Assured Shorthold Tenancy Agreements (AST)

Last updated 16 November - Updated tenancy agreements

Formally known as an assured shorthold tenancy (AST), assured shorthold tenancy agreements are the most common form of agreement in the private rented sector (PRS).

It should be used wherever the following conditions are met -

• The rent is between £250 (£1000 in Greater London) and £100,000 per annum
• The tenants are people rather than an organisation such as a company
• The property will be the tenant's main home
• The landlord does not live in the same property as the tenant.

This page provides a number of our downloadable assured shorthold tenancies, and answers some frequently asked questions on what your obligations are when creating an AST.
 

Whilst an AST can be created without any paperwork, it is usually recommended that the parties involved do come to an agreement which is set out in a document. These should be legally binding and include the mandatory requirements and responsibilities of the landlord and tenant throughout the duration of the tenancy. Every relevant party should receive a copy of the AST to sign before the tenancy begins and the terms and conditions should be read to ensure that the necessary requirements are being adhered to. These requirements include such terms as: 

• The agreed amount of rent and the date this sum must be paid. 
• The dates on which the fixed term starts and ends. 
• The name and address of all parties, including the landlord and letting agents (if applicable). 
• The deposit amount. 
• A list of the bills that the tenant is responsible for paying. 
• Notice period that a tenant must give before departing the property.
   

Like other types of tenancy agreements, ASTs can be customised but some elements must legally remain. Meanwhile, elements such as specific responsibilities, restrictions, tenancy length and details of how rent should be paid can be customised. In addition, personalised clauses can be added as per your requirements. You can do this via an addendum document, but you should ensure any clauses you do add are legally enforceable and are not deemed ‘unfair’. You may wish to get legal advice from a solicitor when drafting these clauses.

ASTs are sometimes renewed, depending on the tenancy and the agreement between the tenant and landlord. When a tenant reaches the end of their fixed term, a landlord can either extend the term, renew it or consider repossessing the property instead. 

It’s important to note that in any case, unless brought to an end, a tenancy will continue after the end of the fixed term as a periodic tenancy. This can be as a result of the law, known as a statutory periodic tenancy, or as a result of the contract itself, a contractual periodic tenancy. 

ASTs create a structure by which responsibilities can be enforced and agreed upon between landlords and tenants. This protects the rights of both the tenant and the landlord while reducing the likelihood of disputes between the two parties in the future. 

Benefitting all parties, using an assured shorthold tenancy enforces:

Transparency: Outlining expectations and responsibilities in a written document creates a transparent agreement between landlords and tenants. This gives landlords protection if any of these terms are breached since all the obligations are clearly and comprehensively listed.

Security: The AST gives a layer of protection for both landlords and tenants. The AST gives landlords peace of mind that rent will be paid on time, with the amount and when this payment is due being clearly stipulated. For an individual living in the property, an AST gives their tenancy security, with the agreement giving them the right to live in the property until the end of the fixed term, and potentially beyond.

Rights and Responsibilities: Both tenants and landlords have rights in law that are detailed in an AST. These rights are legally binding and in place to protect both parties throughout the duration of the contract. 

To provide as much flexibility as possible to you, NRLA members have access to three different types of downloadable assured shorthold tenancy agreement template documents. Each sample AST tenancy agreement is suitable for a different situation:

• Joint AST for a family, an individual or two people who are unrelated- this agreement is to be used when you are renting out the entire property using one agreement. 
• Joint AST for a group of sharers - this agreement is for use where you are renting a property to three or more people and at least two of them are unrelated to each other. These types of arrangements are known as houses in multiple occupation (HMO) and have their own specific requirements which the assured shorthold tenancy agreement covers.
• Standard Room-only AST - you should use this agreement if you are renting out your property by the room with or without a security deposit.

Alongside your legal requirements, there are a number of other documents it is best practice to provide to your tenants before they move into your property, including -

• Instructions on how to use any appliances. By showing your tenants how to use the appliances you reduce the risk they break them accidentally.
• Details on the current utility providers. It can be a pain for landlords when they find out that the tenants have not notified their utility providers when moving out or in. 
• A copy of the check-in inventory for the tenant to approve. Without a good inventory, it is extremely unlikely that you will be able to make deductions from the deposit for damages.