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Thousands of students are set to move into private rented accommodation at the start of the university year, many for the first time. To help tenants understand their rights when renting, the Office of Fair Trading highlights some of the hidden traps in tenancy agreements.
A landlord can’t use unfair terms in an agreement to take away your legal rights, even if the contract says that they can. Christine Wade, OFT Director of Consumer Regulation Enforcement, says many tenants are unaware of their rights when it comes to tenancy agreements.
She said: ‘Your tenancy agreement should be written in clear language which you can understand and should not use legal jargon.’
The OFT’s leaflet ‘Unfair tenancy terms – don’t get caught out’ is designed to steer tenants through some of the potential pitfalls of renting.
What is an unfair term?
Any one sided term that gives the landlord too much advantage over you may be
unfair. For example a term could be unfair if it makes you pay for repairs which
are the landlord’s responsibility – such as upkeep of the structure
of the property – or makes you return the property in a better state than
you received it. Terms can also be unfair if they allow the landlord complete
freedom to decide how much of the deposit they can keep at the end of the tenancy,
or if they allow the landlord to enter the premises without giving you reasonable
notice when there is not an emergency.
Some of the rental properties I’ve seen are in terrible condition.
Is a landlord allowed to rent them in this state?
At the start of a tenancy for furnished premises, the premises must be in a
fit state for letting. Landlords are not obliged to ensure that their property
meets any meaningful quality standards at the start of the agreement but this
doesn’t mean that the landlord can let a property in a poor condition.
The landlord must ensure that the structure and exterior (including drains,
external pipes, gutters and windows) are kept in repair, and major installations
such as boilers, sinks, baths and toilets are in working order. The landlord
is also responsible for the safety of gas and electrical appliances that he
supplies, and the fire safety of fixtures and furnishings that go with the tenancy.
These duties apply from the moment the tenancy begins.
What about my security deposit?
Landlords can deduct their reasonable costs from the security deposit if tenants
fail to take reasonable care of the property. However, they should not be able
to profit from the term. If damage is minor and easily rectified, the landlord
should not be able to withhold the entire amount of the security deposit. The
deposit cannot be withheld for normal wear and tear.
My tenancy agreement has a clause which says the landlord has the
right to enter the property at any time. Is this fair?
Under common law there is an implied right for the tenant to have ‘exclusive
possession’ and ‘quiet enjoyment’ of the premises during the
tenancy. In other words, tenants must be free from unwarranted intrusion by
anyone, including the landlord. If the tenancy agreement allows the landlord
to enter the property without the tenant’s consent, except for good reason
(such as in an emergency or to inspect the property on reasonable notice), the
term may be unfair.
Is the landlord able to increase my rent?
Provisions for rent increases may be included in a tenancy agreement. However
a term which allows the landlord to arbitrarily increase the rent without reference
to clear and objective criteria or an independent valuer may be unfair.
Where do I get advice?
Your college accommodation office or Students’ Union may be able to help,
check their websites. Your local housing advice centre, Citizens Advice, or
trading standards service may also provide advice, or you can talk to Shelterline
0808 800 4444.
How do I complain?
You can complain to your local trading standards service about a landlord’s
unfair terms. You will find their number in the phone book or you can visit
their website at www.tradingstandards.gov.uk.
The OFT can take action against a landlord it believes is using unfair terms to stop them being used in the future. However, the OFT cannot intervene on your behalf or help you with your individual case.
The OFT’s leaflet highlights some of the pitfalls consumers may come
across when entering into a tenancy agreement. You can get this by phoning 0870
60 60 321. There is also guidance for landlords on unfair terms in tenancy agreements
and both can be downloaded from the OFT website www.oft.gov.uk,
or you can contact OFT enquiries on 0845 722 4499.