Understanding the Rental Terms

The rental contract should include:
 

• Date and place where contract is created and signed

• Details of the landlord

• Details of the tenant

• Details of property being rented, including location, size and layout

• Length of the rental term

• Rent payable to landlord by tenant

• Signature of both landlord and tenant

 

The rental term may be any length up to five years. When the agreed term is shorter, the tenant can extend the contract to last five years if they wish to do so. If they choose not to extend the term they must give at least one month's notice that they do wish to terminate the contract as agreed. After five years, the rental agreement can be further extended for terms of up to three years.

The tenant is required to pay rent to the landlord in exchange for living at the property. The rent can be negotiated by both parties, and will usually be paid in the last or the first week of the month. The landlord should send the tenant a receipt to show that the rent has been paid, in order to avoid any future disagreements. Once the initial rental term is over, the rent will typically be renegotiated to take increases in inflation into account. Some landlords will increase rent annually, after the initial rental term, in line with the Consumer Price Index (CPI).

Repairs on the property are the landlord's responsibility, and will typically be done once the rental term has come to an end. Should urgent repairs be necessary, the landlord must inform the tenant in advance that there will be building work; if this disruption lasts longer than twenty days the landlord must reduce the rent that month. The tenant can make small repairs, especially if these are needed to fix damage caused by general wear and tear. Should the tenant wish to make large-scale alterations to the property, they will need the landlord's consent.