Tenants' rights: What buy-to-let landlords must do and how your deposit is protected

Published 17th Aug 2011

Increasing numbers of Britons are renting their home but they are not always given the rights they are due. Getting things done properly from the start is essential and landlords must do certain things and must have your deposit protected. We outline what tenants are entitled to and what they must do.


The vast majority of people who rent their home are on assured shorthold tenancies (AST), but other agreements do exist which afford different levels of rights.

For tenants who are not on an AST, if they are a council or housing association tenant then they may be on a secured or assured tenancy which holds increased rights against eviction and for passing on tenancies.

In contrast, if a tenant lives in accomodation that is occupied by their landlord, rented from the Crown, a student residence, or a hostel or bed and breakfast then they may have only basic rights.

People whose accomodation is provided by their job or is part of agricultural premises are covered by different rules.

If your rent is more than £100,000 a year, you will have a standard tenancy contract, not an assured shorthold tenancy contract. This level was raised from £25,000 on 1 October 2010. Any tenancies that would have been assured shorthold tenancies but for the rent being above £25,000 will became assured shorthold tenancies from that date if their rents are below £100,000.

The level was lifted because the £25,000 limit was a throwback to when ASTs were first introduced and £25,000 annual rent was a very high amount. However, many London rents and families homes outside the capital will be above this figure now.

Assured shorthold tenants

Private rented tenants will automatically be assured shorthold tenants if they moved in after 28 February 1997, pay rent to a private landlord who does not live in the same building, and can prevent others' access to their home. This will also be the case if they moved in after 15 January 1989 and were given a notice informing them they were assured shorthold tenants.

An assured shorthold tenancy gives people a legal right to live in their home, either for a fixed-duration or on a rolling contract known as a periodic tenancy.

The law provides basic rights and other conditions may be added into the tenancy agreement to be signed by the tenant and landlord. Tenants have the right to live there until the agreement ends or a court order is sought, to get information about their tenancy provided within 28 days, stop others entering their home and get repairs done.

A tenant has the right to live in their home without being disturbed. The landlord and other people cannot enter freely when they wish and must seek permission to visit - typically at least 24 hours at a mutually convenient time.

Deposits

Tenancy Deposit Protection (TDP) means that landlords who collect deposits, or agents who do so on their behalf, must join a statutory scheme to ensure tenants get their deposit, or part of it back, if they have kept a property in good condition. Disputes over how much should be returned will be mediated by an independent dispute solving service. TDP affects all new assured shorthold tenancies taken out from April 6 2007.

There are three authorised tenancy deposit schemes. Two are insurance based and the third is custodial. All three schemes provide a free dispute resolution service in the event of a dispute about the return of the deposit.
Under all three schemes, the tenant pays the deposit to the landlord or agent in the usual way. Under the insurance-based schemes, the landlord or agent retains the deposit and pays a premium to the insurer. Under the custodial scheme the landlord or agent pays the deposit into the scheme.

Within 14 days of receiving a deposit the landlord or agent must give the tenant details about how their deposit is protected.


Rent and repairs

An agreed rent must be paid on time and if this is not done landlords may take court action to have tenants evicted. If a person pays weekly rent, a rent book must be provided. It may be possible for tenants to seek housemates to move in as subtenants or lodgers. It is vital to ask a landlord's permission for this otherwise a tenant may be in breach of their agreement.

Landlords must by law do repairs to keep the building in good condition, keep gas, electricity, heating and water equipment up to scratch and do other agreed work. Landlords must have a valid gas safety certificate for every gas appliance and furniture should be fire resistant.

Tenants are responsible for looking after their home, which includes keeping it clean, and simple tasks such as changing bulbs and fuses. If repairs need to be done, tenants should inform the landlord. If the landlord refuses to do them it may be possible to force them to.

Notice and eviction

A tenancy runs until it is ended by a tenant or landlord through agreed surrender of the property, a notice being served, or eviction.

Tenants on fixed-terms can only end the tenancy during that time if their agreement says so, dependent upon the agreed notice period. From the date the fixed-term ends a tenant can leave, but should still give a month's notice to the landlord. If the tenant opts not to leave, the tenancy becomes a rolling agreement. Tenants on periodic tenancies or rolling agreements should give one month's notice in writing, ending on the day rent is due. A landlord must give notice if they want a tenant to leave. Unless this is for eviction then this should be either be the agreed term in the tenancy agreement, or two months, or how long rent has been paid for, whichever is longer.

Under an assured shorthold tenancy a tenant can be evicted reasonably easily. This is common for problems such as rent arrears, or consistent late payment, but may also occur under a periodic rolling contract, or fixed tenancy that has run out, or if a tenant challenges a rent rise or demands repairs.

Under a rolling agreement or once a fixed term has ended a tenant can be removed with a court order with the correct notice given, without any burden of proving wrongdoing. During a fixed term tenancy a court will require the landlord to give good reason for eviction and then consider whether that is a reasonable course of action.

Responsibilities

With rights come responsibilities and tenants must keep within the terms of their rental agreement, which may have specific clauses inserted.
General conditions mean rent should be paid, in full and on-time, bills sorted, good care taken of the property, tenants and visitors must behave responsibly, permission be granted for access when needed and requests be made for any repairs or extraordinary occurrences. Tenants should also not leave their home empty beyond a certain period of time, typically a week or fortnight, without warning the landlord.

Source: ' ThisIsMoney '

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