A tenancy agreement is a contract between one or more individuals ('tenants') who pay an agreed sum to exclusively occupy property belonging to other individuals or businesses (the 'landlord'). It gives the tenants the right to occupy the property for a period of time, and the landlord the right to receive the rent among other rights and obligations of both landlord and tenants. For example, since the tenancy agreement also gives the tenants the right to 'exclusively occupy', they have the right to control who can come into the property.
The difference between a tenancy and some other form of agreement isn't always straightforward. Even if the agreement isn't called a tenancy agreement it may, in fact, be one – for example, a tenancy will exist if a tenant has the exclusive use of one room (such as a bedroom), but shares all the other accommodation.
The tenancy agreement should clearly set out the terms of the contract between you and the tenant. It should include all the terms that you and the tenant have agreed (as long as they don't conflict with the law), such as how long the tenancy will run for.
A tenancy agreement should state the type of tenancy (for example, an assured shorthold tenancy in England or a private residential tenancy in Scotland).
A landlord must give the tenant their name and an address at which the tenant can send or give documents to the landlord. It's best to state the landlord's name and address in the tenancy agreement; if this isn't done, the landlord must give the tenant a separate notice of their address (in Northern Ireland this will be contained in the tenancy information notice).
These are the most important terms and other information to include in a tenancy agreement:
An inventory of any furniture and fittings supplied with the property should be attached to the tenancy agreement – see Inventory of furnishings and fittings.
You might also want to include in the tenancy agreement:
Some terms apply automatically by law (as a result of custom, past decisions in court cases and sometimes by statutes). They are not necessarily stated in the tenancy agreement and may even override terms that you and the tenant have agreed in the tenancy agreement. They're called implied terms.
These are some common implied terms:
The landlord can't reduce their obligations by using a term in the tenancy agreement to do so. The same applies to health and safety requirements under the law – see Overview of landlord obligations.
If you're letting (or thinking of letting), you must be aware of your rights, responsibilities and legal obligations to tenants.
Tenants are entitled to have tenancy agreements that strike a fair balance between the tenant and the landlord. The terms of the agreement must be fair and be set out in plain, intelligible language.
The Consumer Rights Act 2015 protects tenants from unfair terms that may favour the landlord in a tenancy agreement. The only exceptions are for price-setting terms and for terms that give details of the property and the length of the tenancy – but these must still be in plain and intelligible language.
Prospective tenants should be given every opportunity to read and understand the terms of a tenancy agreement before becoming bound by them.
There are also laws and procedures that govern:
There are additional requirements in Scotland, where landlords must comply with the 'Repairing Standard' (under the Housing (Scotland) Act). They must carry out a check of their property before tenants are given the property, to identify work required to meet the Repairing Standard. This includes ensuring that the following is repaired or is working:
For tenancies in England, see the government guide: Landlord and tenant rights and responsibilities in the private rented sector
The law only requires you to provide a written tenancy agreement for a fixed-term tenancy that will run for more than 3 years; but you're strongly advised to have a written agreement for all tenancies. A fixed-term tenancy that will run for more than 7 years must be registered with the local Land Registry office.
You must also have a written tenancy agreement before you can use the accelerated possession procedure – see Accelerated possession procedure.
Written statement of main tenancy terms
If you don't provide a full written tenancy agreement, a tenant who has an assured shorthold tenancy that started on or after 28 February 1997 has a right to ask for a written statement of the main terms of the tenancy, including:
The tenant must apply in writing for a written statement; you must provide it within 28 days of receiving the request. If you don't provide it, you could be fined.
You must give your tenant a written copy of all the terms of their tenancy. This may be in the form of an electronic document. If you do not have a written agreement the tenancy terms will be determined by the First-tier Tribunal on an application by the tenant.
You're strongly advised to have a full written tenancy agreement (which may include additional tenancy terms or conditions) to give you full control of the terms of the tenancy.
There are nine tenancy terms that you must include in any private residential tenancy (PRT) agreement you use. The nine terms can be found in the legislation.
If you have a new tenant, you must give them a copy of the agreement before the end of the day that the tenancy starts.
If the tenant already lives in the property you must give them a copy of the new agreement within 28 days of the tenancy becoming a private residential tenancy.
If the terms of the tenancy change after it has started, you must give the tenant a copy of the amended agreement within 28 days of the change coming into effect.
The PRT has special rules on signatures. You and your tenant can agree to 'sign' the tenancy agreement by typing your names in the electronic document and sending it by email. You and your tenant can still sign a paper copy of the tenancy agreement if you prefer to do this instead.
You and your tenant can agree to communicate by email on all matters relating to the tenancy. This would include important notices, such as notices to tell the tenant that you are putting their rent up, or that you are evicting them.
You must provide a written tenancy agreement for a fixed-term tenancy that will run for more than 1 year. A fixed-term tenancy that will run for more than 21 years must be registered with the local Land Registry.
You're strongly advised to have a full written tenancy agreement (which may include additional tenancy terms or conditions) to give you full control of the terms of the tenancy.
Tenancy information notice
You must give a tenancy information notice to your tenant within 28 days after the date the tenancy is granted. This phrase is used in the legislation that sets this requirement, but there's no clear definition of what it means – it's likely to be interpreted as the date the tenancy agreement is signed.
You can use our document Tenancy information notice (Northern Ireland) to create a suitable notice.
If you don't provide a tenancy information notice
You must provide the notice within 28 days of granting the tenancy. If you don't, you'll be committing an offence. You also run the risk of having certain conditions being included automatically into the tenancy 'by operation of law', which you wouldn't necessarily have agreed to if you were negotiating them (such as the landlord's right to entry and inspection, the term of the tenancy and the length of the notice to quit).
The type of tenancy you can set up will depend on where the property is located.
This section covers the types of tenancy you can set up depending on whether the property is located in England, Scotland, or Northern Ireland.
Note however that this guide only covers tenancies with a private landlord and not social or public tenancies.