Types of tenancies - private renting
It is important you know which type of tenancy you have, as it can affect your rights over the property and how you use it. Find out about the different types of tenancies, the rights you have under each type and what should be included in your tenancy agreement.
What is a tenancy?
A tenancy is a contract between a landlord and a tenant that allows the tenant to live in a property as long as they pay rent and follow the rules.
A tenancy agreement is the document agreed between a landlord and tenant which sets out the legal terms and conditions of the rent contract. A tenancy agreement should be prepared before anyone rents the property.
Tenancy agreements can be either written or verbal, but you should use a written tenancy agreement where possible. This will avoid any disputes at a later date as all the tenancy information will be in writing. Check you understand any terms before agreeing to them.
Whether or not a tenancy agreement is in place, landlords and tenants still have certain rights and obligations under the housing legislation.
Rights and obligations under a tenancy agreement
All types of tenancies include the following rights and obligations.
Your rights and obligations as a tenant
Tenants' rights include:
- freedom to live in the property undisturbed
- the right to live in a property in a good state of repair - your landlord should make repairs and maintain the property
- the right to access information about your tenancy at any time
- protection from unfair eviction
You also have the right to protection from unfair rent, to challenge excessively high charges, and to have your deposit returned when your tenancy ends.
If you have a regulated tenancy, you have additional rights. You may have a regulated tenancy if you moved in before 15 January 1989.
If you fail to pay rent or breach other terms of your tenancy agreement you can lose your legal rights as a tenant.
Your rights and obligations as a landlord
As a landlord, you also have rights. You can:
- repossess the property when the tenancy ends
- take back the property if it gets damaged
- access the property by giving 24 hours' notice
- take legal action to evict your tenant in some instances - like non-payment of rent
You may have other rights and responsibilities specifically included in your tenancy agreement.
Types of tenancies
Landlords and tenants may have other rights and responsibilities depending on which type of tenancy they have. Tenancies can run for a set period, normally of six months or longer (fixed-term tenancy), or on a month-by-month basis (periodic tenancy).
Assured shorthold tenancies (ASTs)
The most common form of tenancy is an AST agreement. You may have an AST if all of the following apply:
- your rented property is private
- your tenancy started on or after 15 January 1989
- the property is your main accommodation
- your landlord doesn't live in the property
All new tenancies are automatically ASTs. You can set up another type of tenancy - called an 'assured tenancy' - but this gives the tenant more rights to stay in the property.
A tenancy cannot be an AST if:
- it began - or was agreed - before 15 January 1989
- the rent is more than £100,000 - this is then a bare contractual tenancy
- it is rent free
- the rent is less than £250 a year - or less than £1,000 in London
- it is a business tenancy or tenancy of licensed premises
- it is a holiday let
- the landlord is a local authority
Assured tenancies
You may have an assured tenancy if the tenancy began before 28 February 1997. This has similar legal rights to an AST, but the tenant can stay in the property for an unspecified period of time. There is no automatic right for the landlord to repossess the property at the end of the tenancy. They must show the court that they have a good reason for wanting possession, using one of the grounds for possession in the legislation.
Regulated tenancies
You may have a regulated tenancy if the all of the following apply:
- you moved in before 15 January 1989
- you live in a different building from your landlord
- you do not get other services included, like cleaning
Regulated tenancies give you more rights than an AST, like increased protection from eviction. You also have a legal right to apply for a fair rent to be registered for the property. A fair rent is an amount set by a rent officer and is the maximum amount your landlord can charge.
If your tenancy was arranged between 28 November 1980 and 15 January 1989, it may be a protected shorthold tenancy. This is a type of regulated tenancy with the same legal protection, though it usually runs for a shorter period of time.
If you die before the tenancy ends, your tenancy rights will automatically pass to your spouse or another qualifying family member.
How to set up a tenancy agreement
A tenancy agreement should include:
- the names of all people involved
- the rental price
- the deposit amount and how it will be protected
- the property address
- the start and end date of the tenancy
- any tenant or landlord obligations
- which bills the tenant is responsible for
You could also include information on:
- how to pay rent
- whether the tenancy can be ended early and how this can be done
- who is responsible for minor repairs
- whether the property can be let to someone else (sublet) or have lodgers
Once finalised, you should both sign the agreement and check that the other party has also signed it. You will receive a copy of your agreement and should keep it somewhere safe.
Contract obligations for landlords
If you are a landlord, you should ensure that the contract terms:
- are fair
- do not go against legal landlord duties
- are balanced between the two parties
- cover rent payment
- cover deposits
If you are unsure of any terms in the agreement, you should get legal advice before signing.
"The strategy of buying good lettings properties with low capital values looks sound. The time to act is now," says Jacqui Daly of Savills' research team. So where are the best investment locations? With the help of estate agents and housing market analysts, here are two top 10 lists - one global and one domestic - for the canny property investor.
By Daily Mail Reporter UPDATED: 09:20 EST, 25 March 2011 These are the ten cheapest streets in England and Wales where you can buy properties for less than £40,000, research revealed today. Burnley is the cheapest town in the country to live in, accounting for four of the top five streets with the lowest prices.
Spain is relying on a €100bn (£81bn) bailout to keep the economy afloat but the banks are still desperate to offload the glut of new and repossessed homes from their books. Spanish banks are now the country's biggest but most reluctant estate agents and although investing in the the property market today may seem foolhardy, with a backlog to shift, prices have crashed.
The Spanish know we're suckers for a bargain and with grey skies all around the UK, you'd be forgiven for jumping in head first. Discounts are impressive on the banks' dedicated real estate websites, which have been translated into English to entice foreign buyers. On Santander's Altamira website, for example, prices are as low as €15,000 for a three-bed flat in Calahorra, La Rioja, and €10,000 for a three-bed in La Trinidad, Valencia, although both are in dire need of attention. La Caixa bank is also selling properties on Servihabitat, Banco Sabadell is selling via Solvia, Banco Popular has Gesa Aliseda and you can find Bankia's repossessed property at BankiaHabitat.
With bargain basement prices on offer, heads will turn, but is it really a good time to buy in España?
According to Madrid-based property consultants Acuña & Asociados, there are around two million re-sale, ready-built and partially complete properties on the market, of which an estimated 11 to 17 per cent is owned by the banks. With such an oversupply of property, prices could still have some way to go, so you may want to bide your time for even bigger discounts but either way, don't expect to uncover high-end homes going for a song.
"Prices have come down a lot and they are probably going to come down even more for some types of property but this could be a false economy as they are quite often cheap for a very good reason," says Mark Stucklin from Spanish Property Insight. "Great property is always in short supply but if you want something simple, in a nice enough part of Spain which is reasonably inexpensive to buy and maintain, there are plenty of reasonable, functional properties that fit the bill. Just don't be too fussy."
Many of the homes that the banks want off their books at any price are the cheap-but-not-so-cheerful properties built up during the real-estate boom. Poor-quality developments, built in bulk and often in breach of planning rules and building licences have been a huge concern for ex-pats, so proceed with caution. It is likely that repossessions are a much better bet for first-time buyers in the Spanish market in urban areas, rather than Brits looking for a home by the sea.
It also pays to keep in mind that, as in the UK, there is some degree of separation when looking at the Spanish property market as a whole.
"If I was in a buyer's position, I would look at the market very carefully. It is location, location and location," says Marc Pritchard, a sales manager of housebuilder Taylor Wimpey España. "The vast majority of the bank-repossessed properties are inland up to 40km away from the coast, don't have sea views, no infrastructure around them at all and in some cases a golf course which cannot be maintained as they are not getting golf players – that is why they have not sold in the first place."
If you buy in an unfinished, empty development there may be no maintenance at all, no after-sales service because the main or sub-contractors no longer exist and no guarantees in place (excluding the structural guarantee which is covered by Spanish law). An unfinished or shoddy site is a big problem but if you buy into a ghost development at any price, it is likely to be money down the drain.
The Balearics could be a different kettle of fish; Mallorca has benefited from stricter local government regulations to keep development in check. An oversupply in low-grade destinations around large Spanish cities and inland from the costas presents a far riskier investment.
Louise Reynolds, of independent European property agent Property Venture, says while price declines have been more accentuated on the coast, inland prices have held up and are likely to be less volatile.
"If you are buying in a decent area, on a decent development, which is not flooded with other 'me-too' properties nearby, then the price is likely to be more resilient," she says. "Places to look for property that will hold its value are near new infrastructure improvements."
No matter where you buy, due diligence is paramount, so steer clear of off-plan and make sure you see any potential purchase. Ideally, rent first in the area you're interested in to get a feel for whether you would be happy living there. This will also give you time to secure a reputable lawyer independent of estate agents who can investigate if the property has any debts and to obtain a valuation to highlight potential problems such as damp or subsidence. you also need to see a copy of the property's "cdula de habitabilidad" (certificate of occupancy). Spanish purchase fees are fairly high at around 10 per cent, so do factor these in too.
Despite setting up their own real estate arms the banks are not necessarily equipped to deal with foreign buyers effectively so you may still have to go through agents. Finance is generally very difficult to obtain in Spain but should be much easier on bank-owned property. Mortgages for repossessions are typically available at up to 80 per cent of the purchase price, compared with the 40 to 50 per cent deposits required for standard resales and some are even offering 100 per cent finance deals. But beware, property taxes could soar. One-off charges are being levied in Greece and France, with foreign buyers affected.
the wider question of Spain leaving the euro is looming. If you buy now at a low price you could end up with an asset in a devalued currency. Spain could increase or introduce new property taxes, particularly for foreigners. And if capital controls are introduced to restrict movement of money within the eurozone, you could find that even if you can sell up, you won't be able to get your money out of the country.
While it's hardly a secret that now's a pretty good time to make a step on to the property ladder (well, assuming you're in the minority that's got plenty of spare cash lying around), what might not be so well known is that as far as bang for your buck (or Euro) goes, Irish property is currently offering good value.