For every tenancy, you’ll need a tenancy agreement. This is a legally binding contract between you and your tenant. The most common forms of tenancy agreement are Assured Shorthold Tenancies in England, Occupation Contracts (OC) standard-contract in Wales, Private Tenancies in Northern Ireland and Private Residential Tenancies in Scotland. Most landlords offer a minimum contract of six months.  

 

Both you (as landlord) and your tenant must sign the agreement. The ‘private renting’ pages at www.gov.uk/private-renting have more information.

 

For Occupation Contracts in Wales you'll be required to issue a ‘written statement’ of the occupation contract to all contract-holders (tenants). The written statement must contain all the terms of the contract. The written statement must be issued within 14 days of occupation under the contract. The written statement can be issued in hardcopy or, if the contract-holder agrees, electronically.

• Length of tenancy and the date it started
• Details of tenants, landlord and all other parties involved
• Deposit amount and how you’ll protect it
  
• Monthly rental amount, when it’s due and how it must be paid
  
• Notice periods for both you and tenants
  
• Landlord’s and tenants’ obligations during the tenancy

Under the terms of the mortgage, you must have buildings insurance in place at all times throughout the life of the mortgage – this covers structural damage and the cost of rebuilding your property if necessary. You can also take out insurance that covers you for tenants failing to pay their rent, as well as:

• Legal cover – for potential disputes
• Landlord liability – to protect you from compensation claims
• Landlord contents insurance – to protect fixtures, fittings and furniture if property is furnished
• Accidental damage cover – or glass and sanitary ware, ceramic hobs and underground pipes
• Glass and lock replacement
• Boiler cover ­
• Emergency cover – to insure you against call-outs for certain items, such as broken central heating, gas/electricity or burst pipes or drainage problems
• Public liability cover – in case a claim is made against you

Your responsibilities

You must treat your tenants/contract holders fairly and equally, and maintain the property to comply with recommended safety standards.

If your property is leasehold, you’ll need to make sure the ground rent is paid, and comply with reasonable requests from the freeholder or managing agent.

It will always be your responsibility to meet the costs of the mortgage. Your property may be repossessed if you don’t keep up repayments, and we may appoint a receiver of rent. Any shortfall after the property is sold would remain your responsibility.

The following Acts give you more information about your obligations as a landlord.

Landlord and Tenant Act 1985

Homes (Fitness for Human Habitation) (England and Wales) Act 2018

Private Housing (Tenancies) (Scotland) Act 2016

Renting Homes (Wales) Act 2016

Renting Homes (Amendment) (Wales) Act 2021

Private Tenancies Act (Northern Ireland) 2022

The Private Tenancies (Northern Ireland) Order 2006

If the worst happens and your tenants/contract holders can’t or won’t pay their rent, it could take months to resolve via your letting agent or the legal system.

There are strict legal guidelines you have to follow if you want to remove tenants from the property. For guidance, visit www.gov.uk/private-renting-evictions.

Whether the tenancy agreement comes to an end, or you want to take back possession of your property, you must give your tenants at least two months' notice to leave.

If they refuse to leave, you’ll need to start a legal process of eviction through the courts. You can’t evict them yourself and you can’t legally remove a tenant from the property without an eviction order.

If you have any queries about a dispute, take legal advice as quickly as possible.

 

For Occupation Contracts in Wales different legal provisions apply to ending the agreement:

Where the contract-holder has breached the occupation contract the minimum notice period that must be given is one month. This notice period can be shorter where it relates to a breach of the anti-social behaviour or the serious rent arrears terms. Where a ‘no fault’ notice is issued, the minimum notice period that must be given is six months and a landlord cannot give such a 'no fault' notice until 6 months after the contract starts.

 

In addition, a landlord will not be able to give such a notice unless they have complied with certain obligations, including registration and licensing with Rent Smart Wales and deposit protection rules. 

 

Landlord break clauses will only be able to be incorporated into a fixed term occupation contract if the contract has a fixed term of 2 years or more. A landlord will not be able to exercise a break clause within the first 18 months of occupation.

England Government - www.gov.uk/renting-out-a-property

Scotland Government - www.mygov.scot/renting-your-property-out

Wales Government - www.gov.wales/landlords-letting-agents

National Residential Landlords Association (NRLA) -  www.nrla.org.uk

Propertymark - www.propertymark.co.uk

Resources and advice for Landlords - www.informedlandlords.com