Tenancy Renewal Agreements: A Practical Guide | LegalDocuments.co.uk

What this document is

A Tenancy Renewal Agreement is a written document that extends an existing tenancy for a new fixed term, usually between the same landlord and tenant at the same property. It is sometimes called a renewal tenancy or an extension agreement.

In most cases the renewal is for another assured shorthold tenancy (AST) term of six or twelve months, though the length can be whatever the parties agree. The renewal typically sits alongside, or replaces, the original tenancy. Where the original agreement remains the main reference, the renewal acts as an addendum confirming the new end date and any revised terms such as a new rent figure.

Where the parties want a clean slate, a full new tenancy agreement is signed and the old one comes to an end. A renewal is not the only way a tenancy can continue. If nothing is signed and the tenant stays on after the fixed term, the tenancy usually becomes a statutory periodic tenancy, rolling month to month on the existing terms.

That is legally valid, but a written renewal gives both sides more certainty about how long the arrangement will last and what the rent will be.

How to use this document

1. Start the conversation early. Ideally, the landlord or agent raises the question of renewal around two to three months before the fixed term ends. This gives enough time to discuss rent, any changes to the terms, and whether either party intends to leave. Tenants can also take the initiative if they want to stay and have not heard anything.
2. Agree the commercial terms. Decide the length of the new term, the rent for that period, and whether anything else is changing, such as permission for pets, responsibility for garden maintenance, or the notice arrangements. Any rent increase should be reasonable and reflect the local market, and the tenant should have a genuine opportunity to consider it before committing.
3. Choose the renewal format. The parties can either sign a short renewal document that extends the existing agreement (often called a memorandum of renewal) or sign an entirely new tenancy agreement that supersedes the old one. A fresh agreement is usually clearer where several terms are changing, while a short renewal works well where only the dates and rent are being updated.
4. Check the compliance paperwork is current. Before signing, the landlord should confirm that the gas safety certificate, electrical installation condition report, energy performance certificate and the How to Rent guide have all been provided and are in date. The deposit protection paperwork may also need to be reissued or confirmed, depending on which scheme is used and whether the deposit amount is changing.
5. Sign, date and keep copies. Both parties sign the renewal, ideally before the existing term expires so there is no gap. Each party should keep a signed copy, and the agent, if any, should hold a file copy. Diary the new expiry date so the same conversation can happen again in good time at the next renewal.

Common questions