Tenancy Agreement: Understanding Assured Shorthold Tenancy
When it comes to renting a property, tenancy agreement is an essential document that outlines the conditions and terms of the rental agreement between the tenant and the landlord. In the UK, the most common form of rental agreement is an Assured Shorthold Tenancy (AST). This type of tenancy agreement offers a level of security for both tenants and landlords in the private rental sector.
In this article, we will discuss the basics of assured shorthold tenancy agreements, including the benefits for tenants and landlords, the duration of the agreement, and what happens when the tenancy ends.
What is Assured Shorthold Tenancy?
An assured shorthold tenancy is a type of tenancy agreement that offers a minimum of six months` tenancy. It provides a level of security to the tenant by ensuring that they can live in the property for a specified period. During this time, the landlord cannot evict the tenant without following a legal process.
Benefits of Assured Shorthold Tenancy
Assured shorthold tenancy provides both tenants and landlords with significant benefits. For tenants, it offers a level of security, knowing that they can live in the property for a minimum period. It also means that their rent cannot be unreasonably increased during the fixed term of the tenancy agreement.
For landlords, an AST provides an opportunity to secure a rental income for a specified period and ensures that they can take legal action if the tenant fails to pay rent or breaches any other terms of the tenancy agreement.
Duration of the Tenancy Agreement
The duration of an AST is typically six months, and it may run for a longer period, depending on the agreement between the tenant and landlord. If the tenant decides to leave the property before the end of the fixed term, they are still responsible for paying rent until the end of the fixed term.
When the Tenancy Ends
When the fixed term of an AST comes to an end, the tenancy may be renewed, or the tenant may be asked to leave the property, depending on the agreement between the tenant and landlord. If the tenant is asked to leave, the landlord must provide a notice period, which is usually two months. During this time, the landlord must not attempt to evict the tenant without following the legal process.
Conclusion
Assured shorthold tenancy agreements are an essential part of the private rental sector in the UK. They offer a level of security and stability to tenants and landlords, making it a popular choice for rental agreements. As a prospective tenant, it is important to read and understand the terms and conditions of the tenancy agreement before signing it. As a landlord, it is vital to ensure that the tenancy agreement is legally compliant and covers all aspects of the rental agreement.