The Kendall Bailey Playbook – Chapter 3

Protect Yourself from Legal Headaches
The Risks of Inadequate Tenancy Agreements

This week, we delve into the critical importance of having a detailed Tenancy agreement for your HMO properties. A robust Tenancy agreement is the cornerstone of a successful rental operation, ensuring clarity, compliance, and protection for both Landlords and Tenants. Let’s explore three key features that your Tenancy agreement must include…

Safety in HMOs is paramount due to the shared living spaces and higher occupancy rates. Clearly defining responsibilities ensures regular maintenance and compliance with safety regulations, mitigating risks. Include clauses detailing the frequency and responsibility for fire safety checks, gas safety inspections, and electrical safety assessments. Specify Landlord and Tenant duties to maintain safety standards.

Example:

Safety and Maintenance Responsibilities

Landlord’s Responsibilities:
Ensure the property meets all safety regulations, including fire safety, gas safety, and electrical safety.
Arrange for annual gas safety checks and periodic electrical inspections.
Maintain all safety equipment, including smoke alarms and fire extinguishers.

Tenant’s Responsibilities:

Keep the property in a state of cleanliness.
Report any safety hazards or maintenance issues to the Landlord within 24 hours of detection.
Kendall Bailey Landlords enjoy our white-labelled app and website portal with features such that Maintenance can be reported immediately by Tenants, 24 hours a day, 365 days per year ensuring no problems gets missed.
You can also see the status of work at any time.

Utility and Service Charges
Transparency in utility and service charges prevents disputes and ensures Tenants are fully aware of their financial commitments. Clear allocation of these costs is essential for budgeting and Tenant satisfaction.
On average, utilities account for 10-15% of a Tenant’s rent in an HMO. Ambiguities in billing can lead to conflicts and potential legal issues.
Provide a detailed breakdown of utility charges, stating whether they are included in the rent or if Tenants will handle their own bills. This should cover electricity, gas, water, internet, council tax (if applicable) and any other shared services.

IF YOU’D LIKE TO KNOW THE KB GOLDEN RULE REGARDING CAPPING ELECTRICITY & GAS THAT HAS SAVED LANDLORDS THOUSANDS ££ – CLICK HERE

Tenant Conduct and House Rules
Establishing clear house rules and expected conduct maintains harmony among Tenants, particularly in HMOs where shared spaces can lead to conflicts. A well-defined code of conduct helps prevent issues and creates a pleasant living environment.
Approximately 30% of disputes in HMOs stem from breaches in house rules, with noise and cleanliness being the most common issues. Preventative measures are key to minimising these conflicts.
Detail acceptable behavior, noise level restrictions, cleaning schedules, and usage of communal areas. Establish a clear procedure for addressing breaches of these rules.

Example
Tenant Conduct and House Rules

Behavior and Noise:
Maintain respectful behaviour towards other tenants and neighbours.
Keep noise levels to a minimum, especially between 11 PM and 7 AM.

Cleaning and Maintenance:
Participate in a cleaning rota for communal areas (if applicable).
Ensure rubbish is disposed of properly and recycling is adhered to.

Use of Communal Areas:
Use communal areas respectfully and keep them tidy.

Report any damage or misuse of communal facilities.

USEFUL LINK:
Gain total peace of mind that your tenancy agreement complies with all relevant legislation. You can gain access to the NRLA Individual Room Assured Shorthold Tenancy Agreement. (a small fee is applicable) or feel free to ask us for a no-obligation copy of the KB tenancy agreement.

We recognise that some Landlords really enjoy managing their properties and for some, it is even a hobby.

We are still here to help.

Why not request a copy of our very own tenancy agreement that has been tried and tested over 10 years to ensure our Landlords have the necessary terms in place to protect them and their properties!

Contact us to request your copy