Licence Agreement vs Tenancy Agreement: Complete Guide

The legal status of whether an agreement is a tenancy, or a licence makes a significant difference, as they represent two separate types of contracts. When determining which type of agreement to use in a particular situation, several factors must be taken into consideration. The distinction between licences and tenancy agreements is particularly important in the student accommodation sector.

What is a tenancy agreement?

A tenancy is a legal interest in land for a set period of time, providing the tenant the exclusive legal right to occupy a property.

The key features of a tenancy include:

• Exclusive possession: This grants the tenant the right to prevent others, including the landlord, from entering the rented premises without their permission. The tenancy agreement will usually give the landlord a right to be given access by the tenant in certain circumstances, usually with a requirement that the landlord first gives notice.