The Detailed Legal Bit
(by Goldsmith Williams)

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The legal aspects a landlord faces can be split into three broad categories:

Contractual
Contractual refers to the legal contracts that you will sign and enter into. You will be bound to fulfill your obligations under the terms of the contract. Breach of terms can result in you being sued and ultimately paying damages to the aggrieved party. As a landlord you will enter into legal contracts with your lender and tenant.

Lender
If you have a mortgage or are going to let leasehold flat, you need to check to see if you need to obtain permission from your mortgage company or your landlord before letting. If consent is not obtained, this could have serious consequences, including the lender or landlord taking possession proceedings against you.

Tenant
Your legal contract with the tenant will be determined by the tenancy agreement entered into by both of you known as the Assured Shorthold Tenancy (AST).

This is an agreement between the landlord and tenant defined by the Housing Act 1988 (which was slightly modified by the Housing Act 1996). An AST allows a landlord to recover possession of his property as of rights, at the end of the fixed term (or after the first six months if there is no, or only a very short, fixed term), provided he has served the correct notices on the tenant first. It is against the law to evict a residential tenant unless you have a court order; however for AST's, where the tenant fails to vacate at the end of the term and where he has been served with the correct form of notice (which has expired), a possession order can normally be obtained within two months.

Terms in the tenancy agreement

One of the main reasons for having a tenancy agreement is to set out the landlord's and tenant's obligations to each other (known by lawyers as 'covenants'). Some of the clauses included are as follows:

The property address: If you are letting a room in a house, ensure that the room is identified (e.g. 'Room 1 '). This is particularly important if you are letting to Housing Benefit tenants.
The landlord's address: For AST agreements it is important that the agreement gives an address for the landlord in England or Wales. This is because section 48 of the Landlord and Tenant Act 1987 provides that the rent does not fall due until a notice of an address in England and Wales for the service of notices and documents has been provided to the tenant. If you are resident abroad, there should always be a contact address given in England or Wales. If this is not possible, you should consider using a letting agency.
The tenant: Make sure that all the tenants are listed on the agreement and that they all sign it.
The term: This can be for any period of time (but bear in mind that no order for possession under the short hold ground will be granted by a court until six months from the beginning of the term). It is advisable not to make the term too long, particularly if you are letting to a new tenant; remember that you will not, generally, be able to get the property back during the fixed term, which could cause you difficulties if you have an unsatisfactory tenant.
The tenancy will, unless a notice to terminate is served, continue after the end of the fixed term. It is not strictly necessary to give the tenant a new fixed-term agreement. When a tenancy continues after the end of a fixed term, it is generally referred to as a 'periodic tenancy', the period being monthly or weekly, depending on how rent is paid.
The rent: If the rent is too high, it may be subject to challenge during the first six months of the tenancy agreement by the tenant referring the matter to the Rent Assessment Committee. If rent is payable weekly, you will have to provide your tenant with a rent book (failure to do this is a criminal offence).

The tenant's obligations

They include

Repairs: Although many repairing obligations are, by law, down to the landlord, the tenant also has a duty to be responsible for any repairs that are due to his own fault, even if they would otherwise fall to be paid for by the landlord. Generally, the tenant is responsible for the condition of the interior of the property.
Outgoings: An AST provides for the tenant to pay the bills. This is easier where a property is let as a whole, where you can insist that the tenant registers with the utilities. However, where there is a number of different tenants coming and going on individual tenancy agreements, the utility accounts may have to be in your name. If there are any accounts that you will pay, for example, the water rates, then the tenancy agreement should be altered to show this.
Use fo the property: The tenant must use the property solely for residential purposes, as otherwise this may put you in breach of planning regulations. You will also want to prevent the tenant from letting anyone else live at the property, as you will only want tenants whom you have checked and approved.
Access for the landlord: An AST allows you to retain the keys to the property in order for you to inspect the property from time to time, to ensure that the property is in good condition and to do any repairs and gas safety checks. However, you should never use them without the tenant's consent, except in an emergency.

The landlord’s obligations

They include

Repairs: You must keep in repair the structure and exterior of the property, and the installations for the supply of services (gas, electricity, water, sanitation, space and water heating). Your obligations extend to the roof of the property, drains, gutters, and the garden (if any). The property also has to be 'fit for human habitation'.
Gas Safety: You must have the gas installations inspected annually by a Council for Registered Gas Installers (CORGI)-registered plumber and provide a certificate to this effect to the tenant.
Furniture, electrical equipment and general product regulations:
These various regulations require furniture to be fire-safety compliant, and all electrical equipment and other items in the property to be safe. Further information about this can be obtained from your local trading standards office, which enforces the regulations.
Covenant of quiet enjoyment: This provides for the tenant to occupy the property without interference. It means you should not enter the property without the tenant's consent (except in an emergency), keep the property in a proper condition, and should not do anything or allow anyone else to do anything which would affect the tenant's rights under the tenancy agreement or the general law; for example, stopping services to 'persuade' the tenant to leave.
Insurance: You have an obligation to insure the property and its contents, but the tenants are responsible for insuring their own possessions. It may be beneficial to give the tenant a copy of the insurance policy. This is so you can hold the tenant responsible if he does anything that voids the insurance or causes your premiums to increase. Speak to Simplicity Financial Services regarding these issues.
The damage deposit: It is normal for the landlord to take a damage deposit, to hold until the end of the tenancy, which he can use to pay for any losses he suffers (e.g. if items are lost or broken). The damage deposit is normally equivalent to one month's rent. It should not be more than two months' rent or it will be deemed to be a 'premium'. Do note that you are not entitled to withhold any of the deposit in respect of fair wear and tear.

Notice Requiring Possession

This should be used if you wish to repossess your property. It is very important that the notice is in the correct form, as otherwise you will not be able to use it in court proceedings for possession. A letter asking the tenant to leave by a certain date will not be sufficient. It is also important that the correct period of notice is given to the tenant. There is a general minimum period of two months. However, a notice cannot end earlier than the end of the fixed term.

If the notice is served after the fixed term has ended, the notice must give the tenant at least two months to vacate and the notice must end on the last day of a 'period of the tenancy' It is recommended that, whenever possible, the Notice Requiring Possession is served either by handing it to the tenant personally, or by inserting it through the letter¬box of the property in an envelope addressed to the tenant. If you are unable to do this, the form of tenancy agreement provides for you to send it by first-class post. You can send it by recorded delivery if you prefer, but tenants have been known to refuse to accept recorded delivery items. You should always keep a record of the date on which the notice was served or posted.

Eviction

It is against the law to evict a tenant of residential property by force, or to harass a tenant to make him leave by (for example) cutting off the gas or water supply. If you take steps to evict an occupier without a court order, you may be liable to criminal prosecution (and immediate imprisonment for three months) and/or a claim for damages by the tenant.

To commence the legal process of evicting a tenant, the landlord must have grounds for eviction and serve the proper notice on the tenant before any court action is started. A landlord only has a right to evict where the agreement with the tenant contains such a right, and/or where the landlord is able to rely on one of the 'statutory grounds for possession'. The most important of the statutory grounds are:

The 'short hold ground' - where the landlord is entitled to possession as of the end of the fixed term (or six months whichever is the greater) provided the proper form of notice has been served or where the tenant is in arrears of rent of more than two months. Here also, provided the proper form of notice has been served, you are entitled to a possession order as of right.
You can also evict a tenant for other breaches of his tenancy agreement (e.g. antisocial behaviour or damaging the property), although these proceedings will normally be more complex and expensive. A landlord should try to deal with any breach of the tenancy agreement without delay.

The law relating to the eviction of tenants through the courts is complex and is beyond the scope of this guide. If you are in a position where you need to evict a tenant, you should consult a solicitor before taking any action. Judges dislike evicting tenants and will not do so if the landlord has not got his paperwork in order. It is very easy for someone who is unfamiliar with the process to misunderstand the rules and get things wrong.

To avoid such a battle, you could offer to pay your tenant to leave, for example, one month's rent as this will pay the deposit for their next property. This option could be cheaper.

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The Detailed Legal Bit(by Goldsmith Williams)

The Detailed Legal Bit
(by Goldsmith Williams)