ARLA finalise new tenancy agreement

The Association of Residential Letting Agents has finalised a new model tenancy agreement.

The model Assured Shorthold Tenancy Agreement which has been submitted with standard pre-printed clauses, is believed to fall within the requirements of the unfair terms regulations.

These regulations treat landlords and their letting agents as suppliers and their tenants as consumers. Although there are a number of terms that can be tested against the regulations for fairness, there are four tests that are most likely to be measured against standard tenancy agreements for fairness.

These tests are:

o Is the clause written in plain, intelligible English?

o Is it misleading or have the potential to mislead the tenant over legal rights?

o Does it impose disproportionate or unfair financial penalties on the tenant?

o Does it create a significant imbalance in rights and obligations, to the detriment of the tenant?

Adrian Turner, chief executive of ARLA says: “These new regulations mean that anyone involved in producing tenancy agreements will have to forget any historic prejudices and take an entirely fresh approach. We believe this new ARLA model Assured Shorthold Tenancy Agreement does precisely that.”