Creating a tenancy by conduct *

Warning — Creating a Tenancy by Conduct

✓ PIMS Renters’ Rights Compliant

A tenancy can be created by what the parties do, not just by what they sign. If a landlord gives occupation, hands over keys, accepts rent or behaves as though the person is the tenant, a binding tenancy may arise even where the paperwork is incomplete, unsigned or wrong.

The danger: the tenancy may start before the landlord is protected

In law, a tenancy can arise from conduct where the occupier is given possession of the property and rent is accepted. The landlord may think they are still “sorting out paperwork”, but the occupier may already have legal rights.

From 1 May 2026, this risk is even more serious because assured tenancies in England must fit the Renters’ Rights framework. Old fixed-term AST assumptions, Section 21 thinking and informal move-in arrangements can create expensive problems.

PIMS warning — do not let the tenant move in first and “sort it later”

Once keys are released, rent is accepted, or the occupier is allowed to treat the property as their home, the landlord may have created the tenancy by conduct. If the agreement, guarantor, deposit, prescribed information, Right to Rent checks or rent structure are not ready, the landlord may have lost control before the tenancy has even properly begun.

What can create the tenancy?

1. Handing over keys

Giving keys is powerful evidence that possession has been granted. Once the occupier can exclude others and use the property as their home, the landlord may struggle to argue there is no tenancy.

2. Accepting rent

Accepting rent can show that the landlord has accepted the occupier as tenant. This is especially risky where the written agreement has not yet been signed.

3. Allowing occupation

Letting someone move in before the documents are complete may create the legal relationship first and leave the landlord trying to fix the paperwork afterwards.

4. Casual arrangements with friends or family

Informal arrangements are particularly dangerous. A landlord may think they are helping someone temporarily, but if rent and occupation are present, a tenancy may be created.

What goes wrong?

1. Wrong agreement or no signed agreement

The landlord may be left with a tenancy but no properly completed agreement setting out rent, bills, obligations, notices, guarantor terms or Renters’ Rights compliant wording.

2. Deposit protection problems

If a deposit is taken, the protection and prescribed information requirements must be handled correctly. A tenancy created earlier than expected can affect the timing and evidence.

3. Guarantor protection may fail

If the guarantor deed is signed after the tenancy has already started, or the guarantor has not seen the correct agreement, the landlord may face enforceability arguments.

4. Rent in advance risk

From 1 May 2026, landlords must be careful not to take or accept rent before the agreement is entered into, and must not demand more than one month’s rent at a time after the agreement is signed.

Why this matters more under Renters’ Rights

1. The old AST safety net is gone

After 1 May 2026, assured tenancy agreements cannot have an old-style fixed term or set end date. The tenancy must work as an assured periodic tenancy from the start.

2. Section 21 cannot be relied upon

A landlord who accidentally creates a tenancy cannot rely on old Section 21 thinking to recover possession. Possession must follow the correct statutory route.

3. Rent and payment rules are stricter

Rent in advance, bidding and rent increase rules must be handled correctly. An informal start can make the rent history and legal evidence messy.

4. Evidence matters

If a dispute arises, the landlord needs a clear evidence trail showing when the tenancy was entered into, what was signed, what money was taken, what documents were served and what checks were completed.

PIMS checklist before keys are released

✓ Agreement and money

PIMS tenancy agreement generated.
All tenants named correctly.
All tenants have signed.
Rent amount and rent day confirmed.
No rent taken before the agreement is entered into.
No more than one month’s rent in advance accepted.

✓ Protection documents

Deposit cap checked.
Deposit protection process ready.
Prescribed information prepared.
Guarantor deed completed before occupation.
Inventory / check-in arranged.
Right to Rent and safety compliance checked.

Common landlord mistakes

“They can move in while we finish the paperwork.”

This is one of the most dangerous assumptions. If occupation begins and rent is accepted, the tenancy may already exist.

“The guarantor can sign later.”

A guarantor should be fully engaged before the tenancy is granted. Late guarantor paperwork may be challenged.

“The deposit can be sorted next week.”

Deposit timing and evidence matter. Landlords should not allow the tenancy to start casually and then try to reconstruct the compliance trail.

“It is only temporary.”

Temporary arrangements can still create legal rights. If the person has occupation and rent is paid, the landlord must be extremely careful.

Do not release keys until the agreement is ready

Use the PIMS Tenancy Wizard before occupation starts. If the tenant has not been checked, use PIMS checks before committing to the tenancy.

Create PIMS Tenancy Agreement Join PIMS Members’ Helpline

PIMS final rule:

Do not let conduct create the tenancy before the paperwork protects you. Agreement first, checks first, guarantor first, deposit process first — then keys.