Assured Shorthold Tenancy Agreement
19 May 2008What is an Assured Shorthold Tenancy Agreement?
A tenancy agreement is a legal contract between landlord and tenant, . It maybe written or oral. The agreement contains the terms and conditions of the tenancy, such as the length of the agreement, the rent payable, and what is and isn’t allowed in the property, such as pets.
An Assured Shorthold Tenancy is one of the most common in the private rented sector. If your tenancy began, or was agreed, on or after 28 February 1997, it is likely to be an Assured Shorthold Tenancy. Tenancies starting, or agreed, before that date but after 15 January 1989, are more likely to be Assured Tenancies. Yes, there is a difference between a “Assured Shorthold Tenancy Agreement” and a “Assured tenancy” Both these types of tenancy were introduced to promote lettings. The primary difference between the two types of tenancy is the legislation regarding the landlord regaining possession of the property.
An Assured Shorthold Tenancy is the most commonly used tenancy agreement in the letting of residential properties. This type of agreement is also referred to as an ‘AST’ or ‘Shorthold Tenancy’. An AST should be used where you are renting a property to just one person, or where you are renting to multiple tenants (that know one another). The advantage of this type of agreement with shared properties is that the tenants have ‘joint and several liability’ i.e. the landlord can claim all of the rent from each of the tenants, not just their own share.
An AST is not suitable for some circumstances where it should NOT be used:
- If the property receives more than 25k per year in rent (This will, however, change to 100k from October 2010)
- If the property receives very low, or not rent at all
- If the property is a holiday home
- If the property is let to a private limited company
- If the property is owned by the Crown or a government department
- If the property is being let with more than two acres of agricultural land or an agricultural tenancy
Do I need a written tenancy agreement?
It is not legally required to have a written tenancy agreement in place to start a tenancy. A tenancy agreement can be a oral contract between landlord and tenant. However, written tenancy agreements are highly recommended so important terms and conditions don’t get forgotten.
When a landlord rents out a property to a tenant, this is a legal contract, so it’s important to have the T&C’s in the contract written down so both tenant and landlord knows what the contract specifies. If everything is written in black and white, there can never be any question of what was agreed. If T&C’s are only verbally agreed, it’s easy to forget what was agreed.
Additionally, if under any unfortunate circumstance, complications between landlord and tenant surfaces which requires the aid of the court, the tenancy agreement can prove to be vital.
Different types of Tenancy Agreements
Tenany Agreements can range from 2 pages to more than 20. However, it’s important to note that any tenancy agreement must be “Fair” and “Clear” and not intended to mislead the tenant in any way.
Usually 2 tenancy agreements are draw up and each party has one to sign. The two copies are called “original” and “counterpart”. The Landlord and tenant each sign both copies, so that if ever there was a need to prove agreement of the other in court in the future, they could do so.
How do I know if I have an Assured Shorthold Tenancy Agreement?
There are serveral factors which will determine whether or not an Assured Shorthold Tenancy has been agreed. You will have an AST if:
- If the tenant pays less than 50k per year in rent
- If the tenant moved into the property on or after 28th febuary 1997
- If the tenant is renting from a private landlord
- If the tenant has rights to have privacy in the property where the landlord cannot enter the property without mutual agreement
How long can the agreement last for?
An Assured Shorthold Tenancy can now be (after 28th February 1989) for any period of time, it does not have to be “short” (Prior to 28th February, there was a requirement for a tenancy to be for a minimum of six months, there is no longer this minimum set.)
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 the rent schedule. For example, if rent is paid on a monthly basis, then the contract will become a monthly periodic tenancy.
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.
An oral agreement can also be changed. Usually the change will be oral too. In the case of a dispute, evidence of the variation can be provided if there were witnesses to the new agreement or simply by both parties acting on the variation, for example, by paying and accepting a new rent.
Ending a tenancy agreement in the middle of the terms
It both parties agree to terminating the agreement, they can legally do so. This is called ‘surrender’. There are two ways that surrender of a tenancy can occur: by “operation of the law” or by a “declaration of surrender”.
Surrender of operation by law
This is when the tenant gives up their occupation of the property to the landlord and the landlord accepting this. This could involve the tenant handing over the property’s keys to the landlord and the landlord accepting that the agreement is over and that they now have possession.
Declaration of operation by law
This is when the tenant signs a “Declaration of Surrender”. This written document then acts as proof that the tenant has given up possession of the property to the landlord.
For a surrender to be legal, both parties must agree. It’s advised for everything that has been agreed to be writen down so everyone knows where they stand. If a joint tenancy is in place, all the joint tenants and the landlord must agree to the surrender.
When a tenant has legally surrendered the tenancy, then the landlord has the right of possession of the property under Section 5 of the Housing Act 1988. The landlord needs to end the agreement properly, before re-letting the property, otherwise the landlord could be accused of unlawful eviction.
Discrimination in tenancy agreements
The landlord must not discriminate against the tenant because of your race, sex, disability, sexuality or religion. It is against the law for the landlord to do any of the following:
- rent a property to a tenant on worse terms than other tenants
- treat the tenant differently from other tenants in the useage of facilities such as the garden
- evict or harass the tenant because race, sex, disability, sexuality or religion
- refuse to make reasonable changes to a term in the tenancy agreement which would allow a disabled person to live there.
Discrimining against sex, disability, sexuality or religion, generally don’t apply if your landlord lives in the same property as you. However, the landlord still cannot discriminate against race.
Be careful when downloading/buying AST’s
Tenancy Agreements are legal documents which are often put together incorrectly. There are a lot of tenancy agreements available online, some are even free, which simply aren’t up-to-date or completely legal. ALL the Tenancy Agreements available on this site have been created by Stones Solicitors LLP. They are listed as a Top 200 Law Firm and is recognised by the two leading independent directories, Chambers and the Legal 500. Stones have expert solicitors specialising in landlord law.
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Talk / 154 Comments left so far
We started an assured agreement in feb 2009 , aware of course we were committed for a year, when that passed this year the letting agent said we just needed to sign a new one if we were staying , which we did , unaware we would be tied, to another full year and we now want to leave , are the rules different for the second year , can it be argued we should have been warned , the landlord seems to want us to stick to the agreement, can you please advise.
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You have some options:
1. Stay.
2. Find a new tenant that is suitable for your landlord.
3. Buy yourself out of the contract.
No point in whinging that you were unaware or trying to argue anything.
Sorry.
Jools
132
My question: if I decide to move out this year, am I required to let the landlord know that I am leaving at the end of the AST? There's nothing in the contract to that effect. Can I just send them the keys by courier, for delivery 30 September?
Thanks,
Bruno
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The nice thing to do would be to contact the agent to say you do not wish to renwew. If you are in the UK you should do this normally 2 months prior to leaving. If at the end of the AST you have automatically moved onto a periodic tennancy then you need only need give onemonths notice.
You can't just send them the keys if you have not told them or they may come after you for the balance of rent. i would re-read your contract as there is normally something in there regarding surrender at the end of the tenancy.
Jools
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If the contract expires at the end of September, and it says nothing about the end of the tenancy, can I simply send them a note two weeks before the end of September saying that I will not sign another contract, then hand over the keys on the last day?
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Many thanks
brian
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Me and my partner moved into a flat on 9th January 2010 on a one year assured short hold tenancy agreement with a break clause after 6months whereby we have to give the agent 2 months notice of our intention to leave.
We have had numerous problems from cosmetic to problems with the electrics and boiler, and so started looking to see if anything else came up. We have found another property and spoke to our current letting agent regarding the notice period who has said we have to give 2 full clear months notice to end on a rent due day. As this date has just passed I asked if there was any leyway on the date, either giving notice to the 8th august, or to the 15th august and paying the additional rent for the 8th-15th at the time of notice, and she said no, we would have to give notice on 9th July to end the tenancy on 8th September.
I realise once an AST is up it automatically moves to a monthly term, as this is statutory notice period for tenants, but I assume that within the fixed term contract if a break clause is provided they can include any notice period they like? (I know what everyone says about reading the contract before signing and we did, we took on a year as we fell in love with the property, and unbeknownst to us we would have the boiler and electric problems-unsafe fittings)
I am pretty certain I know the answer, but aside from claiming breach of contract on the basis of not providing safe electricity fittings (confirmed by their own electrician) am I right in thinking we can be held to the full 2 months notice period, and if so does it HAVE TO end on a rent payment date. The new landlord understandably isn’t happy to wait 3 months for us to move in, so I figure it’s just one thing we'll have to put down to experience, and in future avoid the aforementioned letting agents like the plague and only sign 6 month AST!
139
Im planning to call my family to UK and have to send the tenancy documents for the flat I am planning to rent from the 1st of August 2010. The owner of the flat has signed the tenancy agreement and said it would be sufficient. Do I have to attach an inventory form along with the tenancy copy that was given to me? or just forward the tenancy agreement which was signed by both the parties?.
Ill be very thankful if anyone gives me some advise on this issue.
140
I am a new landlord and found some tenants who I knew and thought were suitable, however the rent is late twice now with no explanation, they have another adult living in the 2-bed terrace with no permission, have decorated with no permission (I just had all the walls plastered and painted) and now have a kitten and a puppy and have been reported to the enviorment dept for littering and noise problems, her assured shorthold tenancy agreement is due to run out 25/7/10, as she has breached on the above do I still have to give 2 months notice or can I ask her to leave asap. Please Help. Thanks
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Jools
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I signed a 6 month House Share Agreement which expires on August 15th. I have just found a more suitable place to live, as I was not happy in my current house. It was all very quick though, and it turns out I can move in on the 15th.
My question is this: do I still have to give one months notice, or as it is a fixed term can I just inform my landlord that I do not wish to renew and end the contract on the 15th? I realise it is not the best way of doing things, but it was all quite sudden.
I told my landlord yesterday that I wish to leave next Sunday, and she is now saying that I need to give one months notice and so she will keep my deposit. The way I see it, she knows I do not wish to renew my contract and so on expiry it will not become a statutory periodic agreement, meaning I do not have to give one months notice.
Any advice would be greatly appreciated, thank you!
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Sorry, you are unable to cancel an AST once it is signed. It is a legally binding document (for both sides) and your Son is liable for the entire contract period. No if, buts or maybe's!
Only options are:
1. You or your Son can find a replacement Tenant but they have to be accepted by the Landlord.
2. Your Landlord can (but does not have to) find a suitable replacement but you will be legally responsible for ALL his reasonable re-letting fees. You will also lose any deposit.
3. You can try to liaise with the Landlord to see if there is a way you can buy yourself out of the contract.
1 month notice only comes into force following the completion of the initial fixed period.
Your Son is totally liable for this or, if you have signed a guarantee, you are. Landlord is entitled to take you to court for any and all charges in relation to this including Council Tax if that was to be paid by your Son.
My advise, talk to the Landlord and reach an agreeable figure to allow the surrender.
Jools
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Your landlord is correct, at the moment, if the rent above 25k, it cannot be an AST. That is due to change to 100k in October 2010.
The 50k was a typo, apologies.
149
Fact is the council paid the rent and reviewed the contract prior to her moving in, they never said there was an issue with the termination period of one month, so it is assumed everything is OK. We followed the agreement, what is the problem, I believe they are just fobbing off my ex-tenant, they have a terriblr record on housing allocation. It is appreciated if someone could advise whether I am in my rights or not?
150
Regardless of what is stated in the tenancy agreement, the law stipulates that during a fixed period, the tenant is required to be given 2 months notice! That, unfortunately, is the tenant's statutory right, no matter what was signed and agreed to.
So from my understanding, the council are correct. But whether they'll do anything about it is another question. Maybe nothing.
So what is the situation now? Have you sold the property? What do the council want you to do?
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I have an assured short hold tenancy based on a rent to homebuy scheme. I have fallen into some arrears due to family issues. My housing association want to change the terms of my tenancy to take away the right to buy. can they do this? I have read my tenancy agreement and had no prior knowledge of this. Please advise - if yes is there anything i can do as im able to clear the arrears over the space of two months and remain on track.
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