I am a landlord: what should I include in my lease agreements?
- Changes are taking place in the world of regulation and the rental market
- We spoke with a top-notch legal expert about checking that agreements are up to date
I am a landlord and I am concerned that my leasing agent is issuing expired leases to my tenants, due to all the regulatory changes that are taking place.
What should I take into account in the lease? CS
We spoke with a top-notch legal expert about what to consider in your lease
MailOnline property expert Myra Butterworth answers: A lot has changed in the world of ownership and regulation, and it can be challenging to keep up with it all.
We spoke with a top-notch legal expert about what landlords—and tenants—should consider in their latest leases.
These include making sure basics such as headline clauses containing names and addresses are correct, along with clauses on tenant fees and general prohibitions.
David Cox, Rightmove’s director of legal and compliance, responds: The lease is the most important document used by agents and landlords.
It can be quite complicated as there is so much legislation that owners and agents must comply with.
While there is no legal requirement to have a written lease, they are extremely important as they set out contractual and legal issues.
While they can be complicated, there are a few key things landlords and tenants need to keep in mind to make sure the lease is fair and doesn’t inadvertently break the law.
Landlords and real estate agents must comply with much of the rental law.
title clauses
Within a lease, there should be clear titles at the beginning of the lease, setting out the key terms that have been individually negotiated between the landlord and the tenant.
This includes the name of the owner and the tenant, the address of the property, how much the monthly rent is, the terms of the contract, the guarantors, the permitted occupants and the deposit.
These main clauses are an important reference point for both the owner and the tenant throughout the lease.
Abusive contract terms
The Unfair Contract Terms Act limits the extent to which a landlord can exclude liability to the tenant or impose harsh terms on the tenant.
Unfair lease terms could include a requirement for professional cleaning at the end of the lease, rather than a requirement to simply leave the property in the same condition as when the tenant first moved out.
If a tenant sees anything in their agreement that appears to reduce any responsibility for making sure the home is reasonable or safe to live in, then this should be discussed with the leasing agent.
There are a few things landlords and tenants should keep in mind to make sure the lease is fair and doesn’t inadvertently break the law.
tenant fees
In 2019, the Government introduced the Tenant Fees Act to reduce the costs faced by tenants.
There are now limits on what landlords can charge a tenant. They can usually only collect rent from you; a refundable rental deposit capped at five weeks’ rent; and a refundable deposit to reserve a property, also limited to one week’s rental.
Tenants should be able to clearly see in their agreement what the property will cost them.
general prohibitions
The proposed tenant reform bill seeks to expand the removal of blanket prohibitions on certain terms within a lease.
‘No DSS’, which has been banned from Rightmove listings since 2019, is one example, which if listed on a rental restricts the benefits of all tenants to apply for the property.
This and a general ban on keeping pets will be outlawed in the Tenants Reform Bill, and the Government can extend this to other terms, such as a ban on renting to families.
