Renting out properties as an additional source of income

legal_updates

As with any other commercial transaction, a clearly written contract is always a good starting point for making clear the terms of any agreement and avoiding arguments.

Author: Nona Bowkis
Published:
Reading time: 2 minutes

This article is 7 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Many of our clients are also Landlords of residential properties. Renting out properties can provide a steady income from an asset which, economic blips aside, should increase in value over time and potentially leave you with a nice source of income and/or capital for your retirement.

In an ideal world, you find a tenant, they move in, they pay their rent every month and treat your property as their own. However, as my years of experience dealing with Landlord and Tenant issues has shown, when things go wrong, they can go very wrong.  

As with any other commercial transaction, a clearly written contract is always a good starting point for making clear the terms of any agreement and avoiding arguments. Most usually, private Landlords will offer tenancies on an Assured Shorthold Tenancy basis for which a tenancy agreement should be drawn up and signed by both the Landlord and the Tenant.

The current trend is moving towards offering longer fixed term tenancies enabling Landlords to minimise the time, energy and costs associated with re-advertising properties for rent at the end of a standard fixed term of 6 or 12 months. Of course many tenants would prefer a longer tenancy particularly perhaps those with children who want to stay in the area for their chosen school.

To help both Landlord and tenants, the Government has, this month, produced a Guidance booklet (https://www.gov.uk/government/publications/model-agreement-for-a-shorthold-assured-tenancy) setting out details of a model agreement for an Assured Shorthold Tenancy. It’s probably a bit more cumbersome than it needs to be but it’s certainly worth a look if you do rent out properties or are contemplating doing so.  

Nona Bowkis

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.