The Housing Contract

When you find the right house it may be very tempting to sign on the dotted line immediately so that you don’t lose it. However now comes the serious bit!

Once you have entered into a contract you will be legally bound by it, so it is vital you understand what you are signing before you add your name to the list, as you may be subject to legal action or need to take legal action at a later date.

A Housing Contract will grant you a ‘Tenancy’ to occupy a property. This gives you (’Tenant’) exclusive possession of the property for a certain period in return for the payment of rent to the Landlord.

This contract is normally referred to as a ‘Tenancy Agreement’.

Types of Tenancy

1. Assured Shorthold Tenancy (AST)

This is the most common type of tenancy for students guaranteeing six months in the property. Although, in practise, you will normally have a longer fixed period.

Periodic and Fixed Term Tenancies

A periodic tenancy needs to be continually renewed e.g. every week or month. This can be done by paying rent and remaining in the property. A periodic tenancy can be ended by the serving of the appropriate notice on or by the landlord. (The length required depends on the type of tenancy).

A fixed term tenancy is for a specified period of time e.g. an academic year. A fixed term tenancy cannot be brought to an end before the expiry of this period (unless there is a special ‘break clause’ in the agreement) meaning you are bound by it. If you leave early you will remain liable for unpaid rent. Having a fixed term is normal practise, as a landlord will want guaranteed income for a period.

If you do enter a fixed term agreement and later regret it, try to talk to your landlord about it first. He may be willing to negotiate with you or help you find a replacement tenant.

Joint and Sole Tenancies

A joint tenancy occurs where more than one person in a property shares a tenancy. Joint tenants are equally entitled to joint exclusive possession of the whole of the property.

A sole tenancy occurs where, even if living with others, you alone have a right to exclusive possession of any accommodation you occupy e.g. a bedroom (although there may be joint use of others rooms such as the kitchen).

How do you tell the difference?

Confused? Don’t panic, it’s clearer than you think. Basically you have a sole tenancy if you live on your own in a bed-sit or joint tenancy if a group of you sign one contract with a landlord.

Where it is not so clear is that unfortunately there is no single test but don’t forget we’re always here to assist and answers to the following may give you some indication:

• Is the tenancy agreement in joint names or do you have several individual agreements?
• How is rent paid or stated – as one rent or several rents?
• Did you approach the landlord as a group or as an individual?
• Do you share a single household – e.g. share expenses?

Why do you need to know?

You probably are thinking that no of this matters too much right now but the distinction is important because if you are a joint tenant you are jointly and severally liable for the whole rent due on the property, as well as breakages and disrepair.

So if one of you leaves early, the landlord can choose to require those remaining to cover the sums outstanding rather than go after the tenant who has left. If you are left to pay, you can, in theory, seek recompense from the tenant who has left, although this is legally quite difficult.

As a sole tenant you are liable for your own rent and have only limited liability for actions of other tenants.

2. Assured Tenancy

Rare in student housing, it gives greater security than an Assured Shorthold. To be ‘assured’ the agreement must specifically state this, and if it does please seek further advice.

3. Licence

Not really a tenancy at all but merely a licence to occupy, i.e. you (licensee) have permission to live in a room but do not have merely exclusive possession of it, e.g. lodging with a landlord who cleans and cooks for you. This means fewer rights than a tenant and offers no legal security – you can be asked to leave at any time upon 4 weeks notice from a landlord.

A licensee does not have an automatic right to complain about the condition of the property as you can as a tenant. There are different types of licence. Please seek further advice from The Source if you require further information on this.

How to tell the difference between a Tenancy and a Licence?

Look at the agreement itself. If it says it is an Assured Shorthold tenancy and refers to ‘Landlord’ and ‘Tenant’, then it is clearly a tenancy.

References to ‘Licensor’ and ‘Licensee’ would indicate a licence, (although you would look at all the facts to confirm this is not just the landlord trying to give you less rights and security than a tenant).

Most student agreements will be tenancies, where you are unlikely to be sharing with a landlord and the landlord will not want to impose other occupies against your will.

Terms and Tenancy Agreements

Terms will vary from one agreement to another but most student agreements are standard e.g. amount of rent; period of tenancy; rights and responsibilities of landlord and tenant.

Be sure that you understand and are happy with each term. If you are concerned about a particular issue, negotiate with the landlord to get an appropriate term included if it is not already there.

There are, of course, key minimum terms, which you should try to get stated in any agreement that you sign:

• Type of agreement (e.g. Assured Shorthold)
• Date of agreement
• Parties of the agreement
• Address of property being rented
• Length of fixed term
• Notice periods
• Amount of rent and what is included (e.g. water bill)
• Details of when and how rent is payable
• Name, address and contract details of landlord

Also try to have terms covering:

• Rights and responsibilities of Landlord
• Rights and responsibilities of Tenant
• Details of ways in which an agreement may be broken

Also, get an inventory attached to the agreement (covered below)

If a Landlord won’t provide you with a written agreement, you are entitled to a written statement of the basic tenancy terms covering: amount of rent payable and when it should be paid, any arrangements for increasing the rent, date your tenancy began and the length of any fixed terms. A Landlord must by law provide these within 28 days of your written request.

Am I legally bound by all terms in a tenancy agreement I sign?

It is wise to assume the answer is yes. However, some terms may be unfair or misrepresented by the landlord and so unenforceable, e.g. the landlord tries to charge an excessive rate of interest for late payment of rent. Some terms may be invalid in law e.g. a landlord seeks to transfer the responsibility for external repairs to you, the tenant.

Whether or not a term is deemed unfair is for a court to decide. However, the Office of Fair Trading does produce a useful leaflet on Unfair Tenancy terms, which is available online.

However, the majority of terms are fair and by signing a legally binding agreement you are saying that you agree with them. Only in very limited circumstances can you cancel an agreement shortly after signing it.

If there is a written agreement but it has not been signed, then (subject to the above) unless you object to the terms in it or try to vary them, you will probably be regarded as having agreed to them.

Oral Agreement

Oral agreements are legally binding in most cases. However, we always advise that you obtain some form of written agreement because oral agreements are, of course more difficult to prove.

Administration and Retainer Fees

An admin fee is a sum on money the landlord or letting agent may charge to cover the cost of administration at the start of the tenancy. If you have any doubts look around at different landlords or letting agents to check out how much others cost and don't sign until you feel confident it is the right choice. 

A retainer is a sum of money the landlord or letting agent may charge in advance to retain the property until you move in. It's important to find out what your retainer covers as this may vary between properties and if you have any doubts seek advice before you sign the contract.  

Inventory

Most tenancy agreements state the tenant’s responsibility to keep furniture provided in a good state of repair. Deposits can be used to pay for any damage caused to the property by tenants. It is therefore very important to identify exactly the contents of the property and their state of repair.

An inventory is a full list of furniture and equipment (and their condition) that is provided by the landlord to the tenant. Ask your landlord for an inventory before you sign a tenancy agreement and move into the property.

When you move into the property carefully check the inventory to ensure that it is accurate and that all stated items are present. If you do not receive an inventory from your landlord, draw one up yourself. Make sure that the state of decoration of the property (wallpaper, paintwork, stains), and the condition of furniture and equipment is noted. Any damages need to be highlighted on the inventory.

If possible, take photographs and have them dated when developed. Once you are happy that the inventory is a true reflection of the property, approach your landlord and ask him/her to agree and sign it (including date). If they refuse then get it signed from an independent witness (e.g. neighbour). Give a copy of the inventory to your landlord and keep a copy for future reference.

Tenancy Deposit Protection Scheme

When you rent accommodation, it is usual to pay the private landlord or letting agent a deposit.

Did you know there is now a Tenancy Deposit Protection Scheme?

This has been in place since April 2007; for anyone who starts a new tenancy with a landlord or agent after that date this scheme is applicable. It applies only if you have an assured shorthold tenancy, this is the most likely one who will have, if you do not know check it out.

What is the Tenancy Deposit Protection Scheme?

This is where the landlord or agent must protect the money you have paid as a deposit into one of the two types of schemes. One is an insurance based scheme and the other is a custodial system.

What do I have to do?

Within 14 days of your starting the new tenancy agreement and you paying your deposit, the landlord or agent must give you specific details of the Tenancy Deposit Protection Scheme, what is the purpose of a deposit, how to get your deposit money back and what to do if there is a dispute about releasing the deposit at the end of the tenancy, between you and the landlord or agent.

What should I do if I am not given this information?

Ask the landlord or agent in writing for this, if you have any problems get advice from a Student Advisor at The Source – The Students’ Union Independent Advice Service or Derby Housing Aid.

What happens when I move out?

If you have paid your rent and have not damaged the property or contents normally you will be entitled to your deposit back in full. You should get this back within 10 days of your tenancy ending. If you have not paid your rent or caused any damage to the property or contents the landlord or agent may be entitled to keep some or all of the deposit. You would need to negotiate this with the landlord or agent.

What do I do if my deposit is not repaid after the 10 days or you disagree with the amount the landlord or agent wish to keep?

Consult the information you were given about the scheme from the landlord or agent, this will tell you what to do.

If I paid my deposit before April 2007 what happens?

Before that date private landlord or letting agents didn’t have to protect your deposit under a Tenancy Deposit Protection Scheme. If when you end your tenancy your deposit in not returned you should initially write to the landlord or agent, giving them a reasonable time to return it for example two weeks. If the deposit is still not returned you may wish to take them to court. For advice contact The Source - The Students’ Union Independent Advice Service or Derby Housing Aid on 01332 287850

Summary

Where you live whilst at University is an important as what subject you are studying and during your time at Derby University you may live in both University and Privately Rented Accommodation. The above information is vital if not a little confusing so please don’t forget that The Source have qualified advisors who are more than happy to step in and lend a hand should you feel that you need assistance with your housing matters.

For further information or advice about any issues related to Housing call or contact:

The Source – The Students’ Union Independent Advice Service
Tel: 01332 591509 (Derby) 01332 594553 (Buxton)
thesource@udsu.co.uk (Derby) thesourcebuxton@udsu.co.uk (Buxton)

Or:
Derby Housing Aid on 01332 287850

Useful websites:

www.direct.gov.uk/tenencydeposits
Citizens Advice
www.nusonline.co.uk/info/housing
www.shelter.org.uk/knowyourrights