An Assured Shorthold Tenancy agreement establishes the terms of a letting between a landlord and a tenant for a specified term at an agreed rate. Both parties undertake certain duties in regard to the property, rent, deposit, and repair. Depending on the term of the tenancy, there are various rules about termination. Both the landlord and the tenant undertake certain duties under an assured shorthold tenancy agreement.
Key features of an Assured Shorthold Tenancy Agreement:
Under an Assured Shorthold Tenancy agreement a tenant contracts to place themselves under certain obligations in relation to the property. These often include the obligation to:
Under an AST, a tenant is often liable to pay rent (and other charges, such as bills) by an agreed date. If they fail to do so, they are liable to pay interest (capped at 3% of the Bank of England's rate) on overdue rent. It is also standard for a tenant to be liable to pay a deposit (capped at 5 weeks’ worth of rent in most circumstances).
It is also common for tenants to have to ask the landlord’s consent for certain activities. These may include:
Upon the termination of the AST, the tenant will be obliged under the contract to return the property in the same condition as when it was let (excluding wear and tear). They must also return keys, remove all of their possessions from the property and provide forwarding addresses.
A landlord will also be under obligations in relation to the property under an AST. These obligations typically include:
Where a tenant asks for the landlord’s consent for one of the above mentioned activities, such as having an adult to stay, the landlord cannot unreasonably withhold consents.
Under an AST, a landlord is entitled to increase rent where it is an option by serving a detailed notice. They are also entitled to receive a deposit from the tenant, provided that it is placed in a tenant deposit scheme, and make deductions from the deposit for certain purposes, included repairs required due to the tenant’s fault.
A landlord has the right to terminate a tenant and following the Housing Act 1988 they must follow certain procedures for giving notice. The current Coronavirus Regulations have temporarily amended these notice periods. Landlords are also entitled to include and exercise break clauses in ASTs.
Before renting, a landlord must also obtain consents. These include, where relevant, consents from any:
If a landlord is entering into an AST with the intention of renting a House in Multiple Occupation (HMO), a landlord will also need to ensure they obtain a HMO licence.
Whilst there is no minimum term for an assured shorthold tenancy agreement, 6 or 12 months is the most common duration. Legislate's assured shorthold tenancy agreement can be configured to convert into a rolling periodic at the end of the initial fixed term. A break clause can also be inserted if required.
Legislate’s patented knowledge graph approach (United States patent 11,087,219) understands and reads your contracts in a new and novel way. It allows obligations and restrictions under a contract to be automatically retrieved and visible to ensure that both parties know exactly what their contracts mean. Furthermore, our approach makes managing your properties a seamless process with our reminders on contract anniversaries and updates on the progress of your contracts.
Far aside from providing invaluable insights into your contacts, saving you time and cost, Legislate’s ASTs:
Once you have generated one AST on Legislate, your terms and contacts will be remembered meaning that serving a how to rent letter, rent increase letter, tenancy amendment letter, section 8 and 21 notices to your tenants is a quick, seamless and easy process.
Creating an Assured shorthold tenancy agreement with Legislate is effortless. Specify the type of tenancy (HMO, bedsit or sole occupancy) and provide the terms of the agreement by answering simple questions. Invite the tenant when you are happy with the terms.
Once the tenant has reviewed the contract and accepted the terms they can sign. Legislate also supports witnessing should you require this.