When a tenant moves into a rented property and has paid the first month’s rent, a tenancy has been entered into whether it involves a written contract or not. But not having a contract can affect a tenant’s chances of eviction.
Of course most tenants enter into a tenancy by signing a contract, which in the vast majority of cases is a Assured Shorthold Tenancy agreement. A tenancy can be either fixed term or periodic, with fixed term tenancies having a specific start and end date, while periodic tenancies continue on a rolling basis.
These usually run for six or twelve months and then become rolling contracts that run one month at a time. A fixed term tenancy requires the tenant to pay rent until the end of the fixed term and has limited options to end the tenancy early without the landlord's agreement.
But for a very small minority of tenants, the agreement is verbal. As we shall explore later, this is a bad idea. Some landlords don’t like written contracts, usually for unethical reasons, but happily tenants still have rights even if the agreement is verbal.
Proof of renting
To be protected by contract law, all a tenant must prove is the date they moved into the property and that they have paid the rent and/or deposit. It is important to understand the notice period required to end a tenancy, as this can prevent potential legal issues.
After this has been established then, to a degree, the same laws of contract apply to the tenancy as if it was a written one. Tenants should check with the local housing authority for specific notice periods and regulations to ensure compliance with state or local laws.
Basic rights
The basic rights that are assumed for both tenant and landlord once someone moves into a property are:
Eviction: If there is no written contract, a landlord cannot evict a tenant through the ‘accelerated’ no-fault eviction process, which is also called a Section 21 notice. Instead, they may have to use the much longer and more expensive Section 8 notice and go through the courts.
Hassle: A tenant is entitled to live in a property in ‘quiet enjoyment’ which means the landlord isn’t allowed to harangue and hassle them.
Alternations: Changes cannot be made to a property without the landlord’s consent.
Repairs: The landlord must maintain the property so that it is fit for human habitation. Minimum standards are set out within a recently passed law. Landlords are also required to maintain the property and complete repairs on time.
Subletting: Tenants must not sublet a property. In a private tenancy, tenants are responsible for adhering to the terms of the tenancy agreement, including giving proper notice before leaving.
Access: Landlords must be allowed access to a property to complete repairs or complete inspections but must give reasonable warning of their visit, ideally more than 48 hours.
Deposits: If a tenant pays a deposit but does not have a contract then it is very difficult for a landlord to make deductions from the deposit when the tenant moves out. This is because without a contract, there is no agreed list of what can be deducted by the landlord.
Rent: A tenant must pay the rent on time and in full and look after the house, treating it in a ‘tenant-like manner’. This is very vague, but means a tenant should complete the basic house maintenance tasks such as emptying the bins, keeping drains unblocked and ensuring the property is kept clean.
Failing to pay rent on time can lead to rent arrears, which may prevent a tenant from ending the tenancy early and can have serious consequences, including difficulties in finding a new home.
But these are all the basics. There is a long list of terms and conditions that are not implied in a verbal agreement, and that a written one sets out. These include:
How much the rent is, and when it’s due to be paid every month.
When and how rent increases may be introduced and by how much, although the law does have something to say about this.
Whether pets may be kept in a property or not.
A minimum fixed tenancy period.
Who looks after the front or back gardens.
Who is responsible for the maintenance of white goods such as fridges and washing machines.
Whether utility bills, council tax and other property-related bills are paid by the tenant or are included in the rent.
Whether the rent is paid in advance or in arrears.
Written tenancy agreement
As you can see, without a written contract both the landlord and the tenant are much more exposed because a lot less has been agreed and signed. Tenancy agreement sets out all aspects of renting a property, including financial arrangements and house rules, making it an essential document for both parties.
A well written contract nails down the exact terms and conditions of a tenancy and makes misunderstandings easier to iron out. A written tenancy agreement is crucial in avoiding misunderstandings and protecting the rights of both parties.
A verbal contract only assumes the basic minimum legal requirements but leaves everything else for up for debate.
Here’s an example. A tenant verbally agrees to move into an apartment on 1st March and agrees to pay £500 a month. They move in but bring a cat with them and when the landlord spots this, they threaten to evict them.
Without a written agreement, it is almost impossible for the landlord to prove the tenant can’t have a pet to live in the property and therefore it is going to be difficult to evict them.
Find out more about renting.
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Remember the content provided in this article is for information purposes only and should not be considered as advice.