Contract Help
Basic Contract Guidance
Forgive us for nit picking, but it's an idea to brush up on one or two facts before you rent a house:
- Your tenancy agreement (contract) creates an 'estate in land' This means you temporarily 'own' the land and the buildings standing on it in return for your rent. Don't get too excited - it's not as simple as that and you do have obligations as a tenant. (These are under what are known as civil and statutory law - get in touch if you'd like us to explain the legalese)
- You've got a right to 'quiet enjoyment' of your house. This means that your landlord can't just demand access to your home whenever s/he feels like it (except in an emergency).
- Your contract is likely to be an Assured Shorthold Tenancy (see below).
- The tenancy agreement needs to be in plain language and not have any unfair terms. We at Manchester Student Homes are more than happy to go through the contract with you (before you sign and pay your deposit) and you should also discuss the terms with your landlord.
- If the tenancy agreement requires you to sign as a group, try to ensure that everyone (including the landlord) can sign at the same time. Assured Shorthold Tenancies don't have to be on paper but it's very difficult to follow up problems you may have with a verbal agreement.
- Once your tenancy agreement's signed, your landlord also has certain duties, again under civil and statutory law.
The Assured Shorthold Tenancy
These are tenancies that usually start with a fixed term (period of time), agreed by you and your landlord (e.g. 10 or 12 months). During this fixed term, you and your landlord are bound by this contract. This means you are bound to pay the rent for the whole of the fixed term and your landlord is bound to allow you to live exclusively in the house and to have 'quiet enjoyment'.
All new tenancies since 28th February 1997 are automatically Assured Shorthold Tenancies, unless the agreement says that it is an Assured Tenancy or a License to Occupy. Feel free to contact us if you want more info about this.
Jargon Buster!
You might think the world of private housing is full of waffle, and you'll hear no argument from us! We've compiled this jargon buster to guide you around some of the terms you might come across. Useful, if you don't know a clause from a head lease!
Feel free to contact us and pick our brains about anything that doesn't appear here:
A / B / C / D / E / F / G / H / I / J / K / L / M / N/ / O / P / Q / R / S / T / U / V / W / X / Y / Z
Agent: person or organisation who acts on the landlord's behalf and with their authorisation. They may collect rent, act as an estate agent, or manage houses.
Banker's Draft: Similar to a cheque but the money has been debited to your bank account - so the person receiving it knows it's safe money. A bank in the UK will normally need 24 hours notice and charge you a fee for administrating a banker's draft.
Break Clause: Also known as a Release Clause. Sometimes inserted in a fixed-term tenancy, typically if the initial fixed term is for a year or more. It will not normally be applicable in the first six months of an Assured Shorthold Tenancy. The wording of a break clause will usually allow either you or your landlord to give two months' written notice at any stage after a particular date or period of the tenancy (e.g. seven months, 25th October etc), so that the tenancy would be terminated and end earlier than the end of the initial fixed term.
Credit References: May be taken up on a tenant applying for rented accommodation. Many agents and landlords use an outside company who they pay to contact the applicant's employer, previous landlord and also to check out their credit history. They report on whether the tenant is suitable (financially) for the tenancy they've applied for. See also 'References'.
Council tax: Local authority tax for England, Wales and Scotland. Pays for your bins to be emptied, roads swept and all the other council services you couldn't do without. Usually this needs to be paid by the tenant but full time students can apply for exemption. It's up to you to make sure you do this. If you're a University of Manchester student, you'll need to go to the Student Services Centre. They'll take your address and student ID and forward them to Manchester City Council. If you go to any other Uni or college, you'll need to go to your relevant Uni or college department (usually Student Services Centre, Programme Office or Academic Department) to get an exemption letter. You then need to forward a copy of this to the Council Tax Unit and keep a copy for yourself.
Covenants: The terms of the tenancy agreement - 'promises' made by you or your landlord.
Deposit: Your landlord or their agent will probably request the equivalent of up to 6 weeks' rent which they hold until your tenancy ends. They may make deductions for damage or unpaid rent. Non payment of rent is a breach of contract and the landlord could still sue you if you don't pay all rent due, even if they have the deposit..
Direct Debit: See Standing Orders
Fixtures and Fittings: Things usually provided in a rented home - curtains, carpets, blinds, light fittings, kitchen units, appliances (in some rented homes, and in all those advertised with us, there will be beds, chairs, tables and other items provided). Check what's provided before you sign on the dotted line - don't assume things will be there. Get an inventory and go through it with your landlord when you move in.
Gas Safety Regulations: Your landlord must get the gas safety in a rented house checked out - before letting to tenants and then annually. A copy of the record of the check (gas safety certificate) must be given to you - stick it on your pinboard for future reference. Only an authorised CORGI engineer (or Capita registered engineer from April 2009) can carry out the check.
Guarantor: Someone who guarantees payment of rent and other obligations of a tenancy, such as damages. If you don't pay your rent, your guarantor will be liable to pay so they will need to have a regular income. References or credit search references will normally be taken up on your guarantor.
Holding Deposit: Usually a nominal amount (£100+) asked for when you apply for a tenancy. If the tenancy doesn't go ahead for whatever reason -you pull out or your references are not acceptable - the agent will often keep this money. If the tenancy goes ahead the amount is usually deducted from your first month's rent or your deposit.
Inventory: Lists the contents of a property. This can include its state and condition - clean or dirty, state of the garden, power points, windows etc. You should check the contents of the house against this list when you move in and again when you leave, preferably with your landlord present. It's more and more usual that a professional inventory clerk is employed.
Joint & Several Liability: The sticky one! When there is more than one adult living in the house, the tenancy may say they are 'jointly and severally' responsible. Basically:
- The law sees you and your housemates as one person if you are jointly and severally liable, therefore
- You are all responsible for each other's rent and damages and your guarantors are responsible for rent and damages for the whole house. If someone drops out, the remaining tenants will have to pay their rent
- You are only jointly and severally liable if you all pay the same amount of rent and have the opportunity to pick your keys up at the same time
- Be as sure as you can that you trust the people you are moving in with and never sign a jointly and severally liable agreement with people you don't know.
Landlord: Person, people or organisation with a 'formal interest' in the property and the right to let it to tenants.
Lease: Not to be confused with 'tenancy agreement', this is normally a long lease on an apartment (see Superior Lease).
Licensee: (not a HMO Licence) someone who has permission to occupy a property. Usually, this type of agreement is used when you rent a room in the owner's own home.
PCM: Per Calendar Month (rent amount)
References: Checking out an applicant's track record in earlier tenancies and whether they are suitable to be able to pay the rent. This often involves contacting previous landlords, employer or accountant if self-employed and bank (banks normally charge for providing references) See also Credit Search References.
Release Clause: See Break Clause
Rooms in a Shared Home: Either rooms available in a home where some students already live or rooms in an empty house for individual let.
Self Contained Flat: Flat with separate bedroom, bathroom, kitchen and, usually, living room
Services: See utilities
Standing Order: Instruction you make to your bank for payment of the rent. You can fill in a form or set it up online. Payments are usually every month. The instruction will state the number of payments or will continue to be paid until you cancel it. Your landlord or their agent can't cancel a standing order mandate (instruction), it can only be cancelled by the person whose bank account the money is taken from. A standing order should not be confused with a Direct Debit. Direct Debit is not often used to pay rent and is more common for payments that are different each month
Studio Apartment / Flat: Flat with bedroom / living room all in one. Can have a separate kitchen or corner of the main room used as a kitchen. Will have a separate bathroom and toilet.
Superior Lease or Head Lease: The lease the landlord holds, often on a flat where the owner has the leasehold interest, but someone else owns the freehold. The landlord is then responsible for the obligations/covenants under this lease. If a tenant rents the property, they then have to comply with these terms - e.g. not to hang out washing on a balcony etc.
Tenant: Person or organisation who is entitled to occupy a property under the terms and conditions of a tenancy agreement. This means you!
Tenancy Agreement: Legally binding document containing the terms under which the house is rented. Sometimes known as a 'rental agreement'. It states the 'parties' (landlord and tenant(s), the rent and the property address along with the 'covenants' (obligations/promises) of the let. It should be written in plain, clear language and include your landlord's name and address.
The Term of Tenancy: Length of tenancy. Most initial tenancy agreements are for at least six months but they can be shorter or longer. Most student tenancies are for 10 or 12 months.
Utilities: or Services. Normally gas, electricity and water. Tenant is usually responsible for paying these.
Whole Shared Home: Empty house available for let to a group
