Q: I own a North London flat that I usually rent out using the services of a letting agent. Late last year I found a tenant without using an agent and we never drew up a tenancy agreement. What is the position where there is no written tenancy?
A: There is no reason why a tenancy of this kind cannot be made verbally. Under sections 52-54 of the Law of Property Act 1925, a landlord can let a property for a period of less than three years if the rent is at the market rate or above. Anything for more than three years or for less than the market rate requires a formal deed. Since most agreements are for a much shorter period than three years, verbal lettings are usually valid.
In almost all cases, the Housing Act 1988 treats an oral agreement as an assured shorthold tenancy. The landlord cannot bring the tenancy to an end for at least six months, even if the parties agree that the letting is for a shorter period. There are also a number of other obligations implied by statute or by common law. For example, the landlord must repair the structure and exterior of the property and the tenant cannot usually sub-let the flat.
Where there is no written tenancy agreement, the tenant has a right to ask for basic information about the letting. Under section 20A of the Housing Act 1988, an assured shorthold tenant may require the landlord to provide written details of certain terms of the tenancy. This includes information about the rent and the length of the letting. The landlord can be fined if he fails to provide this statement within 28 days.
The lack of a written agreement does not, therefore, mean that your letting is invalid, but it is obviously better for you to give the tenant a written summary of the terms of the agreement as soon as possible.