10 Things Every Tenancy Agreement Should Include

A tenancy agreement is a crucial document that outlines the legal relationship between a landlord and a tenant. To ensure a smooth and fair tenancy, there are certain things that every agreement should include. These include the parties’ names and addresses, the rental price and payment terms, the tenancy duration, and the landlord and tenant’s obligations.

In this article, we will outline 10 things that every tenancy agreement should include, providing informative and helpful guidance to ensure a secure and successful rental experience.


1. Basic Information

A tenancy agreement must provide essential information to clarify landlord-tenant relationships. The rental property address and both parties’ names are included. This information should be included in the agreement so both parties know who they are dealing with and where the rental property is.

A tenancy agreement must include a checklist of basic facts. This may include the landlord and tenant’s names and contact information, the rental property’s address, the tenancy agreement’s start date, and its duration. It may also include the rent amount, frequency, and due date. Having this information in one place reduces landlord-tenant miscommunication.

Tenancy agreements must include fundamental facts to ensure landlord-tenant comprehension. Both parties can trust the tenancy terms if the agreement includes all necessary information.


2. Rent and Payment Terms

Rent and payment terms are crucial to a tenancy agreement. It specifies rent, due date, and method. This information in the agreement helps landlords and tenants understand their financial duties and avoid future disagreements.

The rent payment options can be weekly, monthly, quarterly, or annually, and the agreement should clearly specify the payment frequency. The payment method, whether it is by check, cash, bank transfer, or any other method, should also be agreed upon and specified in the agreement.

Along with payment terms, late or missed payments must be explained. Include late fees and penalties and how they will be computed. The agreement should also include the grace period, late fees, and legal action for chronic non-payment.


3. Duration of the Tenancy

Tenancy duration is crucial. It covers the tenant’s right to occupy the rental property and the landlord’s obligations. To minimize confusion and tenancy term conflicts, this information must be in the agreement.

Fixed-term and recurring tenancies exist. Fixed-term tenancies last a year or six months. If no new lease is signed, the renter must go. Periodic tenancies are open-ended and rent is paid monthly. These tenancies last until either party gives notice.

Renewal and termination are crucial to the tenancy agreement. The agreement should specify how either party can renew or end the tenancy. The landlord must notify the tenant in writing before the lease expires if they want to renew it. The tenant must provide the landlord with written notice to terminate the lease within the notice period.


4. Obligations of the Landlord and Tenant

Outlining the obligations of both the landlord and tenant is an essential part of any tenancy agreement. By doing so, both parties are clear about their responsibilities and can avoid misunderstandings or conflicts during the tenancy.

Landlords must keep the property habitable, make repairs, and meet health and safety standards. This involves ensuring the property has working plumbing, electricity, and heating systems and is safe. The landlord must also comply with municipal building and zoning rules.

However, tenants must keep the property clean, pay rent on time, and follow the agreement. This involves reporting maintenance issues to the landlord and granting the landlord access to the property.


5. Use of the Property

Including restrictions on the use of the property is an important aspect of any tenancy agreement. It helps to protect the property and ensure that it is used in a way that is safe and reasonable.

Reasonable use refers to using the property in a way that does not cause harm to the property or infringe on the rights of others. For example, a tenant cannot use the property for illegal activities, such as drug trafficking, or cause damage to the property by neglecting to maintain it properly.

Tenants can violate these restrictions by using the property in ways that are prohibited by the agreement. This can include exceeding the occupancy limit, keeping pets when they are not allowed, or using the property for business purposes.

The consequences of violating these restrictions can vary depending on the severity of the violation. In some cases, the landlord may give the tenant a warning and ask them to correct the issue. If the tenant fails to comply, the landlord may take legal action, which could result in the termination of the tenancy agreement.


6. Renewal or Termination of the Tenancy

The tenancy agreement should specify the notice time for renewing or terminating the tenancy by either party. Depending on local rules and tenancy terms, there is usually at least one month’s notice. Failure to follow notice requirements could result in legal action.

If either party fails to give notice, the tenancy agreement may automatically renew for another term, or the landlord may have the right to take legal action to terminate the tenancy. Therefore, it is important to communicate any changes in the tenancy in writing and provide the appropriate notice to the other party.

The tenancy agreement should also outline the procedures for ending the tenancy early, such as breaking the lease. This could be due to unforeseen circumstances such as a job transfer, illness, or death. In such cases, the tenant may be required to pay a penalty or forfeit their security deposit.


7. Security Deposit

The security deposit is a crucial part of the tenancy agreement as it protects the landlord’s property and ensures that the tenant fulfills their obligations during the tenancy. Therefore, it is important to include the security deposit amount and terms in the agreement.

The tenancy agreement should specify security deposit amounts and coverage. A security deposit equal to one or two months’ rent covers damages or unpaid rent at the conclusion of the tenancy. Security deposits vary by rental property, region, and local legislation.

The agreement should specify security deposit refund or retention processes. At the start and conclusion of the tenancy, the landlord should provide a full inventory and examine for damages. If there are no damages or overdue rent, the landlord shall restore the security deposit within 14 to 30 days.


8. Dispute Resolution

Disputes can sometimes arise between landlords and tenants during the tenancy. Therefore, it is important to include a procedure for resolving disputes in the tenancy agreement to prevent potential disagreements from escalating.

Mediation and arbitration should be listed in the agreement. Mediation includes a neutral third party helping the parties reach an agreement, while arbitration involves a neutral third party deciding based on the parties’ evidence.

The agreement should also define dispute resolution procedures. First, discuss the dispute and try to resolve it informally. If this fails, they should use the agreement’s formal dispute resolution mechanism.

The dispute resolution process should include clear and specific steps to be taken, such as notifying the other party in writing and setting a timeframe for resolution. The agreement should also specify which method of dispute resolution will be used and how the costs will be shared between the parties.


9. Additional Terms and Conditions

Landlords may add terms and conditions to the tenancy agreement beyond the basics. This can assist both parties understand their rights and responsibilities and avoid conflicts.

Additional terms and conditions can address smoking, pets, renters insurance, and common area use. They can also address property-specific issues like noise or parking limitations.

Any additional terms and conditions must be reasonable and clearly stated in the agreement. Pet restrictions, such as type, number, and size, and any additional cleaning or damage fees, should be explicitly stated.


10. Signatures

Landlords and tenants must sign tenancy agreements for them to be legally binding. This shows that both parties read and accepted the agreement’s provisions. The agreement is invalid without signatures, making it difficult to enforce its stipulations.

By signing the agreement, landlords and tenants accept their rights and responsibilities. Since both parties know what is expected of them, this can help avoid conflicts during the tenancy. The landlord can avoid financial issues if the renter knows the rent amount and payment schedule.

After signing the agreement, each party should receive a copy. This prevents confusion and preserves the agreement in case of a dispute. Keep a digital or physical copy of the signed agreement for future reference.



Finally, landlords and tenants need a complete tenancy agreement. It clarifies the tenancy terms for both parties. Tenancy agreements prevent misunderstandings and disputes.

Basic information, rent and payment terms, duration of the tenancy, landlord, and tenant obligations, use of the property, renewal or termination, security deposit, dispute resolution, and signatures protect landlords and tenants. A well-written tenancy agreement is essential for a good landlord-tenant relationship.

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