Assured Shorthold Tenancy Agreement Requirements

At the end of the period indicated in the AST, if the contract is not renewed, it becomes a mandatory secure short-term rental contract. This means that the terms of the AST continue to apply, but the lease continues on the basis of the lease plan. Since most tenants pay their rent each month, this means that these ASTs become monthly periodic rental agreements. The rental agreement is a form of consumer contract and, as such, must be in simple, clear and easy to understand language. It must not contain terms that could be “unfair”. This means, for example, that the rental agreement must not put you in an unfavourable situation, allow a party to unilaterally change conditions without a valid reason or irrevocably bind you to conditions with which you have not been able to familiarize yourself. An unfair term is not legally valid and cannot be applied. These were used before 1989 and give tenants long-term rental rights with fair rent. Depending on the circumstances, a short gap between the contracts may be sufficient to classify the new lease as not immediately after the end of the previous lease. [17] Both types of rentals were introduced to encourage rentals and allow landlords to calculate total market rent. The main difference between the two types of rental is the legislation relating to the recovery of ownership of the property by the owner.

As a NEAT member, you can upload each of our documents, including all of our AST versions, as well as an addendum to add your own clauses….