Do I need to issue a new tenancy agreement to existing tenants when their AST converts on 1 May 2026?

Strictly no, the conversion under SI 2026/421 reg.2 happens automatically by operation of law and does not require a new written agreement. Practically, yes, because the old AST agreement contains terms (fixed-term provisions, Section 21 notice references, contractual rent-review clauses, advance-rent provisions) that are now unenforceable or void. Continuing with the old written agreement leaves the relationship governed by a mix of out-of-date contract terms and the new statutory regime, which produces operational confusion and increases the risk of an enforcement dispute. The disciplined move is to issue a fresh tenancy-agreement document to each converted tenant covering the same property at the same rent on the new statutory basis. The old agreement does not need to be expressly revoked; it is simply superseded by the new one. Sessions advising portfolio landlords should plan the template-update programme across the portfolio in the first six months of the new regime.

Can I still include a fixed term of any kind in a new tenancy agreement?

No, not for a new assured tenancy entered into on or after 1 May 2026. Section 1 of the Renters' Rights Act 2025 makes every new assured tenancy periodic from grant, with a maximum rent period of one month. The concept of a fixed term has been removed from the assured tenancy regime in England. A 'tenancy agreement' between landlord and tenant for the dwelling is still required (to evidence the terms, the rent, the property description, and so on), but the document cannot impose a fixed-term commitment on the tenant. Two narrow exceptions remain outside the assured tenancy regime: leases of 7 years or more (which sit under the Law of Property Act 1925 framework), and most company-let / business tenancies. For the assured tenancy population that is the focus of mainstream landlord practice, fixed terms are simply not available.

Are old contractual rent-review clauses just ignored, or do I need to remove them?

Both: they are unenforceable from 1 May 2026 by virtue of section 6(7) of the RRA 2025 (which inserts subsection (4A) into section 13 of the Housing Act 1988), so they have no legal effect, AND you should remove them from the template to avoid the operational confusion that arises when an obsolete clause sits in a current document. The new statutory subsection (13(4A)) restricts rent increases on assured tenancies to three routes only: a section 13 notice under the statutory procedure, a determination by the First-Tier Tribunal Property Chamber under section 14, or a written agreement entered into between the landlord and the tenant after the tenancy has commenced. Contractual rent-review provisions (annual CPI uplift, RPI uplift, percentage step-up at a defined date, index-linked review) sit outside these three routes and are void. The detailed mechanics of the Section 13 alternative are covered in our companion page on the rent-increase procedure linked below.

What is the RRA Information Sheet and what happens if I do not serve it?

Section 49 of the Renters' Rights Act 2025 (and supporting regulations) requires landlords to give every new tenant, at or before the start of an assured tenancy, prescribed information about the tenancy regime and the tenant's rights (the 'RRA Information Sheet' in common usage). The contents are set by regulations but cover: the tenant's right to a written tenancy statement, the rent-increase procedure, the right to request a pet under section 16A of the Housing Act 1988, the deposit protection requirements, and signposting to redress routes. Failure to serve the Information Sheet is a financial-penalty trigger up to £7,000 per breach under the broader section 15 + Schedule 5 framework. The disciplined move is to bundle the Information Sheet with the new tenancy agreement and obtain the tenant's signed acknowledgement of receipt; the acknowledgement should be cross-referenced in a dedicated clause in the agreement itself.

Can I require the tenant to make the first month's rent due before the tenancy starts?

No, not as a contractual term in the tenancy agreement, and no, not as a request made of the tenant outside the agreement either. Section 9 of the RRA 2025 amends the Tenant Fees Act 2019 (inserting new sections 5A and 5B) to prohibit landlords and letting agents from inviting, encouraging, or accepting offers of advance rent payments before the tenancy is entered into. Section 8 of the RRA 2025 (inserting section 4B of the Housing Act 1988) separately voids any contractual term providing for rent to be paid in advance of the due date during the tenancy itself. The narrow permission is for initial rent during the 'permitted pre-tenancy period' (typically the holding-deposit-to-tenancy-start window) under Schedule 2 of the Tenant Fees Act 2019 as cross-referenced by section 4B(8). Any clause in the agreement requiring the tenant to pay 6 months or 12 months rent upfront as a deposit substitute is void and the practice is unlawful in its own right.

Can I include a 'pet damage insurance' condition in a new tenancy agreement?

No. The original Bill version of the Renters' Rights Act contained a pet damage insurance provision (drafted as an exception to the Tenant Fees Act 2019 prohibition on additional charges), but that provision was removed before Royal Assent and is NOT in the enacted Act. The enacted sections 16A and 16B of the Housing Act 1988 (inserted by section 11 of the RRA 2025) say nothing about insurance. The combined effect of the missing exception and the Tenant Fees Act 2019 prohibition on charges beyond the prescribed list is that a landlord cannot make pet insurance a contractual consent condition. The tenant can take out pet insurance voluntarily, but the agreement cannot require it. The landlord's own insurance policy covering pet damage (typical £30 to £80 annual premium uplift over standard cover) is the proper risk-mitigation route, and the premium is fully deductible as a normal landlord insurance expense. The detailed treatment is covered in our pet rights page linked below.

Are blanket 'no pets' clauses void as a matter of law?

Yes for new tenancies entered into on or after 1 May 2026 (because the implied statutory term under section 16A overrides any contractual prohibition), and yes for pre-existing assured tenancies from the date they converted to periodic on 1 May 2026 under SI 2026/421 reg.2. A blanket 'no pets' clause in the tenancy agreement is unenforceable; the tenant has the section 16A right to request consent regardless. The disciplined replacement clause is a pet-consent procedure clause: it sets out that the tenant must request in writing under section 16B(3), the landlord will respond within 28 days under section 16A(1)(c) (subject to the section 16A(2) to (5) extensions), and the landlord may refuse only on the narrow grounds in section 16B(4). A clause along those lines is operationally useful (it sets the expectation) and is also legally accurate.

Can I include a clause restricting subletting?

Yes, with care. A clause requiring the landlord's consent to subletting or assignment is permissible and remains effective; the underlying law on subletting (sections 19 to 19A of the Landlord and Tenant Act 1927 and the common-law principles on assignment) was not changed by the RRA 2025. An absolute prohibition on subletting will normally be construed against the landlord under section 19(1) of the LTA 1927 to require that consent not be unreasonably withheld. A clause permitting consent on stated reasonable conditions (creditworthiness checks, Right to Rent compliance, satisfactory references) is the cleanest drafting. Where the property is an HMO, the subletting clause should be consistent with the HMO licence conditions on occupancy. The Tenant Fees Act 2019 prohibits the landlord from charging more than the reasonable administrative cost of dealing with a subletting / assignment request; lump-sum fees beyond this are prohibited payments.

Should the tenancy agreement reference the PRS Database unique identifier?

Yes, once the database commences. The Private Rented Sector Database in Part 2 Chapter 3 of the RRA 2025 (sections 75 to 96) is enacted but no commencement order has appointed the day as of 22 May 2026. Once commenced, each dwelling will have a unique identifier under section 84, which must appear on all marketing material under section 82. The disciplined drafting move is to leave a placeholder clause in the template ('the Property is registered on the Private Rented Sector Database with unique identifier [X], in accordance with section 82 of the Renters' Rights Act 2025') and populate it once registration goes live. Pre-commencement, the clause can be omitted or marked 'reserved'. The interaction between database registration and possession (section 90 possession bar where landlord is unregistered) is covered in detail in our PRS Database registration page linked below.

Are legal fees for updating my tenancy template deductible against rental income?

Yes, where the fees are revenue in character. Legal fees incurred in updating a tenancy-agreement template to reflect the new statutory regime are operating costs of the rental business and pass the wholly-and-exclusively test in ITTOIA 2005 s.34 (cash basis) or s.272 (accruals, applying trading-profit principles). HMRC's Property Income Manual at PIM2080 (revenue expenses) and PIM2120 (legal and professional fees) treats fees relating to the day-to-day operation of the property letting as revenue. Fees for granting or renewing a tenancy of less than one year (or renewals for shorter periods) are explicitly revenue under PIM2120. Fees relating to the original acquisition of the property, the grant of a long lease, or a substantial capital improvement are capital and not deductible against rental income. A one-off template-update cost across a portfolio (typically £400 to £1,200 for a solicitor-drafted bespoke template, or £100 to £300 for a standard practitioner-template subscription) sits firmly in the revenue category. The deduction is taken in the year of payment under the cash basis or matched to the period under accruals.

Do I need a different template for HMO room-only lets versus whole-house lets?

Yes, in practice. HMO room-only lets typically use a different agreement style covering: the specific room and shared amenities, the rules on use of common parts (kitchen, bathroom, lounge), the basis on which other rooms are let, the licence conditions imposed by the local authority (occupancy density, fire safety, amenity ratios). The underlying tenancy can still be an assured tenancy if the room is let with exclusive possession and the rent is paid for a periodic term; or it can be a non-AT licence agreement where the housekeeping / cleaning service brings it within the 'tenancy at will' / licence boundary. HMO landlords running both room-only and whole-house lets need two templates and clear discipline on which applies. The RRA 2025 changes apply to the AT-based HMO lets in the same way as to whole-house ASTs; the tenancy-form documentation should reflect the section 1 periodic-from-grant default for whichever rooms or units are AT-based.

Should I use the gov.uk model agreement or a bespoke template?

As of 22 May 2026, the gov.uk model agreement for an assured shorthold tenancy has not yet been updated to reflect the RRA 2025 commencement on 1 May 2026; the published version pre-dates the reforms and contains clauses that are now obsolete (Section 21 references, fixed-term provisions, AST-specific language). MHCLG is expected to publish an updated model agreement, but the timing has not been confirmed. In the interim, landlords have two reasonable options: (a) use a current bespoke template from a reputable landlord-association source (NRLA, RLA, BAR) that has been refreshed for the post-1-May-2026 position, or (b) commission a solicitor-drafted bespoke template for the portfolio. Option (a) is cheaper and is appropriate for the standard whole-house AT case; option (b) is appropriate for HMO portfolios, mixed-use properties, leasehold flats in unusual freeholder positions, or any case with non-standard tenancy terms. Sessions managing portfolios should not rely on the pre-2026 gov.uk model until an updated version is published.

Can I include a clause permitting the landlord to enter for routine inspection on 24 hours' notice?

Yes, and the clause is unchanged by the RRA 2025. Section 11(6) of the Landlord and Tenant Act 1985 (the repairing obligations) gives landlords a statutory right of entry on at least 24 hours' written notice at reasonable times of the day for the purpose of inspection. The tenancy agreement can replicate this in a contractual entry clause (typically extending it to cover inspection for compliance purposes more broadly: gas safety, EICR, HHSRS condition, energy assessment) provided the contractual right does not undercut the tenant's underlying right to quiet enjoyment. The RRA 2025 introduced no change to this framework; the clause survives the template update unchanged. Where the landlord wishes to inspect more frequently than would be reasonable for routine purposes, the agreement should set out the trigger (post-incident, post-complaint, post-Improvement-Notice) rather than rely on the general 24-hour-notice clause.

Are end-of-tenancy 'check-out fee' or 'inventory fee' clauses still permitted?

No. The Tenant Fees Act 2019 prohibits the landlord from charging the tenant any sum beyond the prescribed list (rent, refundable tenancy deposit within the 5-week or 6-week cap, refundable holding deposit, default fees in defined circumstances). 'Check-out fees', 'inventory fees', 'professional cleaning fees', 'admin fees', and 'reference fees' charged to the tenant are all prohibited payments and any clause purporting to require them is unenforceable and may attract a financial penalty under the TFA 2019. The landlord can recover the cost of end-of-tenancy professional cleaning from the deposit at end of tenancy where the property has not been returned in the condition required by the agreement; what cannot be done is to require the tenant to pay these costs as a contractual fee. The cost to the landlord of running the inventory, the check-in, and the check-out is a deductible operating cost on the same wholly-and-exclusively basis as letting-agent fees.

Landlord Tax Essentials

Tenancy Agreement Template Update for the Renters' Rights Act 2025: Clause-by-Clause Audit

22 May 2026 · Property Tax Partners Editorial Team · 14 min read

Most landlord tenancy-agreement templates in circulation as of 22 May 2026 are 2018 to 2023 vintage: drafted for the assured shorthold tenancy regime, with fixed-term provisions, Section 21 references, contractual rent-review clauses, advance-rent provisions, and (frequently) pet-related conditions that are now wholly or partly unenforceable. The Renters' Rights Act 2025 did not require a single new mandatory template, but it changed the underlying tenancy law so substantially that the practical answer is the same: every tenancy entered into from 1 May 2026, and every periodic tenancy converted from a pre-existing AST on that date, needs a refreshed template. This page is the clause-by-clause audit. It walks the clauses that must come out (because they are now unenforceable or void), the clauses that should go in (because the new statutory architecture creates duties the contract should reflect), and the clauses that remain valid unchanged (because the underlying obligations sit outside the RRA 2025 in legislation that the Act did not touch). It then sets out the tax treatment of the legal-fee spend on the template update, with worked example clauses for the three most commonly mishandled changes.

A person in business attire using a red pen to edit a printed document at a desk, representing the clause-by-clause audit of a tenancy agreement template

The Renters' Rights Act 2025 did not require a single new mandatory tenancy template, but it changed the underlying assured tenancy regime so substantially that the practical answer is the same: every tenancy entered into from 1 May 2026, and every pre-existing assured shorthold tenancy that converted to periodic on that date under SI 2026/421 reg.2, needs a refreshed template. Most of the 2018 to 2023 vintage templates in circulation as of 22 May 2026 contain clauses that are now unenforceable, void, or unlawful to operate. This page walks the clause-by-clause audit.

For the underlying statutory mechanics, see our companion pages on periodic tenancy default and AST conversion, the Section 13 rent-increase route, pet rights under section 11, PRS Database and Ombudsman registration, and Section 21 abolition and the reformed Section 8 possession process.

Three Categories, One Audit

The template audit splits every clause in a 2018-2023-vintage agreement into one of three categories: clauses that must come out (unenforceable, void, or unlawful to operate); clauses that should go in (new statutory architecture creates duties the contract should reflect); clauses that remain valid unchanged (underlying obligations sit outside the RRA 2025 in legislation the Act did not touch). The third category is larger than the first two combined; the audit is not a wholesale rewrite, it is a targeted update.

Category	Approximate count in a typical template	Action
Remove or replace	8 to 10 clauses	Delete and (where needed) replace with the statutory-compliant equivalent
Add	5 to 7 new clauses	Insert; obtain tenant acknowledgement
Retain unchanged	20 to 25 clauses	Verify wording is current; no substantive change needed

Clauses to Remove or Replace

The unenforceable / void / unlawful clauses fall into eight headline categories. Each is set out below with the underlying statutory reference and the operational consequence of leaving the obsolete clause in the template.

1. Fixed-term and break-clause provisions

Statutory reference: Section 1 RRA 2025 (periodic from grant; maximum one-month rent period). Affected clauses: 'Fixed term of 12 months commencing on [date]', 'minimum term of 6 months', break-clause provisions requiring tenant to give notice by a defined date, fixed-end-date provisions. Action: remove all references to a fixed term or fixed end date. Replace with a periodic clause: 'This tenancy is a periodic assured tenancy granted under section 1 of the Renters' Rights Act 2025 with a monthly rent period. The tenancy continues until ended in accordance with Chapter 1 of Part 1 of the Act.'

2. Section 21 notice references

Statutory reference: Section 2 RRA 2025 (Section 21 abolition for assured tenancies). Affected clauses: 'The landlord may serve a Section 21 notice to recover possession at the end of the fixed term', 'two months written notice under Section 21 HA 1988', references to the Section 21 procedure as a recovery route. Action: remove all references to Section 21. Replace with a reference to the section 8 procedure under the reformed grounds in Schedule 1 to the RRA 2025: 'The landlord may seek possession only in accordance with the section 8 grounds set out in Schedule 1 to the Renters' Rights Act 2025.'

3. Contractual rent-review clauses

Statutory reference: Section 6(7) RRA 2025 inserting Housing Act 1988 section 13(4A). Affected clauses: annual CPI uplift, RPI uplift, percentage step-up at a defined date, index-linked review, market-review by independent surveyor. Action: remove. The new section 13(4A) restricts rent increases on assured tenancies to three routes: section 13 notice procedure, FTT determination under section 14, or post-tenancy written agreement. Replace with a statutory-route clause: 'Any increase in rent will be made only in accordance with the procedure in section 13 of the Housing Act 1988 as amended by the Renters' Rights Act 2025.'

4. In-tenancy advance-rent clauses

Statutory reference: Section 8 RRA 2025 inserting Housing Act 1988 section 4B. Affected clauses: 'Rent payable monthly in advance on the first day of each month' (the 'in advance' wording is now void), '6 months rent payable in advance', any provision for early rent collection. Action: remove the 'in advance' wording. Replace with the rent-due-on-rent-day formulation: 'Rent of £[X] per month is due on the [date] of each month.' Recovery of rent due but unpaid follows the standard rent-arrears procedure; the contract cannot accelerate the due date forward by labelling it 'in advance'.

5. Pre-tenancy advance-rent clauses

Statutory reference: Section 9 RRA 2025 inserting Tenant Fees Act 2019 sections 5A and 5B. Affected clauses: 'First and last month's rent payable on signing', 'security payment of 6 months rent'. Action: remove. The only permissible pre-tenancy payments are a refundable holding deposit (Schedule 2 TFA 2019, capped at one week's rent) and the deposit + initial rent due at tenancy commencement. Section 5A and 5B prohibit landlords and letting agents from inviting, encouraging, or accepting offers of pre-tenancy rent payments. The clause is not only void; operating it is itself a financial-penalty trigger under the TFA 2019.

6. Pet bond, pet rent uplift, and pet damage insurance condition

Statutory reference: Tenant Fees Act 2019 (prohibition on payments beyond the prescribed list); enacted section 11 RRA 2025 (which inserted only HA 1988 sections 16A and 16B; the original Bill's pet damage insurance provision was removed before Royal Assent). Affected clauses: 'Pet bond of £[X] in addition to the deposit', 'pet rent of £[X] per month', 'tenant to take out pet damage insurance as a condition of consent'. Action: remove all three. The deposit cap (5 weeks for properties with annual rent under £50,000; 6 weeks at or above) cannot be exceeded by labelling part of the deposit as a 'pet bond'. A pet-rent uplift on the agreed rent is a prohibited payment. Pet damage insurance cannot be a consent condition under the enacted Act. Replace with a pet-consent procedure clause reflecting section 16A and section 16B as covered in our pet rights page.

7. Blanket 'no pets' clauses

Statutory reference: Section 11 RRA 2025 (the implied statutory term overrides any contractual prohibition). Affected clauses: 'No animal, bird, fish or reptile shall be kept on the premises', 'no pets permitted under any circumstances'. Action: remove the blanket prohibition. Replace with the pet-consent procedure: written request from tenant under section 16B(3), landlord response within 28 days under section 16A(1)(c) (subject to extensions in 16A(2) to (5)), refusal only on the narrow grounds in 16B(4). A landlord retaining a blanket 'no pets' clause is signalling an unreasonable-refusal position from the outset, which is exactly the wrong posture for the post-1-May-2026 regime.

8. Above-asking-offer and rental-bidding clauses

Statutory reference: Chapter 6 of Part 1 RRA 2025 (rental bidding prohibition, in force from 1 May 2026 under SI 2026/421 reg.3). Affected clauses: 'Tenant has offered to pay £[X] above the advertised rent of £[Y]', 'rent agreed at successful bid'. Action: remove. Landlords and letting agents cannot invite or accept offers above the advertised rent during the marketing period; the advertised rent is the statutory ceiling. The detailed mechanics are covered in our marketing-compliance page; for the tenancy-agreement template the action is simply to ensure the agreed rent matches the advertised rent and to remove any reference to bidding, offers, or above-asking premiums.

Clauses to Add

Six new clause categories should appear in any post-1-May-2026 template. Five are required by the new statutory architecture; one (the PRS Database identifier) is forward-looking and activates on database commencement.

1. Periodic-tenancy clause (section 1 RRA 2025)

Set out expressly that the tenancy is a periodic assured tenancy granted under section 1 of the Renters' Rights Act 2025, with a monthly rent period. This anchors the structural form against any future drafting confusion and makes the rent-period basis explicit (the section 1 maximum of one month is the default; longer rent periods are not permitted).

Reflect the statutory mechanic: tenant request in writing with pet description under section 16B(3); landlord response in writing within 28 days under section 16A(1)(c); extension circumstances under section 16A(2) to (5); refusal only on the narrow grounds in section 16B(4). The clause should NOT impose pet insurance, pet bond, or pet rent (all prohibited). Where the property is leasehold and the headlease contains a pet-relevant provision, the clause can flag that superior-landlord consent may be needed (this is the most common reasonable-refusal trigger under section 16B(4)(a)).

3. RRA Information Sheet acknowledgement clause (section 49 RRA 2025 + supporting regulations)

Confirm that the prescribed Information Sheet has been served on the tenant at or before commencement and that the tenant acknowledges receipt. Failure to serve is a financial-penalty trigger up to £7,000 per breach under the broader section 15 + Schedule 5 framework. The acknowledgement clause makes the audit trail clean: signed agreement plus signed receipt of the Information Sheet, in the same documentation pack.

4. How to Rent guide acknowledgement clause

The 'How to Rent' guide must be served on every new tenant. The gov.uk version was updated for 1 May 2026 commencement. The acknowledgement clause confirms service and receipt; like the Information Sheet, the cleanest practice is to serve both documents at the same time and obtain a single signed acknowledgement covering both.

5. Section 13 rent-increase route reference clause

Set out that any rent increase will be made in accordance with the section 13 procedure as amended, that contractual rent-review provisions do not apply, and that the tenant retains the right to challenge a proposed increase at the First-Tier Tribunal Property Chamber under section 14. The clause is not strictly required (the statutory procedure applies regardless) but it pre-empts misunderstanding and reduces the likelihood of a dispute on first proposed increase.

6. PRS Database reference clause (placeholder, activates on commencement)

Reserve a clause for the dwelling's unique identifier under section 84 of the RRA 2025 once Chapter 3 of Part 2 commences. The clause text can sit as 'The Property is registered on the Private Rented Sector Database with unique identifier [reserved]', populated on registration. Pre-commencement, the clause can be marked 'reserved' or omitted entirely. The interaction with possession (section 90 possession bar where landlord is unregistered) is covered in our PRS Database page linked above.

Clauses That Remain Valid Unchanged

The longest category. The underlying obligations were not changed by the RRA 2025; the wording in a current template should be verified for current statutory references but the substantive position is unchanged.

Deposit cap and protection: 5 weeks rent for properties with annual rent under £50,000, 6 weeks at or above (Tenant Fees Act 2019); protection in an authorised scheme within 30 days (Housing Act 2004 Part 6). Prescribed information must be served on the tenant.
Prohibited payments: rent, refundable tenancy deposit, refundable holding deposit (max 1 week), default fees in defined circumstances (Tenant Fees Act 2019). No other charges permitted.
Repair obligations: section 11 Landlord and Tenant Act 1985 (structure, exterior, sanitary fittings, gas and electrical installations, heating and hot water). The Decent Homes Standard extension (Part 3 RRA 2025) sits on top; the underlying section 11 LTA 1985 obligations remain.
Gas safety: annual record by Gas Safe registered engineer (Gas Safety (Installation and Use) Regulations 1998).
EICR: 5-yearly Electrical Installation Condition Report (Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020).
EPC: valid EPC at start of tenancy; minimum E for new tenancies and renewals (MEES Regulations 2015).
Smoke and carbon monoxide alarms: every floor (smoke) and every room with a fixed combustion appliance (CO) (Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022).
Right to Rent: checks on all adult occupants (Immigration Act 2014).
Subletting and assignment: landlord consent not to be unreasonably withheld where the contractual clause is qualified (section 19 Landlord and Tenant Act 1927).
Quiet enjoyment: implied covenant on the landlord (common law).
Access for inspection: at least 24 hours written notice at reasonable times of the day (section 11(6) LTA 1985).

Tax Treatment of the Template-Update Spend

Legal fees on the template update are operating costs of the rental business and pass the wholly-and-exclusively test in ITTOIA 2005 s.34 (cash basis) and s.272 (accruals applying trading-profit principles). HMRC's Property Income Manual at PIM2120 (legal and professional fees) treats fees relating to the day-to-day operation of the rental business as revenue. Fees relating to the grant or renewal of a tenancy of less than one year (or short renewals) are explicitly revenue. Fees relating to the original property acquisition, the grant of a long lease (over 50 years), or a substantial capital improvement are capital and not deductible against rental income.

Spend	Cap or revenue	Deductible?	Notes
Solicitor-drafted bespoke template update (one-off)	Revenue	Yes, in year of payment	£400 to £1,200 typical range; deductible across all properties in the portfolio (apportion if shared with another business)
Subscription to a practitioner-template service (NRLA / RLA / similar)	Revenue	Yes	£100 to £300 per annum typical; treat as recurring professional subscription
Issuing the new agreement to existing tenants on conversion (printing, postage, e-signing platform)	Revenue	Yes	Per-property cost; nominal sums
Service of the RRA Information Sheet + How to Rent guide	Revenue	Yes (the service cost; the documents themselves are free)	Bundle with new-tenancy paperwork
Legal fees on a disputed pet-consent application by a tenant (defence at County Court)	Revenue	Yes (revenue-shape: operational lettings dispute)	Where the landlord has a defensible section 16B(4) position; section 16B(5) court costs may be recoverable in some cases
Legal fees on the original property acquisition or grant of a long lease	Capital	No (adds to base cost for CGT)	Out of scope of the template update; flagged here for the cap-rev boundary

The deduction is taken in the year of payment under the cash basis (default for landlords with gross rental income under £150,000) or matched to the period under accruals. For a typical 4-property portfolio commissioning a bespoke template update at £800, the deduction at higher-rate income tax (40%) produces £320 of tax relief; net cost £480 across the portfolio, or £120 per property. The deductibility framework is the same one developed in detail in our HMO licensing fees deductibility guide; the principles carry across cleanly to any operating-cost legal-fee item.

Three Worked Example Clauses

Annotated illustrations only; landlords should commission a solicitor-drafted bespoke template for portfolio use rather than rely on the wording below as legal advice. Each example shows the obsolete 2018-2023 clause and the corrected 2026 equivalent.

Example 1: Rent payment clause

Obsolete (pre-1 May 2026): 'The Tenant shall pay rent of £1,200 per calendar month in advance, the first such payment to be made on signing this Agreement, and subsequent payments on the first day of each month thereafter.'

Corrected (post-1 May 2026): 'Rent of £1,200 per calendar month is due on the 1st day of each month. The first rent payment is due on [tenancy start date]. Any increase in rent will be made only in accordance with section 13 of the Housing Act 1988 as amended by the Renters' Rights Act 2025.'

What changed: 'in advance' removed (section 4B HA 1988 voids in-tenancy advance-rent terms); 'on signing' removed (section 5A TFA 2019 prohibits pre-tenancy rent collection); rent-review reference added.

Example 2: Pet clause

Obsolete (pre-1 May 2026): 'The Tenant shall not keep any animal, bird, reptile or fish on the Premises without the prior written consent of the Landlord. Where consent is given the Tenant shall pay a pet bond of £300 in addition to the deposit and shall take out pet damage insurance to the Landlord's reasonable satisfaction.'

Corrected (post-1 May 2026): 'The Tenant may request the Landlord's consent to keep a pet at the Premises. Such request shall be made in writing and shall describe the pet (section 16B(3) Housing Act 1988). The Landlord shall give or refuse consent in writing within 28 days of the request, subject to the extensions in section 16A(2) to (5) Housing Act 1988. Consent shall not be unreasonably refused; the Landlord may reasonably refuse only on the grounds set out in section 16B(4) Housing Act 1988 (superior-landlord-agreement breach or superior-landlord refusal after reasonable steps).'

What changed: blanket prohibition removed (overridden by section 16A); pet bond removed (TFA 2019 deposit cap); pet damage insurance removed (the original Bill's exception was deleted before Royal Assent; TFA 2019 prohibition applies).

Example 3: End-of-tenancy clause

Obsolete (pre-1 May 2026): 'The Tenant shall give two months written notice to terminate this tenancy after the fixed term has expired. The Landlord may serve a Section 21 notice at any time after the fixed term to recover possession. On termination the Tenant shall pay a check-out fee of £150 and the cost of professional cleaning at £180.'

Corrected (post-1 May 2026): 'The Tenant may end this tenancy by giving the Landlord two months written notice. The Landlord may seek possession only in accordance with the section 8 grounds set out in Schedule 1 to the Renters' Rights Act 2025. The Tenant shall return the Premises at the end of the tenancy in a condition substantially equivalent to its condition at commencement, fair wear and tear excepted. Recovery of any reasonable end-of-tenancy cleaning or repair costs shall be from the protected deposit, in accordance with the deposit scheme adjudication procedure.'

What changed: fixed-term reference removed (section 1 RRA: periodic from grant); Section 21 reference removed (section 2 RRA: abolished); check-out fee + cleaning fee removed (TFA 2019 prohibited payments); deposit-recovery route substituted as the lawful mechanism.

The Template-Update Programme: One Coordinated Pass

The disciplined posture for the rest of 2026 is to run the template update as a single coordinated programme across the portfolio rather than property-by-property in response to individual tenancy events. The reasoning is operational rather than legal: a single template-update commission produces a single set of solicitor fees (one tax-deduction item); a single document-service exercise produces a single audit trail; a single tenant-acknowledgement cycle produces a clean record across all properties; and a single conversation with each tenant about the new statutory framework is materially easier than fragmented conversations spread over months. The cost of the coordinated programme is modest (the worked example above suggests £120 per property net of higher-rate income tax relief); the operational risk-reduction is substantial.

Sessions advising portfolio landlords should treat the template update as the first item in a broader compliance refresh that also covers the Decent Homes Standard preparation (covered in our compliance checklist), the PRS Database registration readiness (covered in our database registration page), and the Ombudsman membership planning (same page). Treating these as a single connected programme rather than four separate obligations is the cleaner planning posture; the legal-fee cost of the template update is small in the context of the overall compliance set-up cost, and the deductibility framework is the same across all four items.

Frequently asked questions

Do I need to issue a new tenancy agreement to existing tenants when their AST converts on 1 May 2026?: Strictly no, the conversion under SI 2026/421 reg.2 happens automatically by operation of law and does not require a new written agreement. Practically, yes, because the old AST agreement contains terms (fixed-term provisions, Section 21 notice references, contractual rent-review clauses, advance-rent provisions) that are now unenforceable or void. Continuing with the old written agreement leaves the relationship governed by a mix of out-of-date contract terms and the new statutory regime, which produces operational confusion and increases the risk of an enforcement dispute. The disciplined move is to issue a fresh tenancy-agreement document to each converted tenant covering the same property at the same rent on the new statutory basis. The old agreement does not need to be expressly revoked; it is simply superseded by the new one. Sessions advising portfolio landlords should plan the template-update programme across the portfolio in the first six months of the new regime.
Can I still include a fixed term of any kind in a new tenancy agreement?: No, not for a new assured tenancy entered into on or after 1 May 2026. Section 1 of the Renters' Rights Act 2025 makes every new assured tenancy periodic from grant, with a maximum rent period of one month. The concept of a fixed term has been removed from the assured tenancy regime in England. A 'tenancy agreement' between landlord and tenant for the dwelling is still required (to evidence the terms, the rent, the property description, and so on), but the document cannot impose a fixed-term commitment on the tenant. Two narrow exceptions remain outside the assured tenancy regime: leases of 7 years or more (which sit under the Law of Property Act 1925 framework), and most company-let / business tenancies. For the assured tenancy population that is the focus of mainstream landlord practice, fixed terms are simply not available.
Are old contractual rent-review clauses just ignored, or do I need to remove them?: Both: they are unenforceable from 1 May 2026 by virtue of section 6(7) of the RRA 2025 (which inserts subsection (4A) into section 13 of the Housing Act 1988), so they have no legal effect, AND you should remove them from the template to avoid the operational confusion that arises when an obsolete clause sits in a current document. The new statutory subsection (13(4A)) restricts rent increases on assured tenancies to three routes only: a section 13 notice under the statutory procedure, a determination by the First-Tier Tribunal Property Chamber under section 14, or a written agreement entered into between the landlord and the tenant after the tenancy has commenced. Contractual rent-review provisions (annual CPI uplift, RPI uplift, percentage step-up at a defined date, index-linked review) sit outside these three routes and are void. The detailed mechanics of the Section 13 alternative are covered in our companion page on the rent-increase procedure linked below.
What is the RRA Information Sheet and what happens if I do not serve it?: Section 49 of the Renters' Rights Act 2025 (and supporting regulations) requires landlords to give every new tenant, at or before the start of an assured tenancy, prescribed information about the tenancy regime and the tenant's rights (the 'RRA Information Sheet' in common usage). The contents are set by regulations but cover: the tenant's right to a written tenancy statement, the rent-increase procedure, the right to request a pet under section 16A of the Housing Act 1988, the deposit protection requirements, and signposting to redress routes. Failure to serve the Information Sheet is a financial-penalty trigger up to £7,000 per breach under the broader section 15 + Schedule 5 framework. The disciplined move is to bundle the Information Sheet with the new tenancy agreement and obtain the tenant's signed acknowledgement of receipt; the acknowledgement should be cross-referenced in a dedicated clause in the agreement itself.
Can I require the tenant to make the first month's rent due before the tenancy starts?: No, not as a contractual term in the tenancy agreement, and no, not as a request made of the tenant outside the agreement either. Section 9 of the RRA 2025 amends the Tenant Fees Act 2019 (inserting new sections 5A and 5B) to prohibit landlords and letting agents from inviting, encouraging, or accepting offers of advance rent payments before the tenancy is entered into. Section 8 of the RRA 2025 (inserting section 4B of the Housing Act 1988) separately voids any contractual term providing for rent to be paid in advance of the due date during the tenancy itself. The narrow permission is for initial rent during the 'permitted pre-tenancy period' (typically the holding-deposit-to-tenancy-start window) under Schedule 2 of the Tenant Fees Act 2019 as cross-referenced by section 4B(8). Any clause in the agreement requiring the tenant to pay 6 months or 12 months rent upfront as a deposit substitute is void and the practice is unlawful in its own right.
Can I include a 'pet damage insurance' condition in a new tenancy agreement?: No. The original Bill version of the Renters' Rights Act contained a pet damage insurance provision (drafted as an exception to the Tenant Fees Act 2019 prohibition on additional charges), but that provision was removed before Royal Assent and is NOT in the enacted Act. The enacted sections 16A and 16B of the Housing Act 1988 (inserted by section 11 of the RRA 2025) say nothing about insurance. The combined effect of the missing exception and the Tenant Fees Act 2019 prohibition on charges beyond the prescribed list is that a landlord cannot make pet insurance a contractual consent condition. The tenant can take out pet insurance voluntarily, but the agreement cannot require it. The landlord's own insurance policy covering pet damage (typical £30 to £80 annual premium uplift over standard cover) is the proper risk-mitigation route, and the premium is fully deductible as a normal landlord insurance expense. The detailed treatment is covered in our pet rights page linked below.
Are blanket 'no pets' clauses void as a matter of law?: Yes for new tenancies entered into on or after 1 May 2026 (because the implied statutory term under section 16A overrides any contractual prohibition), and yes for pre-existing assured tenancies from the date they converted to periodic on 1 May 2026 under SI 2026/421 reg.2. A blanket 'no pets' clause in the tenancy agreement is unenforceable; the tenant has the section 16A right to request consent regardless. The disciplined replacement clause is a pet-consent procedure clause: it sets out that the tenant must request in writing under section 16B(3), the landlord will respond within 28 days under section 16A(1)(c) (subject to the section 16A(2) to (5) extensions), and the landlord may refuse only on the narrow grounds in section 16B(4). A clause along those lines is operationally useful (it sets the expectation) and is also legally accurate.
Can I include a clause restricting subletting?: Yes, with care. A clause requiring the landlord's consent to subletting or assignment is permissible and remains effective; the underlying law on subletting (sections 19 to 19A of the Landlord and Tenant Act 1927 and the common-law principles on assignment) was not changed by the RRA 2025. An absolute prohibition on subletting will normally be construed against the landlord under section 19(1) of the LTA 1927 to require that consent not be unreasonably withheld. A clause permitting consent on stated reasonable conditions (creditworthiness checks, Right to Rent compliance, satisfactory references) is the cleanest drafting. Where the property is an HMO, the subletting clause should be consistent with the HMO licence conditions on occupancy. The Tenant Fees Act 2019 prohibits the landlord from charging more than the reasonable administrative cost of dealing with a subletting / assignment request; lump-sum fees beyond this are prohibited payments.
Should the tenancy agreement reference the PRS Database unique identifier?: Yes, once the database commences. The Private Rented Sector Database in Part 2 Chapter 3 of the RRA 2025 (sections 75 to 96) is enacted but no commencement order has appointed the day as of 22 May 2026. Once commenced, each dwelling will have a unique identifier under section 84, which must appear on all marketing material under section 82. The disciplined drafting move is to leave a placeholder clause in the template ('the Property is registered on the Private Rented Sector Database with unique identifier [X], in accordance with section 82 of the Renters' Rights Act 2025') and populate it once registration goes live. Pre-commencement, the clause can be omitted or marked 'reserved'. The interaction between database registration and possession (section 90 possession bar where landlord is unregistered) is covered in detail in our PRS Database registration page linked below.
Are legal fees for updating my tenancy template deductible against rental income?: Yes, where the fees are revenue in character. Legal fees incurred in updating a tenancy-agreement template to reflect the new statutory regime are operating costs of the rental business and pass the wholly-and-exclusively test in ITTOIA 2005 s.34 (cash basis) or s.272 (accruals, applying trading-profit principles). HMRC's Property Income Manual at PIM2080 (revenue expenses) and PIM2120 (legal and professional fees) treats fees relating to the day-to-day operation of the property letting as revenue. Fees for granting or renewing a tenancy of less than one year (or renewals for shorter periods) are explicitly revenue under PIM2120. Fees relating to the original acquisition of the property, the grant of a long lease, or a substantial capital improvement are capital and not deductible against rental income. A one-off template-update cost across a portfolio (typically £400 to £1,200 for a solicitor-drafted bespoke template, or £100 to £300 for a standard practitioner-template subscription) sits firmly in the revenue category. The deduction is taken in the year of payment under the cash basis or matched to the period under accruals.
Do I need a different template for HMO room-only lets versus whole-house lets?: Yes, in practice. HMO room-only lets typically use a different agreement style covering: the specific room and shared amenities, the rules on use of common parts (kitchen, bathroom, lounge), the basis on which other rooms are let, the licence conditions imposed by the local authority (occupancy density, fire safety, amenity ratios). The underlying tenancy can still be an assured tenancy if the room is let with exclusive possession and the rent is paid for a periodic term; or it can be a non-AT licence agreement where the housekeeping / cleaning service brings it within the 'tenancy at will' / licence boundary. HMO landlords running both room-only and whole-house lets need two templates and clear discipline on which applies. The RRA 2025 changes apply to the AT-based HMO lets in the same way as to whole-house ASTs; the tenancy-form documentation should reflect the section 1 periodic-from-grant default for whichever rooms or units are AT-based.
Should I use the gov.uk model agreement or a bespoke template?: As of 22 May 2026, the gov.uk model agreement for an assured shorthold tenancy has not yet been updated to reflect the RRA 2025 commencement on 1 May 2026; the published version pre-dates the reforms and contains clauses that are now obsolete (Section 21 references, fixed-term provisions, AST-specific language). MHCLG is expected to publish an updated model agreement, but the timing has not been confirmed. In the interim, landlords have two reasonable options: (a) use a current bespoke template from a reputable landlord-association source (NRLA, RLA, BAR) that has been refreshed for the post-1-May-2026 position, or (b) commission a solicitor-drafted bespoke template for the portfolio. Option (a) is cheaper and is appropriate for the standard whole-house AT case; option (b) is appropriate for HMO portfolios, mixed-use properties, leasehold flats in unusual freeholder positions, or any case with non-standard tenancy terms. Sessions managing portfolios should not rely on the pre-2026 gov.uk model until an updated version is published.
Can I include a clause permitting the landlord to enter for routine inspection on 24 hours' notice?: Yes, and the clause is unchanged by the RRA 2025. Section 11(6) of the Landlord and Tenant Act 1985 (the repairing obligations) gives landlords a statutory right of entry on at least 24 hours' written notice at reasonable times of the day for the purpose of inspection. The tenancy agreement can replicate this in a contractual entry clause (typically extending it to cover inspection for compliance purposes more broadly: gas safety, EICR, HHSRS condition, energy assessment) provided the contractual right does not undercut the tenant's underlying right to quiet enjoyment. The RRA 2025 introduced no change to this framework; the clause survives the template update unchanged. Where the landlord wishes to inspect more frequently than would be reasonable for routine purposes, the agreement should set out the trigger (post-incident, post-complaint, post-Improvement-Notice) rather than rely on the general 24-hour-notice clause.
Are end-of-tenancy 'check-out fee' or 'inventory fee' clauses still permitted?: No. The Tenant Fees Act 2019 prohibits the landlord from charging the tenant any sum beyond the prescribed list (rent, refundable tenancy deposit within the 5-week or 6-week cap, refundable holding deposit, default fees in defined circumstances). 'Check-out fees', 'inventory fees', 'professional cleaning fees', 'admin fees', and 'reference fees' charged to the tenant are all prohibited payments and any clause purporting to require them is unenforceable and may attract a financial penalty under the TFA 2019. The landlord can recover the cost of end-of-tenancy professional cleaning from the deposit at end of tenancy where the property has not been returned in the condition required by the agreement; what cannot be done is to require the tenant to pay these costs as a contractual fee. The cost to the landlord of running the inventory, the check-in, and the check-out is a deductible operating cost on the same wholly-and-exclusively basis as letting-agent fees.

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Tenancy Agreement Template Update for the Renters' Rights Act 2025: Clause-by-Clause Audit

Three Categories, One Audit

Clauses to Remove or Replace

1. Fixed-term and break-clause provisions

2. Section 21 notice references

3. Contractual rent-review clauses

4. In-tenancy advance-rent clauses

5. Pre-tenancy advance-rent clauses

6. Pet bond, pet rent uplift, and pet damage insurance condition

7. Blanket 'no pets' clauses

8. Above-asking-offer and rental-bidding clauses

Clauses to Add

1. Periodic-tenancy clause (section 1 RRA 2025)

3. RRA Information Sheet acknowledgement clause (section 49 RRA 2025 + supporting regulations)

4. How to Rent guide acknowledgement clause

5. Section 13 rent-increase route reference clause

6. PRS Database reference clause (placeholder, activates on commencement)

Clauses That Remain Valid Unchanged

Tax Treatment of the Template-Update Spend

Three Worked Example Clauses

Example 1: Rent payment clause

Example 2: Pet clause

Example 3: End-of-tenancy clause

The Template-Update Programme: One Coordinated Pass

Frequently asked questions

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Three Categories, One Audit

Clauses to Remove or Replace

1. Fixed-term and break-clause provisions

2. Section 21 notice references

3. Contractual rent-review clauses

4. In-tenancy advance-rent clauses

5. Pre-tenancy advance-rent clauses

6. Pet bond, pet rent uplift, and pet damage insurance condition

7. Blanket 'no pets' clauses

8. Above-asking-offer and rental-bidding clauses

Clauses to Add

1. Periodic-tenancy clause (section 1 RRA 2025)

2. Pet consent procedure clause (sections 16A and 16B HA 1988)

3. RRA Information Sheet acknowledgement clause (section 49 RRA 2025 + supporting regulations)

4. How to Rent guide acknowledgement clause

5. Section 13 rent-increase route reference clause

6. PRS Database reference clause (placeholder, activates on commencement)

Clauses That Remain Valid Unchanged

Tax Treatment of the Template-Update Spend

Three Worked Example Clauses

Example 1: Rent payment clause

Example 2: Pet clause

Example 3: End-of-tenancy clause

The Template-Update Programme: One Coordinated Pass

Frequently asked questions

Need help with your property tax?

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Rental Bidding Ban and Advance-Rent Prohibition: Landlord and Agent Marketing Compliance Under the Renters' Rights Act 2025

The Decent Homes Standard for the PRS: A Landlord Compliance Checklist (May 2026 Status)

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