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Assured Shorthold Tenancy Agreement Templates

An assured shorthold tenancy agreement (AST) is a fundamental document in the complex world of property management. 

It ensures that both landlords and tenants have a clear understanding of their rights and responsibilities. 

This guide delves deep into the nuances of assured shorthold tenancy agreement templates, offering comprehensive insights and practical advice.

What is an Assured shorthold tenancy?

An AST is a legal document between a landlord and their tenants that sets out the legal terms and conditions of the tenancy.

Most tenancies will automatlly be an assured shorthold tenancy. They will likely be this type of tenancy if:

1. The tenant is a private tenant (not a company)
2. The tenancy began on or after the 15th of January 1989 (provided the tenancy was in writing and a section 20 notice was served)
3. Or the tenancy commenced after the 28th of February 1997
4. The property is your tenant’s principal residence.
5. You don’t live on the property.

Why do I need a tenancy?

Even if you don’t have a written contract with your tenant, an agreement will still exist. Under s54(2) of the Law of Property Act 1925, a tenancy will exist as soon as a tenant starts paying rent.

However, a written agreement allows you to add specific stipulations.

For example, you can stipulate how and when you will review the rent or the circumstances under which you may withhold all or part of your tenant’s deposit.

Without a written agreement, you may not be able to easily prove how much rent the tenant owes you, which may cause problems in the future.

Does an assured shorthold tenancy need to be renewed?

If your agreement is an assured shorthold tenancy and you wish to stay, you do not need to renew it.

Once the fixed period expires, the tenancy becomes a ‘periodic tenancy,’ which means it will continue with the same terms and conditions, rolling from month to month.

Can you have an AST for less than six months?

It is perfectly legal, to let your property for less than six months.

There is no minimum period for an AST. If the tenant stops paying rent after month 2, it may well be another four months before an order of possession of a rental property is obtained.

How long is an assured shorthold tenancy agreement?

An assured shorthold can be less than six months under the Housing Act 1996. However, should you require possession, then the six-month rule applies.

The landlord and tenant can agree to have the tenancy last for a set term, six months or 36 months, or the term can be periodic.

What is the minimum term for an assured shorthold tenancy?

The minimum term used to be six months; however, under the Housing Act 1996, you can have a tenancy of fewer than six months. 

What can make a tenancy agreement invalid?

All landlords should be aware of the Unfair Terms in Consumer Contracts Regulations. Any unreasonable clause, or deemed ‘unfair’ null and void, in a court of law will make that part of the contract invalid.

So, if a term or condition of the tenancy agreement gives either party less than their statutory rights, it can’t be enforced and will not stand up in a court of law.

It is important to note that this will not invalidate the entire tenancy.

The most recent legislation that may affect tenancies is the Consumer Rights Act on the 1st of October 2015.

The 2015 Act replaced the Unfair Terms in Consumer Contracts Regulations 1999. Any contracts entered before this date will still be governed by the UTCC’s.

If you want to add or remove any parts of the agreement, you should seek legal Advice before doing so.

Understanding Assured Shorthold Tenancy Agreements

An assured shorthold tenancy (AST) is one of England’s most common rental agreement types. 

It is typically used for renting residential properties and provides a balanced framework of rights and responsibilities for landlords and tenants.

Key Features of ASTs

• Fixed Term: ASTs usually last for a fixed term of six months to a year, though they can be longer.
• Notice Period: Both parties must provide notice to terminate the tenancy. Landlords must give at least two months’ notice, while tenants typically give one month.
• Rent Regulation: Rent increases are regulated and must follow specific procedures, ensuring fairness and transparency.

Importance of an Assured Shorthold Tenancy Agreement Template

Using an assured shorthold tenancy agreement template is crucial for several reasons:

• Legal Compliance: Ensures that all essential legal clauses are included, protecting both landlord and tenant.
• Consistency: Maintains consistency across multiple properties or tenancies, simplifying management.
• Clarity: Provides clear terms and conditions, reducing the potential for disputes.

Components of an Assured Shorthold Tenancy Agreement Template

A well-crafted assured shorthold tenancy agreement template should include the following components:

1. Parties Involved

Clearly identify the landlord(s) and tenant(s), including full names and contact details. This section establishes who is entering into the agreement.

2. Property Details

Describe the property being let, including the address, type of property (e.g., flat, house), and any included fixtures or fittings. This helps avoid misunderstandings about what is part of the rental.

3. Tenancy Term

Specify the start date and duration of the tenancy. If the tenancy is for a fixed term, include the end date. For periodic tenancies, detail the renewal terms.

4. Rent and Payment Terms

Outline the rent amount, due dates, payment methods, and any penalties for late payment. This section should also cover how rent reviews or increases will be handled.

5. Deposit Details

Detail the amount of the security deposit, how it will be protected (e.g., through a tenancy deposit scheme), and the conditions for its return at the end of the tenancy.

6. Landlord and Tenant Obligations

Landlord Obligations

• Maintain the property in a habitable condition.
• Perform necessary repairs.
• Ensure compliance with safety regulations (e.g., gas, electrical).

Tenant Obligations

• Pay rent on time.
• Keep the property in good condition.
• Notify the landlord of any repairs needed.

1. Use of Property

Specify the permitted use of the property, typically for residential purposes only, and restrictions on subletting or business use.

2. Termination Clauses

Detail the procedures for terminating the tenancy, including required notice periods and conditions under which the landlord can regain possession (e.g., rent arrears, breach of terms).

3. Additional Clauses

Include any additional clauses relevant to the tenancy, such as:

• Pet policies
• Garden maintenance responsibilities.
• Rules on smoking