RESIDENT LANDLORD

I came across an incident the other day in which a property owner had a house that was too big for him to live in alone whilst his family was abroad and rented out part of it to a manager in one of the banks on the Island. He did this on a gentleman’s agreement for one year and felt there was no need to put anything in writing as it may offend the banker who he felt lucky to have found. At the expiry of the agreement, the banker refused to leave even though the owners family was due to return, the owner thought that if he gave him an extra month rent free, he would leave at the end of that month. Unfortunately the banker has refused to move and the owner is now stuck as he has no legal redress and cannot throw him out

If you are the owner of a property and decide to rent a part of your home to a tenant, the legal situation in terms of the tenancy is quite different to that which governs and assured or shorthold tenancies. If the tenant does not have exclusive use of the property, it usually means that they will have a 'license to occupy' the property. You should still sign a legally binding agreement with the tenant, but this will not be a standard tenancy agreement. The document should be a licence that specifies that the landlord has the legal right to unrestricted access to the occupant's property, It may turn out that he never goes in there, but he will retain the right to for such activities such as repairs or decoration.

Licenses to occupy also usually replace other types of tenancy ie for mini flats within houses. The internal arrangements of the property may mean that you do not share any portion of the accommodation with the tenant, but the tenancy will still be legally seen as a license, it is normally no problem for the tenant to extend the term of the license agreement, but make sure that you renew the agreement in writing. If you are using a lettings agent, there will normally be a renewal fee and you will also have to pay lettings agent fees again. A written document makes it very much easier to sort out any disputes that occur. If you do not have a written tenancy agreement, you are obliged by law to provide the tenant within the main terms of the tenancy in writing within 28 days of their requesting it. This includes the start date, expiry date, amount and frequency of rent payments and rent review arrangements. It is usually best to get a tailored tenancy agreement drawn up. This will make sure that it addresses any issues that are specific to the property

If you are a little more confident in your understanding of legal documents, you can use a standard tenancy agreement and remove any unnecessary clauses or add any additional ones that are required. The agreement can be modified to cover the specific needs of your property - garden maintenance, pets, security and so on.The agreement that you draw up should always include a clause that permits you to take back possession of the property if the tenant does not pay the rent or is in any other way in breach of the contract. The tenancy agreement should be signed by both tenant and landlord, although a lettings agent can sign it on his behalf.