Summary: Choosing the correct tenancy agreement is crucial for landlords to protect their property and income. With the upcoming Renters Rights Act 2025 introducing significant changes, landlords must understand which tenancy agreements remain valid and how to draft future-proof contracts.
What Type of Tenancy Agreement Should I Use?
Selecting the right tenancy agreement is one of the most important decisions a landlord can make. This legal document establishes the rights and responsibilities of both landlord and tenant, forming the foundation of their relationship.
In this article, we explore the different types of tenancy agreements available, how the Renters Rights Act 2025 will impact these agreements, and why clarity and compliance are essential for long-term protection. Expert insights from Sasha Charles provide guidance to help landlords navigate these changes confidently.
Understanding the Types of Tenancy Agreements
When landlords ask, “what type of tenancy agreement should I use?”, they are usually seeking a straightforward and legally sound document that safeguards their property and rental income. A tenancy agreement is more than just paperwork; it is a binding contract that sets clear expectations for both parties.
Sasha Charles emphasises that the appropriate agreement depends on factors such as the property type, who will occupy it, and the landlord’s long-term objectives. Having a written agreement helps prevent disputes by clearly defining rent payments, notice periods, repair responsibilities, and access rights.
Landlords should be aware of the distinctions between Common Law tenancies, Assured Shorthold Tenancies (ASTs), and the new periodic tenancy structure introduced by the Renters Rights Act 2025.
The Renters Rights Act 2025: Impact on Tenancy Agreements
The legal landscape for landlords is set to change with the introduction of the Renters Rights Act 2025. This legislation will replace fixed-term ASTs with a new form of periodic tenancy, affecting how tenancy agreements are structured and enforced.
Sasha Charles explains that landlords can continue to use existing tenancy agreements until the reforms come into full effect. However, it is advisable to draft new agreements with the forthcoming changes in mind to avoid the need for rewriting contracts later.
This approach ensures that tenancy agreements remain compliant and adaptable when the automatic conversion to periodic tenancies occurs.
Current Tenancy Agreement Options
Landlords typically choose from three main types of tenancy agreements, each offering different protections and flexibility:
- Assured Shorthold Tenancy (AST) agreements: These are the most common tenancy type in England, allowing landlords to rent to private tenants at market rates with statutory possession processes. Despite the planned abolition of fixed-term ASTs under the new Act, they remain valid for new tenancies today. Sasha Charles advises ensuring all safety and compliance documentation is in place before signing.
- Assured Tenancy agreements: These provide stronger tenant protections and are mostly used in social housing. They are rarely appropriate for private landlords.
- Common Law tenancy agreements: Used when tenants share accommodation with landlords or when rent exceeds statutory thresholds. These agreements offer contractual flexibility but are often overlooked by landlords.
Key Considerations When Choosing a Tenancy Agreement
Before deciding on the type of tenancy agreement to use, landlords should consider several factors, including:
- Type of tenant
- Property location
- Rent amount
- Licensing requirements
- Upcoming legislative changes under the Renters Rights Act 2025
- Desired level of flexibility
For example, landlords seeking long-term, stable tenancies might prefer agreements that automatically convert to periodic tenancies, while those offering short-term lets may require specific clauses on occupancy and maintenance.
Drafting Agreements in Line with the Renters Rights Act 2025
The Renters Rights Act 2025 will introduce new rights and responsibilities for landlords and tenants, including extended notice periods, enhanced repair obligations, and the establishment of a national landlord register.
Drafting tenancy agreements with clear repair responsibilities, detailed conduct clauses, and compliance with consumer protection laws will help landlords avoid disputes and improve enforceability. Sasha Charles highlights that well-drafted agreements reduce challenges at tribunal hearings.
Practical Advice for Landlords
When preparing tenancy agreements, landlords should ensure they are:
- Clear and easy to understand
- Legally compliant
- Written in plain, enforceable language
- Supported by all necessary compliance documents
- Compatible with the upcoming Renters Rights Act 2025 reforms
Seeking professional advice is highly recommended, as even minor errors can invalidate important clauses. Sasha Charles notes that many disputes arise because agreements lack clarity on key issues such as repairs, rent reviews, or access rights.
Frequently Asked Questions
What is the safest type of tenancy agreement for private landlords?
Most private landlords use Assured Shorthold Tenancy agreements due to their balanced protections and statutory backing. The best choice depends on the specific property and landlord’s plans.
Will the Renters Rights Act 2025 change the types of agreements landlords can use?
Yes, the Act will transition most agreements into periodic tenancies, prompting landlords to consider new structures when planning future tenancies.
Can I still use fixed-term AST agreements today?
Yes, fixed-term ASTs remain lawful and enforceable until the reforms are fully implemented.
Does a verbal tenancy count as a legal agreement?
While verbal agreements are legally valid, written agreements are safer and help avoid misunderstandings.
Do I need legal advice when deciding which tenancy agreement to use?
Professional guidance is strongly advised. Sasha Charles recommends avoiding generic templates and ensuring agreements are tailored to specific circumstances.
Conclusion
Understanding which tenancy agreement to use is essential for all landlords. The right choice depends on the property, tenant type, and landlord’s objectives. With the Renters Rights Act 2025 introducing major reforms, it is more important than ever to draft clear, compliant, and future-proof tenancy agreements. Expert advice from Sasha Charles can help landlords adapt to these changes and maintain lawful, effective tenancies.
Useful External Links
Source: landlordadvice.co.uk
The Landlord Association (TLA)