What is a Tenancy Agreement? Your Ultimate Guide to Tenancy Agreements

Whether you are a first-time landlord or an experienced property professional, having the right tenancy agreement in place is one of the most important steps in any letting. This guide covers what tenancy agreements are, why they matter, the different types available, what to include, and how to bring a tenancy to an end. For further resources and expert guidance, visit our creating your tenancy hub. 

What is a Tenancy Agreement?

A tenancy agreement is a legally binding document that sets out the terms of a tenancy between a landlord and tenant. It outlines the rights and responsibilities of both parties, sets clear boundaries, and ensures that everyone is protected should the other fail to comply with the agreed terms. 

While a tenancy can technically be created without any paperwork, it is usually recommended that both parties come to a written agreement. Every relevant party should receive a copy to sign before the tenancy begins, and the terms should be read carefully so both sides understand what is expected.

Why are Tenancy Agreements Important?

A well-drafted tenancy agreement is the foundation of a successful landlord–tenant relationship. Key reasons to have one in place include:

• Transparency. Setting out clear terms in a written document helps everyone understand their obligations.
• Security. The agreement gives landlords peace of mind that rent will be paid on time, while tenants gain the right to live in the property until the end of the fixed term and potentially beyond. 
• Rights and responsibilities. Both parties have rights in law that are detailed in the agreement. These are legally binding and protect both sides throughout the contract. 
• Dispute resolution. A clear agreement reduces the likelihood of disputes and provides a reference point if disagreements arise. 
• Legal compliance. With more than 160 Acts or Regulations placing obligations on landlords, a comprehensive agreement helps demonstrate compliance and protects your ability to serve possession notices. 

What are the Different Types of Tenancy Agreement?

The type of tenancy agreement you need depends on your circumstances, the property, and who your tenants are.  

Assured Periodic Tenancy

The assured periodic tenancy (APT) is now the most common form of agreement in the private rented sector. It was introduced as part of the Renters’ Rights Act 2025 which abolished the assured shorthold tenancy. It is a type of assured tenancy which has existed since the Housing Act 1988 and is used where: 

• The rent is between £250 (£1,000 in Greater London) and £100,000 per annum  

• The tenants are human beings rather than organisations  

• It will be used as the tenant’s main home and they have exclusive possession 

• The tenancy is for 21 years or less and   

• The landlord does not live in the same property, and it is the tenant's main home.  

Assured Shorthold Tenancy

The assured shorthold tenancy (AST) was the most common form of agreement in the private rented sector. Introduced in the Housing Act 1988, an AST was previously used where the same factors as the APT were present - For full details and downloadable templates, visit our AST agreement page.

Other types you may encounter include non-assured tenancies, company let agreements and excluded agreements for lodgers. 

What is a fixed-term tenancy?

It is worth noting that under the Renters' Rights Act, fixed-term assured shorthold tenancies were abolished, and instead most private rented sector tenancies are assured and periodic from the outset. Some other types of non-assured tenancies may still be for a fixed-term.

A fixed-term tenancy runs for a set period agreed at the outset, usually 6 or 12 months, though it can be longer or shorter. During the fixed term, neither party can end the agreement unless there is a break clause, both parties mutually agree to end the tenancy early, the landlord regains possession through a statutory notice, or the tenancy has been frustrated by an unforeseeable event.  

Fixed-term tenancies provide certainty, the landlord knows the property will be occupied for a defined period, while the tenant has security of tenure. 

What is a periodic tenancy?

Since 1 May 2026, most private rented sector tenancies are periodic by default since the Renters’ Rights Act came into force.   

A periodic tenancy rolls from one rental period to the next, typically month to month, without a fixed end date.

Security of Tenure

Tenants have security of tenure under an APT – meaning that, unless the tenant chooses to leave, a landlord can only end the tenancy by serving a valid notice (using applicable grounds under Section 8), obtaining a possession order through the courts, and then enforcing that order via a bailiff or High Court Enforcement Officer.     

What to Include in a Tenancy Agreement

A well drafted tenancy agreement will  include key details about the tenancy. Since the introduction of the Renters’ Rights Act 2025, landlords must also include specific written terms that are required by law. This includes :  

• The name(s) of the (joint) landlord(s) 
• The name(s) of the (joint) tenant(s) 
• The address of the rental property 
• The Landlord’s address for service of notices including in relation to proceedings 
• Start date of the tenancy agreement 
• Deposit amount if one is taken 
• Amount of rent payable each rental period 
• First rental due date and rental periods after that 

There are many other requirements that must be included. For the full details please see our existing tenancies and RRA page, or consider using one of our templates. 

A well drafted tenancy will also include additional clauses, agreed between the tenant and the landlord, that set out in writing other obligations for each party to follow whilst the tenancy is ongoing.  

Implied Terms in a Tenancy Agreement

In most cases, if you want to include a term in a tenancy, it should be included in writing and agreed with the tenant, but in some cases, even if the term is not included in writing, the law will imply the term into your tenancy – meaning it will always apply to your tenancy=. These include: 

• Right of access - the landlord may access the property at reasonable times for inspections or repairs, with at least 24 hours' written notice. 
• Tenant-like manner - tenants must act responsibly, avoid causing damage beyond fair wear and tear, and return the property in the condition they found it. 
• Quiet enjoyment - tenants have the right to live in the property without unnecessary interference from the landlord. 

Even though these are implied into the tenancy it will usually make sense to include them in writing as this allows you to explain when it may not apply or add further rights and conditions. For example, by having a term that allows access for viewings or to make improvements instead of just for repairs.  

The Rights and Responsibilities from Tenancy Agreements

Landlord Rights and Responsibilities

As a landlord, your tenancy will typically give you the right to expect that the tenant will follow the terms in your tenancy. This includes the payment of rent on time, that they will take reasonable care of the property, and they will give you access to the property on reasonable notice to perform your duties as a landlord.  

Your responsibilities include keeping the property in good repair, complying with safety regulations, protecting the tenant's deposit within 30 days of receipt, providing required documents such as the 'How to Rent' guide and gas safety certificate, and respecting the tenant's right to quiet enjoyment.

Tenant Rights and Responsibilities

As a tenant, your rights include living in the property undisturbed, having the property kept in a safe state of repair, having your deposit protected and returned (subject to legitimate deductions), and not having to move out until the landlord has obtained a possession order.  
 

Your responsibilities include paying rent on time, using the property responsibly, allowing access for repairs with reasonable notice, informing the landlord when repairs are needed, and complying with the terms of the agreement. 

Ending a Tenancy Agreement

Most tenancies end without court action, typically because a tenant serves notice and then moves out at the end of the notice  

 If a landlord wants to end the tenancy, they also need to serve notice to end the agreement. This will normally be a Section 8 notice (where specific grounds for possession apply). However, if the tenant does not leave by the end of the notice, the tenancy does not end and the landlord will have to apply to court for a possession order .   

For detailed guidance and templates, visit our ending your tenancy hub.  

Looking for a Tenancy Agreement Template?

Getting your tenancy agreement right is essential, but it doesn't have to be complicated. As an NRLA member, you'll have access to a full library of up-to-date, legally compliant tenancy agreement templates saving you time and giving you peace of mind that everything is in order.

Tenancy Agreement FAQs

Can you write your own tenancy agreement?

Yes, but it must include all legally required terms and comply with relevant legislation including the Renters’ Rights Act 2025 written statement requirements. Any clauses should be enforceable and not deemed unfair. Many landlords use professionally drafted templates, such as our own documents, to ensure compliance.  

Do you need a solicitor for a tenancy agreement?

There is no legal requirement to use a solicitor. Many landlords use established templates. However, for bespoke clauses or unusual arrangements outside of standard templates, legal advice from a solicitor is advisable. 

Is it illegal to let a property without a tenancy agreement?

A tenancy can exist without a written agreement, but for most private rented sector tenancies let on an assured periodic tenancy, you are required to provide a written statement of key tenancy terms to the tenant before entering into the tenancy. Failure to do so carries a fine of up to £7000 for a first offence.

Who can witness a tenancy agreement?

There is no strict legal requirement for a witness on a standard APT. However, having an independent adult witness can provide evidence the agreement was signed voluntarily. Deeds, such as a deed of guarantee, may have stricter witnessing requirements.  

How long is an assured periodic tenancy?

There is no set length. APTs are periodic from the beginning and can last indefinitely as long as neither party serves a notice. A tenant may serve their two month notice and decide to leave, or, if grounds under Section 8 apply, a landlord might serve notice to repossess the property.  

How to choose the right tenancy?

The right tenancy depends on your property, your tenants and how you wish to manage the letting. We have created a quick guide to help you decide which agreement suits your situation, whether you are renting to an individual, a group of sharers, or taking in a lodger.