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TENANCY AGREEMENT
It is important to have a comprehensive Agreement ap-
plicable to the property, term and tenant. The Agreement
will detail the responsibilities of both landlord and tenant
and can be legally enforced.
ASSURED SHORTHOLD
TENANCY
Most private lets fall under the AST (Housing Act 1988)
(Amended 1996). Typically the tenancy will run for a fxed
term of 6 or 12 months requiring notice from the landlord
of two months (earliest on month 4 or 10) and one month
by the tenant (earliest month 5 or 11). These tenancies
can be renewed following the expiry of the fxed term or
convert to a Statutory Periodic on a month to month ba-
sis. Anthony Lettings will carry out renewal negotiations
to ensure that the rent, terms and length of tenancy are
adjusted as necessary and the paperwork completed ac-
cordingly.
NON-HOUSING ACT
TENANCY
This normally applies where the annual rent exceeds
£25,000. The lease becomes a legally binding contract
between both parties for the duration of the agreed fxed
term; a notice period of 2 months applies to both landlord
and tenant. In certain instances, annexes, that form part
of another property and denies the tenant exclusive use,
also fall outside of the Housing Act.
COMPANY TENANCIES
There is a standard Agreement applying to companies or
partnerships, which are a legally binding contract.
HOUSES OF MULTIPLE
OCCUPATION (HMO)
HMO generally refers to a house split into bedsits, a
house or fat-share where each tenant has their own ten-
ancy agreement or students living in shared accommo-
dation. Such properties may require licensing from the
Local Authority and clarifcation must be sought.
STAMP DUTY
It is the tenant’s responsibility for the payment of Stamp
Duty Land Tax when the value of the lease exceeds
£175,000. It is the responsibility of the landlord to advise
their tenants of the potential liability.
INCOME TAX
The rental income, which you receive, will be liable for
taxation. If you are to be a UK based Landlord the rental
income will be paid gross, less expenses and you will
be responsible for your own tax affairs. If you are living
overseas, you will need to apply to the HM Customs and
Revenue for a tax exemption certifcate (NRL1). Until
we receive written confrmation from HM Revenue and
Customs that you are exempt, we are required by law
to deduct tax at the basic rate. We are also obliged to
submit quarterly returns to HM Revenue and Customs
for overseas landlords. It is strongly recommended in all
cases that landlords seek professional advice concern-
ing tax obligations and tax deductible expenditure.
TENANT DEPOSIT
PROTECTION SCHEME
It is standard practice for a tenant to provide a security
deposit of at least one month’s rent, which is refundable
at the end of the tenancy providing there is no dispute
or outstanding rent. In April 2006 the law regarding de-
posits changed and the Tenants Deposit Scheme was
introduced. Essentially tenant’s deposits cannot be held
by agents or private landlords who are not registered
with a deposit protection scheme. Anthony Lettings is
a regulated agent under the terms of Tenancy Deposit
Solutions Limited (trading as mydeposits.co.uk) and The
Deposit Protection Service (DPS). Where Anthony Let-
tings register a deposit we will always seek permission
from both parties to return deposits and under our Full
Management service we will mediate on behalf of the
landlord in the case of any dispute that may arise. It is
the right of the tenant, in the event of dispute to apply
for Adjudication by ADRS (Alternative Dispute Resolution
Service). Where a landlord is legally entitled to hold their
own deposits a copy of the landlord registration will be
required for our fles.
REFURBISHMENTS
As highlighted under ‘The need for an Inventory’, ten-
ants are expected to return a property in good condition,
allowing for normal wear and tear. Over time this wear
and tear will necessitate the need for refurbishments, so,
there will be the need for you to redecorate, replace car-
pets/fooring or generally re-fresh the appearance of your
let property from time to time.
OTHER IMPORTANT LETTING INFORMATION
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