Ever wondered what is an assured shorhold tenancy precisely? There are a few things that need to be broken down to realize the key features, including legal obligations, that define AST and make it stand out from an assured tenancy.

What exactly is Assured Shorthold Tenancy (AST)?

A type of contract signed between a private landlord and a tenant, known as assured shorthold tenancies, can be an assured shorthold tenancy agreement. Private tenants often hold ASTs, which are commonly utilized by landlords to rent residential properties. To qualify for such, the agreement should stipulate the tenant can live in the property for a fixed term or on a periodic basis. This is the main difference with assured tenancy. The landlord basically retains the right to regain possession of the property when the fixed term expires. All they need to do is give a notice within the required time frame.

What Features Make an Assured Shorthold Tenancy What It Is

For an agreement to become a shorthold tenancy, it needs to meet the following conditions:

• The house/apartment is the tenant’s main home
• It needs to be an agreement for either a period tenancy, or a fixed term
• The landlord must not live on the same property that is being rented
• There is also the condition that the tenancy started after 5 January 1989
• The landlord must not be a local council, as tenancies with local councils cannot be classified as ASTs.

Once the tenancy expires it continues on a rolling basis and can continue doing so indefinitely. One of the parties – landlord or tenant – must decide to terminate the agreement. Most shorhold tenancies are fixed term ones, with the most common fixed terms lasting either six months or a year.

When Does An Assured Shorthold Tenancy End

Such a form of tenancy may end under several conditions:

• If the fixed term ends
• There is a court order for eviction
• The tenant gives a notice to leave
• The landlord give a months notice

Unless the agreement specifies it explicitly, a tenant that leaves the AST type tenancy early may still owe rent.

Landlords and Tenants – What they can and should do

Under assured shorthold tenancies (ASTs), the tenant should:

• Always pay rent on time
• Follow the terms in the tenancy agreement
• Give a required notice before leaving
• Keep the property in a good condition and would not cause damage

Rent arrears can occur in a case that the tenant fails to pay rent. The landlord can even seek a possession order through the courts. In their own right, under an assured shorthold tenancy (AST) the landlord agrees that they will:

• Follow the housing act rules in all cases, including evictions
• Prepare the written agreement that outlines the terms both party will follow
• Use a government-approved scheme to protect the deposit
• Keep the property in a good condition
• Give month’s notice in case they decide to end the tenancy

The agreement should clearly state the rent amount. A rent review clause should be written in the agreement before the tenancy starts if the landlord wants the opportunity to raise the rent in the future. Naturally, all deposits that might be required are under the protection of the Housing Act.

In Short

AST is the most common form of tenancy agreements used in the private rented sector. It would be surprising if you’ve never come across the term assured shorhold tenancy (AST). The term is part of the legal language in England and Wales. Its aim is to protect the legal rights of landlords and tenants. It also details their legal responsibilities.

If you are planning on renting a home, make sure to read the agreement carefully. Not knowing your obligations is not an excuse not to follow them. And the AST is becoming more and more prevalent in London, as well as in the rest of UK.