As a landlord, it is essential to understand the different types of tenancy agreements available to you. One of the most popular types is the Assured Shorthold Tenancy (AST), which is commonly used by landlords in the UK and is the legal default contract. In this blog, we will discuss what an AST is, its benefits, and when it is suitable for landlords to use.

What is an Assured Shorthold Tenancy (AST)?

An AST is a commonly used type of tenancy agreement that’s legally binding between a landlord and a tenant, and sets out the terms and conditions of the tenancy. The main features of an AST are that it is for a fixed term, it is a private rental, and it is for residential purposes only. It is almost always the case that the tenancy agreement is an AST if:

–           The landlord and tenant do not share the property.

–           The annual rent is less than £100,000.

An AST differs from other types of tenancy agreements in that it gives the landlord the right to take back possession of the property after the fixed term has ended, as long as they follow the correct legal process. This is known as ‘guaranteed possession.’

You can find a complete guide here about what terms an AST must include.

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When should landlords use an Assured Shorthold Tenancy (AST)?

In short, in almost all occasions meeting the criteria we set out above..

When an Assured Shorthold Tenancy (AST) may not be suitable for landlords

An AST may not be suitable if you want to rent your property for more than three years. In this case, you will need to consider a different type of tenancy agreement as any that are longer than 3 years have to take the form of a “Deed”.

If you want to offer your tenant a long-term or lifetime tenancy, an AST may not be suitable. You may need to consider a different type of tenancy agreement, such as a regulated tenancy. Finally, if your tenant is a company or organisation, an AST may not be suitable. You may need to consider a different type of tenancy agreement, such as a Non-Housing Act agreement. 

Conclusion 

An AST is a popular type of tenancy agreement due to its flexibility and legal protections. It is an excellent option for landlords looking to rent their property for a fixed term and retain the option to end the tenancy early. However, it may not be suitable for all situations, so it’s essential to understand your options and choose the agreement that best suits your needs. If you have any questions or need further guidance, it’s always best to seek the advice of a professional.

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