Tenants Without A Written Contract- Verbal Tenancy Agreement

Earlier today I received a phonecall from a friend of mine; she explained to me that her landlord has requested for her to vacate his property by Saturday (4 days away). They had a dispute over the payment of rent.

She was in a panic because finding a reasonably priced place to rent in London with in 4 days is a mission impossible. She then explained how she had no written contract with her landlord, just a piece of paper declaring that she has paid a deposit, consequently she assumed she had no rights as a tenant. WRONG!!!

A ‘Verbal Contract’ is binding by law

Simply, a verbal agreement is as legally binding as a written Tenancy Agreement (however, I would never advise you enter into one).

As soon as a landlord agrees to allow someone to rent his or her property and accepts rental payment, a verbal contract is formed. So this whole, “get out of my property with in 3 days” rant won’t fly I’m afraid.

Legal rights without a written Tenancy Agreement

The fact a tenant does not have a written tenancy agreement does not affect a tenant’s statutory legal rights, or the landlords legal rights, for that matter. Both parties are still protected by statutory law.

Without a written contract, a landlord will still need to serve a valid Section 8 to evict a tenant. Even then, the landlord will need legitimate grounds to evict the tenant, and the tenant is entitled 14 days after the form is served, to decide what he/she wants to do. There is actually no difference in procedure for evicting a tenant that hasn’t got a written contract than someone who has.

A tenant is entitled to stay in the property until evicted by a court bailiff (or High Court sheriff) acting under the authority of a court order for possession. If a tenant is evicted any other way, the landlord could be held liable for unlawful eviction.

Additionally, even if a tenant with no written contract is simply unhappy about the condition of the property, they still have rights. They can always speak to the Housing Officer at their Local Authority. They can arrange for the property to be inspected and for an improvement notice to be served on the landlord if the property does not meet the proper standards.

How Is a Verbal Tenancy Agreement Created?

For a verbal tenancy to exist it must have three essential elements:

• An offer
• An acceptance of offer
• Payment- known as the legal term consideration

If these three elements exist, then you’re essentially in a verbal tenancy agreement. This contract is binding on all parties involved.

There are other elements to consider:

• Both parties must agree to be legally tied to the agreement
• Both parties are capable of making an agreement i.e. not under the age of 18, drunk or insane.
• Both parties must be acting freely and not under duress
• The contract being made cannot be contrary to law

Why Verbal Tenancy Agreements are not advised

Even though “verbal agreements” are legally binding, it is still advised that a written tenancy agreement is always present when creating a tenancy.

Firstly, a landlord or tenant that doesn’t have a written contract is an idiot. Written contracts are there for your utmost protection. I would question any tenant or landlord that doesn’t require a written contract. In my opinion it just triggers off a signal, “DODGY BASTARD”

Secondly, a written tenancy is created to avoid misinterpretation as well as agreeing to the key points in the tenancy. By having a well-constructed tenancy agreement which outlines the tenant and landlords’ responsibilities, any disputes further down the line would be avoided.

How to avoid creating a verbal tenancy agreement

It is very important to document all communication between a landlord and a tenant. The problem may arise in a verbal contract where a tenant may argue that they never accepted the terms of the contract and therefore a contract was never actually created. In this case, it’s very difficult to prove who is actually in the right or wrong, so written proof is vital.

If you are discussing a potential let or renewal of a contract, you should always make sure that that you do not create a verbal tenancy agreement. You can avoid this by using the words ‘Subject to Contract’ on any correspondence relating to potential lets and when leaving messages on answering machines or speaking with prospective tenants.

Creating a Written Tenancy Agreement

Putting a written tenancy agreement in place couldn’t be easier. You don’t have to draft one yourself, there are already plenty of resources available at your disposal. There are hundreds of websites online that offer Tenancy Agreement- you just need to download one and fill it in like a regular form.

It is important to ensure you source your Tenancy Agreement from a reputable vendor, as there are plenty out there that have either been butchered with unlawful clauses and/or are simply out-dated.

I have a range of Tenancy Agreements available to purchase from my site for £4.99, which have been created by specialist Solicitors. They can be reused as many times as you wish. For more details, go to the Tenancy Agreement section.

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35 Comments - join the conversation...

Badger2007-07-25 11:58:12 Very good advice thank you. 1

Rod Thomas2007-08-12 19:50:03 Good Article and some good advice, although I don't know if a forceful landlord would see it this way. 2

stacey2008-12-21 18:13:25 hi there,
was just wondering, does this apply to the whole of the E.U am in cyprus and our landlord has asked us to leave before xmas and we have no contract!
If you could let me know that would be great thanks
x 3

The Landlord2008-12-21 21:16:43 Hey Stacey,
Unfortunately, I have no idea about the laws in Cyprus.
I only have knowledge which covers England & Wales.

Sorry =/ 4

Ros2009-01-30 14:06:28 I have a related question and would love advice. I rent a flat to 3 people without a contract (will sort that out having read this) and 2 of them want the 3rd tenant to move out as they are becoming increasingly unstable and difficult to live with, (flying off the handle and being verbally abusive without warning etc)

What is the best way to ask her leave and with what time frame? Do I have to give her chance to mend her ways first or can I just ask her to be gone in say 2 month's time? What happens then if she hasn't moved out within the stated time? Thanks for any advice. 5

The Landlord2009-01-30 14:37:17 Hey Ros,

Have you made a verbal agreement on how long she is permitted to stay for? Or is it a "whatever happens, happens" kind of agreement?

Give her 2 months written warning (server a section 21). She can obviously leave before if she wants to.

It's tricky because you don't have a tenancy agreement.

Kind regards 6

Ros2009-01-30 14:46:04 No agreement on her length of stay. When you say 2 months written warning if she behaved for that time could we not get her out after the 8 weeks? Problem being she will likely revert back to old ways after that and then we'd be back where we started. Or is the warning a notice to be out by 8 weeks? 7

The Landlord2009-01-30 14:59:24 The thing is, you're not "evicting" her, you're just asking her to leave.

So you have to serve a section 21, which gives her 8 weeks to leave.

If she doesn't leave after that, you'll have to serve a section 8, which is an eviction notice. 8

Donna2009-07-10 12:12:57 Hi, I wondered if you can offer some advise. I have a tenant who has move a women and her two children into my property without asking my permission. Is he allowed to do this? I dont mind but would have like to have been asked first. Where do i stand legally with regards to other people occupying the property that are not named on the tenancy agreement?
Thanks in advance. 9

Donna2009-07-10 12:59:39 p.s i didnt mean to post this comment under this article, doh. I do have a AST with the tanant - i used the one downloaded from this website.
Many thanks. 10

Faith2009-09-03 00:54:44 I gave my tenant a contract to sign, but the tenant did not sign. Due to the economy aprox. 3 months later I had to make the decision to sell. I informed my tenant 6 weeks prior to placing the property on the market. I allowed her to stay for the last 30 days with no charge for rent...the tenant still wants the damage deposit....Am I required to give her the damage deposit? I did not request for her to move, she had made the decision to move as she didn't want to stay in a "For Sale" property? I live in Canada. I want to be fair, and do what is right; but I feel that I've been more than fair! 11

Nono2009-11-07 16:01:08 Im renting a property from an agent and have a contract but i allowed a person to come live with me and we did not get on but she paid no deposit. She left with all her other things but left a £5k piano and left with my keys. There is no written contract between me and the person and I can change the locks.
What to do, can she come back and sue me for her property and how long can I keep it for? Can she do anything? 12

twattybollocks2009-11-07 21:34:26 You made you bed and now have to lie in it!!

Your own fault sorry!

TB 13

James2010-03-02 12:54:45 Hi im in abit of a dilemma and wud appreciate sum advice. My gf is havin our baby in 6 days and yesterday we had a letter sent by landlord sayin they wnt her out because she has a dog however i dnt think this is the real reason Only a few weeks ago we had enviromental health up cos theres no heatin wot so ever the windows dnt shut and other probs aswell. The thing is the old tenancy agreement ran out months ago last year sumtime and they havnt produced a new one or got her to sign nythin new i wud appreciate sum advice or to know where we stand thanks 14

martin2010-07-17 08:57:41 my land lady has eviting under section 21 so we have got two monthes but do i have to give her written noitce of when we want to leave i have been told we dont as it is her who is evicting us 15

Sharon2010-08-04 23:33:03 Hi, hope you can help. I was left my mother's house 2 years ago when she passed away, in grief I stupidly rented it out to a friends son and his girlfriend, I prepared all the contract but they never signed it and returned it to me. I have on many occasions asked for this but have had no response. They have now stopped paying the rent, missed one month and no doubt will miss this. The boy's mum was a guarantor to them. I have been in the house once since to fix an electrical problem and it is in a disgusting state, doors knocked off etc. Please help! 16

alan2010-09-22 19:03:28 Hi, I rented out a property without an AST and the tenant has been delayed with paying rents and i need him out, because he has never stuck to paying on time, he's always three to four weeks late. How can i get them out please (the fastest way possible). He is currently a week in arrears. 17

Tennant1012010-09-24 17:50:11 I am Renting a room in a house for three years, No contract,
Two other rooms rented out as well, recently the overlord decided to rent out teh living room in which two homosexual migrants romping aroud beeing abusive and looking in a certain way at us all aged in our early 20's we do not want to move however we want those subjects to be removed, Is there a way? It is likely that they are HIV or elsewhere not healty, They do not look healthy, smoking drinking in teh kitchen and cleaning theyr bottoms with a water bottle .. Because its their "culture" personal hygene is also not theyr fort,I life now in fear and discomfort and neeed help. Even thou this post can have a bnp attitude interpreted in to it it is not a nazi rant or anything like it its just exacltly like i wrote it.
Thank you for reading and please advise me, 18

justinreeder2010-09-27 22:22:21 hi can i please ask you

I am living with my friends and i have a verbal contract with them to stay in the house till the actual house contract ends.

Hence I just want to know that what happens if one of my friend threatens me to leave the house straight away or els he will call the police and police will ask me to move out of the house since I dont have a written contract

Can the police move me out of the house or what are my rights when I have been asked to move out of the house

Thanks 19

Tennant 1012010-09-29 11:10:30 Section 21.. Alternatively wait till the authorities turn up and take the official route via a pro bono lawyer or Citizens advice bureu 20

Tiana2010-10-27 01:03:37 I have rent a room to a lady the contract was verbal, I told that no smoke and if a friend stay over she more that weekend she has to pay extra, I have fund out when I went to a room she was there that she smooke canabish she told me that she can't smoke outside she told me she only smoke 1i told her you will put me in problem, next day she smoke again so I give two weeks notice she don't want to leave what do I do 21

darren2011-02-08 21:19:03 Hi can you please advise me.
I have been renting my flat to a friend of my brother in laws, Hes stayed there for bout 5 years with no contract and gets rent money from council, few money problems last year with him and council has left me short. Council and him are blaming each other, I managed to get agreement but is still owing me one months rent. I was thinking of changing to a written contract maybe 6 or 12 months to help me out in future of missed payments but my question is, does my tennant have to sign the contract I give him, or can he reject it and still stay in the flat cause of the length of time he's been there? 22

frem2011-06-21 22:52:35 I need advise please. I rent a room out to a friend, no written contract, just verbal. I told her if she wants to leave, she should give Me 4weeks notice which she agreed. She has been away for more than 3weeks without telling me where she wad going The rent was due and when I called her to pay the rent, she turned around and said she had not got the money nor is she paying the bills as she has been away and does not know when she is coming back. Also she is moving out when she comes back as she has got any written contract with me . Her things are in the room and I need to rent the room out to pay the rent. What are my rights? 23

Jack Savas2011-07-19 19:22:17 I had a assured shorthold tenancy fixed term 12m. But expired last Feb2011. Landlord and I agreed over an email to extend it for another 12m. After few months into the new agreement he is now served section 21, wants me out because I asked for few repairs carried out and hold only one months rent back until than. As I have 3 young children and their schooling I dont want to move.What would be your advice?
Regards
Jack Savas 24

veronica2011-08-17 22:47:37 4 months ago I agreed to an arrangement of cleaning duties in exchange for a room which usually rents for 800.00 per month seperate from main house. Could not take the verbal abuse and womans rages anymore, (she is very old and senile poor thing) I quite cleaning for her 3 days ago and have been franticly looking for another residence. How much time do I legally have? I have no car so I have to live close to work, I have gone to Postmen and the towns people giving my number to everyone to spread the word for me. I know I should have found a place before quiting but she was using her key to enter my room without my permission demanding to talk to me....crazy lady. She is very rich and I am sure she is already starting legalities against me, (she is furious that I called the police on her for entering my room with her key.) 25

jenen2011-10-01 00:14:21 My tenant was given AST agreement in Oct 2010 which she has not signed and returned it to me. the agreement expired inApril2011 and as she has been a bad tenant I did not renew the AST contract. I have since served a section 21 notice and gave her three months notice ,she was due to vacate 2nd September and she is still in the property. As I do not have her signed tenancy agreement in the first place will this make it difficult to proceed with Court proceedings to evict her. The house is a mess and she owes some rent, the DHSS pays most of the rent but she fails to pay ant top up which is only £8 a week. Arrears now total to about £450. I have the court papers but dont want to pay the £175 fee if I need the signed tenancy agreement which she is keeping. HELP PLEASE. Jenny 26

sue2011-10-04 17:09:43 I just want to know I was renting a premises without any agreement what so ever

Now they don't want to give me my deposit what can I do 27

Cardifflandlord2011-10-04 18:06:09 @Jenny: It was a bit silly to send her the AST's in the first place. YOU are supposed to be there to check the witness is actually a proper person and NOT the tenant signing the AST and then witnessing it. Saying that - witness signatures are not always required.

To get her out you are going to need to spend the money. Just because there is no AST does not mean your tenant is not bound by the law pertaining to the AST. You need to make absolutely sure your dates are correct on the forms however so take some proper legal advice. 28

Cardifflandlord2011-10-04 18:06:27 @Sue: ???????????????? 29

scott2011-10-13 07:46:13 Hi i am the landlord of a property in Scotland. My tenants did not give me 1 months notice before leaving and did not clean the property either. They also left alot of rubbish and the garden in an aweful atate plus the grass is dead with their dog messing everywhere. I refused to return all of their deposit as i would need to 1. Have the house professionally cleaned and 2. Have the garden sorted and possibly re-turfed. They said they will take me to court and i have just recieved a letter from a lawer stating that as the short assured agreement was not filed out correctly i had breached the contract and must return the full deposit within 14 days. Is the lawer using scare tactics or do i have a case with no valid contract? Many thanks 30

zoe2011-10-28 18:36:13 ive moved in a friends house with no contract they moved over seas and said I could rent the house for two years. they hav been gone for three mouths and are coming back . they want me to move out what can I do? 31

Victor2011-12-09 19:21:41 I rented one room to a woman withoout a written but on a verbal agreement. My advert for rent specifically stated that couples would not be accepted. The girl said just the day she came to pay deposit that she was getting married following day. I again stated that couples are not welcome to rent the room. She lied that her husband would only come to see her once in a month and would only stay a night. Just after 2 months of moving in,in the past 3 weeks, her husband has spent 3-4 days a week . I have therefore verbally given the girl about 2 months notice to quit. Can you advice on the legality on asking them to leave earlier since on the basis of my advert the tenant made a false reprensentation to get the room. 32

Benji2011-12-10 00:02:23 Victor,

If its a lodger you can, if its a tenant you cant.
If you dont know the difference, have a google.

(obviously you can "ask" them irrespective but I asssume thats not what you meant) 33

pollyanna clarke2011-12-11 03:08:48 next time can't you have a all ready written contract then i wouldn't have to come to this add for nothing 34

Upset tenant :-(2012-01-14 13:19:03 Hi, if any could respond to this as soon as poosible it would be a great help.
i have been living in a terraced house for the past 4 years without a tenancy agreement, in 2010 during the cold winter the water tank burst in the attic along with 5 pipes. the house did not have any insulation and a 32 year old boiler that was costing me way to much money to run. 2 days after the flood my landlord claimed it was safe to move back in (as well as my 2 year old daughter whose carpet was soaking wet and her bedroom ceiling was caving in) i then got enviromental health involved and he seemed to start pulling his finger out, however we are now in 2012 and i have still got water damage. i also had to leave the house again in the new year as there was water dripping through the roof again. Please could someone give me some advice as to what i should do? i have already contacted the council about this matter and the reaction from my landlord was not what i was expecting. this man doesnt seem to care about this property and i am struggling to find somewhere else to live.
PLEASE HELP!!! 35

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