Signing tenancy agreements in advance is legal, expert says

News Category: Legal

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Letting agents have been encouraged to sign tenancy agreements in advance after a landlord law expert confirms the practice is "entirely legitimate".

Tony Booth, writing at investment advice website Property Secrets, explained that some landlords are concerned about this action, which effectively guarantees the immediate continuation of rental income beyond the date the tenancy agreement expires.

But Mr Booth confirmed: "It is actually perfectly legal and acceptable, providing it is done carefully following the correct procedure and by applying a number of safeguards."

His comments come as competition in the residential lettings sector might have grown significantly in many areas across Britain as more would-be sellers put their homes up to rent after being unable to sell them at distressed prices.

In addition, data from letting agent Your Move published last month showed that rental demand increased by 56.4 per cent over the previous annual period.

Many would-be homebuyers are likely to have switched to renting after being unable to afford a mortgage as lenders tightened their borrowing criteria following the impact of the global credit crunch on the UK economy and the money markets.

How to stay legally compliant with letting agency software.