Assured Shorthold Tenancy Agreement (AST) Tips

1] Length of tenancy

Don’t give a fixed term longer than 6 months unless you trust your tenants. You can always extend the contract when the fixed term has expired.

2] Signed tenancy agreements

Never allow a tenant to move into your property until the Assured Shorthold Tenancy Agreement (AST) is signed.

3] Keep an original copy

Hold an AST with their original signatures (i.e. not photocopies, or a faxed or scanned copy). Your tenant should also keep a copy with original signatures.

4] Ensure legality

Ensure that the tenancy agreement you use is valid and legal. A lot of agreements are sourced from unreliable vendors, which aren’t completely legal.

5] Statutory rights

None of the tenant’s statutory rights can be revoked or conflicted with, even if stated in the AST.

6] Minimal length of contract

An AST created after 28th February 1989 can be of any period. Before that time, the minimum must be 6 months.

7] Should be included

The following should be included in the agreement:

• tenant and landlord name, and the address of the property which is being let
• the date the tenancy began
• the duration of the tenancy
• the amount of rent payable, how often and when it should be paid and how often and when it can be increased.
• Who is responsible for which bills e.g council tax, utility bills .etc
• if pets are allowed

8] Ammending T&C’s

A tenancy agreement can be changed if both the tenant and landlord agree. If both agree, 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. Moreover, ensure that the chances you make are LEGAL. Seek legal advice to get confirmation.

9] Periodic Assured Shorthold

At the end of the fixed 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.

10] Notice to quit

To end an AST, the Landlord MUST serve a Section 21 (Notice of Possession Order Form), at least 2 months prior to the end of the agreed termination date.

11] Using a appropriate AST

An AST can vary in content depending on whether the property for let is furnished or unfurinished. Make sure you use an agreement which matches your let type.

12] Assured Tenancy Vs Assured Shorthold Tenancy

There’s a difference between an “Assured Tenancy” and “Assured Shorthold Tenancy”. In short, with a shorthold tenancy the landlord can regain possession of the property 6 months after the beginning of the tenancy, provided that he or she gives 2 months notice to the tenant. A assured tenancy gives the right to a tenant to remain in the property unless the landlord can prove to the coirt that he or she has grounds for posession. The landlord does not have an automatic right to reposess the property when the tenancy comes to an end.

13] Rentbook

If you have made the rent payable weekly, you have to provide the tenant with a rent book in the prescribed form (obtainable from from most large stationers).

14] Up-to-date AST’s

Make sure the AST you use is up to date. Over the years new laws have come into play, which should all be included in the contract.

15] Tenant deposit

If you’re taking a deposit from your tenant, it must be protected under one of the government approved tenancy deposit schemes, and inform the tenant using the proper form within 14 days of taking the deposit.

16] Landlord address

Ensure the AST contains an address for the landlord in England and Wales. Otherwise the agreement will not comply with section 48 of the Landlord and Tenant Act 1987, which means that rent will not be payable by the tenant. The address can be that of an agent if the landlord is living abroad or in Scotland.

Got anymore? Let’s hear it, and I’ll add it to the list.

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Talk / 7 Comments left so far

Sam wrote this on 2009-11-23 21:50:24 Point 15 - it is usual for the amount of the deposit and where it is held to appear in the AST [under point 7] 1

jools wrote this on 2009-11-30 10:41:12 To avoid the possibility of being accused of being unreasonable - any clauses that relate to decoration of property, installation of TV ariel etc you should include the words "permission not to be unreasonably withheld".

Jools 2

GillsMan wrote this on 2009-11-30 21:44:23 Avoid adding a clause stating that it is forbidden to change the locks. Quite simply, this appears to conflict with the tenant's right to quiet enjoyment. Instead, word any such clause in such a way that they must a) seek your permission first and b) provide you with a copy of the keys (but even then it's highly unlikely you'll be able to enforce point b). 3

Sam wrote this on 2009-12-01 15:56:07 In practice if a tenant has changed the locks it can be against their best interests - e.g. recently we had a fire in the downstaits flat and needed access to the upstairs flat to check electrics and gas etc. Checked with tenant that OK to go in and he okayed. Got there with the tradesmen - but could not get in. When we phoned the tenant it had turned out they had changed the locks! 4

jools wrote this on 2009-12-01 17:48:21 They are not actually allowed to change the locks - it would only be seen as being reasonable IF the tenant had convincing evidence that you the landlord were breaching their 'right to quiet enjoyment' by trespassing or turning up at unreasonable hours or without notice.

Jools 5

Scott Nachatilo wrote this on 2009-12-02 04:44:55 It is really important to have your tenant signed a contract, don't just rely on a verbal agreement espcially when you don't really know the person

Scott@Financially Free Landlord 6

Stuart John wrote this on 2009-12-15 21:11:16 Interesting points. Just remember that there are some professional bad tennants who know this business better than any landlord. You really nned to do all checks upfront and not let a tennant rush you. I did and to my shame they are in my house, not paying rent and are now 4 months in arrears. I had a feeling but greed got the better of me. The courts will decide in Jan but by then they owe me £5400 and the house needs a complete redecorate. 7

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