Tenancy agreements: everything you need to know
June 23, 2020
What’s in the tenancy agreement?
The tenancy agreement is one of number of important documents associated with a tenancy.
It documents the key information about the tenancy: the names of the tenant and landlord, the address of the property, the rental amount and frequency and contract start and end date. The landlord can use his or her own contract, or use a tenancy agreement supplied by Treehaus.
It also covers the rights and responsibilities of both tenants and landlords.
When in the process do I sign the tenancy agreement?
Once the offer is accepted and agreed by both the landlord and tenant, the landlord requests a holding deposit. This is held by us in our client account on behalf of both the landlord and the tenant, normally until the contact is signed and move in funds are transferred.
Once the reference checking has taken place and all tenants have been approved, the landlord confirms the key terms. We then use these key terms, and create a tenancy agreement that is sent out to all parties for signature. We'll keep everyone updated as each party signs, and we'll then date the document to finalise the process.
How do I sign digitally?
We use digital signatures, which have the same effect as their written equivalents, but have the advantage of allowing all parties to sign the documents remotely and quickly. We'll email each party, and using two factor authentication, record each party's consent to enter into the tenancy agreement.As soon as all parties have signed the tenancy agreement, it is digitally sealed and we’ll circulate the final version by email.
Does the tenancy agreement deal with the property deposit?
Yes - we have two forms of tenancy agreement. This first version of the tenancy agreement has been created in anticipation of Treehaus registering the deposit with MyDeposits. This is is our recommended method as it means that all funds are transferred via the Treehaus platform, decreasing the risk of fraud.
However, we have another version of the tenancy agreement that is designed for landlords who want to register the deposit using another scheme of their choosing. If this happens, tenants should proceed with caution as we do not handle any of the transactions and will refund the holding deposit to the tenant.
When do I pay the balance of the rent and property deposit?
We'll send you a request to pay one month's rent (unless you have agreed something different) + the property deposit - the holding deposit as soon as the tenancy agreement has been signed. If you are transferring funds through the Treehaus platform, you should pay this as soon as possible and at least 3 working days before the start of the tenancy. We will then send the property deposit to MyDeposits. However, to decrease the chances of fraud, we then hold the rent for 7 - 10 days after the tenancy has started, before releasing it to the landlord. Once we have had confirmation from all parties that the tenancy has started without any problems, we'll transfer the funds to the landlord.
If you're unsure of what you should be charging in terms of rent, check out our rent calculator.