What should a good Tenancy Agreement include?
November 10, 2025
A tenancy agreement is the legal foundation of every landlord and tenant relationship. Get it right, and you'll avoid disputes, protect your property, and create clarity for everyone involved. Get it wrong, and you may face enforcement issues, deposit disagreements, or worse, an unenforceable contract.
Despite its importance, many landlords still rely on outdated templates, miss critical clauses, or fail to understand what makes a tenancy agreement legally sound. This article explains exactly what a good tenancy agreement should include, how long different agreements last, and where you can find reliable examples to work from.
What is a tenancy agreement?
A tenancy agreement is a legally binding contract between a landlord and a tenant that sets out the terms under which a property is rented. It covers everything from rent and deposit arrangements to repair responsibilities and termination conditions.
In England, most private residential tenancies are assured shorthold tenancies (ASTs). Under the Renters’ Rights Act 2025, new tenancies move to open-ended periodic assured tenancies (fixed terms are being removed) and Section 21 “no-fault” evictions are abolished, possession must instead be sought on Section 8 grounds (e.g. serious arrears, breach, sale/moving in). In Wales, ASTs were already replaced in 2022 by standard occupation contracts under the Renting Homes (Wales) Act.
The agreement protects both parties. Tenants know their rights and responsibilities. Landlords have enforceable terms if things go wrong. Without a properly drafted tenancy agreement, disputes become harder to resolve and legal recourse becomes uncertain.
How long is an assured shorthold tenancy agreement?
An assured shorthold tenancy typically starts with a fixed term of six or twelve months. During this period, neither party can end the tenancy early unless there's a break clause or the tenant breaches the agreement.
Once the fixed term ends, the tenancy can either:
Renew for another fixed term – The landlord and tenant sign a new agreement with updated terms, including any rent increase.
Continue as a periodic tenancy – The tenancy rolls on month-to-month or week-to-week, depending on the rent payment schedule under the same terms as the original agreement. No new contract is needed.
It's worth noting that from 2025 onwards, changes introduced through the Renters' Rights Act mean that all new assured tenancies in England will automatically become periodic after any initial fixed term ends. This shift removes the previous reliance on fixed-term renewals and gives tenants more flexibility, though landlords retain grounds for possession under specific circumstances.
What does a tenancy agreement look like?
A tenancy agreement doesn't need to be intimidating. At its simplest, it's a written contract, usually between five and fifteen pages, depending on how detailed the clauses are.
Most agreements follow a standard structure:
Cover page – Property address, landlord and tenant details, start date, and rent amount
Core terms – Length of tenancy, rent payment details, deposit amount and protection scheme
Rights and responsibilities – Who pays for what, repair obligations, access rights
Restrictions – Rules on subletting, pets, smoking, alterations
Termination clauses – How and when either party can end the agreement
Signatures – Landlord, tenant, and any guarantors
You'll also typically see schedules or annexes listing the property's inventory, condition at the start of the tenancy, and any additional terms like parking or garden maintenance.
A well drafted agreement is clear, specific, and easy to follow. Avoid overly legalistic language where possible. The goal is mutual understanding.
What should a good tenancy agreement include?
Let's break down the essential elements every tenancy agreement must contain, plus the optional clauses that protect both parties.
1. Names and addresses
The agreement must clearly identify:
The landlord (or the letting agent acting on their behalf)
The tenant(s) – All adults who will be living in the property should be named
The property address – Including any specific flat or unit numbers
If the landlord is a company or trust, include the registered address and company number. If there's a guarantor, their details should also appear in full.
2. Term of the tenancy
State whether the tenancy is a fixed term or periodic, and specify the start date. For fixed terms, include the end date as well.
Example: "This tenancy begins on 1 December 2025 and ends on 30 November 2026."
If there's a break clause allowing early termination, spell out the exact conditions, notice period, and any financial penalties. Remember this changes in 2026 with the Renters' Rights Act.
3. Rent details
Be precise about:
Rent amount – The monthly or weekly rent in pounds. Modelling other payment frequencies is easy with our free calculator.
Payment date – When rent is due (e.g. the first of each month)
Payment method – Bank transfer, standing order, or through a platform like August
Late payment – What happens if rent is missed, including any interest charges which must be fair and not punitive
Avoid vague language. "Rent is due monthly" is less clear than "Rent of £1,200 is due on the 1st of each month by bank transfer to the landlord's account."
4. Deposit information
The agreement must state:
Deposit amount – Capped at five weeks' rent for annual rent under £50,000, or six weeks' rent above that threshold
Protection scheme – Which government-approved deposit protection scheme the landlord will use (DPS, MyDeposits, or TDS)
Timeline – The landlord must protect the deposit within 30 days and provide the tenant with prescribed information
Failing to protect the deposit correctly can result in fines of up to three times the deposit value, and you won't be able to serve a Section 21 notice (in situations where these still apply).
5. Repairs and maintenance
Clearly outline who is responsible for what. By law, landlords must:
Keep the structure and exterior in repair (e.g. roof, walls, windows, doors)
Ensure plumbing, heating, and electrics are safe and functional
Maintain sanitary fittings (e.g. basins, baths, toilets)
Tenants are typically responsible for:
Keeping the property clean and in good condition
Minor maintenance like changing lightbulbs or bleeding radiators
Be specific about who handles garden upkeep, gutter cleaning, and appliance servicing. Ambiguity here leads to disputes.
6. Utility bills and council tax
State who pays for:
Gas, electricity, water
Council tax
Internet, TV licence
Any service charges or ground rent
In most ASTs, tenants pay utilities and council tax. If you're renting a property where bills are included, spell this out clearly and explain how any excess usage will be handled.
7. Access and inspections
Landlords have the right to inspect the property, but only with proper notice (usually 24 hours in writing) and at reasonable times. Include a clause that permits:
Routine inspections (e.g., every three to six months)
Access for essential repairs
Viewings if the property is being sold or re-let
Respect tenant privacy. Over-frequent or unannounced visits can breach the tenant's right to quiet enjoyment.
8. Restrictions and house rules
Set clear boundaries on:
Pets – Are they allowed? If yes, any restrictions on type or size?
Smoking – Is the property smoke-free?
Subletting – This should usually be prohibited unless you provide written consent
Alterations – Can tenants paint walls, hang pictures, or make other changes?
These clauses help protect your property and give tenants a clear understanding of what's permitted.
9. Break clauses and early termination
If you want the option to end a fixed-term tenancy early (or allow tenants to do so), include a break clause. Specify:
When it can be used – Usually after six months
Notice period – Typically two months
Conditions – The tenant must have paid all rent and met all obligations
Without a break clause, tenants are usually liable for rent until the end of the fixed term, even if they leave early (unless they find a replacement tenant you approve).
10. Guarantor details (if applicable)
If your tenant has a guarantor, include their details and make clear what obligations they're signing up for. The guarantor is liable for:
Unpaid rent
Damage beyond normal wear and tear
Any other tenant breaches
How long does a guarantor stay on a tenancy agreement?
A guarantor typically remains liable for the entire length of the tenancy, including any periodic extension after the fixed term ends, unless the agreement specifies otherwise. If the tenancy is renewed with a new agreement, the guarantor should sign the new contract to continue their liability.
Some guarantor clauses automatically roll over when the tenancy becomes periodic. Others require a fresh signature. Be explicit to avoid confusion later.
If the tenant's circumstances improve (for example, they get a better job or build a rental history), you may choose to release the guarantor from future obligations, but this must be agreed in writing.
11. How to get out of a tenancy agreement early
Ending a tenancy early depends on whether there's a break clause, and whether the tenant or landlord is initiating it.
For tenants:
If there's a break clause, give the required notice usually two months.
If there's no break clause, negotiate with the landlord. You may need to find a replacement tenant or pay rent until the fixed term ends.
In cases of landlord breach (e.g. serious disrepair), tenants may have grounds to leave early without penalty.
For landlords:
If the tenant breaches the agreement (e.g., rent arrears, property damage, antisocial behaviour), you can seek possession through the courts using the appropriate grounds.
If there's a break clause and conditions are met, you can serve notice.
Under the changes brought in by the Renters' Rights Act, the use of "no-fault" evictions (Section 21) is being phased out, so landlords will increasingly rely on specific grounds for possession (Section 8).
Early termination should always be documented in writing, with any agreements on rent liability, deposit return, and property condition recorded clearly.
What supporting documents must accompany the tenancy agreement?
A good tenancy agreement is only part of the picture. Landlords must also provide tenants with several other documents at the start of the tenancy:
Energy Performance Certificate (EPC) – Must be at least an E rating
Gas Safety Certificate – If the property has gas appliances, renewed annually
Electrical Installation Condition Report (EICR) – Valid for five years
How to Rent guide – The government's official guide for tenants in England
Deposit protection information – Prescribed information about where the deposit is held
Keep copies of everything. Upload them to a secure platform like August App so they're easy to retrieve if needed.
Where to get a tenancy agreement example
There are several places you can find legally sound tenancy agreement templates:
Government resources – The UK government provides model agreements and guidance on GOV.UK.
Letting agents and solicitors – Professional drafting ensures compliance with current law, though this comes at a cost.
Landlord associations – Bodies like the National Residential Landlords Association (NRLA) offer templates to members.
Property management platforms – Tools like August provide tenancy agreement templates that are regularly updated to reflect legislative changes.
Whichever source you use, make sure the template is:
Up to date with current law (especially post-Renters' Rights Bill changes)
Specific to your property type (house, flat, HMO)
Clearly written and easy to understand
Avoid copying agreements from unverified online sources. Outdated or poorly drafted contracts can be unenforceable and leave you exposed.
Common mistakes to avoid
Even experienced landlords sometimes make errors with tenancy agreements. Watch out for:
Using an outdated template – Laws change. Make sure your agreement reflects current regulations.
Failing to protect the deposit – This is a legal requirement and the penalties for non-compliance are severe.
Vague repair clauses – Be specific about who does what, and when.
Unreasonable restrictions – Clauses that are overly restrictive or punitive may not be enforceable.
Not getting signatures – An unsigned agreement is not binding. Make sure all parties (including guarantors) sign and date.
Forgetting prescribed information – Tenants must receive deposit protection details and the How to Rent guide at the start of the tenancy.
Making your tenancy agreement work for you
A tenancy agreement isn't just a legal formality. It's a practical document that sets expectations and protects everyone involved. Take the time to get it right.
When drafting or reviewing your agreement:
Use clear, plain language
Be thorough but not overbearing
Tailor clauses to your specific property
Review and update regularly
Keep copies organised and accessible
A well-structured tenancy agreement reduces disputes, improves tenant relationships, and makes life easier when issues do arise. Pair it with good record-keeping, regular property inspections, and open communication, and you'll build a landlord-tenant relationship that works.
Stay organised with August
Managing tenancy agreements, compliance documents, and tenant communications doesn't have to be complicated. August helps small landlords stay on top of everything in one simple app.
From document storage and reminders for certificate renewals to rent tracking and maintenance management, August is built to make property management straightforward. Upload your tenancy agreements, set renewal reminders, and keep all your paperwork in one secure place.
Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.
