Do you have a formal tenancy agreement in place?
Worrying data has emerged from a mainstream landlord insurance provider that one in 10 private landlords have no formal tenancy agreement in place.
Direct Line for Business’ research has also uncovered:
- 58% of landlords without a letting agent have adapted tenancy agreements from old agent contracts,
- 38% have adapted agreements from other landlords,
- 20% have used an updated template found online,
- Over the last 2 years 13% (one in 8) have experienced disputes arising from tenants’ tenancy agreements.
Not only does this expose a growing percentage of landlords unwittingly asking tenants to sign documents that are not legally compliant but it could also explain why landlords experiencing disputes, specifically from tenants’ rental contracts, has steadily increased over the past 2 years.
Furthermore, with regards to the legal requirement where private landlords must provide the name and contact details of the tenancy deposit protection scheme as well as its dispute resolution service within 30 days of taking the deposit, landlords are still failing to do this;
- 9% have failed to inform their tenants that their deposit is held in a government-backed scheme,
- 4% have not taken any deposit at all.
Apart from failing to reference properly, the most common mistakes we see landlords making over and over again is not crossing T’s and dotting I’s in their initial paperwork. And as our industry faces further legislation in the future, failing to comply with measures such as these should now be the ultimate call to action for landlords to redress where exactly they source lettings help and advice from.
This is why we wrote this piece last week:
This is also why we work closely with the leading tenancy deposit protection scheme MyDeposits, where we can offer our landlord and letting agent members a discount of up to 50% on their joining fees and a £2 discount off of every deposit they register.
MyDeposits also have a whole range of important guides and documents available for you to read and download, e.g.:
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