Why a Tenancy Agreement is Required
A tenancy agreement is a legally binding contract between landlord and tenant, setting out the terms under which the tenant is allowed to occupy the property. While verbal agreements can, in theory, create a tenancy, a written tenancy agreement is strongly recommended and, in most cases, effectively required for compliance, clarity, and legal protection.
Clarity of rights and responsibilities
A tenancy agreement clearly defines the obligations of both landlord and tenant. It sets out how much rent is due, when it must be paid, the length of the tenancy, rules about repairs and maintenance, and the circumstances in which the tenancy can be ended. Having these details in writing reduces the risk of misunderstandings and disputes.
Legal compliance
Most residential tenancies in England are created as Assured Shorthold Tenancies (ASTs) under the Housing Act 1988. For an AST to be valid, certain conditions must be met: the tenant must be an individual, the property must be their main home, and the rent must fall within defined thresholds. A written tenancy agreement provides the necessary evidence that the tenancy is legally compliant and helps landlords meet associated duties, such as protecting the deposit and providing statutory information.
Evidence in disputes
If disagreements arise, over rent arrears, property damage, or eviction, a written agreement provides crucial evidence in court or during deposit scheme adjudication. Without one, it becomes difficult to prove what was agreed, leaving both parties exposed.
Customising terms
A tenancy agreement allows landlords to set property-specific rules, provided they are fair and legal. Examples include restrictions on subletting, keeping pets, or smoking in the property. These clauses provide additional protection for landlords while making expectations clear to tenants.
Tenant confidence
From the tenant’s perspective, a written tenancy agreement provides reassurance that they have legal rights to occupy the property for the agreed period. It ensures security of tenure and confirms that the landlord cannot change key terms, such as rent levels or notice periods, without following the proper legal process.
Conclusion
While a tenancy can technically exist without a written contract, this leaves both landlord and tenant vulnerable. A properly drafted tenancy agreement is therefore essential: it provides legal protection, establishes clarity, and ensures compliance with housing law