Tenancy Agreements
Why Tenancy Agreements & Notices Matter
No matter what kind of property you’re renting out, having a proper tenancy agreement is essential. It safeguards both the landlord and the tenant, and in many situations, having a formal contract is required by law. Below are some of the most commonly used agreements that will cover the majority of letting scenarios you’re likely to come across.
Types of Tenancy Agreements
Assured Shorthold Tenancy (AST) Agreement
The Assured Shorthold Tenancy is the standard and most widely used rental agreement in the UK, provided the landlord doesn’t live in the property. If you don’t specify a different arrangement, this becomes the default option. An AST allows either party to end the tenancy after the initial six months, as long as the correct notice is given.
If you’re renting out a house or flat, these legally binding documents are all you need to set out the terms clearly. They establish the standard form of letting known as an Assured Shorthold Tenancy and are approved by the National Landlords Association (NLA).
Assured Shorthold Tenancy Agreement – England & Wales
Scotland’s Private Residential Tenancy
In 2017, the Scottish Government introduced a new tenancy model – the Private Residential Tenancy (PRT). This replaced the previous Assured Shorthold Tenancy agreements and applies to all new tenancies starting on or after 1 December 2017.
The Private Residential Tenancy is designed to offer tenants greater security and stability, while also protecting the interests of landlords, lenders, and investors.
Key features of Private Residential Tenancies:
- They are open-ended, meaning a landlord cannot require a tenant to leave simply because a fixed term has ended.
- They offer more predictable rents and shield tenants from excessive rent increases.
- Local rent caps can be applied in designated rent pressure zones.
- They include clear and robust grounds for repossession, allowing landlords to regain possession under 18 specified circumstances.
For more detailed information on Private Residential Tenancies, visit gov.scot.
