A tenancy agreement is an important document for both landlords and tenants. This Aatos guide covers the types of tenancy agreements in the UK, what they need to include, and the legal requirements to make sure they’re valid and enforceable.

Tenancy agreements set out the terms of renting a property, protecting both landlords and tenants by defining their rights and responsibilities. In the UK, there are different types of tenancy agreements, each with unique features.

By understanding these agreements, and the different types of tenancy, you’re well on your way to a smooth and legally protected rental experience.

Types of Tenancy Agreements in the UK

There are three main types of tenancy in the UK:

Assured Shorthold Tenancies (ASTs)

ASTs are the most common type of tenancy agreement in the UK. These are typically used for private rentals and offer a good balance of rights and responsibilities for both landlords and tenants. An AST usually lasts for a fixed term, like six months or a year, and can be renewed or turn into a rolling (periodic) tenancy afterwards.

The document this type of tenancy is recorded on is called an assured shorthold tenancy agreement, but this can also be referred to as a short term tenancy agreement, a periodic tenancy agreement, or a shorthold tenancy agreement.

Assured Tenancies

Assured tenancies provide more security for tenants than ASTs. They are less common and often used by housing associations. With an assured tenancy, tenants have stronger rights to stay in the property unless the landlord can prove a legal reason to evict them.

Excluded Tenancies

Excluded tenancies apply to lodgers who live with their landlord. These agreements offer less legal protection for tenants but are more flexible for landlords. Since the tenant shares living space with the landlord, the rules are simpler compared to ASTs and assured tenancies.

Key Components of a Tenancy Agreement

The best way to ensure your tenancy is legally valid is to use a tenancy agreement template that’s drafted for the UK since this will include UK-specific laws.

Here’s what needs to be included in the agreement:

Rent Details

A tenancy agreement should clearly state the amount of rent, how often it needs to be paid (like monthly or weekly), and the accepted methods of payment (such as bank transfer or cheque).

Deposit Information

The agreement should specify the deposit amount and details about the deposit protection scheme where it will be held. In the UK, landlords must protect tenant deposits in a government-approved scheme.

Duration of the Tenancy

The agreement must outline how long the tenancy will last. This could be a fixed term (like six months or a year) or a periodic tenancy that continues on a rolling basis (such as month-to-month). The start and end dates should be clearly stated.

Responsibilities of Both Parties

The agreement should list what both the landlord and the tenant are responsible for. For landlords, this typically includes maintaining the property, making necessary repairs, and ensuring safety standards. For tenants, responsibilities usually involve keeping the property clean, reporting any issues promptly, and not causing damage.

Conditions for Termination

The tenancy agreement should explain how the tenancy can be ended. This includes the notice periods required for both parties, the reasons for eviction (like not paying rent or breaking the terms of the agreement), and how a tenant can end the tenancy (such as by giving proper notice).

Read more about contract termination.

Legal Requirements for a Valid Tenancy Agreement

There are a few things that need to be present, or done, for your tenancy to be legally valid:

Written Documentation

A tenancy agreement must be in writing to be legally valid. This document should include essential details like the names of the landlord and tenant, the property address, the rent amount, the duration of the tenancy, and the responsibilities of both parties. Clear and comprehensive documentation helps prevent misunderstandings and disputes.

Deposit Protection

As mentioned previously, landlords in the UK are required to protect tenant deposits in a government-approved scheme, such as the Deposit Protection Service, MyDeposits, or the Tenancy Deposit Scheme. Failing to do so can result in penalties for the landlord and affect their ability to serve an eviction notice.

Other Legal Obligations

Landlords must also comply with several other legal obligations:

• Right to Rent Checks: Landlords must verify that tenants have the legal right to live in the UK.
• Energy Performance Certificate (EPC): The property must have an up-to-date EPC, which rates its energy efficiency.
• Gas and Electrical Safety Standards: Landlords must ensure that all gas and electrical installations are safe and inspected regularly.

Common Issues During a Tenancy

One common issue is disputes over repairs. Landlords are generally responsible for maintaining the property and making necessary repairs, while tenants must keep the property clean and report any problems.

Breaches of tenancy agreements often include not paying rent, causing damage to the property, or violating terms like keeping pets without permission. If a breach occurs, landlords should first discuss the issue with the tenant. If the problem carries on, taking legal steps like serving a notice or seeking a court order may be necessary.

Tips for Landlords and Tenants

For landlords, conducting thorough tenant screenings is the best way to ensure reliable tenants. Maintaining clear and open communication with tenants helps address issues promptly and effectively. Additionally, keeping detailed records of all interactions, agreements, and repairs can prevent misunderstandings and provide evidence if disputes arise.

For tenants, make sure you carefully read and understand the tenancy agreement before signing. Keeping a copy of the signed agreement for reference can help you stay informed about your rights and responsibilities. If any issues or repairs are needed, report them to the landlord in writing as soon as possible to ensure timely resolution.