Creating Transparent Rental Agreements for Stronger Tenant Relations

As a first-time landlord, you need to know how to establish your tenancy’s rules. With an airtight UK residential tenancy agreement template, making your terms clear is easier than ever. In this post, we’ll show you how to make sure renters follow your lease.

Setting a Fair Price

Rent is arguably one of the biggest considerations for any landlord. You need to make sure your property is affordable for renters. However, you’ll still (naturally) want to earn a decent amount of passive income.

Though there are always people looking for housing, don’t overcharge. You’ll quickly gain a poor reputation among local renters. They’ll also be more likely to flock towards cheaper properties.

Check the prices for nearby rentals similar to yours. If you have extra amenities, you may justify charging a little more. Though UK rent is rising all the time, you must always stay fair.

What Your Tenancy Agreement Needs

A good tenancy agreement will make your rental’s terms clear from the very beginning. This is a complicated document, but it is one that can make your time as a landlord much simpler. You’ll have to ensure these agreements are fully comprehensive. At a minimum, it must include:

• Start and end dates: Make it clear when the tenancy begins and ends. A month or two before the latter, you can negotiate a new contract.
• The rental amount: Clearly state how much tenants should pay. Specify if it is per week or per month and if any late penalties will apply.
• Major obligations: Outline where their duties start and end. For example, tenants must care for the property, such as by shutting off the water in cold weather.
• Deposit details: Your agreement must also include details about the security deposit. It should set out potential reasons for deductions, such as property damage.
• Repair procedures: It also should inform the tenant about how to report repairs. Give a reasonable timeframe to temper a tenant’s expectations of a quick fix.
• Termination grounds: Set out conditions that would end the rental agreement early. For example, if a tenant sublets part of the property, this could be grounds for eviction.
• Guarantors: If you need your tenant to have a guarantor, make this clear. They will need to stay on the agreement for the whole tenancy.

Should You Use Online Tenancy Agreement Templates?

Your tenancy agreement or lease elaborates upon the rental’s specific terms. This means there are many bases to cover – the seven above are just a selection. Trying to draft an agreement by yourself could lead to you forgetting an important section.

For this reason, you should look into using an online template. These low-cost documents come with every field you’ll ever need. They include provisions for amending the contract, reasons for terminating it, changing the property, and more.

You’ll also be able to customise these documents to fit different property types. Beyond this, you can choose between basic and comprehensive agreements. You can even set specific start and end dates, addresses, and parking details.

Once you fill in all the details, download the agreement. You could keep the forms entirely digital and even sign them electronically. According to the UK Law Commission, electronic signatures are legally binding.

Navigating UK Rental Pet Policies

When it comes to a tenancy’s terms, you might want a strict ban on pet owners. However, over half of all UK homes have at least one pet. While many landlords put these restrictions in place, more and more tenants are starting to negotiate.

For example, your rental listing could request a pet CV from any pet-owning applicants. You will then be able to see if the pet is too big of a risk. This only affects renters who already have a pet.

In Wales, landlords can ask for a “pet deposit” to cover potential damages. These aren’t allowed in England, and many landlords raise the rent for pet owners instead. However, doing this could seriously harm your reputation as a fair landlord.

Negotiating Your Rental Terms

When renewing an agreement with your current tenant, they might have feedback on your rental terms. For example, they may ask for some leeway regarding subletting or owning pets.

Be open to what they have to say, and always be ready to negotiate. If they’re a model tenant, it wouldn’t hurt to consider it – though within reason. Shutting them down outright could push them not to renew, leaving you to find someone else.

Compromise is essential when negotiating any rental agreement. For example, they may ask for a lower rent. You could agree to this in exchange for a longer lease term.

Final Thoughts

With a comprehensive rental agreement, you and your tenant are always on the same page. An online agreement template will also help you communicate every important clause. However, it’s vital that you always stay open to negotiation.