A recent study conducted by landlord insurance provider Direct Line for Business has revealed that one in ten private UK landlords does not have a formal tenancy agreement in place with their tenants.
In fact, the study found that many British tenancy agreements do not comply with current legislation.
The survey showed that 58 per cent of landlords taking part in the study had used adapted tenancy agreements from outdated agent contracts.
A further 38 per cent claimed to have based their agreements on drafts from other landlords, whilst 20 per cent of those surveyed said they simply ‘updated’ templates which they had downloaded from the internet.
In some cases where contracts were in place, Direct Line for Business discovered that landlords had been unwittingly asking their tenants to sign documents which were not – or no longer – compliant with British legislation.
Nick Breton, head of Direct Line for Business, said: “If an old contract is adapted it may not comply with new legislation or be relevant for the current market.
“Given the volume of disputes arising from tenancy agreements it’s important to get the contract seen by a legal professional before it’s signed.”
Mr Breton suggested that a lack of professionally reviewed tenancy agreements could explain why some 13 per cent of landlords have experienced contract-related disputes with their tenants within the last two years.