In today’s technology-driven world, landlords might ask the question: Why should I use a letting agent when a search engine can write my tenancy agreements for free?
While it might be tempting to construct your own tenancy agreements using an online template or to simply ask an AI engine to do it, there are several key reasons why this is not a recommended route.
Inadequate protection
Tenancy agreements are just as important for protecting landlord rights as they are for tenants. A tenancy agreement which hasn’t been crafted according to up-to-date legislation may lack crucial clauses which provide both landlords and tenants with necessary safeguards. These clauses may cover things like property maintenance, rent increases, or handling tenant violations.
When a professional puts together a tenancy agreement for you, they can include provisions which will help empower you to take appropriate actions if the terms of the agreement were to be breached. Agreements crafted without expertise may lack the comprehensive language and the knowledge required to address any disputes which may arise during a tenancy.
Legal compliance issues
Your tenancy agreement is a legally binding document, so it must adhere to the laws of local and government jurisdiction. This may sound straightforward, but laws surrounding tenancy agreements can be extremely complex and vary significantly from one area to the next.
A DIY tenancy agreement may not account for the specific legalities of your location, especially if a generalised template has been used. This can leave you vulnerable to both legal and financial repercussions.
Potential for ambiguity and confusion
Poorly written tenancy agreements open up opportunities for miscommunication and ambiguity between landlords and tenants. It’s crucial to use clear and precise language to avoid confusion, as a lack of understanding can lead to disputes over payment schedules, responsibilities, and other important terms; which may have been avoided with a professionally drafted document.
Notice periods
If you aren’t well-versed in the complexities of tenancy agreements, writing your own could mean that you fail to get the paperwork right regarding notice periods. This could subsequently invalidate any notice you need to serve.
Letting agents should have their fingers on the pulse for all recent rule changes and updates to notice periods, allowing you the peace of mind of infallible legal compliance.
Possible financial implications
Using an online template or an AI bot to construct a tenancy agreement may seem like a cost-saving measure in the short term, but this can have long-term financial implications. Failure to draft a legally compliant and clear tenancy agreement can expose you to legal battles, fines, or even having to compensate tenants for damages or violations.
Don’t forget many agents, such as ourselves, will offer a let only service which helps secure the right tenants and draft a tenancy agreement then pass the ongoing management to the landlord. So, whether you’re a first-time landlord or you have an extensive portfolio of properties, it’s essential to opt for a professionally crafted agreement from the outset to safeguard your investment.
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