Lesson 2 – Creating and Managing Periodic Tenancies

Learning Objectives

By the end of this lesson, learners will be able to:

• Understand how to establish an Assured Periodic Tenancy correctly.
• Identify the documentation required before and during a tenancy.
• Understand the key terms that should be included within a tenancy agreement.
• Recognise important contractual considerations under the Renters’ Rights Act.
• Apply best practice management techniques throughout the tenancy lifecycle.

Introduction

The Renters’ Rights Act has fundamentally changed the way residential tenancies are created and managed in England. With the introduction of Assured Periodic Tenancies as the default tenancy structure, landlords must ensure they understand the legal and practical requirements involved in establishing a tenancy and managing it effectively.

A well-managed tenancy begins long before a tenant moves into the property. Proper preparation, clear documentation, robust procedures, and effective communication can help prevent disputes, improve tenant satisfaction, and protect the landlord’s investment.

This lesson examines the key stages involved in creating and managing an Assured Periodic Tenancy.

Establishing a Tenancy

The process of creating a tenancy starts before the tenant takes occupation.

Careful preparation at the outset can significantly reduce future problems.

Marketing the Property

Before advertising a property, landlords should ensure:

• The property is safe and fit for occupation.
• Required safety certificates are in place.
• Any licensing requirements have been satisfied.
• The property complies with current legal standards.

Marketing information should be accurate and should not contain misleading descriptions.

Tenant Applications

Landlords should adopt a consistent and fair application process.

Information commonly obtained includes:

• Full name.
• Current address.
• Employment details.
• Income information.
• Previous landlord references.
• Identification documents.

Application procedures should comply with equality legislation and anti-discrimination requirements.

Referencing

Tenant referencing remains an important risk management tool.

Checks may include:

• Credit history.
• Employment verification.
• Income affordability.
• Previous tenancy conduct.
• Identity verification.

Good referencing helps landlords assess the applicant’s suitability before entering into a tenancy.

Agreeing the Tenancy

Once a suitable tenant has been selected:

• The tenancy agreement should be prepared.
• Rent should be agreed.
• Deposit arrangements should be explained.
• Compliance documents should be assembled.

The tenancy formally begins when the agreement is entered into and the tenant takes possession of the property.

Required Documentation

Providing correct documentation remains one of the most important landlord responsibilities.

Failure to provide required documents may affect enforcement rights and expose landlords to penalties.

Tenancy Agreement

The tenancy agreement sets out the contractual relationship between landlord and tenant.

It should clearly explain:

• Parties to the agreement.
• Property address.
• Rent amount.
• Payment arrangements.
• Rights and responsibilities.
• Permitted use of the property.

Deposit Documentation

Where a tenancy deposit is taken, landlords must comply with tenancy deposit protection requirements.

Relevant documentation may include:

• Deposit protection confirmation.
• Prescribed information.
• Deposit scheme details.
• Deposit dispute procedures.

Safety Documentation

Landlords should ensure tenants receive relevant safety information where required.

Examples include:

• Gas Safety Certificate.
• Electrical Installation Condition Report.
• Energy Performance Certificate.
• Safety information relating to alarms and equipment.

Property Inventory

A detailed inventory provides valuable evidence regarding the property’s condition at the start of the tenancy.

Inventories should ideally include:

• Written descriptions.
• Photographs.
• Meter readings.
• Appliance information.
• Signatures from both parties.

Additional Information

Depending upon the circumstances, landlords may also provide:

• Welcome packs.
• Emergency contact information.
• Property manuals.
• House rules.
• Refuse collection information.

Clear communication from the outset often helps reduce misunderstandings later.

Tenancy Terms

The tenancy agreement contains the terms that govern the landlord and tenant relationship.

The agreement should be written in clear and understandable language.

Rent Provisions

The agreement should explain:

• Rent amount.
• Payment frequency.
• Payment method.
• Due dates.
• Consequences of late payment.

Clarity regarding rent obligations helps avoid disputes.

Use of the Property

The agreement should specify how the property may be used.

Examples may include:

• Residential occupation only.
• Occupancy limits.
• Business use restrictions.
• Smoking policies.
• Pet provisions.

Any restrictions should be reasonable and compliant with current legislation.

Access Arrangements

Landlords may need access for:

• Inspections.
• Repairs.
• Safety checks.
• Maintenance work.

The agreement should explain how access will be arranged and the notice normally required.

Repairs and Maintenance

The agreement should outline:

• Landlord responsibilities.
• Tenant responsibilities.
• Reporting procedures.
• Emergency arrangements.

Clear expectations help prevent disagreements.

Conduct Requirements

Many tenancy agreements include provisions relating to:

• Anti-social behaviour.
• Noise.
• Waste disposal.
• Respect for neighbours.
• Property care.

These terms help promote responsible occupation.

Contractual Considerations

The introduction of Assured Periodic Tenancies means landlords should review their contracts carefully.

Compliance with Current Legislation

Agreements should reflect current legal requirements.

Outdated references to abolished procedures may create confusion and increase legal risk.

Fair Terms

Contractual terms should be fair, transparent, and enforceable.

Unfair contract terms may be challenged and potentially deemed unenforceable.

Examples of potentially problematic clauses may include:

• Excessive penalties.
• Unreasonable restrictions.
• Attempts to remove statutory rights.
• Unfair termination provisions.

Consistency with Statutory Rights

Tenancy agreements cannot override statutory protections provided by legislation.

Even where a contract includes a particular clause, the law may take precedence.

Landlords should therefore ensure agreements complement rather than conflict with legal requirements.

Future Flexibility

Good tenancy agreements are designed to remain effective throughout the tenancy.

Agreements should be:

• Clear.
• Practical.
• Adaptable.
• Legally compliant.

Regular reviews help ensure documents remain current as legislation evolves.

Managing Periodic Tenancies

Once a tenancy has commenced, effective management becomes essential.

The absence of fixed-term renewals places greater emphasis on ongoing tenancy management.

Communication

Good communication is one of the most effective ways to prevent disputes.

Landlords should:

• Respond promptly to enquiries.
• Maintain professional records.
• Confirm important matters in writing.
• Provide clear instructions.

Positive communication often contributes to longer tenancies and fewer problems.

Rent Management

Rent should be monitored carefully.

Landlords should:

• Track payment dates.
• Record payments received.
• Address arrears promptly.
• Maintain accurate rent schedules.

Early intervention often prevents arrears from escalating.

Property Inspections

Regular inspections remain an important management tool.

Inspections help landlords:

• Identify maintenance issues.
• Monitor property condition.
• Ensure compliance.
• Address concerns early.

Written reports and photographs should be retained.

Repairs and Maintenance

Prompt attention to repairs helps:

• Protect the property.
• Maintain tenant satisfaction.
• Reduce legal risk.
• Prevent minor issues becoming major problems.

Repair requests should be logged and monitored until completion.

Record Keeping

Comprehensive records may prove invaluable if disputes arise.

Records should include:

• Rent history.
• Inspection reports.
• Repair records.
• Safety certificates.
• Correspondence.
• Compliance documents.

Well-organised records support both compliance and effective property management.

Best Practice Management

Professional landlords adopt systems designed to ensure consistency and compliance.

Use Written Procedures

Written procedures help ensure important tasks are not overlooked.

Examples include:

• Tenant onboarding procedures.
• Inspection procedures.
• Arrears procedures.
• Repair reporting procedures.

Conduct Regular Compliance Reviews

Landlords should periodically review:

• Safety certificates.
• Licensing requirements.
• Property standards.
• Documentation.

Compliance audits help identify potential issues before they become serious problems.

Invest in Ongoing Training

Housing law continues to evolve.

Regular training helps landlords:

• Remain compliant.
• Improve management skills.
• Understand legislative changes.
• Reduce legal risk.

Focus on Long-Term Relationships

The new tenancy framework encourages longer tenancies.

Landlords who maintain positive relationships with tenants often benefit from:

• Reduced void periods.
• Lower turnover costs.
• Fewer disputes.
• Greater rental stability.

Common Mistakes to Avoid

Landlords should avoid:

• Using outdated tenancy agreements.
• Poor record keeping.
• Failing to document inspections.
• Ignoring repair requests.
• Inadequate referencing.
• Weak communication.
• Non-compliance with safety requirements.

Most tenancy disputes can be traced back to poor preparation or inadequate management practices.

Lesson Summary

In this lesson, we have explored:

• How to establish an Assured Periodic Tenancy.
• The documentation required before and during a tenancy.
• Key tenancy terms and contractual provisions.
• Important contractual considerations under the Renters’ Rights Act.
• Best practice management techniques for successful tenancy administration.

Creating and managing a tenancy correctly from the outset helps landlords minimise risk, maintain compliance, and build positive landlord-tenant relationships that support long-term success.