HMO Property Management in Liverpool: What Tenancy Agreement do I Need for a HMO?
Choosing the right tenancy agreement is one of the most important decisions an HMO landlord makes, and the Renters’ Rights Act has changed the rules. Since 1 May 2026, ASTs and fixed terms have gone, and HMO tenancies are now assured periodic tenancies.
Here we explain which tenancy structure suits your HMO, and what your agreement needs to include to protect you, your tenants and your property in Liverpool.
The tenancy type: assured periodic
Since the Renters’ Rights Act came into force on 1 May 2026, most private tenancies in England, HMOs included, are assured periodic tenancies. Assured shorthold tenancies (ASTs) and fixed terms no longer apply. The tenancy rolls on from one rent period to the next until the tenant gives two months’ notice or the landlord gains possession using a Section 8 ground.
You also need to give tenants the key terms of the tenancy in writing. Using an agreement drafted for the old AST rules, with fixed terms, break clauses or Section 21 wording, risks confusing tenants and undermining your position, so now is the time to update your paperwork.
Joint tenancy or room-by-room?
The biggest decision for an HMO is how to structure the letting:
- Joint tenancy: all occupiers sign one agreement and share responsibility for the whole property and the rent. This suits groups of students or friends moving in together. With a joint tenancy, one tenant giving notice ends the tenancy for everyone.
- Individual room tenancies: each tenant has their own agreement for their room, plus shared use of communal areas. This suits professional HMOs where tenants don’t know each other, and lets you re-let rooms one at a time.
Both are assured periodic tenancies under the Act, so each tenant on a room-by-room let can leave on two months’ notice.
What your HMO tenancy agreement should include
1 – All parties’ personal details
The full names of the landlord and every tenant, plus contact details and an address in England or Wales where notices can be served on the landlord. Include your managing agent’s details if you use one.
2 – The property details
The full address, and for room lets, exactly which room the tenant has exclusive use of and which communal areas (kitchen, bathrooms, living space, garden) are shared. Include an inventory and schedule of condition with photographs.
3 – Deposit information
The deposit amount, capped at five weeks’ rent where annual rent is under £50,000, and which government-approved scheme protects it. The deposit must be protected and the prescribed information given within 30 days of receipt.
4 – The rent
The rent amount, the rent period (weekly or monthly), the payment date and method, and what the rent includes, such as bills, broadband or cleaning. Rent increases now follow the Section 13 process (once a year, with at least two months’ notice), so remove any rent review clauses. You also can’t ask for several months’ rent in advance.
5 – List of landlord obligations
Set out your responsibilities: repairs, gas and electrical safety, fire safety in line with HMO management regulations, maintaining communal areas, and meeting your HMO licence conditions. Liverpool City Council’s licensing conditions apply alongside the Act.
6 – Tenant behaviour guidelines
Clear house rules help shared living run smoothly. Cover cleaning rotas, noise, guests, smoking, recycling and bins, and use of shared spaces. Explain how the property’s fire safety measures should be used and how issues should be reported. Tenants can ask to keep a pet, and you can’t unreasonably refuse, so include a process for requests rather than a blanket ban.
7 – Access and notice periods
State how much notice you’ll give before visiting, normally at least 24 hours in writing except in emergencies, and how inspections and repairs will be arranged. Also set out how the tenancy can end:
- Tenants can end the tenancy with two months’ notice.
- The landlord can only seek possession using a Section 8 ground, with the correct notice period.
- For student HMOs, if you may want to use Ground 4A to regain possession over the summer, tenants must be told in writing before the tenancy starts.
Get your HMO paperwork right
A well-drafted tenancy agreement protects you, your tenants and your property, and it’s one of the first things a court or council will look at if something goes wrong. If you’d like help setting up compliant HMO tenancies in Liverpool, contact Portus Lets on 0151 329 3538 or email hello@portuslets.co.uk.