About this service occupancy agreement
Certain types of employment often provide accommodation as part of the remuneration package. Such accommodation is called “service occupancy” or sometimes “tied accommodation”. In law, it is either a residential licence with terms tied to the employment contract or a standard assured shorthold tenancy agreement.
This service occupancy agreement creates a licence. It provides for the full protection of the employer-licensor.
The advantage of creating a residential licence is simple: with a service occupancy agreement, the right to occupy terminates when the employment ends; however, if you let property under a tenancy agreement instead, then you may find it difficult to end the tenancy and obtain vacant possession when employment ends.
This service occupancy agreement enables you to obtain possession when the employment ends.
The law relating to this service occupancy agreement
The default status of an arrangement whereby you provide accommodation for an employee is that he is your tenant under an assured shorthold tenancy (AST).
If you do not have a written AST agreement, your tenant may well have security of tenure for a very long time (even after his employment ends). So, if you want to retain control of your property, you have to use either a formal AST agreement or arrange the deal in such a way that it really is a service occupancy agreement.
Just using an agreement with that title is a non-starter. To “qualify” as service occupancy, the deal must be:
- You receive no rent
- The occupancy is reasonably necessary to the employee performing his duties adequately
- The contract of employment specifies that he must occupy this accommodation
- The terms above have not changed at the time the law is applied.
If you think your deal may not qualify, buy a residential tenancy agreement. If it does qualify, then you can easily edit this document to be perfect for what you need.
The Housing Acts 1985 and 1988 that govern residential tenancies have been considered carefully so that they do not apply to the agreement. You can be confident that the arrangement (if followed according to this agreement) will create a service occupancy and not a residential tenancy.
When to use this agreement
Types of employment that might require the employee to live in a specific place designated by the employer include:
- Live-in nanny, house keeper or carer
- Hotel staff
- Security staff
- Care takers
- Grounds and estate staff
- Teachers at boarding schools
Members of the armed forces and agricultural workers are also often service occupiers, but different rules may apply from those set out here.
This agreement is very flexible and can cover a business in any industry or where the employer is an individual. The type of accommodation is not important, and could range from a bedroom to a whole detached property.
Service occupancy agreement features and contents
- Includes sensible, practical provisions to protect the landlord’s interests
- Full description of the property and the services that the employee should expect to receive in residence
- A ‘menu’ of nearly 50 provisions determining what employer may or may not allow the employee to do in the property
- Rent period and amount
- Provision for the occupier’s rights and restrictions when the property occupied is part of a large complex such as a school or industrial buildings.
Provision has also been made for the employer to move the employee to different accommodation if required or to terminate the licence if the requirements of the job change so that living close is no longer required.
Extra to the document is a draft paragraph which can be added to any contract of employment to confirm the proposed arrangement for service occupancy. Use that too, to make sure there is no doubt as to the status of the arrangement.
Reasons to buy from Net Lawman
Full money back guarantee – buy with confidence
This service occupancy agreement comes with a no questions asked full money back guarantee. You take no risk that it might not be right. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason you’re not happy, just e-mail us and we’ll refund your money in full immediately.
Guidance notes included - prior legal knowledge is not required
Comprehensive guidance notes, written by the author of the document, are included. These notes ensure that you don’t need to be a lawyer or have knowledge of the law to understand which paragraphs you should edit to complete the agreement.
Minimal editing required
This service occupancy agreement has been written specifically in such a way that you don’t need to spend hours editing it. It uses an approach where you remove the sections that aren’t applicable to you, so you don’t have to add any back, write your own, or worry about whether you are using correct legal language.
Paragraphs have been written to stand alone from each other. Removing one that isn’t applicable to your circumstances doesn’t affect the standing of any other in the agreement.
Plain language minimises future disagreements
Your service occupancy agreement is real law written in plain language that all parties will understand. This will minimise the likelihood of later disputes.
If a dispute does arise and you find yourself in court, the judge will look more favourably on a legal agreement written in plain language over one peppered with complicated legal jargon. Your case will be stronger if it is clear that both sides understood the agreement when it was signed.
Buy once – re-use again and again
You can use the service occupancy agreement as many times as you like. Just create a new document from the master version.
Delivered straight to your inbox
As soon as you complete the secure checkout process, we will send your service occupancy agreement straight to your inbox. We will also keep a copy for you for 60 days in our customer area so you can access it even when you are away from your e-mail.
Still unsure whether this is the right document for you?
If you are unsure whether this service occupancy r agreement is suitable for your particular circumstances, then you have two options. The first is to buy now, evaluate the agreement, and use the 30 day, full money back guarantee to obtain a refund if it isn’t suitable. You take no risk in seeing the agreement. The second option is to contact us and ask. We can’t offer you legal advice on your situation, but we can help you find the document you want. We aim to respond to your question within 24 hours.
We have a full information article on the subject of service occupancy agreements here: Service occupancy or tenancy: the differences. |
