Property Litigation specialist lawyer, Will Bartley, provides advice on why a suitable AST is required to be provided by the landlord at the start of the tenancy; discussing what this has meant for landlords and tenants.
Will goes on to explain some common issues that can be caused when a suitable AST is not in place.
For further information on the residential lettings generally, the August Q&A can be read here.
What is an AST?
An AST is an abbreviation of an ‘Assured Shorthold Tenancy’ agreement. This is the most common format of letting of residential property, and the vast majority of people who are renting a property in the UK will be doing so under such an agreement.
ASTs are typically 6 or 12 months in fixed length at the outset, however this can be more, and at the expiry of the fixed term they roll over into a periodic month by month tenancy until formally renewed under a new AST.
Why is it important to have an AST?
The importance of having a current, legally binding and updated AST has never been more critical to landlords, highlighted by the pandemic housing legislation changes that have been implemented since 2020 and the substantial wave of rent arrears claims seen in the Courts since.
Do I need an AST for my tenants?
Landlords sometimes let their properties on a short-term basis to friends or family in an act of kindness as a short-term solution.
However, this can cause numerous problems for them down the line, as once a tenant has exclusive occupation of the property and is paying rent, then a tenancy is created.
If the landlord has not served the tenant with the required prescribed information at the outset of the tenancy, such as the necessary gas safety certificates etc, then this can cause issues in serving eviction notices and obtaining a Possession Order from Court if the matter becomes contentious at a later date.
Can I get an AST template online or from an estate agent?
Further issues are caused by a lack of an AST in relation to certainty of letting terms. For example, the AST will set out when the letting period starts and ends, what the rent is and how much deposit was taken etc.
Many ‘Google’ AST templates or even templates obtained from letting agents only cover the basics, and do not adequately protect landlords in respect of housing legislation updates, possession proceedings costs recovery, and limiting the use of the property to simply residential rather than business-like use.
It is therefore critical that no matter who you are letting to, getting a suitable and legally updated AST in place to protect the landlord’s rights at the outset of the tenancy is a must.
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