How important is it to have a lease in place. My tenants have been in house for 5 years. The lease expired in April. I did not renew it as there was a possibility they were going to move. It was a house share between 3 with one lease holder. One person moved out and they could not find a house mate but decided to keep the house on between 2 at a reduced rent. The situation now is that one of the 2 is looking for anothe place (I have provided a reference for her) The remaining girl - the original leaseholder is looking for new house mates but having no luck. Hence with all this uncertainty I have not renewed the lease. She has been a good tenant and I want to be fair to her and even if she did need to break the lease I would be fine with it and give back deposit no problem. Even in these circumstances should I have a lease in place?