Tenancy Agreement: Why is it Paid?

On The Tenancy Agreement & Its Real Purpose

During negotiations on tenancy rates between prospective tenants and the agents marketing to them, the phrase “agreement and commission” invariably features.

Regarding the ‘agreement’ aspect of that phrase, it should be noted that this fee is not a meaningless statutory charge always payable along with rents. Many pay agreement fees along with their rents without an understanding of its purpose, rather considering it merely a compulsory part of the rent package.

It’s crucial, however, to realize that this fee has a definite purpose.

Here is What Really Ought to Obtain

Upon paying the agreement fee, the tenant is entitled to a tenancy agreement document. This document is essential, and by no means superfluous.

It outlines the terms of the tenancy, including rights & responsibilities of both landlord and tenant, as well as eviction protocols, and tenancy termination modalities.

The tenancy agreement comprehensively details the conditions of the tenant’s and landlord’s relationship.

In summary, as soon as any intending tenant is billed for agreement and commission, it becomes imperative to request the tenancy agreement document.