As a homeowner, you`re often expected to know everything, whether you`re managing properties and rentals full-time or renting out a single property as an additional form of income. Anyway, for many, there is often a point of confusion: what is the difference between a lease and a lease? Leases and leases may differ in terms of structure and flexibility. For example, some contracts may include a pet policy for rental units, while others may include an additional addition to rules or regulations, such as excessive noise. If you choose to draft your own lease, you have the option to add your own clauses, but they must be legally enforceable to be valid. These additional terms must be considered fair, as otherwise the landlord could be criticised by the unfair contract term legislation. With TransUnion SmartMove, you increase your chances of identifying financially and personally responsible tenants. Landlords receive a rental credit report, penalty report, eviction report, income information report and ResidentScore to make an informed rental decision – long or short term. You can charge a deposit; However, it is advisable to specify very precisely the amount of the deposit charged, for which you are allowed to use the deposit at the end of the rental period and for which the tenant is not allowed to use it (example: the tenant can not use the deposit as a rent payment for the last month of rent when the tenant leaves). If there is a disagreement between the landlord and tenant at the end of the lease, it usually starts here. Now let`s look at the pros and cons of a lease: a lease can still be legally binding even if it has expired, as it is then classified as a periodic tenancy. A periodic lease is created when the same tenants live in the property that was on the original expired AST and a new AST has not yet been created and signed. Nevertheless, the conditions apply, but the contract is now periodic or “rolling”, so it runs from month to month until the new lease is signed. Like any legally valid lease, a secured short-term lease becomes legally binding once all parties – owner, tenant and guarantor (if any) – sign the document.
A legally binding UK lease is enforceable in court. Due to the short duration of a rental agreement, they allow much more flexibility when it comes to rent increases. Technically, the rent can be revised each month with a lease to stay in line with the current market rent, as long as the rent increases comply with local law and the termination provisions that govern the monthly rent. .