HMO Assured Periodic Tenancy (APT) Agreements

Page contents

• Introduction to HMO Tenancy Agreements
• When an HMO Tenancy Isn’t an Assured Periodic Tenancy
• HMO tenants and utility bills
• HMO tenancies can be Joint or Sole
• HMO Tenancy Agreement Contracts/Forms

Introduction to HMO Assured Tenancy Agreements

HMO landlords in England should use an assured periodic tenancy agreement, similar to standard single-let arrangements. The core structure is largely the same, but HMO tenancy agreements include additional clauses specific to shared accommodation, including:

• Utilities & Bills: Utility bills may be included in the rent or charged separately depending on the tenancy arrangement, including monthly invoicing where applicable.
• Tenant Liability: Tenants are only responsible for their own obligations under the tenancy and are not liable for rent, charges, or breaches committed by other tenants occupying separate rooms. Where two or more tenants share the same room, they may be jointly and severally liable.
• Communal Areas: The tenancy includes the right to use shared communal areas, and tenants are responsible for complying with reasonable rules relating to their use, cleanliness, and behaviour in those areas.
• Individual Room Tenancies: Each tenant typically occupies a separate room under a separate tenancy agreement, which forms an individual contractual relationship with the landlord rather than a shared household tenancy.

HMO Assured Periodic Tenancy (APT) Agreement

• Only £6.99 – Download once, use unlimited times
• The new standard tenancy agreement updated in line with the Renters' Rights Act reforms (as applicable in England)
• Suitable for HMOs in England where utility bills are excluded or included in rent
• Written Statement of Terms included
• GDPR compliant
• Provided in .docx format - fully editable

More Details

More generally, the same best practices, rules, and legislation that apply to single-let tenancies, also apply to HMO tenancy agreements, including:

• Following the introduction of the Renters’ Rights Act, landlords can no longer create an assured shorthold tenancy (AST). All existing assured shorthold tenancies automatically became Assured Periodic Tenancies (APTs) on 1 May 2026, and all new tenancies that would previously have been assured shorthold tenancies must now be APTs. As a result, tenancies now operate as rolling weekly or monthly agreements, depending on the rent payment schedule.
• Any tenancy deposit taken must be protected in a government-approved tenancy deposit scheme.
• A Section 8 notice should be used to evict tenants where valid grounds for possession exist.
• The tenancy agreement should clearly state who is responsible for paying bills such as electricity, gas, water, and council tax.
• Landlords must provide at least 24 hours’ written notice before carrying out property inspections or entering the property for reasons such as repairs or maintenance.

When an HMO Tenancy Isn’t an Assured Periodic Tenancy

While most HMO occupiers will have an Assured Periodic Tenancy (APT), as per the gov guidelines, there are several important exceptions. Certain types of accommodation, landlords and tenancy arrangements fall outside the assured tenancy regime altogether. If any of the circumstances below apply, the occupier is unlikely to have an APT and may instead have a different form of agreement, such as a licence to occupy or another type of tenancy.

These exceptions are relatively uncommon in the private HMO sector, but landlords should be aware of them when determining which legal framework applies to their property and tenants.

• The landlord lives in the same accommodation. In this case, your tenants are more likely to be lodgers, not tenants
• The landlord is a local council
• The property is purpose-built student accommodation, the tenants are university students and the landlord has signed up to the National Code of practice
• The tenancy has a fixed term of over 21 years
• The rent is more than £100,000 a year
• The rent is less than £250 a year (less than £1,000 in London)
• It’s a business tenancy or tenancy of licensed premises
• The property is a holiday let

If you are unsure what type of tenancy arrangement you have, you can use Shelter’s tenancy rights checker.

HMO Tenants and Utility Bills

As mentioned, the tenancy agreement should clearly state who is responsible for paying bills such as electricity, gas, water, internet, and council tax. Generally speaking, in shared accommodation, landlords tend to include all bills within the rent and manage the accounts themselves. In my experience, this is the preferred option for both landlords and tenants because it is the simplest and most straightforward arrangement.

I also recommend using an energy auto-switch service, which can help ensure you are always on competitive tariffs, keeping energy costs as low as possible.

Alternatively, it is possible to assign one responsible tenant to manage the household bills. In this arrangement, that tenant collects money from the other occupants and pays the suppliers directly. However, this approach is generally less desirable for several reasons:

• If the responsible tenant moves out, another tenant will need to take over the accounts, which can create complications.
• It can become a source of tension between housemates, particularly:
  • if one tenant refuses to pay or regularly pays late;
  • or if tenants feel the bill split is unfair because some use significantly more utilities than others.
• Many landlords include a margin within “bills included” rent, meaning they can often generate a little extra profit while keeping the arrangement convenient for tenants.

HMO Tenancies: Joint or Sole/Separate Agreements

There are generally two common ways of structuring tenancy agreements in an HMO property: using individual contracts for each tenant, or using a single “joint and several liability” agreement.

The tenancy agreement should clearly state whether the arrangement is a sole or joint tenancy:

• Joint tenancies: This is a common arrangement for student properties, or HMOs where friends move in together. It tends to work best where tenants already know each other and are likely to move in and leave at the same time.

  In this setup, tenants are jointly liable for the rent and the condition of the property, meaning responsibilities are shared (similar to a single-let arrangement where all named tenants are collectively responsible under the agreement). For example, if one tenant fails to pay rent, the others may be required to cover the shortfall. In addition, the remaining tenants are often responsible for finding a replacement if a room becomes vacant.

  A joint tenancy also involves less administration, as there is one overall agreement, one rent payment, and typically one deposit to protect (if a deposit is taken).

  All tenants’ names should be included on a single tenancy agreement.

• Sole/Separate tenancies: HMOs occupied by unrelated adults who do not know each other, and do not want to take responsibility for other tenants, are usually let on separate (sole) tenancies for each room.

  Each tenant is responsible only for their own rent and conduct, and the actions of other tenants do not affect their tenancy. For example, if one tenant falls into arrears, the remaining tenants are not liable to cover the shortfall.

  This approach requires more administration, as each room has its own tenancy agreement and each deposit (where taken) must be protected individually.

  As noted in the utility bills section, where separate ASTs are used per room, the landlord will usually be responsible for council tax and utility bills, as this is generally the most practical arrangement.

HMO Tenancy Agreement Contracts

There is certainly no shortage of tenancy agreement templates available online (a Google search will confirm that pronto), including many that can be downloaded for free, which can be an appealing option.

My first word of warning is to ensure you use a reliable source and to make sure you are using the correct contract that is specifically designed for HMOs and suitable for your particular setup.

While HMO tenants in England should be granted an assured periodic tenancy (APT), many standard templates available from stationers and online are intended for single-let properties or assured shorthold tenancies (AST), neither of which are fit for purpose.

My second word of warning is to avoid modifying existing tenancy agreements by adding or altering clauses to suit your circumstances. This is something many landlords have done and later regretted. You could find yourself in legal difficulty if any additional clauses are challenged or deemed unenforceable.

If you would like to add your own custom terms to the tenancy, the safest approach is to instruct a specialist landlord and tenant solicitor to draft a contract tailored specifically to your HMO. While this may cost a few hundred pounds, it is generally a worthwhile investment if you are serious about managing HMOs properly.

Oh, and here’s another plug to the HMO tenancy agreements available from my eShop – ready for download!

HMO Assured Periodic Tenancy (APT) Agreement

• Only £6.99 – Download once, use unlimited times
• The new standard tenancy agreement updated in line with the Renters' Rights Act reforms (as applicable in England)
• Suitable for HMOs in England where utility bills are excluded or included in rent
• Written Statement of Terms included
• GDPR compliant
• Provided in .docx format - fully editable

More Details

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