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A tenancy agreement protects both the landlords and tenants whereby there are terms and conditions that both parties must abide to during the rental period. This is to prevent any disputes from both parties.
When you sign a tenancy agreement, you have an interest in the property giving you exclusive possession for a fixed period of a certain duration, usually in consideration of a payment termed 'rent'.
The essential features of the tenancy are as follows:
- Tenant has exclusive possession of the property.
- Tenancy runs for a certain or fixed period of time.
- Landlord’s rights are subject to the tenancy.
- Landlord has reversionary interest of the property upon termination of the tenancy.
When a tenant signs a Tenancy Agreement with a landlord, he/she is bounded by the following covenants:
1. To pay rent
2. Keep the premises in good repair
3. No unauthorised alterations
4. Not to commit waste
5. Not to sublet
6. Allow access to landlord or potential tenant or buyer to view premises.
7. Pay all other rates, utilities etc.
8. Not to cause nuisance; and
9. Use the premises for its permitted purpose;
If you terminate your Tenancy Agreement prematurely, you must compensate the landlord for the unused lease term. The landlord also has a right to forfeit your deposit.
Hope this answers your question.