Student Furnished Bedsit Agreement – Inclusive Rent

Student Bedsit Agreement (Rent Inclusive of Outgoings)

PROP.RES.SL.05

This Student Bedsit Agreement (Rent Inclusive of Outgoings) should be used where a private Landlord wishes to grant a tenancy of a furnished bedsit to a student. Usually the tenancy will have a term of 12 months, although sometimes a shorter term will be granted, e.g. September to June.

A bedsit is typically a self-contained unit comprising a living area and a sleeping area. The bedsit may include a small kitchen or kitchenette and/or bathroom facilities. Alternatively, kitchen and/or bathroom facilities may be shared with other occupiers of the house in which the bedsit is situated.

This Agreement provides for the rent to be inclusive of Council Tax (if any – students usually qualify for an exemption), utilities charges, cleaning of the communal areas and the cost of a TV licence for any communal TV. The Landlord covenants to pay these costs so the Landlord should ensure that the rent is sufficient to cover his expenditure.

If telephone and broadband are supplied direct to the bedsit, the student must pay for them. If the Landlord provides communal telephone and broadband, the student must contribute a fair proportion of the cost in addition to the rent. If the student is to pay for outgoings in addition to the rent, please use the Bedsit (Excl Rent).

The Student Bedsit Agreement is an Assured Shorthold Tenancy (AST). This is the usual form of tenancy granted by private landlords. Unlike other forms of residential tenancy, a tenant under an AST has virtually no security of tenure. As long as the proper procedures are followed, a Landlord can regain possession of the property after six months.

This Tenancy Agreement has been updated to comply with the Tenant Fees Act 2019 (‘the TFA’) which affects landlords and letting agents in England and the Renting Homes (Fees etc.) (Wales) Act 2019 ('the RHFWA') which affects landlords and letting agents in Wales.  Whilst similar, the TFA and RHFWA are different.  It is important that landlords and letting agents are aware of the differences and comply with the regimes in their respective countries.  Please see our Guidance Notes on both the TFA and RHFWA for further information. 

Although the majority of private lettings are ASTs, there are some arrangements that cannot be assured shorthold tenancies. In the context of student lettings, the main exclusion is where there is a resident landlord, for example because the house is owned by a student who lives there. In this situation, the Licence to Occupy a Room (either the full time version or the term time only version) can be used.

If the Landlord wishes to let a house or flat to a group of students (as opposed to letting individual rooms to individual students) our AST Furnished House or AST Furnished Flat should be used.

The Landlord is likely to require the student’s parents to act as guarantors. The Student Tenancy Agreement Guarantee should be used for this.

The Tenancy Agreement sets out the main details at the beginning, being the parties’ names, the address of the property, the term and the rent, which may be payable monthly or termly. An Inventory should be completed and attached to the Tenancy Agreement to record the condition of the property and the furniture and contents.

Clause 1 is the grant of the tenancy. The student is given rights to use such communal parts of the house as the Landlord may specify.

Clause 2 contains standard legal interpretation clauses.

Clause 3 deals with the Tenancy Deposit. The amount of the Deposit should be inserted in clause 3.1.  Under the TFA, from the 01 June 2019, security deposits for new or renewed tenancies in England must be capped at five weeks' rent if the yearly rent is under £50,000 or six weeks' rent if the yearly rent is £50,000 or more.  

Security deposits for tenancies in Wales are not currently capped but the RHFWA gives the Welsh government the power to introduce caps in the future.

In clause 3.4 the Landlord must specify whether the Deposit will be protected in an insurance scheme or a custodial scheme. Please see the Guidance on Tenancy Deposit Protection for details of the different schemes and the procedural steps the Landlord must take. Please note that this clause should not be used if the Landlord is protecting the Deposit in the Tenancy Deposit Scheme (one of the insurance schemes). That scheme has its own clause which should be substituted – please see the Prescribed Information and Clauses document on the TDS website: https://www.tenancydepositscheme.com/agents-and-landlords-documents-and-forms.html

Clause 4 contains the Tenant’s covenants. These cover payment of rent and telephone/broadband charges, repair and maintenance, use, allowing the Landlord access for inspections and end-of-tenancy arrangements.

Under the TFA, Landlords in England must only charge ‘permitted payments’ as defined by the TFA or face financial penalties (and subsequent offences could result in a criminal offence).  ‘Permitted Payments’ include rent, tenancy deposit, council tax, utilities, tv licence and default fees (for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement).  Under the TFA, Landlords cannot require a Tenant to pay for a professional clean at the end of the tenancy as this is a prohibited payment under the TFA.  Landlords can require Tenant’s to clean to a professional standard.

Similar provisions also affect Wales by virtue of the RHFWA.  Any breach of this act is an offence and is prosecutable in the magistrates' court and the offender will be liable to a fine.  Landlords in Wales must only charge 'Permitted Payments' as defined by the RHFWA which are rent, tenancy deposit, council tax, utilities, tv licence and default fees (in the event of breach of the AST by the tenant which must be written in the tenancy agreement). Welsh Ministers have the power to make further regulations to prescribe a list of payments in default as well as a limit on what is permitted will be subject to prescribed limits.  

Clause 5 provides for interest to be paid on overdue rent.  Under the TFA, Landlords can only charge interest for late payment if the rent is more than 14 days overdue.  The rate of interest must not exceed 3% above the Bank of England’s base rate. 

Clause 6 is the forfeiture clause. This allows the Landlord to forfeit (i.e. bring to an end) the tenancy if the rent is at least 21 days overdue or if there has been a substantial breach of any of the Tenant’s obligations. Landlords should note that it will still be necessary to go to court in order to obtain possession of the property; the forfeiture clause does not have quite the effect it purports to have but it is important to have the clause in the Tenancy Agreement, otherwise the court will be unable to order possession during the fixed term of the tenancy.

Clause 7 contains the Landlord’s covenants. These cover quiet enjoyment (the right of the Tenant to use the property without interference) and repair.

Clause 8 is an optional break clause for each party. Landlords should note that, as well as serving a notice to exercise the break, they must also serve a notice under section 21 of the Housing Act 1988. The break notice will only bring the fixed term of the tenancy to an end. A section 21 notice is needed in respect of the periodic tenancy which will automatically arise once the fixed term has ended.

Clause 9 will contain the parties’ addresses for service of documents. Section 48 of the Landlord and Tenant Act 1987 provides that rent is not lawfully due from a tenant unless the landlord has provided him with an address where notices are served. It is vital that the Tenant is given an up to date address for the Landlord.

Clause 10 is a jurisdiction clause.

The Tenancy Agreement complies with the Housing Act 1988 (as amended) and the Tenancy Deposit legislation and takes account of the OFT’s 2005 Guidance on unfair terms in tenancy agreements.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document. This Student Bedsit Agreement (Rent Inclusive of Outgoings) is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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