✏️ Updated March 2026
Rent to Rent Tenancy Agreement:
What You Need as Sub-Landlord
As a rent to rent operator, you are the landlord to your sub-tenants. That means you need the right tenancy agreements — and you need to serve the right documents at the start of every tenancy. Here is exactly what is required.
What This Guide Covers
Your Legal Position as Sub-Landlord
In rent to rent, you are a tenant to the property owner — and simultaneously a landlord to your sub-tenants. All landlord obligations under the Housing Act 1988, Landlord and Tenant Act 1985, and subsequent legislation apply to you in your relationship with sub-tenants.
The property owner has no direct legal relationship with your tenants. Your tenants’ landlord is you — not the person who owns the building. This is both a responsibility and a protection: your sub-tenants cannot look to the owner for remedy; they look to you.
AST vs Licence to Occupy
For HMO room lettings, you have two main agreement types:
Assured Shorthold Tenancy (AST)
The standard residential tenancy agreement. Gives the tenant exclusive possession of a defined space (their bedroom). Used for most professional HMO room lettings. Provides tenants with more rights and protections — but you have clear legal processes for recovery of possession. For more detail, see running a professional HMO.
Licence to Occupy
A contractual arrangement that does not grant exclusive possession. Less common for standard HMO rooms. Often used for very short-term arrangements or where the operator is also living in the property. Easier to end without court proceedings — but courts look at the reality of the arrangement, not just the label. If it functions as a tenancy, courts may treat it as one regardless of what it is called.
Room-Only AST for HMOs
The room-only AST is specifically designed for HMO use. Unlike a whole-property AST, it:
- Grants the tenant exclusive possession of their bedroom only
- Grants shared rights to use communal areas (kitchen, bathrooms, living room)
- Names only the individual tenant — not all housemates as joint tenants
- Allows you to let each room on separate, independent tenancy agreements
- Means each tenant’s tenancy can be managed, renewed or ended independently
This structure gives you maximum flexibility for managing your HMO. When one tenant leaves, you simply re-let that room — you do not need to end and restart all tenancies.
Key Clauses to Include in Your Room AST
Bills Inclusive Clause
Specify which utilities are included in the rent (gas, electricity, water, broadband, council tax). Include a fair usage statement if you want to limit excessive consumption. For more detail, see how rent-to-rent tax works in the UK.
House Rules Schedule
Attach a house rules schedule covering quiet hours, cleaning responsibilities, guests, parking, smoking and other key behavioural expectations. Make this part of the tenancy agreement.
Access for Inspections
Your right to access the property for inspections, maintenance and viewings — with at least 24 hours written notice. Required to give you the legal ability to conduct quarterly inspections.
Subletting Prohibition
Explicitly prohibit your tenant from subletting their room to anyone else. Your tenant is a tenant — not a sub-sub-landlord.
Permitted Occupiers
Name any permitted occupiers (partner, etc.) — anyone else regularly staying must be agreed in writing. Prevents unauthorised occupation of rooms.
Deposit Clause
State the deposit amount, which government-approved scheme it will be protected in, and the prescribed information serving timeline. Essential for a valid Section 21 notice later. For more detail, see how Section 21 notices work.
Maintenance Responsibilities
What the tenant is responsible for (day-to-day cleanliness, reporting defects promptly) and what you are responsible for (maintenance, repairs, compliance).
No Pets / Smoking
Explicit prohibition clauses if applicable. Pets and smoking in HMOs can create significant damage and neighbour conflict issues — address both upfront.
Documents You Must Serve at the Start of Every Tenancy
These documents must be provided to every new tenant before or at the start of their tenancy. Failure to serve any of them can prevent you from issuing a valid Section 21 notice to end the tenancy later.
| Document | Must Serve? | Timing |
|---|---|---|
| Tenancy agreement (signed copy) | Yes | Before or at tenancy start |
| Gas Safety Certificate (CP12) | Yes | Before move-in |
| Energy Performance Certificate (EPC) | Yes | Before move-in |
| How to Rent guide | Yes | Before or at tenancy start |
| Deposit Prescribed Information | Yes | Within 30 days of receiving deposit |
| HMO licence (copy if requested) | On request | Within 28 days of request |
| EICR (Electrical safety report) | Yes | Before move-in |
Deposit Protection
Any deposit you take from a sub-tenant must be protected in a government-approved scheme within 30 days of receiving it. The three approved schemes in England are:
- Deposit Protection Service (DPS) — free custodial scheme; DPS holds the money
- MyDeposits — insurance-backed; you hold the money and pay a fee per deposit
- Tenancy Deposit Scheme (TDS) — insurance-backed; you hold the money and pay a fee
You must also serve Prescribed Information on the tenant within 30 days — a formal document confirming the scheme details, dispute process, and the tenancy terms. Failure to protect or serve prescribed information on time means you cannot serve a valid Section 21 notice and may face a penalty of up to 3x the deposit amount.
Deposit cap: In England, security deposits are capped at 5 weeks’ rent for tenancies under £50,000/year annual rent. For a room at £600/month, the maximum deposit is £692.31 (600 × 12 ÷ 52 × 5).
Frequently Asked Questions
Do I need separate tenancy agreements for each HMO room?
Yes — for a standard professional HMO, you should have a separate room-only AST for each tenant. This gives each tenant exclusive possession of their bedroom with shared rights to communal areas, and allows you to manage each tenancy independently. Do not use a single joint AST naming all tenants — this creates significant complications when individual tenants want to leave or you need to deal with a specific tenant’s breach.
Can I use a free online tenancy agreement template?
Free templates exist from government sources (GOV.UK) and reputable landlord organisations (NRLA, Propertymark). These provide a legally sound base. However, a room-only HMO AST has specific requirements that standard whole-property templates do not address. At minimum, you need to add clauses specific to HMO room letting — exclusive bedroom possession, shared communal area rights, bills inclusive terms, and house rules. Having a solicitor review your standard HMO tenancy template once is a worthwhile one-time investment — that template then serves all future tenancies.
Get Your Legal Framework Right
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