Important Tenancy Terms Every Renter Needs to Know

Renting a property in the UK often comes with a lot of paperwork, jargon, and legal terms. If you’re not familiar with them, it can feel overwhelming and sometimes lead to costly mistakes.

To help, here’s a breakdown of the most important tenancy terms that every renter should understand before signing an agreement.

Tenancy Agreement

This is your contract with the landlord. It sets out your rights and responsibilities, as well as theirs. Always read it carefully before signing.

• It can be written or verbal (but written is best).

• It includes rules on rent, deposit, repairs, and how long you can stay.

  
  

Assured Shorthold Tenancy (AST)

This is the most common type of tenancy in England.

• It gives you the legal right to stay in the property for the agreed period (or rolling month-to-month if periodic).

• Landlords must follow specific rules to evict tenants or increase rent.

Fixed-Term Tenancy vs. Periodic Tenancy

• Fixed-term tenancy: Lasts for a set period (e.g., 6 or 12 months).

• Periodic tenancy: Rolls on weekly or monthly, with no end date.

Under the upcoming Renters’ Reform Bill, all new tenancies will eventually move to periodic only.

Section 21 Notice

Also called a “no-fault eviction” notice.

• It allows landlords to ask tenants to leave without giving a reason.

• This is set to be abolished under the Renters’ Reform Bill, giving tenants more security.

Deposit & Deposit Protection Scheme (DPS)

When you rent, you’ll usually pay a deposit (up to 5 weeks’ rent).

• By law, landlords must protect it in a government-approved scheme within 30 days.

• You should receive details of which scheme it’s in.

• At the end of the tenancy, you can challenge unfair deductions.

Inventory

A detailed checklist of the property’s condition and contents at the start of your tenancy. Usually the landlord will appoint a third party company to do a compliance checklist, but you should do your own too.

• It’s usually backed up with photos.

• Essential for protecting your deposit against unfair damage claims.

Guarantor

A person (often a parent or relative) who agrees to pay the rent if you can’t.

• Many landlords require this if you’re a student, self-employed, or have a low income.

• Being a guarantor is a serious legal responsibility.

Rent Review

The process by which landlords can increase rent.

• Must follow the terms set in your agreement.

• Under the Renters’ Reform Bill, increases will be limited to once per year with a two-month notice.

• Tenants can challenge unfair increases through a tribunal.

 Break Clause

A clause that allows either the tenant or landlord to end the tenancy early.

• Typically requires 2 months’ notice.

• Not all tenancy agreements include one, so always check before signing.

Notice Period

The amount of notice you (or your landlord) must give before ending the tenancy.

• Usually 1 month for tenants.

• Landlords must give at least 2 months (sometimes longer, depending on the situation).

Understanding these terms means you’re less likely to be caught out by hidden rules or unfair practices.

Always:

• Read your tenancy agreement carefully.

• Keep copies of everything (contracts, inventories, receipts).

• Ask questions if anything isn’t clear.