Assured Shorthold Tenancies: A landlord’s guide

Assured Shorthold Tenancies: A landlord’s guide

Also known in Scotland as a ‘short-assured tenancy’, Assured Shorthold Tenancies (ASTs) are the most popular type of tenancy agreements used by landlord within the UK. New tenancies are usually assured shorthold tenancies by default.

Here, AXA explains in detail everything landlords need to know about assured shorthold tenancies.

What is an Assured Shorthold Tenancy?

ASTs are a type of tenancy that ensure that landlords and tenants both have certain rights and protections when letting residential properties. The terms and responsibilities in the agreement generally follow the Housing Act 1988.

Want to learn more about how different types of tenancies work, why not check out our handy guide? With everything from tenancy types to landlord responsibilities, we’ve got you covered.

Criteria for being an AST

• The rented property must be the tenant’s main residence
• Landlord can’t live within the property with the tenant
• Tenant(s) must have exclusive use of the property
• The tenancy must start after 15 January 1989

What does an AST agreement cover?

Assured Shorthold Tenancies are usually agreed in writing. However, if both parties agree, this can be done verbally instead. The agreement should cover:

When drafting your AST, it’s a good idea to use clear and concise language for ease of your tenant’s understanding.

Please note, all parties involved must sign the agreement and be provided with their own copy. Each is party each is responsible for keeping their own copy safe.

What is the maximum rent for an AST?

If the rent payments exceed more than £100,000 (annually), this wouldn’t be classed as an Assured Shorthold Tenancy.

When is a tenancy not an AST?

It’s not an Assured Shorthold Tenancy, if:

Please note that this criteria may vary. if you’re unsure, it’s best to check with local housing regulations.

What are common clauses found in an AST?

Within a standard AST agreement, there are generally three sections covering different information. The first section usually covers the terms of the agreement, and details of both the landlord and tenant. The remaining two sections cover clauses which outline the obligations of both the landlord, and tenant(s).

These examples provide a rough outline of common clauses usually found within AST agreements. However, they do not account for all legal requirements that you must comply with as a landlord. You can find further info here.

What are illegal clauses in an AST?

Any of the following clauses would be considered to be illegal:

• Any clauses which dispute laws which govern the agreement
• Any clauses which discriminate against the tenant(s)
• Any clauses which limit or breach tenant rights

It’s important to note that even if you include a particular clause within the AST, it doesn’t mean it’s automatically enforceable. All clauses must be legally compliant.

How long does an AST last?

In the UK, ASTs typically last for six months minimum. After the initial fixed-term period, you and your tenant may agree on a new fixed term.

Ending an AST in the UK

Ending an Assured Short Hold tenancy can be done a few ways:

Fixed-term ends
As the AST reaches its agreed end date, naturally the tenancy will come to an end. The notice period is usually two months, unless stated otherwise.

Tenant notice
Tenants can provide notice to end the tenancy before it naturally comes to an end.

Landlord notice
As a landlord, you’re able to give your tenant notice to end the tenancy. This should be done using a Section 21 notice.

Mutual agreement
Both parties can choose to end the tenancy at any time, if in agreement.

Please note that the above options are subject to legal regulations and timeframes.

Ending an AST in Scotland

For landlords in Scotland, ending an AST differs slightly. You can find more info on this here.

Endings can be difficult, if you’re struggling to end an AST or any other type of tenancy our guide can help.

How do ASTs and assured tenancies differ?

Within a standard AST agreement, there are generally three sections covering different information. The first section usually covers the terms of the agreement, and details of both the landlord and tenant. The remaining two sections cover clauses which outline the obligations of both the landlord, and tenant(s).

What are the advantages of an AST?

Within a standard AST agreement, there are generally three sections covering different information. The first section usually covers the terms of the agreement, and details of both the landlord and tenant. The remaining two sections cover clauses which outline the obligations of both the landlord, and tenant(s).

How much notice does a landlord have to give to increase rent?

In the UK, once the fixed term of the tenancy has ended and the tenancy has become a periodic tenancy, tenants must be provided with at least one month’s notice before increasing the rent.

However, during the fixed term, rent can’t be increased unless in agreement with the tenant.

It’s important to note that specific regulations and requirements may vary. If unsure, it’s best to speak with the local housing authority for advice on individual circumstances.

How much can a landlord charge for a deposit?

For ASTs, the maximum deposit you can charge is capped at the equivalent of 5 weeks of rent payments, if the annual rent amount is less than £50,000. Landlords must legally comply with this rule.

What insurance do I need for an AST?

If you’re renting out your property under an AST, it may be worthwhile considering landlord insurance. Landlord insurance protects your investment, giving you peace of mind to focus on what matters most.

When it comes to finding insurance cover that’s right for you, it’s best to take your time and do your research. Always carefully review the policy documents and seek professional advice if you’re unsure of anything.