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Before renting or letting a property, it is crucial that both landlords and tenants comprehensively understand what a tenancy agreement is and what should be included in it. It should outline the terms and conditions of the tenancy, so that all parties are aware of their rights and responsibilities. Let’s take a look at everything that should be included in a tenancy agreement.

Property details

Firstly, the tenancy agreement should contain all the details about the property that is being rented and its full address. A description of the property should also be outlined, as well as its included amenities such as parking spaces and communal facilities.

Tenancy terms

The start date of the tenancy should be clearly stated so that both parties know exactly when the tenant can pick up the keys to the property. If the tenancy is fixed-term, it should state the end date of the tenancy, while periodic tenancies should stipulate the conditions for terminating the agreement.

Rent information

Information regarding the amount and frequency of rent payments is one of the most crucial parts of a tenancy agreement. The method by which rent should be paid must also be included, whether that be by bank transfer, direct debit, or standing order. A clause that specifies the circumstances for reviewing or increasing the rent amount may be added.

Deposit information

The amount that has to be paid as a security deposit and when it must be paid by is another piece of important information. As deposits in all Assured Shorthold Tenancies (ASTs) must be put into a protection scheme, details of the scheme must also be included in the agreement.

Utilities and services

The tenancy agreement should clearly outline who is responsible for paying utilities such as electricity, gas, water, and council tax. If there are any utilities or services included in the tenancy on the landlord’s behalf, this should also be mentioned.

Maintenance and repairs

A tenancy agreement should clearly outline the responsibilities of both the landlord and the tenant regarding maintenance and repairs to ensure the property remains in good condition. The agreement should specify that the landlord is responsible for major repairs and maintenance, including the structural integrity of the property, plumbing, heating, electrical systems, and any appliances provided by the landlord.

The tenant should be responsible for keeping the property clean and reporting any damages or needed repairs promptly. The agreement should also detail that the tenant must undertake minor maintenance tasks, such as changing light bulbs and keeping the garden tidy, if applicable.

Prohibited activities

All the things that the landlords does not want the tenant to do on the property should be listed in the agreement, such as changing the locks, smoking, or housing pets. It is also common for rules regarding subletting to be included in the agreement, as well as those limiting the property to residential use.

Signatures

Once all parties are satisfied that the agreement is fair, they must all sign the document to confirm that they accept all terms and conditions. These signatures must also be dated, as the agreement will become an official legal document.

Can the tenant request additional clauses?

Tenancy agreements are negotiable documents, meaning both parties have the right to request modifications or additions to the terms before signing. If a tenant has specific needs or concerns, such as permission to keep a pet, make alterations to the property, or have guests stay for extended periods, they can propose these clauses to the landlord.

Void periods are spells of time when a rental property is left unoccupied and is therefore not generating income. Naturally, void periods are something you want to avoid as a landlord, and while some instances are unpreventable, there are a few ways you can protect yourself against the impact of lengthy void periods.

Set a competitive rent

Your pricing is one of the most critical factors in attracting and maintaining tenants. Make sure to research the local market to get a better understanding of the going rates for properties similar to yours, as this will help you set a competitive rent. Offering a fair rental price that aligns with the local market can make your property more appealing and reduce the time it sits empty between tenancies. 

Maintain the property

A well-maintained property not only attracts tenants but also encourages them to stay longer. A letting agent can take care of regular property inspections and on-call maintenance to ensure everything is in good working order. Addressing maintenance issues promptly can prevent them from becoming more significant problems that might deter prospective tenants or lead to longer void periods due to extensive repairs.

Know your demographic

When your property is vacant, you’ll need to act fast to find your next tenant. It’s important to know what kind of tenant is best suited to your rental property, as you’ll need to be able to highlight exactly what you’re looking for. This will help your letting agent narrow down the search and find new tenants more efficiently. Your agent can also filter out anyone who does not meet your criteria, reducing the amount of time wasted on failed applications.

HMOs

Choosing to invest in a House in Multiple Occupation (HMO) could make sense if you need to rely on your rental income to pay off the property’s mortgage. Void periods can be more manageable with HMOs, as letting out your property by the room means if one renter leaves, you still have others in place.

Effective marketing and advertising

When a tenancy ends, effective marketing is crucial to secure your next tenant. Our letting agents use multiple channels such as online property portals, social media, and local advertising to reach potential tenants. We also offer high-quality photos and detailed descriptions highlighting the property's key features to generate more interest and reduce the time it takes to find new tenants when a property becomes vacant.

Build positive relationships with tenants

Happy tenants are more likely to stay put, so make sure to foster positive relationships by maintaining an open line of communication and addressing maintenance issues promptly. This is no easy task, especially if you have your own home and job to attend to. A fully managed letting service can ensure that your tenants are well-looked-after, which can reduce void periods without interrupting your schedule.

While interest rates are becoming more competitive, they are still not at the ultra-low levels of the past. If you are a property investor, there is no doubt that this will increase your costs. However, the good news is that despite the higher cost of borrowing, rental yields are higher.

More rental homes are needed 

According to an analysis conducted by Rightmove, 120,000 rental properties are needed, helping to increase average rents in the UK by 7% on average compared to last year outside of London.* There are no quick fixes to this level of demand, and even if there were, there would still be a demand growth level of 2%.*      

What are rental yields?

Rental yields help you calculate your return on investment (ROI) by giving you the percentage annual return your property generates against its purchase price.

Gross rental yield 

To calculate gross rental yield, simply divide annual rental income by the purchase price of the property and multiply by 100.  

Net rental yield 

To calculate this, simply subtract expenses such as mortgage payments or maintenance costs from your annual rental income and divide by the purchase price of the property, then multiply by 100.

Increasing rental yields 

According to Zoopla, the average rental yield in the UK sat at 5.60% based on the average purchase price of a buy-to-let property of £261,897, with an average monthly rent of £1223.** According to Fleet Mortgages, average rental yields for 2024 Q2 stood at 7.6%, which is an increase of 1% compared with the same time last year.***  

More competitive interest rates and the ‘new normal’ 

With a new government helping to breathe more certainty into the UK property market and inflationary targets being met, there are expectations of more competitive buy-to-let mortgages appearing. There is also a sentiment that interest rates are now at a ‘new normal’. Perhaps they were too low for too long, and because of this, buyers and investors became accustomed to unsustainably low interest rates. If you go further back in time, interest rates could reach double figures, so in the grand scheme of things todays rates represent good value. However, existing landlords may benefit from greater levels of equity, reducing their mortgage costs. 

Take the long-term view

Taking a long-term approach to investing in the buy-to-let market throws up a lot of potential advantages. As you gain equity in your property as your buy-to-let mortgage balance reduces, while your property’s value potentially increases, you could enjoy the benefits of a solid investment. Investing in fixer-upper properties and making savvy investments in up-and-coming areas are ways of potentially increasing your ROI more rapidly.

As the leaves turn brown and the autumn air settles in, many people find themselves looking for a fresh start in a new home. Whether you're seeking a change of scenery, more space, or better amenities, autumn is an ideal time to search for a new rental property. Let’s look at five reasons why it’s the perfect season to find your next home.

Less competition

Autumn can be a less competitive time to find a rental property compared to the peak summer season. Many families prefer to move during the summer to align with the school calendar so, by autumn, there may be fewer renters searching for properties.

Because of this, landlords may be more willing to negotiate on tenancy agreement terms as they look to fill vacant properties. Additionally, there could be a wider selection of available properties than there would be during the summer rush.

Competitive rental prices

After the busy summer season ends, a decrease in rental demand can lead to an increase in the number of available properties. With an increased chance of vacancy periods, landlords are often more open to negotiations and may offer discounted rental rates. This means you can potentially find a great deal on your new rental property and save money in the process.

New beginnings

Autumn symbolises change and new beginnings, making it the perfect time to make a fresh start. Whether you’re starting a new job, moving to a new location, or simply seeking a change of scenery, autumn is the ideal time to embrace new opportunities and make positive changes in your life.

Updated amenities

Many landlords choose to renovate their rental properties in time for winter, making necessary updates and improvements to enhance comfort and safety. These updates may include servicing heating systems, improving insulation, making sure windows and doors are sealed, and ensuring all plumbing is prepared for a drop in temperatures.

Settled in time for Christmas

Finding a new rental property in autumn offers the perfect opportunity to settle into your new home just in time for the festive season. As well as giving yourself time to unpack and decorate your new home, moving in autumn gives you the chance to create a cosy and inviting space for Christmas family gatherings.

How an agent can help

A reputable letting agent can use their expertise to help you make your ideal move this autumn. Their in-depth knowledge of the local rental market allows them to understand seasonal changes and track levels of demand and supply to advise you on the best course of action.

An agent will help you schedule viewings of any properties that interest you before negotiating favourable tenancy agreement terms on your behalf. They will also be available to you throughout the duration of your tenancy for any assistance you may need.