Private Rented Accommodation

Factors to consider in choosing private rented accommodation include availability, quality, cost and security of tenure:

Availability

The main advantage of private rented accommodation is the choice available in respect of location and style of property. It's a good option for those unable to access council or housing association accommodation or if buying a home is too expensive.

Places to look

Letting Agencies
Shops - newsagents or supermarkets have notice boards advertising accommodation, some of which may be at the more affordable end of the market.
Newspapers - Publications such as the Herald Express have accommodation advertised daily. Also try other local papers throughout the Torbay area that advertise accommodation. Visit an area you are interested in and look in local newsagents and libraries for copies of local papers. Your own local library should hold copies of more widely available publications.

Quality

Private rented accommodation will vary widely in terms of quality. Standards will be reflected in the amount of rent charged.

Cost

Private rented accommodation is often more expensive than other forms of rented accommodation. If you are on a low income you may be entitled to housing benefit , to help you to pay the rent. Most single people aged under 25 have their housing benefit restricted to cover the reasonable market rent payable on the equivalent of a single room in a shared house.

A recent Housing Needs Survey done in mid 2003 gives the following information:

Minimum Property Prices/Rents in Torbay

(Source: Fordham Research 2003)

1 Bedroom property, Minimum price - £60,500, Minimum rent - £82

2 Bedroom property, Minimum price - £69,500, Minimum rent - £98

3 Bedroom property, Minimum price - £95,500, Minimum rent - £121

4 Bedroom property, Minimum price - £134,000, Minimum rent £156.

Deposits

Most Landlords will require a deposit from tenants, that acts as security against any damage that may be caused to the property and against non-payment of rent. The Landlord will keep this deposit until the tenant moves out of the property. It will then be returned to the tenant with any reasonable deductions made for damage or unpaid rent.

To ensure the deposit is returned, tenants should check that the inventory list is fully completed, accurate and signed by both parties at the start and end of the tenancy. If there is any dispute over the return of the deposit, the tenant should seek professional advice.

The Tenancy Agreement

Tenancy or licence agreements may be either written or verbal. Verbal agreements are as legally binding as written ones.

It is advisable to get a written agreement so each party's responsibilities are clearly defined. Tenancy agreements cannot take away from tenants the rights granted by Acts of Parliament, even if a tenancy agreement says otherwise. Although the terms of the tenancy agreement may be negotiated between the landlord and the prospective tenant, the tenant may not have much scope to negotiate favourable terms. If any terms are unfair these may be challenged using the Unfair Terms in Consumer Contracts Regulations 1999. Before signing a tenancy agreement, read the agreement carefully and check:

The type of letting (e.g. What does the tenant have sole use of, what facilities are shared with others, is the letting for a fixed term and if so for how long ?)
The amount of rent and whether it includes payments for council tax, gas, electricity and services such as laundry and telephone.
How often the rent is due, and the date on that it is payable.
Whether there are any rent review clauses, and how often the landlord can review the rent.
The amount of deposit required and if/when this is refunded.
What the tenants obligations are to repair and decorate the property.
What happens if the tenant wants to leave the property. Tenants should try to get the landlord to include a right for them to end the tenancy with, for example one month's notice. This is known as a 'Break Clause'. This is particularly important for fixed term tenancies, as if there is no clause allowing the tenant to give notice they can be held liable for the rent for the remainder of the fixed term.
Who the tenant should contact if there are any problems during the tenancy.

Other Rights of Private Tenants

Private tenants have additional rights, regardless of their type of tenancy. These includethe right:

to know the name and address of their landlord
to have a rent book
to get repairs carried out
for their accommodation to be safe
not to be subjected to harassment or illegal eviction

Security of Tenure

Private renting can be much more flexible than other forms of housing, with both short term and long term lets available. Prospective tenants should be aware of what their tenancy rights are before moving in. There are various forms of tenure that it is possible to have in the private rented sector.

Private sector tenancies let since 15th January 1989 are governed by the Housing Act 1988. This was amended by the Housing Act 1996 and the majority of tenancies will be assured or assured shorthold tenancies.

However, there are some types of private rented occupation which cannot be assured or assured shorthold tenancies. These include:

Licences (where other people in the household have an unrestricted right to enter the accommodation.
Accommodation provided as part of the job.
Accommodation provided by a friend or family where there was no intention to create a legally binding agreement.
Accommodation where there is a resident landlord who lives in the same building.
Accommodation rented from a college or other educational establishment. Holiday lets.
Tenants who fall into any of the above categories are likely to be occupiers with basic protection or excluded occupiers. These types of occupiers have very limited rights and landlords can usually regain possession very easily.
Tenancies granted prior to 15th January 1989 are governed by different legislation. Talk to one of the advice agencies in Torbay to check your security of tenure.

Assured Shorthold Tenancies

Since 28th February 1997 all new private sector tenancies, which do not fall into one of the above categories, will automatically be assured shorthold tenancies. This is unless the tenancy agreement specifically states that the tenancy is to be an assured tenancy and that a Section 20 notice was served at the start of the tenancy.

Assured shorthold tenancies can either be for a fixed term (usually 6 or 12 months) or periodic (rolling from week to week or month to month). During the first six months of tenancy (whether there is a fixed term or not), landlords cannot automatically regain possession of the property. They can only do so if they can prove a ground for possession to the court (e.g. Rent arrears). After the first six months, landlords can regain possession by serving a minimum of two months written notice. Tenants will not have to leave at the end of the notice period, but can stay until the court has granted a possession order and bailiffs warrant.

Assured Tenancies

Assured tenancies are tenancies with private non-resident landlords and housing association tenancies created on or after 15th January 1989.

Assured tenants have greater security of tenure than assured shorthold tenants in that the landlord cannot normally regain possession without serving correct notice and proving a ground for possession to the court. The court must then agree to the grounds and grant a possession order.

Bringing the tenancy to an end

How the tenancy can be brought to an end will depend on the security of tenure that the tenant has. The type of tenancy can affect when and how either party can take action to end the tenancy and the amount of notice that they must give (as detailed above).

If the tenant wishes to leave

If the tenant wants to leave the property they should give notice to the landlord. The type of tenancy will affect when the tenant can give notice and how much notice must be given.

If the landlord wants to evict the tenant

In most cases, if the landlord wishes to gain possession they must give the tenant reasonable notice and get a court order. However, excluded occupiers have fewer rights and the landlord can evict them peaceably without a court order.

If you need further advice regarding renting privately contact the Housing Advice Team.

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Tel: 01803 208723
Email: housing.advice@torbay.gov.uk
Fax: 01803 208282

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