The rights and liabilities of tenants in common

With the implementation of the Renters’ Rights Act 2026, the distinction between joint tenancies and tenancies in common is important to understand for landlords managing multi-occupant properties. If you’re renting out your property to a group of tenants, you need to educate yourself on the rights and liabilities of a tenants in common model. Typically, joint tenancy is the standard for families, but the tenants in common (TIC) model is becoming increasingly popular for room-by-room lets. 

Here, we’ll go through the tenant in common rights and liabilities that you could face as a landlord, and we will explain how you can manage rent collection efficiently under this arrangement.  

What is a Tenant in Common (TIC) model?

Within a rental context, a TIC model is used when two or more people live in the same property but have different interests in the property. This tenancy agreement treats each tenant as an individual who shares a roof with another tenant. 

The key legal differences between a Joint Tenancy and a TIC

• Shares vs. the whole: In a joint tenancy, each tenant owns 100% of the property’s usage, whereas in a TIC, tenants can have equal or unequal shares of the rental responsibility. This means that one tenant could pay 40% of the rent, while the other pays 60%. 
• No right of survivorship: If a tenant passes away in a joint tenancy, their interest will go to the other tenants automatically. If a tenant in common passes away, however, their share of the tenancy passes to their estate or heirs. So, as a landlord, you need to ensure that you have clear succession clauses in place. 

Handling tenants in common rights and liabilities

The tenants in common rights and liabilities are quite different compared to a joint tenancy agreement. 

The liability shift

In a standard joint tenancy, if one tenant disappears without paying, you’ll be able to legally demand the full rent from the remaining tenants. However, in a TIC or a separate room-by-room agreement, you’ll most likely lose this safety net. 

• Individual liability: Usually, each tenant is only responsible for their specific portion of the rent. 
• Communal responsibilities: The liabilities for damage to the communal areas in a rental property can be a grey area. You need to ensure that you have a communal damage clause in your tenancy agreement. You could find it difficult to deduct from the right deposit if the tenant who caused the damage cannot be identified. 

Possession and the Renters’ Rights Act 2026

As of May 2026, you’ll need to rely on Section 8 grounds in order to gain possession of your property. This is due to the abolition of the Section 21 ‘no-fault’ evictions. When looking at the rights and liabilities of a tenants in common agreement, this may become tricky due to handling various tenants in one property. 

For example, under the new 2026 regulations, the mandatory threshold for eviction is 3 months of rent in arrears. So, if you have four tenants in common and only one stops paying, you’ll only be able to evict the specific tenant who hasn’t been paying. Legally, you won’t be able to evict the other three tenants.  

Managing rent collection in a TIC environment

Having to manage separate rental payments may begin to prove difficult in a TIC environment, but with the new Making Tax Digital (MTD) requirements, it is extremely important to remain on top of your finances. 

Use automated collection software

Make sure that you use MTD-compliant software that will allow you to do the following: 

1. Individual portals: Ensure the software you use caters to individual profiles where each tenant sees only their balance.  
2. Automated reminders: Ensure the system sends individual reminders to your tenants when their rent is late. This way, you won’t have to worry about the tenants who are on time with their payments. 
3. Direct reporting: using these apps will directly feed into your 2026 digital tax account, which will help you save time on bookkeeping. 

Having a lead tenant

It’s always a good idea to have a lead tenant in a tenant in common setup who can act as an administrative lead. This is not mandatory, but it is extremely useful when it comes to managing multiple tenancy agreements.     

Keep in mind, however, that you will still need to serve a Section 13 Rent Increase Notice to each individual tenant. Also, under the new 2026 Act, rent can only be increased on an annual basis, and in a TIC setup, these rental increases need to be synchronised to avoid a staggered income stream. 

How can you protect your interests as a landlord?

It’s always a good idea to build in extra layers of protection if you choose to let the remnants as Tenants in Common. Here’s how: 

Individual guarantors are mandatory

You have no plan B when it comes to a TIC setup because there is no ‘Joint and Several Liability’, so there is no backup tenant to pay the rent. With this in mind, every Tenant in Common should provide you with a UK-based guarantor so that, in the event of rent arrears, you’ll be able to contact the guarantor for the rent. 

The written statement of terms

From May 2026, you’ll need to provide a Written Statement of Terms within 28 days of the start of the tenancy. When it comes to a TIC setup, you’ll need to explicitly state the following:  

• The specific room or “share” of the property they are entitled to.
• The exact monthly rent for that share.
• The specific notice period (this is now a standard 2 months for tenants under the 2026 Act).

TIC vs. joint tenancy

Here’s a summary of the different rights and liabilities of tenants in common compared to joint tenancies: 

The tenants in common rights and liabilities framework offers flexibility for those who want to be able to remain independent from other tenants within a house-share setup. This is especially beneficial from a financial point of view if other tenants are late in paying their rent. As a landlord, however, you’ll need to keep on top of your administrative duties, especially income tax. 

By putting in the effort to use individual guarantors and to be compliant with MTD, you’ll be able to mitigate as much risk as possible when it comes to the TIC model, while enjoying the financial benefits that come with it. 

Are you looking for landlord insurance to help protect your rental property? Get in touch with our team of specialists at CIA Landlords to get your tailored quote on 01788 818 670. Also, be sure to visit our advice centre for more information on how to manage your rental property.