Posted Oct 17th 2017 by Property Lets Online
A tenancy agreement is a legal and a binding agreement between a landlord and the tenant who want to rent the property. It touches on all the key areas that make up their relationship as well as the obligations of each of them towards the property in the question. It also denotes all they key areas that both parties agreed on the tenancy.
The agreement should be in writing
The tenancy agreement must be made in writing. Each of the parties must sign to the tenancy agreement including any guarantors acting on behalf of the tenant before the start of the tenancy. However, even if the agreement is not made in writing, the law envisages that neither of the parties can avoid their obligations just because the agreement was verbal.
Why is a tenancy agreement important?
The tenancy agreement is important to both the landlord and the tenant in the following ways it safeguards the rights of each party.
A tenant agreement ensures that neither of the parties oversteps their mandate and affects the other party negatively. For example, it guarantees that the landlord will make the necessary large repairs in the property for the comfort of the tenant. On the other hand, it binds the tenant to take care of the property and pay the rent in due time.
The tenancy agreement outlines how to end the tenancy and the procedure to the landlord who is responsible to pay back the bond placed by the tenancy. Providing there is no extensive wear and tear or damages to the property at the end of the tenancy. It prevents a case where the landlord refuses to pay back the bond on flimsy grounds. It also ensures that the tenant does not abscond without giving notice to the landlord.