Your tenancy agreement is the foundation of your landlord-tenant relationship. Getting it right from the start prevents costly disputes later.
The tenancy agreement is the most important document in your landlord-tenant relationship. A well-drafted agreement protects both parties' rights, sets clear expectations and provides a legal framework for resolving disputes. A poorly drafted one can create ambiguity and expose you to significant risk.
The Assured Shorthold Tenancy (AST)
The AST is the default tenancy type for most private residential lettings in England and Wales. It provides tenants with certain protections while giving landlords the ability to recover possession at the end of the fixed term or by serving appropriate notice.
What must be included
At minimum, a tenancy agreement should clearly state: the names of all landlords and tenants, the property address, the start date and initial fixed term, the monthly rent and due date, the deposit amount and scheme in which it will be protected, the notice period required, which bills and utilities are included (if any), and the conditions for rent reviews.
Tenant obligations
Clearly spell out what tenants are responsible for: keeping the property clean and in good order, not subletting without permission, reporting maintenance issues promptly, not causing nuisance to neighbours, allowing access for inspections and repairs with appropriate notice, and maintaining gardens and outdoor areas if applicable.
Landlord obligations
Good tenancy agreements are balanced. Clearly state your obligations: maintaining the structure and exterior, keeping gas, electrical and water installations in working order, carrying out repairs within reasonable timeframes, and protecting the deposit.
Common mistakes
The most common mistakes landlords make in tenancy agreements include using outdated templates that don't reflect current legislation, not including specific clauses relevant to the property (pet clauses, smoking, parking), failing to have all adult occupants sign the agreement, and not serving required accompanying documents at the same time.
Using professional agreements
The NRLA (National Residential Landlords Association) and Shelter both publish current tenancy agreement templates. For significant investments, having a solicitor review or draft your agreement is money well spent.
Our management service provides professionally-drafted tenancy agreements updated to reflect current legislation for all tenancies we manage.