How to Write a Tenancy Agreement: Step-by-Step for UK Landlords

Every private landlord in England and Wales needs a tenancy agreement. While oral agreements are technically valid for Assured Shorthold Tenancies, relying on a verbal arrangement is asking for trouble. A written agreement protects both you and your tenant by setting out the terms clearly and providing evidence if anything goes wrong.

But what should a tenancy agreement actually say? And do you need a solicitor to write one? This guide walks through exactly what to include and how to get it right.

Why you need a written tenancy agreement

Even though a verbal AST is legally valid, a written agreement gives you:

Clarity — both parties know exactly what's been agreed
Evidence — if there's a dispute, you have a document to point to
Compliance — a well-drafted agreement demonstrates you've met your legal obligations
Enforceability — specific terms (like restrictions on pets or subletting) are only enforceable if they're in writing
Professional credibility — serious landlords have proper documentation

Section 20A of the Housing Act 1988 also gives tenants the right to request a written statement of the main tenancy terms. If you don't provide one within 28 days, the tenant can apply to the court for an order requiring you to do so.

What to include: the essential elements

1. The parties

State the full legal names of:

The landlord (or landlords, if jointly owned)
The tenant (or tenants — if there are joint tenants, all names must be included)

Include contact addresses for both parties. If you use a managing agent, include their details too, and clarify whether they're authorised to act on your behalf.

2. The property

Describe the property clearly:

Full postal address including postcode
What's included — if the tenant has exclusive use of specific areas (a garden, parking space, storage unit), say so
What's excluded — if shared areas, lofts, or outbuildings are not part of the let, make this clear

3. The tenancy term

Specify:

The start date
Whether it's a fixed-term tenancy (and if so, the end date)
What happens when the fixed term ends — typically the tenancy becomes a statutory periodic tenancy rolling month to month

4. Rent

Cover:

The amount (monthly is standard)
The due date each month
How to pay — bank transfer is most common; include account details or a reference
Whether rent will be reviewed during the tenancy, and if so, how and when
What happens if rent is late — under the Tenant Fees Act 2019, you can only charge interest on rent that's more than 14 days overdue, at a rate no higher than 3% above the Bank of England base rate

5. Deposit

Include:

The deposit amount (remember the cap: 5 weeks' rent for annual rents under £50,000)
Which deposit protection scheme it will be registered with
A commitment to serve the prescribed information within 30 days
The circumstances under which deductions may be made — damage beyond fair wear and tear, unpaid rent, cleaning costs, missing items
Reference to the scheme's dispute resolution process

6. Landlord obligations

Your agreement should acknowledge your legal duties:

Structural repairs and maintenance of exterior, installations for water/gas/electricity, and heating (Section 11, Landlord and Tenant Act 1985)
Gas safety — annual Gas Safe check and provision of certificate
Electrical safety — EICR every 5 years
Insurance — buildings insurance (contents is usually the tenant's responsibility)
Quiet enjoyment — the tenant's right to live in the property without interference
Right of entry — you'll give at least 24 hours' notice before entering, except in emergencies

7. Tenant obligations

Set out what you expect from the tenant:

Pay rent on time
Keep the property clean and in reasonable condition
Report repairs promptly
Not cause nuisance or annoyance to neighbours
Not make alterations without written consent
Not sublet or assign without written consent
Allow access for inspections and repairs with proper notice
Comply with any specific restrictions (pets, smoking, etc.)
Return the property in the same condition as at the start, allowing for fair wear and tear

8. Break clause (optional)

A break clause allows either the landlord or the tenant (or both) to end a fixed-term tenancy early by giving a specified amount of notice. Common terms:

Available after the first 6 months of a 12-month tenancy
Requires 2 months' written notice from either party
The tenant must be up to date with rent and have no outstanding breaches

Break clauses are optional. If you include one, make sure the terms are clear and balanced. An unfair break clause (e.g. one that only benefits the landlord) could be challenged under the Consumer Rights Act 2015.

9. Notice periods

Specify the notice required to end the tenancy:

During the fixed term: typically only via the break clause (if one exists) or mutual agreement
During a periodic tenancy: landlord must give at least 2 months' notice (Section 21); tenant must give at least 1 month's notice, ending on the last day of a tenancy period

10. Restrictions and permissions

Be clear about any specific rules:

Pets — are they allowed? With written permission? Subject to conditions?
Smoking — inside the property? In the garden?
Running a business — from the property
Guests and occupants — any restrictions on long-term guests?

Any restrictions must be reasonable. Under the Consumer Rights Act 2015, terms that create a significant imbalance to the detriment of the tenant may be unenforceable.

11. Inventory reference

Reference a separate inventory and schedule of condition, ideally with photographs, carried out at check-in. The inventory isn't part of the agreement itself, but the agreement should state that:

An inventory was carried out on a specific date
Both parties have signed it (or had the opportunity to review and comment)
It will be used as the basis for assessing the property's condition at check-out

12. Signatures and date

Both the landlord and tenant should sign and date the agreement. If there are joint tenants, all must sign. Each party should retain a signed copy.

Common mistakes to avoid

Using an outdated template

Tenancy law changes frequently. A template from 2018 won't reflect the Tenant Fees Act 2019, the Electrical Safety Regulations 2020, or the extended carbon monoxide alarm requirements from 2022. An outdated agreement can leave you non-compliant without realising it.

Including unfair terms

The Consumer Rights Act 2015 applies to tenancy agreements. Terms that create a significant imbalance to the detriment of the tenant are potentially unfair and unenforceable. Common problem areas:

Excessive charges for minor defaults (e.g. £100 for a late rent payment)
Unreasonable restrictions (e.g. no visitors after 10pm)
Shifting legal responsibilities to the tenant (e.g. making the tenant responsible for structural repairs)
Automatic deductions from the deposit for professional cleaning, regardless of the property's condition

Being vague about rent increases

If you want the ability to increase rent during the tenancy, the mechanism must be clear. Options include:

A fixed increase at a specific date
A rent review clause linked to a specific index (e.g. CPI)
Relying on the statutory Section 13 process (which requires serving a formal notice)

Without a clear mechanism, you cannot unilaterally increase rent during a fixed term.

Forgetting about prescribed information

Your agreement should reference deposit protection, but it also needs to account for the prescribed information. Many landlords protect the deposit but forget to serve the prescribed information — which is equally important for a valid Section 21 notice.

Template vs solicitor vs AI-generated

You have three main options for creating your tenancy agreement:

Free templates

Widely available online, but often generic, outdated, and missing critical clauses. They can't adapt to your specific situation — joint tenants, HMOs, break clauses, guarantors, and furnished vs unfurnished properties all need different treatment.

Solicitor-drafted

A solicitor will charge £150-500+ for a bespoke agreement. This gives you a tailored document and professional advice, but it's expensive — especially if you only have one or two properties and your tenancy is straightforward.

AI-generated (ProperDocs)

ProperDocs generates a customised, legally-structured AST based on your specific details. You fill in a form with information about your property, tenant, and tenancy terms. The system produces an agreement that covers all the essential clauses, deposit protection requirements, and legal references — tailored to your letting.

No generic templates. No copy-and-paste. No £300 solicitor bills. Just a properly structured agreement for £2.99.

Final checklist

Before you finalise your tenancy agreement, make sure you've covered:

[ ] Full names and addresses of landlord and tenant(s)
[ ] Clear property description
[ ] Tenancy start date, term, and what happens when it ends
[ ] Rent amount, due date, and payment method
[ ] Deposit amount, protection scheme, and deduction circumstances
[ ] Landlord's repair and maintenance obligations
[ ] Tenant's obligations (rent, care, access, restrictions)
[ ] Break clause terms (if applicable)
[ ] Notice periods for ending the tenancy
[ ] Inventory reference
[ ] Both parties signed and dated

Getting your tenancy agreement right from the start saves headaches later. It protects your investment, keeps your tenant informed, and ensures you can enforce the terms if you need to.

Create my tenancy agreement with ProperDocs