The verbal agreement trap that cost a landlord dearly

It all started with trust. The landlord had let to the tenant before, so when they asked to extend their stay, he agreed on the spot. No paperwork was signed, no dates or clauses were written down, just a friendly handshake and the tenant’s word that the rent would continue monthly “as usual.” For several months, everything seemed fine — until the tenant stopped paying. With no written agreement, the landlord quickly discovered that enforcing terms was far harder than expected.

Legally, a tenancy can exist without a written agreement, but proving what was agreed becomes almost impossible. Courts and deposit schemes need evidence, and in the absence of documentation, the tenant’s version often carries as much weight as the landlord’s. The lack of clarity can undermine possession notices, rent arrears claims, and even deposit disputes. In this case, by the time lawyers became involved, the arrears had mounted and the landlord’s position was weakened by the absence of signed paperwork.

The lesson is clear: even if you know your tenant and have a good relationship, never rely solely on verbal agreements. A simple written addendum or a new AST can protect both parties and ensure clarity about rent, dates and responsibilities. Trust may be the foundation of the relationship, but paperwork is the structure that keeps it standing when things go wrong.

What do you think?

Have you ever relied on a handshake or verbal agreement with a tenant? Did it work out, or did it backfire? Share your experiences below.

Source: Gov.uk guidance on tenancy agreements

Previous articles in this series

Landlord Lessons: The AST date mistake

Landlord Lessons: The missing inventory