12. Tenancy (sitting and vacant)

A tenancy is a legal arrangement in which a property owner, known as the landlord, grants the right to occupy and use their property to another party, known as the tenant, in exchange for rent or periodic payments. Tenancies are governed by a formal agreement called a "tenancy agreement" or "lease," which outlines the terms and conditions of the rental arrangement. These terms typically include the duration of the tenancy, the amount of rent, responsibilities of both the landlord and tenant, and other important details.

There are two primary types of tenancies:

Sale with sitting tenancy: In this scenario, a property is sold while it is currently occupied by tenants. The new property owner (buyer) inherits the existing tenancy agreement, including its terms and conditions. The sitting tenants continue to live in the property under the same terms as before the sale. The buyer becomes the new landlord and assumes the responsibilities outlined in the existing tenancy agreement.

Vacant tenancy: In a vacant tenancy, the property is sold when it is unoccupied. There are no existing tenants in the property at the time of the sale. The new owner (buyer) takes possession of the property immediately after the sale and has the flexibility to decide whether to rent it out and, if so, under what terms. A vacant tenancy provides the buyer with greater control and the option to choose new tenants and rental terms.

The main difference between these two types of tenancies is the occupancy status of the property at the time of sale. Sale with sitting tenancy involves the transfer of an existing tenancy arrangement, while vacant tenancy allows for a fresh start with new tenants or the owner's use of the property. Each type of tenancy has its advantages and considerations, depending on the goals and preferences of the property owner and buyer.

Documentation

Tenancy agreement	The tenancy agreement is a legally binding contract that outlines the terms and conditions of the tenancy. It serves as a crucial reference for both landlords and tenants, covering aspects such as rent, responsibilities, and obligations. Landlords should ensure that the agreement is clear and complies with legal requirements.
"How to Rent" document	The "How to Rent" document is a legal requirement in the UK. Providing this document to tenants at the start of the tenancy ensures that they are informed about their rights and responsibilities. It helps prevent misunderstandings and disputes by setting clear expectations. Failure to provide this document could impact the legality of eviction proceedings, making its provision crucial.
Deposit Protection Certificate	A Deposit Protection Certificate is issued to confirm that the tenant's deposit has been protected in accordance with legal requirements. This certificate serves as evidence of compliance and is provided to tenants as part of the prescribed information. It should include details of the deposit scheme used and information about how to raise disputes.
EPC (Energy Performance Certificate) and Gas Safe Certificate	Providing tenants with an Energy Performance Certificate (EPC) and a Gas Safe Certificate is mandatory for ensuring tenant safety, energy efficiency, and compliance with relevant regulations. These documents provide valuable information about the property's energy efficiency and gas safety.
Legionnaires Disease Risk Assessment	A Legionnaires Disease Risk Assessment is essential for identifying and mitigating the risk of Legionnaires' disease, which can arise from water systems. This assessment evaluates water storage and distribution systems to ensure tenant safety and compliance with health and safety regulations. Legionnaires' disease can be fatal, making this assessment crucial.
Schedule of Condition	A Schedule of Condition documents the condition of the property at the beginning of the tenancy. It serves as a baseline reference to assess any damages or changes that occur during the tenancy. This document can be valuable in resolving disputes related to property condition at the end of the tenancy.
Inventory	An inventory lists the items included in the purchase price of the property. It helps avoid disputes between the buyer and seller regarding what is included in the sale. This document provides clarity on the property's contents and condition at the time of purchase.
HMO (House in Multiple Occupation) licensing	A House in Multiple Occupation (HMO) License may be required for properties with multiple occupants who form more than one household. This license ensures the safety and welfare of tenants in shared living spaces. Compliance with HMO licensing requirements is essential for landlords of such properties.
Fire Risk Assessment	A Fire Risk Assessment evaluates fire hazards in the property and outlines measures to mitigate these risks. It is crucial for tenant safety and compliance with fire safety regulations. Landlords should regularly review and update the assessment to address potential fire hazards.
Asbestos report	An asbestos report helps identify and manage the presence of asbestos-containing materials in the property. Asbestos exposure poses serious health risks, and proper management is essential to protect tenant safety and comply with health and safety regulations. The report provides guidance on safely managing asbestos if present.

Regulations

Tenancy deposit	The tenancy deposit plays a significant role in protecting landlords from property damage and unpaid rent. It also provides tenants with a sense of security. Being aware of the deposit amount and its protection status ensures transparency. Landlords should hold the deposit in a designated scheme, provide prescribed information to tenants, and follow legal deposit protection requirements.
Deposit protection	In the UK, landlords are legally obligated to protect tenants' deposits in a government-approved Tenancy Deposit Protection scheme. This regulation safeguards tenants' funds and ensures that disputes are handled fairly through an independent dispute resolution service. Landlords must provide tenants with prescribed information regarding deposit protection and the scheme used.
30-day deposit deposition requirement	Landlords must adhere to the 30-day deposit deposition requirement. This entails protecting the deposit and providing tenants with prescribed information within 30 days of receiving the deposit. This ensures transparency and legal compliance. Failure to meet this deadline can result in penalties and affect the ability to serve a Section 21 notice.
Fire safety regulations for upholstered items	Fire safety regulations mandate that all items containing upholstery in a rental property comply with the fire resistance requirements outlined in the Furniture and Furnishings (Fire Safety) Regulations 1988. This regulation aims to minimise the risk of fire hazards associated with upholstered furniture and furnishings. Compliance is essential for tenant safety.
"Right to Rent" checks	These checks are a legal requirement under the Immigration Act 2014. These checks verify the immigration status of tenants, ensuring compliance with immigration laws. Landlords and agents should understand the process and documentation required to perform these checks correctly.
Smoke alarms on each storey	To enhance fire safety, installing at least one smoke alarm on each storey of the property is a legal requirement. Smoke alarms provide early detection of smoke or fire hazards, giving tenants valuable time to evacuate the property in case of an emergency. Compliance is essential for tenant safety and legal obligations.
Electrical installations and PAT testing	Regular checks of electrical installations and Portable Appliance Testing (PAT) for electronic devices are essential for maintaining tenant safety and compliance with electrical safety regulations. These checks help prevent electrical hazards, which can pose significant risks to tenants.