Rent and Credit > How a tenancy agreement looks like

How a tenancy agreement looks like

Wollit Team2 minute read · Updated 15th September 2024

A tenancy agreement is a legally binding contract between a landlord and a tenant, and it outlines the terms and conditions of a rental arrangement for a residential property in the UK.

In short, it basically says what are the rights and responsibilities of both parties during the tenancy period.

The agreement can be written or verbal, but a written contract is highly recommended for clarity and to avoid unpleasant disputes. Also, you need to remember that regardless of what a landlord might want to have in there, the terms of a Tenancy Agreement cannot contradict or provide less protection than the rights given to you by law.

What are some of the most common provisions in a tenancy agreement?

A typical tenancy agreement in the UK includes things like:

Names and contact details of you and your landlord;
Address and description of the rental property;
Start and end date of the tenancy (if it’s fixed-term);
Whether it is a fixed-term or periodic (rolling) tenancy;
How much rent you need to pay;
How often you pay rent (monthly usually);
How large your deposit is, and how it will be handled by the landlord;
When the payment must be done and how (bank details, etc);

When it comes to your rights and obligations, the most common ones are:

You have to pay rent on time;
You have to keep the property clean and in good condition;
You have to allow the landlord access for inspections and repairs;
You need written permission for alterations or subletting;
And other rules regarding pets, smoking, noise, etc.

For the landlord:

Maintaining the property in a livable condition;
Carrying out necessary repairs in a reasonable timeframe;
Respecting your right to quiet enjoyment of the property (they can’t just barge in);
And protecting your deposit in a government-approved scheme.

Besides this, tenancy agreements also contain provisions related to:

Notice period;
Conditions for early termination (for example, if you breach the contract);
And additional clauses, like parking arrangements, who is responsible for paying utility bills, and so on.

What else should I know about renting in the UK?

One of the most important (and often not discussed) things about renting in the UK is that you can actually use your rent payments to build your credit history.

This is very important as you’ll need a credit history when applying for credit cards, loans, or even a mortgage.

Luckily, there are now apps that allow you to add your rent payments to your credit report.

One such service is Wollit. Wollit also allows you to report your rent to Experian, UK’s largest credit agency. This shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.

However, unlike other services, Wollit also reports your subscription as a loan repayment to all three credit agencies, which builds your actual credit history. This is the main factor that matters for your credit score.

Whichever service you choose is up to you. The most important part is that you make the most out of this opportunity – and make the most out of your rent payments while you prepare to eventually become a homeowner yourself.