How important is a tenancy agreement on a buy to let property?
Potential problems with tenants are manifold. Some will refuse to pay rent, and others will refuse to move out at the end of their tenancy. For this reason, ensuring that you have a legally binding contract in the form of a tenancy agreement is vital. A solicitor or a managing agent may prepare these. Writing in a six-month break clause can be a good idea, after which either you or the tenant can give between one and two months notice. Some experienced property investors prefer to run their properties on shorter tenancies, although these are more common in last cities and financial centres. Although this can provide higher rents, it can also leave the landlord at a greater risk.
