by Rajiv Singh, 09-01-2023

Why Are Tenancy Agreements Important?

Imagine a tenant refusing to vacate your property or having a noisy tenant who you want to immediately get rid of! Unfortunately, some unlucky landlords had to bear these scenarios every now and then across the world. In such a case, your tenancy agreement can play an instrumental role.

In England and Wales, you are not legally bound to have a tenancy agreement as a landlord. You can set the tenancy terms orally, but things are different elsewhere.

Well, it is best to have the tenancy terms informal only if you know your tenant in advance or have complete trust in him. So, if you are planning to renting your property soon or looking for rental accommodation, acquire some knowledge about the importance of tenancy agreements.

Reduces Potential Conflicts

As a tenant, do you know your options when you have paid the security deposit to your landlord, and your landlord claim to not receive the same? In such a scenario, having a tenancy agreement will help you get back your deposit without any hassles. Remember, a tenancy agreement clearly mentions the deposit amount and ways it will be protected.

Yes, in case of intentional or unintentional damage to the property caused by you, a partial amount of the same can be deducted. Still, you can be assured of getting back the rest of the amount. A tenancy agreement is signed by both parties, so the conflict is resolved without any argument.

Again, a tenancy agreement often mentions certain dos and don’ts, like whether pets are allowed or not and the person responsible for conducting the minor repair works. With such clarity, it becomes easier for you as a tenant to know your landlord’s expectations. At the end of the day, you can reduce any potential conflicts.

Serves As An Address Proof

Whether you are applying for a bank loan or willing to opt for a vehicle registration, you need documents, among which your address proof is essential. Your tenancy agreement qualifies as address proof. The reason is that it mentions your name, the start and end of tenancy date, and the full address of the property where you are living as a tenant.

It also serves as valid address proof for preparing vital documents like a college identification card or driving licence. Although the documents demanded by UK banks vary from one bank to the other, a well-written tenancy agreement is a legal contract. So, it is accepted by most banks to open a bank account.

Protection from Illegal Eviction

Illegal eviction is a criminal offence, but that doesn’t deter some landlords from forcing you to move out of their rental property. In such a scenario, your tenancy agreement can rescue you! Even if you are not getting any help from the police officers, you can be assured of getting justice. After all, a forceful eviction violates the Protection from Eviction Act 1977. So, the landlord must apply in court to evict you legally.

Having clearly drafted tenancy agreement is thus necessary for both tenants and landlords to protect their individual rights. Due to a lack of knowledge, sometimes it does not include many things to avoid misinterpretation by any of the two parties involved.

The good news is that plenty of online property management platforms are available and offer a robust tenancy agreement within no time. Moreover, some also facilitate eSign and store the same digitally on a secured server. As a landlord, such a property management platform also helps in the free listing of your rental properties and offers a thorough screening of your potential tenants to eliminate future problems.

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About Rajiv Singh

A Chartered Accountant in UK with 15+ years of experience in FinTech Consulting, Accounting & International Taxation. I enjoy being a Social, Foodie and Father of two young children, reachable at

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