Renting properties in England
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Outlined below is some general information about letting a property that you may find helpful. The information provided here is not intended to be comprehensive but it does highlight some areas that a Landlord needs to consider. If you decide to use LetsManage these are just some of the factors that we support when managing a property on your behalf.
Obligations for letting a property
When undertaking a tenancy for your property it is essential to understand your obligations as a Landlord and also those of your tenant. Below is a summary of the key points:
Landlord obligations
- repairs to the structure and exterior of the property, heating and hot water installations, basins, sinks, baths and other sanitary installations
- the safety of gas and electrical appliances
- the fire safety of furniture and furnishings provided under the tenancy
- ensuring that the property is fit for habitation
- repairing and keeping in working order the room and water heating equipment
- the common areas in multi-occupancy dwellings
Tenant obligations
- paying the rent as agreed and taking proper care of the property
- bills for gas electricity, telephone, etc if this was agreed with your landlord
- in most cases, paying the council tax, water and sewerage charges
Tenancy Agreements for England - Assured and Shorthold
The Assured and Shorthold Agreements in their current form came into effect with the Housing Act 1988, however there were some important changes made with the application of the Housing Act in 1996, these changes came into effect from 28 February 1997. Whilst the Assured and Shorthold Agreements are the most common form in use in England there are some key exceptions to their use:
- the tenancy began before 15 January 1989;
- it is a business or holiday let;
- no rent or a very low or very high rent is charged;
- you are a “resident landlord” (see section 1.2).
Assured and Shorthold tenancies were introduced to encourage lettings by allowing landlords to charge a full market rent, unlike previous forms of tenancy. Shorthold tenancies also allow landlords to let their property for a short period only and to get it back if they wish after 6 months. The changes in the 1996 Act make it easier to set up a shorthold tenancy and quicker and simpler to evict tenants who fail to pay their rent or cause a nuisance and annoyance to other local people.
Main differences between an assured and a shorthold tenancy?
Shorthold Tenancy
If you let on a shorthold tenancy, you can regain possession of your
property 6 months after the beginning of the tenancy, provided that
you give 2 months’ notice that you require possession.
Assured Tenancy.
If you let on an assured tenancy, your tenant has the right to remain
in the property unless you can prove to the court that you have grounds
for possession. You do not have an automatic right to repossess the
property when the tenancy comes to an end.
Should you choose an assured or a shorthold tenancy?
If you think you may need to regain possession of your property at some
time, you should consider a shorthold tenancy. If you have a mortgage,
your lender may require the tenancy to be a shorthold tenancy. If you
are sure that you want to let the property indefinitely, you should
consider an assured tenancy. If you are unsure which type of tenancy
to offer, you should seek legal advice.
Maintaining the Landlord and Tenant relationship
Whilst there will always be experiences of 'bad tenants' and 'bad landlords' there is much that can be done to help ensure a profitable tenancy by managing the Landlord and Tenant relationship. One of the more common problems is 'misunderstandings' which can lead to a rapidly deteriorating Landlord and Tenant relationship. Some suggested advice to help prevent misunderstandings:
- From the outset of the tenancy set out very clear rules and guidelines so the tenant knows what is expected of them and what to expect from the Landlord.
- If an issue arises within the tenancy, such as a repair that needs to be effected, ensure that the issue is resolved within the terms of the agreement and expectations set.
- Ensure there are regular property inspections / meetings with the tenant. This will help to ensure that any issues or potential misunderstanding are identified and resolved before a problem escalates.