"Tenancy agreements can differ between different landlords and letting agents, so if you're a renter, it's important to understand the agreement when moving into a new property"
If renters are unaware of their rental agreement, they may be subject to severe consequences. These can include late fees, eviction, and other legal action. Additionally, renters may be responsible for any unpaid rent or bills associated with the rental agreement.
By remaining aware of the tenancy agreement, you will be able to avoid the use of unfair terms, including changes to the terms of the tenancy agreement at any given time, responsibility for all repairs and maintenance, including those that are typically a landlord's responsibility, and no notice given by your landlord before they access the property.
The lack of knowledge and understanding of tenancy agreements can put tenants at risk – so it's essential they make sure they understand the agreement before signing.
Types of tenancies:
Finbri's UK Renter's Report discovered the most common types of private tenancy agreements in the UK:
Fixed term tenancy (44.16% of tenants) - agreed fixed term, typically lasting for at least 5 years (landlord decides to renew once term ends).
Periodic tenancy (16.08%) - rolling tenancy with no fixed end date.
Assured short hold tenancy (14.29%) - initial fixed term of 6 - 12 months, if the contract has not been signed after this period this rolls onto periodic tenancy.
Joint tenancy (11.39%) - More than one tenant has signed a single tenancy agreement and is equally responsible.
According to Finbri's data, 14% of renters in the UK are completely unaware of their tenancy agreement, and with around 13 million UK renters, this is a considerable amount of tenants and landlords possibly at risk of miscommunication, misunderstandings, or worse.
Tenants should ensure they understand the terms of their tenancy agreement, as this can help to protect their rights as a tenant. Furthermore, it's important for landlords to communicate the terms of the tenancy agreement to the tenant, as this can help to prevent disputes and ensure that both parties are aware of their rights and obligations.
For renters, if the following apply to you, then you will not be considered as a private tenant:
Business premises
Letting by an agricultural landlord
Holiday let
Letting as part of a job
A Crown tenancy
Arranged by the local council to prevent homelessness
If none of the above applies and you are still unsure of what type of tenancy you have, then you can contact your landlord or letting agent to clarify. Once you know what type of agreement you have, you should make sure to read and understand it to protect both parties involved.
How can you check your tenancy type:
There are steps you can take to identify what type of tenancy you have beyond simply contacting your landlord or letting agent to ask what type of tenancy you have. These include:
Look at the tenancy agreement you signed. This should contain information about the type of tenancy. Check with the local council or housing association that owns the property. Check your tenancy deposit scheme. The type of tenancy should have been registered when the deposit was taken. Check with a legal professional or Citizens Advice if you are still unsure.
Once you know what type of tenancy you have, make sure to read and understand it. This can help to protect both parties involved and ensure that everyone is aware of their rights and obligations.
Final thoughts
Understanding your tenancy agreement is an important part of renting a property. If tenants are unsure of their tenancy agreement, they should contact their landlord or letting agent immediately.
Tenants should also be aware that there are several different types of tenancy agreements in the UK, and they should make sure to check which one applies to them. Knowing your tenancy agreement can help to prevent disputes and ensure that both parties are aware of their rights and obligations.
For landlords, make sure your tenants know the agreement you have in place. There are 14% of renters in the UK that don't know the type of tenancy they have - and that could be one or more of your tenants!
Stephen Clark, from property bridging finance broker, Finbri, comments: ”It's a huge surprise and a definite concern to see that a proportion of tenants are not aware of their tenancy agreement, as it can be a source of protection for both parties. Tenants should make sure they know what type of agreement they have, and if they are unsure, they should contact their landlord or letting agent.
“Landlords should be on alert that their tenants may not know what tenancy you've agreed to.
"Tenancy agreements can differ between different landlords and letting agents, so if you're a renter, it's important to understand the agreement when moving into a new property. And landlords should be on alert - there's a chance your tenant doesn't know the agreement you have in place.”
