Tenancy agreements explained

What is a tenancy agreement?

A tenancy agreement is a contract between you and your landlord, which outlines the rights and obligations for both parties. It sets out the rules for your right to occupy the accommodation, as well as your landlord’s right to receive rent for letting the property.

The tenancy agreement is one of the most important documents you'll sign during the renting process. However, it's rare for people to take enough time to check this contract.

This guide sets out what you need to know about tenancy agreements in England. 

What are the different types of tenancy agreements?

Depending on your situation and what your landlord is offering, there are different types of tenancy agreement. Make sure you're aware what type of agreement you're signing: 

Assured-shorthold tenancy (AST)

Most tenancy agreements are an assured-shorthold tenancy agreement for a fixed term - usually six to 12 months.

A tenancy of property in England will probably be an AST save for certain excluded agreements which cannot be ASTs, for example, if the landlord lives in the property and the rent is in excess of £100,000 per year.

Your deposit must be protected by law under this agreement, and commonly the landlord will need to give you at least two months' notice to leave  the property, which can only expire on or after the end of any agreed fixed term.

If you have an AST tenancy, you will either have a private landlord that you deal with directly, or a letting agent on behalf of the landlord.

Excluded tenancy

You will receive an excluded tenancy agreement if you live with or share rooms with your landlord. If you've paid a deposit, the resident landlord isn't required to protect it and, depending on your agreement, there is typically no necessity for the landlord to serve notice.

Assured tenancy

This is a rare type of tenancy that is usually granted by housing associations. They offer more security, as the terms typically state you can continue to live in the property for the entire length of time initially agreed. The landlord doesn't have the automatic right to repossess the property when the term ends and could only serve notice if the tenancy terms are broken - for example, if the rent isn't paid.

What if I'm renting as part of a group?

If you're renting as a couple or group, the landlord could offer a joint-tenancy agreement. 

• A joint-tenancy agreement: this holds the whole group responsible for the property and collective rent payments.
• An individual contract: this contract is between each tenant and the landlord. If you have the choice, ask for this type of agreement, as this means if one person leaves the house for any reason or pays rent late, the other tenants will not be liable.

How long should my tenancy agreement last?

Most tenancy agreements last for a year and normally no longer than three years  – this offers the landlord a financial guarantee for a significant period of time and also gives the tenant enough freedom to leave the agreement if needed.

If you're a student or you're planning to move job or area in the not-too-distant future, then it's probably best to make sure you stick to a six-month or one-year agreement.

A break clause is also quite standard now, too. This allows the tenant and the landlord to end a fixed-term tenancy early. 

Fixed-term tenancy

Most ASTs are on a fixed-term tenancy to begin with. These types of tenancies lasts for a set time agreed by the landlord and tenant – typically between six months and a year or two.

You can only end a fixed-term agreement early if there is a break clause or if the landlord agrees you can move out. If you continue living in the property after the fixed term has ended and it hasn't been renewed, your tenancy will automatically become a periodic tenancy until one of you formally gives notice.

Periodic tenancy

Otherwise known as a 'rolling' contract, a periodic tenancy runs month-to-month and typically begins after the fixed term has expired. All the same terms and conditions of the original agreement will apply.

To find out more on renewing your tenancy, read our guide to renting a home.

Letting agreement checklist

The following details should be in an assured shorthold tenancy (AST) agreement. If you can't find them, make sure you have the agreement checked by a legal specialist in lettings.

• Details of the parties involved: includes the contact details of the landlord/tenant and anyone else involved in the let, such as a letting agent and/or guarantor.
• Date of the contract: this is normally the start date of the tenancy.
• Data protection: ensures a tenant's details can be shared only with parties relevant to the let, for example, an inventory clerk or utility company.
• The property: refers to the fixtures and fittings within the property (such as kitchen or a fireplace) and the outside space, and normally includes items recorded in the inventory.
• The deposit: this is an essential clause that should detail how much deposit the landlord/agent will take and which tenancy deposit protection scheme is used to protect your deposit in the event of a dispute.
• The rent: this records how much the rent will be, when it's due and how it is to be paid – for example, by standing order. It should also state what happens if you default on the rent, and how the rent can be increased during your stay.
• Possession and notices: these clauses set out the notice you have to give the landlord/agent if you want to leave the property, and how the landlord can regain possession of their property.
• Tenant's obligations: this sets out everything a tenant should – or shouldn't – do while renting the property. This will include things like keeping it in good order and notifying the landlord/agent if there is a problem, such as a leak. They can be quite extensive, so make sure you read them very carefully and understand each one.
• Fair wear and tear: this explains that some parts of the property may naturally deteriorate with age, such as carpets, and that the tenant shouldn't be liable for this.
• Signatures: this is where you and the landlord (or letting agent) sign the agreement, which makes it binding. 

Can I change the terms of a tenancy agreement?

The terms of the agreement can normally only be changed if both you and your landlord agree. A new written document setting out the terms of the tenancy could be drawn up, or the existing contract can be amended.

You may be charged a fee for requesting a change in the tenancy agreement. The landlord cannot charge you if they instigated the change.

• Find out more: your rights when renting from a private landlord

Can I end a tenancy agreement?

If you're on a fixed term, your tenancy agreement should say how much notice you need to give your landlord before you leave the property. You’re responsible for paying rent for your entire fixed-term tenancy. 

Moving out without having to pay the remaining rent in your contract will depend on whether there is a break clause in your tenancy agreement, or if your landlord agrees to ending it. 

A break clause can be added in when the tenancy agreement is first drawn up.

If you leave without an agreement, you'll be liable to pay the rest of the rent up to the end of the contract period, or until someone else starts renting the property.