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General-Tenancy-Agreement

A General Tenancy Agreement or License Agreement is a legally-binding document which is all you need to let a furnished or unfurnished house or flat in England or Wales.

This type of agreement should only be used in circumstances such as when:

  • The rent is more that £25,000 per year (£2083 per month)
  • A lodger renting a spare room in your house
  • An employee of a Company who has taken out the tenancy - known as a Company Let
  • An au pair staying with you in the property
  • A spouse or partner living in your property with you
  • Someone who has the owner's permission to stay at the property
  • The property is not the main residence of the Tenant such as a weekend home
  • The property is used for holiday lets
  • Agricultural Tenancies are created using a License Agreement

If a property owner allows someone to live at their property (such as a lodger) and does not grant exclusive possession, the lodger will occupy the property under a License Agreement.

The tenant may still be required to pay rent and for a specified period of time but would not have the right to exclude others such as the owner from the property.

WHAT INFORMATION IS IN A GENERAL TENANCY AGREEMENT?

Our General Tenancy Agreements contains the following information:

A. DETAILS OF THE TENANCY
a. Parties - Who is the Landlord and who is the Tenant?
b. Property - What are the details of the property to let?
c. Price - What is the agreed rent payment for the property, how is it to be paid and at what intervals?

B. THE FORFEITURE CLAUSE - This clause will state how the landlord can gain back the property at either the end of the agreement or on breach of a tenant's obligations and is sometimes referred to as the right of re-entry clause.

C. TENANTS OBLIGATIONS - In this section the Tenancy Agreement will outline the Tenant obligations such as "paying the rent" on time and in full!

D. LANDLORD OBLIGATIONS - In this section the Tenancy Agreement will outline the Landlord obligations such allowing "Quiet Enjoyment" of the property and "maintaining the property" in line with current property regulations.

E. ADDITIONAL CLAUSES - In this section the Tenancy Agreement will outline additional clauses such as a "no-smoking clause" or "maintaining a septic tank" clause.

F. BREAK CLAUSES - In this section, you will be able to specify whether a break clause of 6 months can inserted into the tenancy agreement allowing both parties the flexibility of ending an agreement before the end of a fixed term.

HOW TO COMPLETE A GENERAL TENANCY AGREEMENT

  • Register, Sign in and Complete the Tenancy fields using the guidance notes
  • Once you have entered your tenancy details, print off two copies of the agreement
  • Ensure that both copies are signed by the landlord and Tenant
  • Send a signed copy to your tenant.

WHAT TO DO WITH THE TENANCY DEPOSIT

The new rules regarding deposits that were introduced in April 2007 do not apply to General or License agreements, therefore, it is considered appropriate that the landlord agrees terms separately with the tenant.

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