2022.

energy performance certificate

How can landlords prepare for the new 2025 EPC regulations?

The government have recommended a “fabric first” approach, which includes covering a wall, loft and floor insulation. The installation of a smart meter is also recommended.  It is important to note that energy performance investment is currently capped at £3,500 for landlords, but as the higher EPC rating will require a greater investment, the cap will be raised to £10,000.

The government estimate that on average the improvement needed to reach an EPC rating of “C” will cost landlords around £4,700.

As you can imagine, achieving an EPC rating of ‘C’ will be more difficult than an ‘E’, especially if you have a property, so landlords are encouraged to apply for the Green Homes Grant where possible.

What happens if I don’t have an EPC?

You may be fined up to £5,000 by your local authorities if you are found to have no EPC, however, when the regulations are updated in 2025, the penalty for not having a valid EPC of ‘C’ or above will be raised to £30,000.

Also, remember that EPC requirements aren’t the only announcement for landlords in 2021 as mandatory electrical safety inspections came into force in April. Click here to read about these changes.

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Tenancy Deposit Protection – Which is right for you?

Tenancy Deposit Protection – Which is right for you?

Since the Housing Act came into effect in 2004, as a landlord, it has been a legal requirement to put your tenants’ deposit into a government-approved tenancy deposit scheme if you rent your home on an assured shorthold tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:

The schemes are designed to keep the tenant’s money safe and to help make sure they get back what they are owed at the end of your tenancy. There are two types of schemes offered by the government-approved providers, insured and custodial.

Custodial or Insured, which option is best for you?

The custodial deposit protection schemes are ideal for landlords who don’t want to hold the deposit themselves and is usually free for landlords to join and use.

Custodial scheme

A custodial scheme protects a tenant’s deposit because:

  • the scheme administrator holds the deposit until it is required to be paid back
  • the deposit is safe if the landlord or their letting agent goes out of business

Insured deposit protection scheme

The insured deposit protection scheme is completely free to join. As a landlord, you pay a small fee to protect each deposit, which means you can keep your deposit in your bank account for the duration of the tenancy, keeping the accrued interest and at the end of the tenancy, you as the landlord would administer the repayment with the tenant. If the tenant disputes any deductions, the protection schemes you joined would provide a free dispute resolution service.

 

 Custodial

 Insured

Deposit held by

Scheme provider

Landlord

Cost

Free

Small fee

Landlord/Agent must provide prescribed information

Yes

Yes

Can return the agreed deposit without involved scheme

No

Yes

Must involve scheme with disputes

Yes

Yes

Free alternative dispute resolution

Yes

Yes

Dispute decision is final

Yes

Yes

How much should the deposit be?

The tenancy deposit will usually be the same amount as 4 or 5 weeks’ rent as it is now illegal for landlords to force tenants to pay a deposit of more than 5 weeks’ rent (or 6 weeks’ rent if the annual rent is more than £50,000).

It’s all about timing

Landlords or letting agents must put the deposit in the scheme within 30 days of getting it and then provide the tenant with the ‘prescribed information’ which includes details about the property and your deposit. Once you have registered with a scheme will give you the option to print out the ‘prescribed information’. Landlords cannot evict tenants with a section 21 notice if they haven’t given their tenants this information.

At the end of the tenancy

Landlords must return a tenant’s deposit within 10 days of both agreeing how much will be paid back after you have dealt with any issues that may require a deduction from the rent (i.e. unpaid rent, damage to the property etc.).

If the tenants dispute the amount to be paid back then the deposit will be protected in the Tenancy Deposit Protection scheme until the issue is sorted out.

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Self Management as a Landlord – What it’s all about

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Self Management as a Landlord – What it’s all about

So what exactly is self-management? I mean I know you want to buy a property and rent it out yourself, but are you really ready to self manage your own property without the help of a property manager.

What is Self-management?

Self-management, in the context of property, simply means you as the landlord, managing your own property, from finding tenants to organising your inventory, to sorting out the deposit, ensuring you have a tenancy agreement drafted that deals with repairs that come up during the course of the tenancy. In a nutshell, everything alls to you as the landlord to research, organise and implement and in most cases, this is a lot of work to do.

self management

However a lot of people, (like ourselves) have noticed that as much as some landlords sometimes can and may want to do it all by themselves, it does help to have a little helping hand from those who have been in the property business for longer. 

Pros of self-management

Of all the pros of self-managing your own property, here are the two main ones that landlords tend to find attractive about managing your property yourself, such as:

  • More control – you will essentially be in charge of making all the decisions in relation to the property. You get to choose your own tenants, build a good relationship with them and have a better oversight on the condition of your property.
  • Save money – by managing the property yourself, you don’t have to pay a percentage of your profits to a management agent to manage your property for you.
Cons of self-management

While there are some advantages to self-management, there also are a number of disadvantages, two of which are:

  • Legal and financial responsibilities – there are legal and financial mistakes that you as a landlord could face when trying to self manage your property by yourself. For example, making sure you have registered the deposit, carried out an inventory check, keep the property in good repair, etc.
  • The demand on your time – let’s put it simply, if a tenant calls you at 3 am about the loss of heat or a burst pipe, you have to find a solution fast. As the first port of call for all tenant enquiries, you (the landlord) will have to ensure that you have given your tenant’s contact details to speak to you when they have questions or issues with the property.
self management
The alternative

Before you jump ahead and think the alternative is having your property managed by a managing agent think again. As well as being a property management business, we are one of the very few who offer landlords who want to self manage their own property, an alternative that allows them to do that but with the support of our experience within the property market.

You can CLICK HERE to find out more about this service, but in brief, the alternative we offer our clients is access to our unique platform.

Our property management platform is a quick, simple, jargon free and easy to use platform that takes away all the hassle, stress and core administrative tasks of managing a property, all without the need to hire a dedicated estate agent.

You don’t need to download software or learn how to use complex tools it is all done online through our website. 

So managing your property doesn’t have to be stressful or time-consuming.

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Different types of tenancy agreements in the UK

Different types of tenancy agreements in the UK

A tenancy agreement is a document that sets out the terms of a tenancy. When you’re renting out a property, having a written tenancy agreement is a good way of making sure that the rental conditions between you and your tenant are clear. However, with the different types of tenancy agreements, we have in the UK, which is the right one for you?

Tenancy types

The most common tenancy agreement is the assured shorthold tenancy and unless your property rental fulfils certain criteria, it’s likely that an assured shorthold tenancy agreement is the right one for you. But let’s go through the different types we have in the UK.

Assured shorthold tenancy (AST)

An AST is the default tenancy agreement in the UK. As long as the property is a private rental, the tenancy started after 15 January 1989, the property is the tenant’s main accommodation, and you as the landlord don’t live in the property, it is likely to be rented on an assured shorthold tenancy.

ASTs are typically given for a period of six months but can be for longer and they usually are as most ASTs will usually state an initial fixed term of 12 months. After the fixed term is over, the tenancy agreement automatically becomes periodic tenancy, (a monthly rolling contract) with the same rent if you don’t sign a new contract with your tenant.

You are also required to protect the tenant’s deposit in a government-approved deposit protection scheme.

A tenancy cannot be an AST if:

  • it began or was agreed before 15 January 1989
  • the rent is more than £100,000 a year
  • the rent is less than £250 a year (less than £1,000 in London)
  • it’s a business tenancy or tenancy of licensed premises
  • it’s a holiday let
  • the landlord is a local council

Assured tenancy

Assured tenancies don’t provide landlords security of tenure and equip tenants with more protection against eviction. Assured tenancies were more commonly used in the past: tenancies that began between 1989 and 1997 may be assured tenancies, and they give tenants long-term tenancy rights.

Under assured tenancies, landlords must wait for specific circumstances that break the tenancy agreement to occur. So, If you’re just beginning to rent out your property, you’re unlikely to opt for this type of tenancy. 

Non-assured shorthold tenancy

Non-assured shorthold tenancies tend to be used when assured shorthold tenancies can’t be. This may be because the rent is less than £250 per year, the tenant has their main home elsewhere, or if a landlord lives in the same property as their tenants but doesn’t share any facilities.

Landlords who opt for an assured shorthold tenancy don’t need to pay a tenancy deposit into a government-backed deposit protection scheme, and you don’t have to give a Section 21 or Section 8 Notice to end the tenancy. However, the tenant has the right to stay in the property until the end of the fixed term, as long as they comply with the terms of the tenancy agreement.

Excluded tenancy

Excluded tenancies tend to be used by landlords who live in the same property and share facilities with their tenants. Landlords don’t need to protect the tenant’s deposit in a government-approved deposit scheme, and they can usually evict the tenant without a court order. Usually, this means the length of the rental period, so if your tenant pays rent weekly, landlords are within their rights to give one week’s notice.

Regulated tenancy

This form of tenancy was used before 1989, and it was a long-term tenancy. You are unlikely to use this type of tenancy agreement.

Company let

A company let is when a company rents residential accommodation for its own staff or directors. So you are renting to a company rather than an individual and this means that it’s not governed by the same rules when it comes to things like deposit protection and eviction.

Renting property to companies can be very lucrative but if you rent to the wrong company it can also be problematic.  A company can close down, for example, if it becomes insolvent, in which case it may prove impossible to recover unpaid rent. So ensure you do all your due diligence before renting the property to a company.

Can I change a tenancy agreement?

Usually, tenancy agreements can only be changed if both the landlord and tenants agree. If this is the case, all changes should be recorded in writing by either drawing up a new tenancy agreement or amending the existing tenancy contract.

Do I need to get a written copy of my tenancy agreement?

Landlords in England and Wales aren’t legally required to provide tenants with a written copy of a tenancy agreement.

A tenancy agreement can exist even if there’s only an oral agreement between a tenant and a landlord, but it is important to know that oral tenancy agreements can be difficult to enforce as there is evidence to prove what has and hasn’t been agreed.

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Electrical Installation Condition Report Updates for Landlords

Electrical Installation Condition Report

Electrical Installation Condition Report Updates for Landlords

An Electrical Installation Condition Report is a formal document produced by a qualified electrician after completing an assessment of the electrical systems of your rented property.

The electrical installation for your properties as landlords must meet regulated standards in order to ensure safety. Landlords are therefore responsible for ensuring the property they rent out has an electrical installation. It needs to be safe to use by your tenants throughout their tenancy.

What's new with Electrical Installation Condition Reports

Prior to June 2020, it wasn’t a requirement for landlords to get the Electrical Installation Condition Report. However, after June 2020, new Regulations require landlords to have the electrical installations in their properties inspected at least every 5 years.

The new Regulations apply to all new tenancies from 1 July 2020 and for existing tenancies, from 1 April 2021.

Electrical Installation Condition Report

The government can impose large fines and possible prison sentences if you do not have an EICR. It is also not enough to say you were not aware you had to have a report done.

What happens when I don’t have my electrical system tested out?

Aside from the EICR, as landlords, there are several health and safety laws you have to abide by. Failure to fulfil those legal duties puts you at risk of claims of negligence or damage.

The EICR is also important when it comes to insurance. You need to be confident that your insurer will cover potential damages to your property caused by electrical faults.

What happens if I don't pass the EICR?

If your EICR report reveals issues with your electrical system, the results will come out as “Unsatisfactory,”. This means you will need to undertake some remedial work. The qualified electrician should provide you with a list of what should be done and a fixed price quote.

You will need to resolve any electrical issues within 28 days, beginning with the day when you received the recommendation from the qualified electrician.

Need more help?

More information about how to carry out the checks is available online at www.gov.uk.

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