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A tenancy agreement is a legally binding
contract between a landlord and tenant that
sets out the terms and conditions of the
tenancy and the legal and contractual
responsibilities and obligations of both
parties.
Although a written agreement is not
necessary for a tenancy to be legally
binding it is highly recommended that some
form of contract is drawn up.
The agreement should be in plain English,
fair to both parties and both landlord and
tenant must make sure that they fully
understand their obligations prior to
signing the document.
In the case of multiple tenants, such as a
couple, it is common for all individuals to
sign the agreement as a joint tenancy. This
means that they are jointly and severally
responsible for rent and utility payments
and any other responsibilities detailed in
the agreement. Should one individual leave
the property, responsibility falls to the
other.
There are different types of tenancy
agreements however the most commonly used
are:
▪ Assured Shorthold Tenancy (AST)
▪ Assured Tenancy
▪ Regulated or protected Tenancy
Assured Shorthold Tenancy
Since 28th February 1997 all new tenancies
are automatically Assured Shorthold’s unless
the landlord served notice specifically
stating that an Assured Tenancy was being
created.
This type of tenancy offers the most
flexibility to both the landlord and the
tenant and is the most popular type of
agreement.
The agreement should not exceed three years
with most people choosing to offer a 6 or 12
month contract to begin with. The agreement
also gives clear procedures for ending the
tenancy.
Assured Tenancy
An Assured Tenancy gives the tenant some
long term security in that as long as they
do not break the terms of the agreement they
can continue to live in the property.
This type of tenancy agreement is rarely
used by private landlords as obtaining
possession of the property is extremely
difficult and only in very limited
circumstances.
Only housing trusts or housing associations
tend to offer this type of agreement.
Regulated or protected Tenancy
This type of tenancy offers the most
protection against rent increases or
eviction however it only applies to
tenancies that commenced before 15th January
1989.
Tenancy agreements can be bought from many
sources such as stationery shops or over the
internet.
Some people choose to draft their own
agreements to include specific clauses of
their own whereby some people use the
services of a lawyer.
If you use a letting agency they should be
able to provide you with an agreement.
Renewing a Tenancy
If both parties agree then a tenancy can be
renewed.
A new agreement can be issued however if
this is not done the tenancy automatically
becomes a Periodic Tenancy.
This means that the tenancy, in theory,
“rolls on” with the same terms and
conditions and an agreement on the rent
payment e.g. paid weekly or monthly.
This type of tenancy can then continue until
either party gives notice.
Increasing the Rent
The rent on an existing tenancy can only be
increased once every 12 months. Many
landlords choose to incorporate a clause
into the agreement at the start allowing an
increase of rent on an annual basis, often
in line with inflation.
When an Assured Shorthold Tenancy becomes a
Periodic Tenancy the landlord must issue the
tenant with a Section 13 notice notifying
the proposed increase in the rent.
Ending a Tenancy
Occasionally a “break-clause” is inserted
into a tenancy agreement which allows both
parties to give two months written notice
after a particular date or period. For
example, the tenancy agreement is for 12
months but after 6 months either party could
give notice.
To end a tenancy (AST) the landlord must
issue the tenant with a Section 21
Housing Act 1988 Notice Requiring Possession
of a Dwelling House, (often referred to
as a S21 Notice to Quit), which is a 2
calendar month notice to terminate the
tenancy. Even if the fixed term tenancy is
coming to an end the notice must be issued
if the landlord wants to take possession of
the property again. Otherwise the fixed term
tenancy is deemed to continue on a Periodic
Tenancy.
If the tenant refuses to move out on the
date specified then the landlord needs to
make an application for a Possession Order.
A landlord cannot evict a tenant without a
court order as this is illegal. The landlord
is also not allowed to harass the tenant or
try to force them out of the property, for
example, changing the locks or cutting off
supplies.
If the tenancy is an Assured Shorthold
Tenancy and the deposit is held in an
authorised Tenancy Deposit Scheme landlords
wishing to gain possession of their property
can use a quicker method called the
Accelerated Possession Procedure which
can help landlords get possession of the
property, possibly without the need for a
court hearing.
If this procedure is used landlords can only
claim possession and the costs of making the
application, not claim for arrears of rent.
The court will normally make its decision by
looking at the documents ('written evidence')
which the landlord and tenant provide. The
landlord must give the court all of the
written evidence it needs to make its
decision at the outset.
To procede with this procedure the landlord
needs to complete Form N5B Claim for
possession (accelerated procedure) and
supply the court with copies of the tenancy
agreement, notice(s) sent to the tenant, and
any other relevant documents (such as
letters).
A tenant cannot lawfully walk away from
their obligations to fulfil the contract. If
a tenant decides to move out early before
the end of the agreement, they will still be
responsible for the rent until the end of
the agreed tenancy, even if they have left
the property. However if the tenant can find
a new tenant, and the landlord is satisfied
with the replacement, the existing tenant
can leave with no further responsibilities.
In the event that the tenant cannot find a
replacement the landlord should take all
necessary steps to re-rent the property at a
reasonable price. If the landlord fails to
do this the tenant may not be liable for
rent beyond a reasonable period of time.
The above information and advice is believed
to be accurate however it is not a
substitute for personal professional legal
advice and it cannot be a basis for any
claim against Tenant Check UK (a division of
Tenant Check Worldwide). Procedures may vary
slightly in Wales, Scotland and Northern
Ireland and landlords are advised to seek
the necessary legal advice.
For further information please see
 Renting
your property
Presenting
your property
Landlord
Responsibilities
Tenancy
Deposit Schemes
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