How to amend an existing tenancy agreement: A step-by-step guide for landlords

Changing an existing tenancy agreement must be done right. Properly recording the changes protects landlords from accidentally invalidating a contract or breaching a tenant’s rights.

In this article, we’ll explain how to change an existing tenancy agreement step-by-step and offer guidance on the most important elements to consider.

Can a landlord change a tenancy agreement?

Landlords can change a tenancy agreement during the middle of the tenancy but only when both parties agree to the new terms. Otherwise, you can’t proceed.

Changes can relate to things like:

• Changes in payment date
• Rent increases
• New occupants moving in
• Change of occupier in a joint tenancy
• Keeping a pet at the property
• Allowing the tenant to make certain renovations

When the tenant requests the change, you can make the amendment if you also agree to the new terms.

Any changes made to a tenancy agreement must be considered lawful. Making an “unfair” change to a tenancy agreement will invalidate the contract.

How to amend an existing tenancy agreement: Step-by-step

Amending an existing tenancy agreement is relatively straightforward. Landlords must contact the tenant, gain their agreement and record the change formally to make it legally binding.

Keep reading to learn how to amend a tenancy agreement step-by-step.

1. Contact the tenant

Write to the tenant or ask a letting agent to notify your tenant about the amendments you wish to make.

At least two months’ notice should be given before implementing changes to a tenancy agreement. Less notice can be given, provided the tenant agrees to it.

2. Negotiate the new terms as needed

If the tenant doesn’t agree, you may need to negotiate the terms or consider any special requests they need from you in order to accommodate the change.

Remember, tenants must agree to the changes, so it’s important to be accommodating if they need something to make the change possible.

3. Decide how to issue the amendment

When amending a tenancy agreement, you have two options. You can either:

• Create a new tenancy agreement with the change included
• Issue an amendment to the existing tenancy agreement

If the existing contract is coming to an end soon, ask the tenant if they plan on staying any longer. If so, it can be beneficial to draw up a new tenancy agreement.

When the tenancy agreement has a long period left, issuing an amendment may be more straightforward.

4. Get signatures

The landlord and the tenant must both sign the amendment or the new tenancy agreement.

5. Update paperwork or online records

Make sure to update your records as needed.

If using a renting management software, like Rentila, to manage your tenancy, make sure the updates are managed via the app or updated on the system.

When using paper documents, the amendment should be stapled to the original tenancy agreement and scanned for your records.

When should landlords make changes to a tenancy agreement?

Changes to tenancy agreements should be infrequent to allow a tenant the right to quiet enjoyment of the property. Ideally, amendments should only be proposed when the tenancy is coming to an end in the next 1-3 months.

However, when a change is urgent or upon the tenant’s request, you can amend the agreement at any stage of the tenancy. Amending a tenancy can be disruptive to a tenant’s life, so bear this in mind when asking your tenant to agree to changes.

Can you charge a tenant for changes to a tenancy agreement?

Landlords cannot charge a tenant for amendments when the landlord is the one requesting the change.

For example, if the landlord requests a change in payment date or rent increase and the tenant agrees, the landlord must fund the costs of changing the agreement.

Tenants can request changes to the tenancy, like a change in the payment date.

In these instances, you can charge the tenant up to £50 for tenancy amendments, as per the Tenant Fees Act 2019.

You can only charge more than this if you have a “good reason” and you can evidence that the change costs more than £50.

Do you need to renew a tenancy agreement?

No. Landlords don’t need to renew tenancy agreements when the fixed term comes to an end. There is no legal requirement to do so, but there are some benefits to landlords in renewing.

When landlords don’t renew a tenancy agreement, the tenancy moves to a rolling contract (legally called a periodic tenancy). A periodic tenancy can be ended at any time with just a month’s notice.

Why should landlords renew a tenancy agreement?

While it isn’t necessary, landlords can renew a tenancy agreement at the end of a fixed term if they choose to or if a tenant requests it.

Renewing a tenancy agreement can be beneficial for landlords as it offers the opportunity for:

• Income security – Setting a new fixed term provides income security for landlords by ensuring they get, for example, 2 more years of rent
• Minimised voids – Landlords get more notice if a tenant plans on moving out, minimising the risk of a property staying empty for long periods
• Increased rent – Renewing a tenancy agreement creates an opportunity for landlords to review rent and propose an increase

Some landlords choose not to renew a tenancy agreement due to the admin costs charged by a letting agent. Or if the tenant plans to move out soon, but doesn’t have a moving date yet.

As part of the Tenant Fees Act 2019, landlords and letting agents are not allowed to pass tenancy renewal fees on to the tenant. Landlords must therefore fund the costs of renewal themselves.

FAQs

Should I amend a tenancy agreement?

Amending the tenancy agreement can be disruptive to your tenant’s life, particularly if this isn’t the first time you’ve needed to change it.

So, it’s best to avoid changing an existing tenancy agreement unless it’s absolutely necessary. Otherwise, you may be unnecessarily interfering in the tenant’s life and breaching their right to privacy.

When a change is required, consider whether it’s urgent or if it can wait until the end of the fixed term.

It’s good practice to avoid changing a tenancy agreement during the fixed-term period. If you want to make changes, you should ideally wait until the tenancy is coming to an end before proposing the changes.

Can you put up rent without a new tenancy agreement?

You don’t necessarily need a new tenancy agreement to increase rent. When a fixed-term tenancy expires, it automatically moves to a periodic tenancy. This can be ended at any time with a month’s notice.

Provided the tenant agrees to the rent increase and it’s considered fair, you can put up rent on a periodic tenancy without issuing a new tenancy agreement.

If you have a rent review clause in the tenancy agreement that stipulates, for example, a bi-annual increase in rent, you can put up rent without the tenant’s agreement.

However, make sure the increase is reasonable and in line with local market rates. Proposing an ‘unfair’ increase in rent can be challenged by your tenant, regardless of what the rent review clause stipulates in the original tenancy agreement.

An amendment should be issued to record the increase in rent. This protects landlords in the event the tenant stops paying.

Using a rental management software, like Rentila, makes amending tenancy agreements and issuing rent increases easier and more transparent.

What invalidates a tenancy agreement?

A tenancy agreement is legally binding but it can be invalidated if it contains illegal, unreasonable, or unfair clauses. Tenants are required certain rights by law and a tenancy agreement cannot contradict these rights.

For example, a tenant has a right to privacy in a rental property and therefore the landlord cannot enter without notice or good reason. An agreement that contradicts these rights is invalid and will be deemed as such if challenged in court.

Landlords also have certain responsibilities by law and these duties cannot be passed on to the tenant in a tenancy agreement.

For example, certain repairs must be completed and paid for by the landlord. Requiring a tenant to do/pay for these can invalidate the tenancy agreement.

Amending a tenancy agreement: Things to remember

• You can amend a tenancy agreement at any time if it’s urgent, but it’s best to wait until the fixed term is nearing its end to avoid disruption to the tenant.
• Landlords should issue an amendment or a new tenancy agreement to formally record changes to an existing agreement.
• When a fixed-term agreement ends, landlords don’t legally have to renew a tenancy agreement and the contract automatically moves to a periodic tenancy, but there are benefits to renewing.
• Tenancy agreement renewal charges cannot be passed on to the tenant, but if the tenant requests a change in contract, a maximum fee of £50 can be charged.

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