A Guide to Our Pre Tenancy Agreement

by Kate Mccormick - solicitor

This is our guide to filling out our pre tenancy agreement form.

A Guide to this Pre Tenancy Agreement

This Pre Tenancy Agreement is for use by a landlord to set out the basic terms of a tenancy relationship that he/she intends to enter into with a tenant. It is used to provide security and commitment to and from the tenant whilst the landlord is taking up references or conducting other background checks to confirm their suitability. The Agreement does not commit the landlord to enter into a formal tenancy if the references or checks are not favourable but the landlord should take the property off the market once the Pre Tenancy Agreement has been signed.

Clauses in this Pre Tenancy Agreement

Cover Page – you will need to insert the names of party 1 (the Landlord) and party 2 (the Tenant).

Between –you need to insert the details the parties to the Agreement here including their business/company name and registered number (if any party is a registered company) and registered office or trading address.

Background – you should insert the details of the rental property address, tenancy start date, duration, rent charge, and requests for references.
Most landlords require at least three references to be provided by the tenant but you can choose to accept a lesser number. The references can be employment, educational or other character references. The rent is usually stated exclusive of VAT but this will depend on whether or not the Landlord is VAT registered. Normally the rent is defined as being exclusive of VAT and the Tenant agrees in the Tenancy Agreement to pay the rent ‘inclusive’ of any VAT that may be chargeable on it.

You should insert the deposit and holding deposit amount required and any advance in rent that the Tenant needs to pay before the start date of the Tenancy.

Declaration – this states that if the Tenant decides not to go ahead with the rental and withdraws from the Agreement, they will have to forfeit their deposit. However, if the Landlord backs out of the Agreement, the Landlord will return the deposit to the Tenant. You should enter the relevant names into the square boxes and then both parties need to sign the Declaration. You can send the Agreement to the Tenant and ask them to sign and return the Declaration to you. Both parties should keep a signed copy of the Agreement.