What is a tenancy agreement?
This is a contract between you (the landlord) and the tenant(s) and it will identify all the rights, legal obligations and responsibilities of you and the tenant(s) when renting a property.
Usually this is a written document which is signed by both of you. On occasion there may be a situation where a verbal agreement is in place and this should also provide rights to the tenant.
There are two types of agreement available to use through NRLA Portfolio.
1. Assured Shorthold Tenancy Agreement (AST)
As stated this is the most commonly used agreement and will be used if
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it is the letting of private residential property and not commercial premises.
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the tenancy started after 1997
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it is your main accommodation,
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the landlord doesn't live there
When can I not use an AST?
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if you're charging extremely high rent (over £100k per year)
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low or no rent
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if it’s a holiday rental
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you live in the property
As stated an AST will indicate the length of tenancy, usually 6 or 12 months. A landlord will not be able to increase the rent during the first 12 months unless there is an agreed rent review clause in the agreement.
Once the fixed term is over, if there is no agreement on a renewal, the tenancy agreement automatically becomes ‘periodic’, moving to a monthly rolling contract with the same rent.
2. Assured Shorthold Room Only Tenancy Agreement (Room Only AST)
This will apply when you are renting out a room in a property rather than the whole property.
The type of property would usually be a shared house and would apply to a property where tenants may share a bathroom or kitchen with other tenants in the same house/building.
You can see an example of the NRLA AST here.
What makes a valid tenancy agreement?
It should include:
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The length of the tenancy, and whether it’s fixed term or periodic (eg. running month-to-month) Please note - Typically a 12 month tenancy runs, for example from 1st January - 31st December OR a 6 month tenancy runs, for example 15th January - 14th July. It should always end one day before the tenancy began. Simply because, in the 12 month date (example above) rent will usually be payable the first day the tenants move in (1st) then due on the 1st day each month after that. Ideally you want the fixed term end date to be the day before the rent is due (31st) because if the fixed term ends on the (1st) the tenant will owe another months rent and the landlord will need to break it down and work out a daily rent rate.
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The name of the landlord and any tenants/permitted occupiers
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The property address
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The rent amount payable and how often it must be paid
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The amount of any deposit paid and may also include information on where this is protected
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What bills or services are included in the rent
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How the tenancy can be ended
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Who is responsible for repairs, maintenance and safety
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Any additional clauses that have been agreed between the landlord and the tenant You can find more information in relation to the types of clauses a landlord may add. What is a "special clause"?