How To Write a Tenancy Agreement in the UK – Complete Step-by-Step Guide

Creating a bulletproof tenancy agreement is crucial for protecting your property investment and establishing clear expectations with your tenants. With rental law constantly evolving and the Renters’ Rights Bill set to transform tenancies by 2026, getting your agreement right has never been more important.

This guide will walk you through everything you need to know to create a legally compliant, comprehensive tenancy agreement that protects your interests.

What is a Tenancy Agreement?

A tenancy agreement is a legally binding contract between you (the landlord) and your tenant. It sets out:

The terms and conditions of the rental arrangement
Rights and responsibilities of both parties
How long the tenancy will last
What happens if things go wrong

Why You Need One:

Provides legal protection for both parties
Sets clear expectations and rules
Essential for eviction procedures
Required by most insurance providers
Helps prevent disputes and misunderstandings

Step 1: Choose Your Tenancy Type

Assured Shorthold Tenancy (AST)

Most Common Option:

Default tenancy type in England for private landlords
Offers good balance of rights for both parties
Allows use of Section 21 “no-fault” evictions
Typically lasts 6-12 months initially

When AST Applies:

Private landlord letting to private tenant
Landlord doesn’t live in the same property
Rent between £250-£100,000 per year
Tenant has exclusive possession

Other Tenancy Types

When AST May Not Apply:

Company or business tenancies
Rent exceeds £100,000 annually
Holiday or temporary lettings
Landlord lives in same building (sometimes)

Future Changes: The Renters’ Rights Bill will abolish ASTs in 2026, making all tenancies periodic from the start.

Step 2: Essential Information to Include

Property Details

Must Include:

Full property address including postcode
Description of what’s being let (whole house, flat, room)
Whether furnished, part-furnished, or unfurnished
Any parking spaces or garden areas included
Which utilities/services are included

Landlord Information

Required Details:

Full legal name(s) of landlord
Contact address for notices
Phone number and email
Agent details (if using letting agent)

Tenant Information

Essential Details:

Full legal names of all adult occupiers
Current addresses before tenancy
Contact numbers and email addresses
Emergency contact information
Maximum number of people allowed to live in property

Step 3: Key Terms and Conditions

Tenancy Period

Fixed-Term Tenancy:

Clear start and end dates
Usually 6-12 months initially
Provides security for both parties
Harder to end early without break clause

What to Specify:

Exact start date and time
End date of fixed term
What happens when fixed term expires
Whether it becomes periodic automatically

Rent Details

Must Include:

Exact monthly rent amount
Payment due date (e.g., 1st of each month)
Payment method (bank transfer, standing order)
Whether rent is payable in advance
Late payment procedures and charges
When and how rent can be increased

Example Clause: “Rent of £1,200 per month payable in advance on the 1st day of each month by bank transfer to [account details].”

Deposit Information

Legal Requirements:

Maximum deposit amount (usually 1-5 weeks’ rent)
Which deposit protection scheme will be used
What deposit can be used for
How and when it will be returned

Must Protect Within 30 Days:

Register with approved scheme
Provide prescribed information to tenant
Failure prevents Section 21 notices

Step 4: Rights and Responsibilities

Landlord Obligations

Legal Requirements:

Ensure property is safe and habitable
Maintain structure and exterior
Service gas, water, electricity, and heating systems
Provide required safety certificates
Protect tenant’s deposit
Respect tenant’s quiet enjoyment

Tenant Responsibilities

Standard Obligations:

Pay rent on time
Keep property clean and in good condition
Report repairs promptly
Allow access for inspections and repairs
Not cause nuisance to neighbors
Not subletting without permission

Maintenance and Repairs

Landlord Responsibilities:

Structure and exterior maintenance
Heating and water systems
Gas and electrical safety
Emergency repairs

Tenant Responsibilities:

Day-to-day maintenance
Garden upkeep (if specified)
Changing light bulbs and fuses
Reporting damage or problems

Step 5: Important Clauses to Include

Rent Review Clause

If You Want to Increase Rent:

"The Landlord may increase the rent by giving not less than [X] months' written notice, 
such increase to take effect on [anniversary date/rent due date]."

Break Clause (Optional)

Allows Early Termination:

Specify when it can be used (e.g., after 6 months)
Notice period required (usually 1-2 months)
Conditions that must be met
Remember: applies to both landlord and tenant

Property Use

Specify Clearly:

Property for residential use only
No business activities without permission
Rules about guests and visitors
Overnight stay limitations

Pets and Smoking

Common Restrictions:

No pets without written permission
No smoking anywhere on the property
Consequences for breaching these rules

Step 6: Legal Requirements and Documentation

Documents You Must Provide

Before Tenancy Starts:

How to Rent guide (latest version)
Energy Performance Certificate
Gas Safety Certificate (annual)
Electrical Installation Condition Report (every 5 years)
Deposit protection information

Right to Rent Checks

Legal Requirement:

Check all adult tenants’ right to rent in UK
Take copies of acceptable documents
Keep records for at least 2 years
Re-check if limited right to rent

Safety Requirements

Must Comply With:

Smoke alarm installation and testing
Carbon monoxide detector requirements
Gas safety annual inspections
Electrical safety standards
Fire safety regulations (especially HMOs)

Step 7: Notice Periods and Termination

Ending the Tenancy

Landlord Options:

Section 21 notice (no-fault) – 2 months’ notice
Section 8 notice (fault-based) – various notice periods
Mutual agreement to end early
Break clause activation

Tenant Notice:

Usually 1 month for periodic tenancy
Must end on correct day (last day of period)
Break clause procedures if applicable

Notice Serving Requirements

Important Rules:

Must be in writing
Use correct prescribed forms
Serve to all named tenants
Keep proof of service
Allow correct notice periods

Step 8: Writing Your Agreement

Option 1: Use Professional Templates

Skip the hard work and grab our ready-made tenancy agreement template, which includes:

All legal requirements
Current law compliance
Clear, enforceable clauses
Professional formatting
Regular updates

Option 2: Government Model Agreement

Free Government Template:

Available on GOV.UK
Designed for longer tenancies (2+ years)
Includes rent review and break clauses
Must be used without amendments

Option 3: Professional Legal Services

When to Get Legal Help:

Complex property arrangements
HMO or commercial elements
Unusual tenant situations
Adding bespoke clauses
High-value properties

Step 9: Common Mistakes to Avoid

Unenforceable Clauses

Avoid Including:

Professional cleaning requirements
Excessive property rules
Clauses removing landlord’s legal obligations
Unfair penalty charges
Restrictions on tenant’s statutory rights

Missing Information

Don’t Forget:

Deposit protection details
Right to rent documentation
Contact information for all parties
What happens at end of fixed term
Emergency contact procedures

Outdated Terms

Regular Updates Needed:

Law changes frequently
Safety requirements evolve
Deposit rules change
New fees may be banned

Step 10: Before You Sign

Final Checklist

Verify Everything:

All names and addresses correct
Rent amounts and dates accurate
All required documents referenced
Contact details up to date
Both parties understand all terms

Signing Process

Best Practices:

Both parties sign before tenant moves in
Sign all pages and initial changes
Provide copy to tenant immediately
Keep original safely stored
Consider witnessed signatures

After Signing

Don’t Forget:

Register deposit within 30 days
Provide prescribed information
Keep records of all documentation
Set up rent collection system
Plan first property inspection

Adapting for Different Property Types

Houses in Multiple Occupation (HMOs)

Additional Requirements:

HMO licensing compliance
Fire safety measures
Room size standards
Shared area rules
Individual or joint tenancy decisions

Furnished Properties

Extra Considerations:

Student Properties

Special Considerations:

Academic year alignment
Guarantor requirements
Multiple tenant arrangements
Holiday period occupation

Future-Proofing Your Agreement

Preparing for Renters’ Rights Bill

Expected Changes by 2026:

All tenancies become periodic
No more fixed-term agreements
Section 21 abolished
Enhanced tenant rights
New eviction procedures

What to Do Now:

Create agreements you can adapt
Build good tenant relationships
Understand Section 8 grounds thoroughly
Consider longer-term tenant retention strategies

Professional Help and Resources

When to Seek Professional Advice

Consider Professional Help For:

First-time landlords
Complex property situations
Previous legal disputes
Unusual tenant arrangements
High-value investments

Quality Template Sources

Trusted Providers:

Government model agreements
Landlord associations (NRLA)
Legal document specialists
Professional property management companies
Established letting software providers

Cost vs Value

Investment Perspective:

Professional agreement: £50-£200
Legal dispute costs: £1,000s
Lost rent during disputes: £100s per month
Proper agreement prevents problems

Key Takeaways

Essential Success Factors

Critical Elements:

Use current, legally compliant templates
Include all required information
Be specific about terms and conditions
Provide all mandatory documentation
Keep detailed records

Golden Rules

Remember:

Never hand over keys without signed agreement
Both parties must understand all terms
Keep agreements updated with law changes
Seek professional help when unsure
Prevention is cheaper than cure

Final Advice

Professional Approach:

Treat tenancy agreements seriously
Invest in quality documentation
Build positive tenant relationships
Stay informed about law changes
Plan for the regulatory future

A well-crafted tenancy agreement is your foundation for successful property letting. Take time to get it right, use professional resources, and ensure full compliance with current law. This investment in proper documentation will save you time, money, and stress throughout your landlord journey.

Remember: The rental market is changing rapidly. Stay informed, keep your agreements current, and don’t hesitate to seek professional advice when needed. Your tenancy agreement isn’t just paperwork – it’s the blueprint for your entire landlord-tenant relationship.