• Once signed, a contract (tenancy agreement) is legally binding.
• A contract can be written or verbal. It can be either joint or individual
Legally Binding
Always make sure you read the contract carefully before you sign it. If you are not happy or not sure about some parts of it, don't sign it. Bring it to the ARC before you sign it to have it checked. Don't be coerced into signing a contract because you think you might lose the house. There is no cooling off period, so if you find a better house down the road you can't get out of the contract you've already signed.
Joint Tenants
If you agree to take a house that you have viewed, and you and your housemates all sign the same contract at the same time, you become joint tenants and therefore jointly and severally liable for any rent arrears, outstanding utility bills and damage to the property. If one or more tenant moves out, the landlord or agent can pursue the remaining tenants for any rent arrears or unpaid bills. He can also pursue the one that has left.
Guarantors
Many letting agents and some landlords require a guarantor form signed by your parents. This is a form that guarantees payment of the rent and any other bills that you are liable for under the terms of the agreement. If the tenancy is joint, be careful that the form is worded correctly otherwise your parents could find themselves liable for money owed by the other tenants.
Promises, Promises
Any promises made at the time of viewing, new kitchen, new beds, decoration etc., should be written into the contract. But, consider, if these improvements are not carried out, would you still be happy to live in the house. If the answer is 'no', then walk away. 'What you see is what you get' is a good thought to hold.
Unfair Terms
The Unfair Terms in Consumer Contracts Regulations 1999 state that you should not have unfair terms in your contract. Check with the ARC if you have any queries or Office of Fair Trading http://www.oft.gov.uk/
Leaving Early
You can only leave before the end of the tenancy if the landlord agrees. This is normally only when you have found a replacement. This can be more difficult if you are a joint tenant because the replacement must be acceptable to the remaining tenants and to the landlord. Clearly it's better for everyone if an agreement can be reached as quickly as possible because there will still be a liability to pay the whole rent.
Resident Landlords
Living with a resident landlord can sometimes be very complicated. This will include living with a friend whose parents have bought them a house. Take advice from the ARC before signing a contract. You can also look at
http://www.communities.gov.uk/publications/housing/rentingrooms
Managed Houses
If you use a letting agency to find your house, make sure you know if they are going to manage the property for the landlord. If the answer is yes, you will always deal directly with the agency if you have any problems or repair needs.
Your responsibilities as tenants
To pay rent as agreed, to take care of the property, to pay for all utility bills and comply with all other terms as written in the contract.
