In any rental deal (monthly or weekly) in London, a tenancy agreement is very important. In the agreement certain categories of information as discussed below are very vital for its legality and smooth operational requirements.
Name of Parties
The tenancy agreement must contain the names of the landlord, tenant(s) and the guarantors prominently documented in the agreement.
Land Lord’s Address
The landlord must have an England or Wales address. This is mandatory under section 48 of the Landlord & Tenant Act 1987. If that address is not included in the agreement then the tenant is not legally obliged to pay rent until served with a notice (section 48 notice) giving this information.
In the case of two or more tenants signing a tenancy agreement jointly then it entails a ‘joint and several’ liability. It means they will owe the landlord ‘all’ the rent not their individual share.
The tenancy agreement must contain vividly the details of the property being given out on rent. If rooms are being rented out, give the number the rooms or specify the location such as first floor or back bedroom. There must also be references to garages, parking space, rights of way across the property.
Tenure of Tenancy
It is very important to be clear cut on the period or tenure of tenancy in the agreement. In case there is a break clause the tenancy will run automatically as periodic tenancy and the tenants will stay on after the fixed term ends. During the fixed term Landlords cannot evict tenants under the ‘no fault’ section 21 procedures.
If a landlord is taking deposits it is vital that this is referred to in your tenancy agreement. Refer that in the tenancy agreement under a clause saying what all deductions are to be allowed.
While renting a property in London there are standard clauses that govern matters like payments, dos and Don’ts on the part of the tenant in the property, the ‘landlords covenants’ and termination clauses.
It has been observed that in long term rentals London some landlords keep standard clause part of agreement as short as possible. In some cases, tenants have to be careful about drastic abridgement as it may take out the relevant supporting rule that would protect a tenant’s interest.
Under the Unfair Terms clause in Consumer Contracts Regulations 1999 if a tenancy agreement contains ‘unfair’ clauses they will be deemed unenforceable.