A tenancy agreement is a contract, in many respects no different than any other legally binding agreement. The devil, landlords and tenants agree, is in the detail.

Even where a landlord and a tenant have reached the stage where they wish to proceed with a tenancy agreement for a property not covered by rent control that doesn't mean they are in agreement on all the terms and conditions of the tenancy.

In fact, landlords and tenants often find that seemingly small issues get in the way of an agreement being reached.

Tenancy agreements can become quite complicated, particularly where a substantial property is involved, but most agreements have several fundamental terms:

The amount of the rent and how it will be paid; The period for which the tenancy will run (the "term"); Whether a security deposit will be paid and, if so, how much; and Whether the premises will be let furnished, unfurnished or part furnished/ "with appliances only".

Both parties should look at the whole package on offer to determine if the proposed rent is reasonable. Tenants will want to inspect the proposed tenancy agreement closely to determine if the landlord is trying to pass on payments that he, as the owner of the property, would ordinarily bear. Two examples are land tax and maintenance of the grounds.

Unless the parties agree otherwise, the Landlord & Tenant Act 1974 ("the Act") specifies that rent must be paid monthly in advance.

Once agreement is reached about the rental amount, the parties will have to agree on the term of the tenancy.

Landlords will often want the right to bring the tenancy to an end if certain circumstances arise. For example, a landlord who finds a purchaser for the property may wish to 'break' the tenancy by giving agreed-upon notice. A non-Bermudian tenant, on the other hand, may wish to ensure that he is entitled to 'break' the tenancy if he loses his work permit, or if its renewal is refused.

If no provisions for an early end to the tenancy agreement are agreed, then in the circumstances outlined above, the landlord would have to sell the property with a sitting tenant (and this may well adversely affect the purchase price) while the tenant in the second scenario would theoretically have to pay rent for the remainder of the term even though he no longer needs the premises.

If there is no written agreement and rent is paid monthly, the Act will imply that the parties have a month-to-month tenancy which continues until either party serves at least one clear month's written notice on the other (the notice to expire on a rent day).

Landlords will often ask for a security deposit in an amount equivalent to one-half, or one whole, month's rent. At the end of the tenancy, the landlord will deduct any expenses he incurs as the result of the tenant's failure to comply with his part of the tenancy bargain. Most often, this occurs when the premises are returned in an unsatisfactory state.

The less the landlord receives, the higher the risk that the deposit will not cover these expenses. The more the tenant pays, the more he risks losing if the landlord deducts more than is fair.

Either way, it rarely pays to litigate over minor sums of money.

However, if the security deposit is substantial, the tenant might ask if the landlord's attorney could hold it until the tenancy agreement comes to end. Alternatively, it could be deposited in a separate account and interest returned to the tenant. The issue of whether an apartment or house is rented furnished or unfurnished rarely causes problems, since landlords normally specify what is included in their rental advertisement and tenants are usually happy with this term or are not.

If the premises are rented furnished, then the parties should agree an inventory for attaching to the tenancy agreement, and the tenant should ensure that any pre-existing defects are noted.

The Act will also imply certain other terms in tenancy agreements of three years or less unless there is a written agreement to the contrary.

The tenant, will be responsible for utility payments, may only use the premises as a private dwelling, and will be responsible for running repairs to the interior of the property. The Act implies a landlord's right of entry to view and repair on 24 hours notice.

The landlord, meanwhile, will be responsible for repairs to the exterior, main structure and any tanks on the property. The landlord must also keep any service installations in running order, and may not pass his repair obligations on to the tenant unless he obtains the permission of both the tenant and the court.

A tenant may not transfer the lease, sublet the property or make alternations to the property unless the landlord consents.

A formal written tenancy agreement would deal with much more than I have discussed today. Ask around and see if what is proposed is usual bearing in mind the rent and the term or, better still, speak to an attorney!

Attorney Michelle Stone is a member of the Property Department at Appleby Spurling & Kempe. You can write to her with your questions or comments at mstoneask.bm or telephone her directly on 298-3235. Copies of Mrs. Stone's columns can be obtained on the Appleby Spurling & Kempe website at www.ask.bm.

This column should not be used as a substitute for professional legal advice. Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.