The Importance of Having a Tenancy Agreement

Tenancy agreements are written or oral contracts entered into between a landlord and the tenant. This contract specifies the right of a tenant to occupy the house and the right of the landlord to collect rent in lieu of leasing out the premises.

These written agreements should be signed by either party and a copy of the signed versions must be retained by both the landlord and the tenant. And, in case of multiple tenancies, each retains a signed copy.

Contents of a Tenancy Agreement

A tenancy agreement regulates the terms and conditions of the tenancy tenure. The agreement contains the following details:

• The names of the landlord and the tenant (In other words, the names of both the signatories of the agreement.)


• The address of the house


• The contents in the property that has been leased out


• The tenure for which the property is leased out


• The amount of rent to be paid each month


• The mode of rent payment


• If electricity and other charges are included in the rent.


• The deposit amount given by the tenant to the landlord


• Whether the tenant is given the right of subletting the house.


• The duties of the tenant relating to the proper upkeep and maintenance of the property. These are explicitly mentioned.


• The landlord is expected to carry out the repairs and painting work.


• The tenant or the landlord may want to terminate the tenancy before the expiry of the stipulated tenure. But the agreement can be terminated only after a notice period. The required notice period also finds mention in the tenancy agreement. The legally permissible notice period is 4 weeks. If the agreement stipulates a notice period of lesser duration it is not valid.


• Other clauses found in some agreements pertain to the permission of having pets, etc.


• Finally, both the parties read and sign the agreement. Only the agreements that contain the signatures of both are valid. And it should be signed before the tenant occupies the premises. However, the tenants hold the right to refuse signing an agreement that can be termed unfair.

The Use of Tenancy Agreements

Tenancy agreements (in writing) are useful in preserving the good will between the landlord and the tenant. It is useful for future reference.

Verbal agreements are bound to lead to disagreements. And, if disagreements get heightened over a period of time, the landlord cannot get the tenant to vacate the premises.

Importance of Tenancy Agreement

As mentioned above, tenancy agreements are necessary to prevent landlord-tenant dispute. Over the last two decades, almost 50% of the landlords had asked their tenants to vacate the premises at least once.

Tenants and landlord disagreements are quite common. The usual sequence occurs thus. The tenant asks the landlord to carry out some much-needed repair works. The landlord due to lack of time or money postpones the job. This angers the tenant who withholds the rent or resorts to late payment.

• Survey results prove that the late payment of rent is the most common cause of conflict.


• Other conflict-causing factors of lesser importance are the disturbing behaviour of the tenant and lack of proper maintenance of the premises.

These minor factors lead to constant altercations and almost all the landlords have asked the tenants to vacate the house at least on one occasion during the last two decades. And 8 out of 10 landlords filed court cases against their tenants. Of these, 60% of them had not signed tenancy agreements and subsequently entailed huge losses.

To prevent such occurrences, landlords and tenants must sign detailed tenancy agreements that contain all the terms and conditions of tenancy. The agreements are important for they ensure peace of mind for both the signatories. Landlords are happy as they can be assured of a good maintenance of the house. Tenants are also satisfied for their continued tenancy will not be disrupted as long as they adhere to the terms laid down in the agreement.