How To Sign Up A New Tenant & Create A Legal Tenancy Agreement

We’re all relying more and more on automated and online services, and the process of finding tenants is no exception. It’s never been easier to quickly throw up a rental advert on Rightmove & Zoopla – bypassing extortionate high-agency fees – and start generating enquiries. In many cases, it takes just a few clicks to get started, and off we go! Weeeeeeeee!

So while finding tenants without an agent is relatively straightforward, the part that comes afterwards -forming a legally binding tenancy agreement – still isn’t clear for many landlords. This may also explain why some are still on the fence about using online agents (which is a tragic shame, because they’ve been a game-changer for so many landlords!).

I’m referring to the steps that come after receiving enquiries and carrying out viewings.

What next?

What about all the legal paperwork?

How do I actually create a tenancy agreement?

Yup, many landlords feel overwhelmed at this stage, and understandably so.

The good news is that these concerns are often bigger in theory than they are in practice. However, it’s important not to underestimate the legal side entirely.

In reality, creating a legally binding tenancy agreement is relatively straightforward. In fact, many landlords already do it without even realising it (not necessarily in a good way – more on that shortly…).

Before signing up a new tenant! The Legal requirements…

To clarify, this blog post is not about complying with your legal obligations as a landlord. It is focused specifically on how to sign up a tenant by creating a legally binding tenancy agreement.

If you need to go back to basics, you can hop over to the legal guide for landlords.

How to sign up a new tenant / Creating a legally binding contract

Ok, it’s really easy – far easier than people realise.

Verbal Tenancy Agreements

This is what many landlords and tenants don’t realise…

You can technically create a legally binding verbal tenancy agreement. In theory, if a landlord gives permission for a tenant to live in their property and hands over the keys, a tenancy can be created. At that point, both landlord and tenant are generally afforded their statutory rights – no more, no less.

That’s why it’s incorrect when a landlord or tenant claims there is no tenancy agreement simply because there is no written contract.

Needless to say, you’d have to be mental to create a verbal tenancy agreement.

However, there is an important caveat to verbal agreements, which means every landlords in England cannot getaway with providing no documentation at all. Not anymore, anyways. With the introduction of the Renters’ Rights Act, which came into effect on 1st May 2026, all landlords must provide each named tenant with a Written Statement of Terms as a bare minimum.

This is not necessarily a full tenancy agreement, but it is a document setting out specific key terms of the tenancy (e.g. rent amount, deposit details, and other core information). Failing to provide this won’t invalidate the tenancy (i.e. stop a tenancy from being legally binding), but it could result in significant civil penalties, potentially ranging from £7,000 to £40,000. Ouch!

You can find more details on the information you need to provide in the Written Statement of Terms Guide.

Creating a written Tenancy Agreements

There isn’t a trick or special ceremonial procedure required to create a valid and legally binding written tenancy agreement. Despite popular belief, you don’t need a solicitor or any form of legal specialist, nor do you need to sacrifice a goat.

Tenancy agreement templates are readily available online. Once a contract is signed by all parties (tenant, landlord, and optionally a witness), a legally binding tenancy is created. Most agreements set out the agreed rent, property details, duration and dates of the tenancy, and the general terms and conditions.

Yes, it really can be that simple: find a template tenancy agreement and get it signed. Done! A legally binding tenancy agreement is in place.

However, that’s not to say there aren’t important aspects of drafting and using tenancy agreements that you need to be mindful of. As with everything, there are sensible ways of doing it, and very poor ones. So here are a few tips and points to consider…

• Provide the Required Information – As mentioned, as per the requirements of the Renters’ Rights Act, landlords must provide each named tenant with a Written Statement of Terms (i.e. specified key information about the terms of the tenancy).

  The required information can either be included directly within the tenancy agreement (like this downloadable tenancy agreement) or issued as a separate document, although it is often simpler to incorporate it into the agreement so everything is set out in one place. As also mentioned, failure to provide all the required information will not invalidate the tenancy agreement, but it may expose landlords to significant penalties.

• Use a Reputable Tenancy Agreement – Make sure you source your tenancy agreement from a reputable supplier and do not simply use the first free template you can get you grubby little mitts on. Many tenancy agreement templates circulating online are either out of date or riddled with junk clauses that are unenforceable by law.

  However, invalid clauses will not make the tenancy itself invalid; it simply means those particular clauses are unlikely to be legally enforceable. For example, if a clause states that a tenant must pay a £1,000 penalty for being one day late with their rent, it is highly unlikely to be enforceable, regardless of who signed the agreement.

• Read the Agreement Carefully – It is important to read through the tenancy agreement carefully before offering it to a tenant (I’m often amazed at how many landlords don’t do this. Truly baffling!). If there are any clauses that seem unfair, inaccurate, or unclear, you should seek advice from someone suitably qualified before proceeding.
• Be Cautious About Adding Your Own Clauses – Don’t just add your own clauses willy-nilly, because they may not be valid and therefore not enforceable. If you want to add your own clauses, seek advice from someone qualified to ensure they are fair and legally enforceable.

  Landlords and agents adding their own home-cooked clauses is probably the number one reason why many tenancy agreements are riddled with invalid provisions. Those clauses are often overridden by statutory rights (which cannot be contracted out of). For example, some landlords include a clause requiring tenants to give six months’ notice before leaving. In many cases, that would be unenforceable because the tenant’s statutory rights take precedence.

• Don’t Assume Letting Agents Get It Right – Many letting agents (though certainly not all) rely on generic copy-and-paste contracts that can be poorly drafted or ill-suited to the tenancy in question. Buyer beware (if you choose to go down the agent route, that is).

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 single-let private residential rentals
• Written Statement of Terms included
• GDPR compliant
• Provided in .docx format - fully editable

More Details

Using a high-street agent to handle your tenancy agreement

Of course, you can choose to instruct a reputable high-street letting agent to sign a tenant up for you, but you should expect to pay a hefty premium. You will typically be charged a “tenant find” fee, which covers advertising, sourcing a tenant, and handling the paperwork.

However, a good agent will prepare a valid, tailored tenancy agreement and walk you through each clause in detail.

Comparatively, doing it yourself can save you several hundred pounds (and that’s being very conservative).

Bottom line: signing up a new tenant and creating a legally binding tenancy agreement is easy. Anyone can do it!

Landlord out xo