Appropriate Documentation for Tenancy Matters in Property Management

ESV Oluseyi E. Oshadare

The need to educate the populace on the importance of documenting their tenancy details and agreements cannot be over-emphasized.

Whatever is not written, does not exist. A short pencil is said to be better than a long memory.

Tenancy relationships usually span over prolonged periods, the minimum in most cases being a year, many span for over 5 to 10 years and in some cases longer; it thus becomes very necessary to document the details of such leases or tenancies for record purposes and future references.

There are some important documents that should accompany a valid tenancy transaction.

These will ensure that every important aspect of the tenancy being created is clearly captured and well defined.

In the following paragraphs, some of the documents considered essential will be briefly highlighted for enlightenment purposes.

These documents should include:

❖ The KYC form (Know Your customer Form) – the prospect’s personal details, workplace info, current residence and family size / intended occupants are supplied here, to aid the profiling of the client to confirm the suitability to the vacant apartment.

❖ The Offer letter – this should summarize the terms and conditions guiding the transaction. Key details to be captured in this document should include the name and address of the prospect, the location and description of property on offer, rental figure, and other charges (service charge, refundable caution deposit, fees payable etc), Term of the lease.

❖ Acceptance letter – Upon negotiation of terms of the offer, the acceptance of offer may be done through a formal letter.

Otherwise, and in most instances an acknowledgement of the Offer letter will suffice.

❖ The Tenancy / Lease Agreement – this is a legal document between two parties (landlord and tenant / lessor and lease) that contains all general and specific terms and conditions that will guide the tenancy.

To become effective, both parties must endorse the agreement as an indication of their consent to the terms contained therein.

For emphasis, outlined below are the main details to be captured in a tenancy agreement.
✓ Identity of both parties (landlord and tenant).
✓ Description and location of the subject property.
✓ Annual rent and other charges payable and frequency of such payments
✓ Commencement and expiration of the Tenancy being created.
✓ Intended Use of property (residential, commercial etc).

These five details above are essential and must be clarified at the outset of the Tenancy relationship.

Other important clauses to be defined include.
✓ Mode of renewal of Tenancy.
✓ Required Notice to terminate a tenancy by either party.
✓ Appropriate medium of service of Notices on either party.
✓ Appointment of repair liabilities of both parties.

❖ The Inventory of Fixtures and Fittings – this is a compilation of the fixtures and fittings in the subject property prior to the handover of keys to the new tenant.

The compilation should also indicate the current state of the itemised fittings and fixtures for clarity.

❖ The Receipt of payment of rent and other charges – this is an acknowledgement of the receipt of the sums paid for the rent and any other charges.

From the above highlights, it is evident that these subheads are cogent aspects of the Tenancy that must be clearly defined leaving no room for assumptions and misconceptions.

We find that knotty issues in tenancy matters arise when proper documentation is not in place.

The Estate surveyor must consult a seasoned lawyer to draft and ensure that these important clauses are incorporated in the tenancy agreement to be endorsed by both parties.

The Estate surveyor will thereafter endeavour to ensure that both parties comply with their terms for a smooth and cordial tenancy relationship.

ESV Oluseyi Oshadare (Mrs.) is the principal partner of Oluseyi Adenekan & Co., a firm of Estate Surveyors and Valuers based in Abuja, Nigeria