When purchasing a property, leasing it out can be a great way of generating income. However, landlords must complete the correct paperwork to benefit from a lease fully. Although some tenancies are straightforward, others can be unique. As such, using an online template is not advisable.
The law regarding tenancy agreements can sometimes be confusing, which is why a professional must complete any paperwork.
What Is a Resident Landlord Tenancy Agreement?
A resident landlord tenancy agreement is needed when a landlord resides in the same building as the tenant but does not share living accommodation.
A resident landlord tenancy agreement details the terms of the agreement, including the rent agreement and length of the tenancy.
Can Landlords Create their Own Resident Landlord Tenancy Agreement?
Landlords can create their own resident landlord tenancy agreement, but it will need to be in line with current legislation and be updated as necessary. Those who don’t have experience creating legal documentation may find they unsure of what to include.
Even in instances when information is included in a resident landlord tenancy agreement, it needs to be clear to the tenant what the agreement consists of.
Although landlords can create their own resident landlord tenancy agreement if they wish, many prefer to use a seasoned professional.
Is Permission Needed to Rent Out Part of the Home?
No permission is needed to rent out part of the home if the property is owned outright. However, homeowners with a mortgage should check with their provider to ensure no terms are broken.
Long leaseholders and tenants may also rent out part of the property but will need to obtain permission from the freeholder or landlord. However, should the tenant vacate the property, the tenancy of the sub-tenants will also end.
If you are unsure of whether permissions are required, then it is advisable to carry out some checks before creating a resident landlord tenancy agreement.
What Details Need to Be Included in a Resident Tenancy Agreement?
Although many tenancy agreements can be similar, there will be differences between each one. Simply using a template or generic tenancy agreement may seem cost-effective and quicker, but it can mean that a landlord is not protected should something go wrong.
When working with a professional, landlords must ensure the following details are included in the resident landlord tenancy agreement.
The amount of Rent and Payment Due Date
Although including the rent may seem simple, it is worth double-checking before the tenant signs the agreement. The amount of rent paid should be similar to other properties in the area. It can also be helpful to list what is included in the rent.
When renting out rooms in a property, they won’t always be furnished. However, if they are, then landlords should make efforts to document the inventory before a lease is agreed upon. This includes listing the items as well as taking pictures.
Those wishing to safeguard the property’s condition may also want to complete a schedule of conditions.
In many instances, landlords will take a deposit from the tenant, which will be used for repairs and damages. However, if there is no evidence of how the property looked before the lease or details of the contents, it could be challenging to make deductions after the lease has ended.
Ending the Rental Agreement
Each landlord will have their own requirements regarding the termination of a rental agreement, but in every instance, the agreement needs to offer the same rights to the tenant and landlord.
For example, if there was a clause in a rental agreement that allowed a landlord to end the tenancy early but not the tenant, then the agreement may not be legal.
Tenants must give realistic notice when moving out, which is usually four weeks. However, tenants who have been part of a resident landlord agreement for some time may find clauses that allow for a tenancy to be ended.
If a landlord wishes to end a tenancy, they will often serve a notice to quit. However, suppose the end of the tenancy is due to unpaid rent or breaking the tenancy agreement. In that case, legal assistance will need to be sought regarding the following steps that need to be taken, thus the importance of a written resident landlord agreement.
How Long Should a Resident Landlord Agreement Last?
Those creating a resident landlord agreement will often choose their own terms, but there will be instances when the lease runs periodically. Three months is usually enough to rent rooms, ensuring both parties are protected without committing to a long-term tenancy.
If the tenant wishes to remain in the property following the end of the tenancy, then a new tenancy will need to be created, or it will convert to a periodic agreement.
What Are the Responsibilities of the Tenants in a Resident Landlord Agreement?
As with other aspects of a resident landlord agreement, the tenant’s responsibilities can vary. However, the following are standard requirements of tenants, regardless of the type of tenancy.
- Ensure rent is paid on time.
- Advise the landlord of repairs that need to be carried out.
- Ensure the property is looked after.
- Obtain permission before redecorating.
- Provide notice when wishing to vacate the property.
Ensuring that all the above are listed in a written resident landlord agreement ensures that landlords are protected in instances when rent is unpaid, or property is damaged.
What Are the Responsibilities of the Landlord in a Resident Landlord Tenancy Agreement?
The landlords need to ensure that the property is safe for tenants via several means, including but not limited to the following.
- Gas Safety Certificate
- Energy Performance Certificate
- Smoke Alarms and Accessible Fire Exit
If a deposit is taken, then landlords need to be clear about how the funds will be handled should repair in the property be needed after a lease has ended.
Why Choose Legal Matters Made Simple for Resident Landlord Tenancy Agreements?
Given how much there is to consider when creating a resident landlord tenancy agreement, it makes sense to find a professional that can promptly contend with all your legal documentation requirements.
If you are a landlord and keen to create a Resident Landlord Tenancy Agreement you can rely on, then why not get in touch with Legal Matters Made Simple to discuss your requirements in more detail?