Housing contracts
When renting, a contract is a legally binding document designed not just to protect your landlord's interests, but yours too.
Generally a landlord will provide the document, but it's vital that you read it thoroughly and understand every aspect of the agreement before you sign. Points to look out for include:
- Period of agreement: Many contracts run for 12 months. During this time, your landlord cannot increase the rent from the sum you have agreed. Also be clear about how much notice you will be required to give should you choose to leave before the contract expires.
- Responsibility for bills: Establish which utility services are included in the rent (i.e. water) and those for which you will be responsible for paying. This may mean registering for some services (i.e. gas/electricity) under your name.
- Using the property in a tenant-like manner: Typically a clause, or set of clauses, designed to protect the landlord in case you trash the place. Clauses may cover anything from replacing furniture broken by you, to keeping noise down between the hours of 10pm-8am.
- References: Most landlords will want to see some kind of written documentation to guarantee that you say who you say are. Requests for bank statements, or a letter from an employer or previous landlord are common. When it comes to signing the contract, never feel obliged to sign on the dotted line immediately.
- If necessary seek a second opinion and if you feel uncomfortable about any aspect then discuss it with your landlord. Ultimately,regard an unsigned contract as a working document. One that can be redrafted or amended until both parties are happy.
- Finally, if you agree to sign the contract then be sure you are provided with a copy.
If you're at all concerned by any clauses here, either question them with the landlord or seek advice from your local Citizen's Advice or student housing officer.
Dealing with your deposit
- When entering into a contract with a landlord, chances are you'll be asked to pay a deposit (often a month's rent). This is basically cover for the property owner should you damage it or leave with outstanding debts.
- To ensure you have a verifiable proof of payment, always pay the deposit by cheque, bankers draft or credit card. Also ask your landlord for a receipt, and written confirmation of what is covered by the deposit.
- On the day you move in, request that your landlord makes an inspection of the property with you. This way you can both draw up an inventory, and identify any damage or breakage or faults not caused by you. It also gives you a chance to ask questions about how certain things operate such as the boiler, meters or window locks.
- Be aware that wear and tear is to be expected when living anywhere for a period of time, so be sure your contract defines what is reasonable.
Should your landlord be difficult about returning your deposit (if you're not covered under the protection scheme outlined below), don't be tempted to withhold the final month's rent. This is breaking the terms of your contract, and you risk prosecution. Instead, consult your local Citizen's Advice Bureau or student housing officer.
Tenancy deposit protection scheme
If you enter into an assured shorthold tenancy from April 6, 2007, your landlord must use a tenancy deposit protection scheme if they want to take a deposit from you.
According to the Citizens Advice Bureau (CAB), this means that:
- You will get some or all of your deposit back if you're entitled to it;
- There will be a way of settling any disagreement about your deposit without going to court.
Your landlord will have a choice of two schemes to join. One will be a custodial scheme where your landlord will pay the deposit into the scheme and this will keep it safe. The other will be insurance-based where your landlord will keep the deposit, but will have to pay insurance to the scheme.
So it's worth checking with your landlord which tenancy scheme they will use to safeguard your deposit. Within 14 days of paying your deposit your landlord must give you details of the scheme they are using to protect it. It's also important you and your landlord agree, in writing, what condition the place is in before you start renting it (this is called an inventory), to help prevent disagreements at the end of the tenancy.
At the end of the tenancy you should get your deposit back within 10 days. For more information, and advice if you've paid a deposit before April 2007, check out CAB's factsheet on tenancy deposits.
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