There are approximately 28,300 separately assessed residential units in Bermuda. Approximately half of those units (13,220) would, if rented, be subject to rent control.

Landlords of rent-controlled properties may only charge a 'fair' rent and, in most cases, have to prove a statutory ground for requiring possession even after a tenancy agreement has expired. If the property is not rent-controlled, the landlord and tenant are - in the main - free to agree whatever terms they think fit, including the amount of the rent.

Tenancies for a term of three years or less need not be in writing. Tenancies that are granted for a longer term (or contain an option that might extend them beyond that period) must be in writing. Non-Bermudians wishing to take a tenancy for a period of five years or more need approval from the Minister responsible for Immigration.

Although there is no legal requirement that short-term leases be documented it is extremely helpful for the parties to have one document that sets out the full extent of their liabilities so that both know where they stand and can hopefully comply with their side of the bargain.

Many landlords and tenants decide that they do not want to go to the trouble and cost of having an attorney draw up a lease for them. They also wish to avoid paying stamp duty on such a written lease, which would vary between $75 and $400 depending on the monthly rent.

Landlords renting through a real estate agency usually receive the real estate agency's standard form lease as part of the commission arrangement.

Often, landlords and tenants who have no written lease get along together successfully. However, those who come to realise that their opposite number is not quite as reasonable as they first appeared will often regret that they did not document the agreement. Even where both parties are perfectly reasonable, there might still be genuine disputes between them regarding what each thought had been agreed. Needless to say, establishing the terms of an oral agreement is generally more costly than producing a written one in the event that court action is needed.

If there is no written agreement, the Landlord and Tenant Act 1974 will imply certain terms but does not cover everything that a well-drawn lease would address. For that reason, some landlords will insist upon having a formal lease.

I advise tenants not to sign a landlord's or agent's 'standard lease'. This document is intended to create a legal relationship and its terms will affect where and how you live. Take the lease away with you, consider it carefully and ask the landlord to insert anything that has been missed or to amend any term that does not accurately reflect the agreement reached between you.

It is equally important to landlords that leases accurately reflect what has been agreed. Remember that if a tenant signs something without reading it or being given the opportunity of taking legal advice, the mere fact that he signed it will not prevent him from claiming that you or your agent misled him regarding its content. Remember also that a court order is always required before you can lawfully evict a tenant and that if you ever appear before the court to enforce your rights, you will want to do so with 'clean hands'.

As a court order is needed to regain possession of rented premises, landlords need to take great care in selecting their tenants and ensuring that they have sufficient income to pay the rent. Ask the tenant for references from previous landlords (preferably the most recent) and follow up to check that the references supplied are genuine. If the tenant is not in a position to supply landlords' references, it may be possible to have his employer (at the tenant's request) confirm his salary so that you can make an assessment about whether he can reasonably afford the rent.

You are not obliged to accept anyone as your tenant even if they are the first person to arrive or call. It is surprising how many of the landlords coming to us for advice on how to get rid of a problem tenant had a nasty feeling that they might be taking on trouble from the outset. Gut instinct is often a better protection than a well-drawn lease.

If you have any questions about rent-controlled properties, you may contact the Rent Commissioner's office (tel: 297-7701); you will find them to be very helpful.

Attorney Michelle Stone is a member of the Property Team at Appleby Spurling & Kempe. You can reach her at 298-3235 or at mstoneask.bm. Copies of Ms. Stone's columns can be obtained on the Appleby Spurling & Kempe web site 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.