There are three key legal requirements for a tenancy to be created, often known as the “Three Ps”:
· Tenancy created in a proper manner,
· for a stated period of time,
· granting exclusive possession.
Proper manner
There are certain requirements for a tenancy agreement to be considered to be created in a proper manner:
· Identifiable parties, i.e. an identifiable landlord and tenant.
· Identifiable premises, i.e. an identifiable full address for the premises being let, which should include the postcode for the avoidance of doubt.
In law tenancy agreements for a duration of less than three years can be created either in writing or verbally – however, we strongly advise against verbal contracts, since the terms agreed can be difficult to prove at a later date.
In the unlikely event that your tenancy is for a term of more than three years it will need to be created by Deed – this is a technical process and will involve a solicitor, so if you find yourself in this situation, get advice. Note that this does not include shorter contracts that are later renewed past three years – they can still be created by normal contracts.
Period of Time
A tenancy agreement must state the maximum or minimum length of time it is for, and this can be stated either as fixed term or periodic. See the information on fixed term or periodic contracts for details of the differences.
Exclusive Possession
If Exclusive Possession is not granted a Tenancy cannot be created, only a License. This is likely to be the case, for example, with Home Stay accommodation, where you rent a room in a landlord’s own home. Your rights as a Licensee will be substantially different to those of a tenant, so make sure you get advice beforehand.
