What to Include in a Tenancy Agreement

A well-drafted tenancy agreement can set clear expectations, reduce disputes, and provide both you and your tenants with legal protection. This guide explains key considerations, including what to include in your agreement and the different types available, and what to be aware about with the upcoming Renters’ Rights Act.

A tenancy agreement, otherwise known as a lease agreement or rental agreement, is a legally binding contract between landlord and tenant. It outlines the terms and conditions of your property, and the rights and obligations of both parties throughout the rental period.

Tenancy agreements protect the legal rights of both the landlord and tenant. Without one, both parties will have reduced legal options if a dispute occurs.

Although they’re not a legal requirement, tenancy agreements can be incredibly important as they:

• • Clearly set out the agreed terms of the tenancy
  • Help meet insurer requirements, as many providers require a written agreement before offering landlord insurance
  • Reduce the risk of disputes, which are more common under informal arrangements
  • Provide tenants who receive benefits with the documentation needed to support their claim

A tenancy document should include:

• The full names of everyone involved
• The rent amount and how it should be paid
• Details of how and when the rent may be reviewed
• The deposit amount and how it will be protected (deposits must be secured in a government-approved deposit scheme)
• Circumstances in which the deposit can be kept in full or in part (for example, to cover damage caused by the tenant)
• The property address
• The tenancy start and end dates
• The responsibilities of both tenant and landlord
• Which bills you’re expected to pay

It may also cover:

• Whether the tenancy can be ended early and the process for doing so
• Responsibility for minor repairs (excluding those the landlord is legally required to handle)
• Whether subletting or taking in lodgers is allowed

You can include individually negotiated clauses at the end of a tenancy agreement. For example, setting out whether the tenant can redecorate or clarifying when and how the landlord can access the property.

Any additional terms must be fair, transparent, and clearly brought to the tenant’s attention. They should also be agreed in writing and signed by both parties. It’s common for landlords and tenants to agree to changes after a tenancy has started.

Where this happens, the additional clause should be recorded in writing in a formal addendum (a document added to an existing contract) and signed by both parties.

Once it’s signed, the addendum becomes part of the tenancy agreement.

Important note: From 1 May 2026, Assured Shorthold Tenancies (ASTs) will be abolished. On this date, all existing and new tenancies in England will automatically become ‘periodic’ assured tenancies.

Fixed-term agreements will no longer be legally valid, and you won’t be able to create or renew them.

Instead, tenancies will run on a rolling monthly basis with no set end date. To regain possession of a property, landlords will also no longer be able to use Section 21 “no-fault” notices and must have a legal reason to evict with a Section 8 notice.

The Renters’ Rights Act introduces a new mandatory possession ground (Ground 4A) specifically for HMOs let to full-time students. This allows landlords to regain possession each year (between 1 June and 30 September) to prepare for the new group of students. This is on the basis that they’re given four months’ notice and have given the required notice at the start of the tenancy.

If you’re renting a property in England or Wales, it’s highly likely your tenancy is an Assured Shorthold Tenancy (AST).

They’re normally written agreements (but can be verbal) that outline the responsibilities as a tenant and the landlord’s duties.

A tenancy can be an AST if all of the following apply:

• You’re a private landlord or housing association
• The tenancy started on or after 15 January 1989
• The landlord doesn’t live in the property
• The property is your tenants’ main accommodation

A tenancy can’t be an AST if:

• It began or was agreed before 15 January 1989
• The rent is more than £100,000 a year
• The rent is less than £250 a year (less than £1,000 in London)
• It’s a business tenancy or tenancy of licensed premises
• It’s a holiday let
• The landlord is a local council

This agreement is often used when renting an entire property to a single household. For example, one person, a couple, or a family. It can also be used for two unrelated people renting together under one joint tenancy.

All tenants sign the same agreement and are jointly and severally liable. This means each tenant is equally responsible for complying with the full terms of the tenancy, including paying the rent in full if another tenant fails to do so.

This type of arrangement typically does not create a House in Multiple Occupation (HMO), as the tenants usually form one household.

The agreement can be used with or without a security deposit.

This agreement is used when the entire property is rented to three or more people living together under one tenancy.

As with a Joint AST, all tenants sign the same agreement and are jointly and severally liable for the full terms of the tenancy, including paying the rent in full if another tenant fails to do so.

However, the key difference is who is living in the property.

If there are more than one tenant from more than one household and they share facilities such as a kitchen or bathroom, the property may be classified as a House in Multiple Occupation (HMO) under the Housing Act 2004.

If so, these HMOs must meet additional legal requirements that involve management, enhanced safety standards, and, in some cases, mandatory or extra licensing (depending on local authority regulations).

This agreement is designed for larger shared properties where each tenant rents an individual room and has access to shared communal areas.

Each tenant signs their own separate agreement and is responsible for the rent of their own room.

It’s a particularly useful option in HMO properties because it:

• Gives landlords clear access rights to communal areas for inspections and maintenance
• Makes it easier to manage individual tenancies when tenants move in or out at different times
• Helps landlords meet HMO-specific obligations, including fire safety and property maintenance requirements.

Currently, most private rental tenancies in England and Wales run for a fixed term, usually 6 or 12 months. When the term comes to an end, landlords have several options for how the tenancy continues:

• Roll onto a periodic tenancy: If your tenant(s) want to stay, the tenancy usually automatically continues as a rolling (periodic) tenancy. This means the tenant remains under the same terms, but the tenancy has no fixed end date. Rent is typically collected monthly, and either party can give notice in line with statutory rules.
• End the tenancy: You and the tenant can agree for the tenancy to end on the fixed-term expiry date. This is useful if you plan to renovate, sell, or re-let the property under new terms. Be sure to follow the proper notice requirements to avoid disputes or claims of unlawful eviction.
• Start a new fixed-term agreement: Both parties can agree to sign a new tenancy for another fixed period. This allows you to update rent, review terms, or include new clauses while giving tenants security for the next term.

Note: The UK Government has passed the Renters’ Rights Act (formerly the Renters’ Reform Bill), which brings major changes to how tenancies end in the private rented sector.

From 1 May 2026, the current Section 21 ‘no-fault’ eviction process will be abolished, and all tenancies will automatically become assured periodic tenancies without a fixed end date.

After this change, landlords will generally need to rely on specific legal grounds under Section 8 (rather than waiting for a fixed term to end or using Section 21) if they want to regain possession.

A break clause is a term that allows either the landlord or tenant to end a tenancy before the fixed term expires. However, because of the upcoming Renters’ Rights Act, the way in which these clauses work will depend on when you are ending the tenancy.

• Mutual rights: A break clause must be clearly written into the agreement, stating when it can be triggered and how much notice must be given.
• Landlord possession: If relying on a break clause, a landlord must still serve the appropriate statutory notice (typically a Section 21 notice under the Housing Act 1988). All legal requirements must be met for the notice to be valid.

Once the Renters’ Rights Act is implemented (from 1 May):

• Section 21 is abolished: Landlords will no longer be able to use Section 21 to regain possession without fault.
• All tenancies become periodic: Fixed-term Assured Shorthold Tenancies will convert into assured periodic tenancies.
• Landlords must rely on statutory grounds: To regain possession, landlords must use a Section 8 ground (for example, intending to sell or move back in). A contractual break clause alone will not be sufficient.
• Tenants gain a statutory right to leave: Tenants will generally be able to end their tenancy at any time by giving at least two months’ notice.

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Below are some frequently asked questions about legal responsibilities for tenants and landlords.

Please note that these frequently asked questions are not a substitute for the policy wording. For full terms and conditions, please see the policy documentation.

No, tenancy agreements are not legally required, but they are highly recommended. A written agreement helps protect both landlords and tenants, clearly setting out rights, responsibilities, and rent terms.

A periodic tenancy is one that has no fixed end date. It usually continues on a rolling basis (e.g., monthly) and can be ended by giving the proper notice in line with statutory rules.

Note: Under the upcoming Renters’ Rights Act, all tenancies will automatically become periodic after the end of any fixed term, and landlords will need specific legal grounds (Section 8) to regain possession rather than relying on no-fault evictions.

Whether a tenancy can be ended early depends on when you act. The rules are different before and after 1 May 2026, when the Renters’ Rights Act comes into effect.

Ending by agreement

• Landlord and tenant can always end the tenancy if both agree (surrender), confirmed in writing.

Ending due to a breach

• If a tenant breaks the agreement (e.g., rent arrears or anti-social behaviour), a landlord can serve a Section 8 notice.

Tenant notice:

• Until 30 April 2026: A break clause is needed to leave a fixed-term tenancy early.
• From 1 May 2026: All tenancies become periodic, and tenants can leave by giving at least two months’ notice, without a break clause.

Landlord notice:

• Until 30 April 2026: Landlords can use a break clause with a Section 21 notice.
• From 1 May 2026: Landlords must rely on specific Section 8 grounds to regain possession.

Yes, tenancy agreements can be amended, but any changes must be agreed in writing by both landlord and tenant. This ensures the updated terms are legally enforceable.

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Just Landlords accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.