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May
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2008
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What is an Assured Shorthold Tenancy Agreement?
This is the most common type of agreement (contract) between landlord and tenant- the majority of landlords won’t use any other type of agreement. It’s a contract between landlord and tenant for a residential property which sets out the duties and responsibilities of the (non resident) landlord and tenant. Ultimately, it’s to protect both the Landlord and Tenant. For example, it gives rights to the landlord to repossess the property at the end of the specified date in the contract and it gives rights to the tenant to live in the property with in the agreed period.
How long can the agreement last for?
An Assured Shorthold Tenancy can be for any length of time, but it must be for a minimum of 6 months. The landlord and tenant may agree on a fixed term of less than six months. However, the tenant has a right to stay in the property for a minimum period of six months, regardless of what the agreement stipulates.
At the end of the term if the tenancy agreement is not renewed, it then becomes what is known as a Statutory Periodic Assured Shorthold Tenancy Agreement. The terms of the original tenancy agreement still apply, but the tenancy continues on an agreed period by period basis. There’s also what is known as a Contractual Periodic Tenancy; this is when no term for the end of the let is set and the tenancy agreement simply continues until either party decide to bring it to an end.
Regardless of which status your agreement is in (fixed term or statutory), the landlord still has to give two months notice to the tenant and can’t obtain possession (before 6 months of the tenancy agreement has elapsed) other than by satisfying certain of the prescribed grounds.
Tenancy Deposit Protection Scheme
All landlords and letting agents who take deposits for Assured Shorthold Tenancies in England and Wales must join a Government-authorised tenancy deposit protection scheme. Within 14 days of receiving the deposit the landlord must provide the tenant with details of the scheme chosen by him to safeguard the deposit. More details on Tenancy Deposit Protection Scheme.
Who keeps the Agreement?
The Tenancy Agreement should be signed, distributed and held by all parties (landlord(s) and tenant(s)).
What’s in a Assured Shorthold Tenancy Agreement?
Here are just a few of the issues the contract should cover:
- The amount of rent and deposit payable and the term of the tenancy
- Right of landlord to charge interest on late rent payments
- Tenant’s obligation to pay bills and council tax
- Tenant’s obligation to keep the property and any garden in good order and repair
- To use the property for residential purposes only
- Not to cause nuisance or annoyance to others
- Not to keep pets without written permission
- Not to leave property unattended for more than 21 days without informing landlord
- Prescribed information about the tenancy deposit scheme.
Remember, an agreement can be amended by adding or removing any terms as required, as long as they do not conflict with law. Both the tenant and landlord have rights and responsibilities given by law. The tenancy agreement can give both the tenant and landlord more than statutory rights, but cannot give less than your statutory rights.
Basic rights
There are basic obligations a tenant and landlord must obey even if they aren’t set down in the agreement, but which are given by law and are implied into all tenancy agreements. These terms form part of the contract, even though they have not been specifically agreed.
Some of the most common implied terms are:
- The landlord must carry out basic repairs
- the landlord must keep the installations for the supply of water, gas, electricity, sanitation, space heating and heating water
- in good working order
- the tenant has the right to live peacefully in the accommodation without nuisance from the landlord
- the tenant has an obligation to take proper care of the accommodation.
Changing the tenancy agreement
A tenancy agreement can be changed if both the landlord and tenant agree to the new conditions. The change should be recorded in writing, either by drawing up a new written document setting out the terms of the tenancy or by amending the existing written tenancy agreement.
Ending a tenancy agreement
The right to end a tenancy agreement will depend on the type of tenancy you have. However, if both parties agree to terminate the contract, it’s a simple case of writing down the agreed termination and both signing the document.
Download
Here’s a copy of the agreement I use:
Assured Shorthold Tenancy Agreement
Here’s an alternative version of an agreement:
Assured Shorthold Tenancy Agreement
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iwould like to know more about the periodic shorthold tenancy, especially whether the tenant can change when she pays her rents or reduce the amount on their own.(periodic shorthold tenancy
for example - housing benefit pays every 4weeks and after 3yrs
tenant wants to pay at every 22nd of every months because it appears in other arear of t/agreement without consulting or agreeing with the landlord
Hey William,
Yeah, the housing benefit are annoying like that. That’s one of the reasons why I refuse to take on DSS tenants, because they make payments every 4 weeks, which makes no sense at all in regards to landlords. Landlords take payment per calender month!
The periodic shorthold inherits the exact same T&C’s agreed from the shorthold tenancy agreement, which was previously agreed to. Any changes should be agreed on paper, and signed. If the tenant changes without agreement from the landlord, then they are breaching the T&C’s.
Have not had a chance to view the download yet!
Why ask for a comment when I have not viewed anything?
Thanks for the comment, Lucy =]
Brilliant site. Makes a change to read something so honest and obviously from someone just telling it like it is and not with any ‘angle’ to promote.
Please help,
I have decided to rent my property rather than sell. I have a potential tenant who will be paying through DSS. I know nothing about being a landlord and when I was a tenant I just signed where I was told. From reading your site I now know that I need the tenant to sign an Assured Shorthold Tenancy Agreement and preferably a Guarantor Agreement. I have read the AST you have on the site and see in the General Notes it states for ‘letting furnished accomodation’. Can I just change that to ‘unfurnished’ to suit my requirements? Is this AST a guide only? I mean, just how much of it can I alter, take out or add?
Excuse my ignorance.
Thank you for the help the site has provided so far and for any more you can give.
Hey Matt,
You can remove the letting furnished part. And you can add/change the clauses, but be careful, because if they conflict with the tenants or landlords statutory rights, then they won’t count.
Also, I’ve written a few articles on DSS tenants, might be a good idea to read them. Look under Landlord Advice
Good luck!
Thanks for all the info you have provided on the site. Who said nothings for free! Its all good advice and the people writing blogs obviously have a lot of knowledge and experience.
However, my mind is boggled - fact! What with Tax on rental income, tenancy deposit scheme, gas safety certificate, energy efficiency certificate, home insurance, the pitfalls of a dss tenant, maintenance, no doubt the csa wanting a piece (i’ve yet to look in to that) etc, etc. Is the list endless or have i considered everything? At the moment I’m not sure that its actually worth it. But then, in up to 10 years from now, when I would have been selling it, I’ll probably arrange for myself to have a jolly good kicking for not keeping hold of it for the profit I would have made.