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What are the different types of tenancy agreement?

Updated

What is a tenancy agreement?

This is a contract between you (the tenant) and the landlord and it will identify all the rights, legal obligations and responsibilities of you and the landlord 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.

 

What makes a valid tenancy agreement? 

It should include: 

  • The length of the tenancy, and whether it’s fixed term or periodic (eg. running month-to-month) *An initial tenancy term would always be a minimum of 6months and a maximum of 2 years & 364 days, anything longer than this must be executed as a deed.
  • The name of the landlord and any tenants/permitted occupiers
  • The property address
  • The rent amount payable and how often it must be paid
  • The amount of any deposit paid and may also include information on where this is protected
  • What bills or services are included in the rent
  • How the tenancy can be ended
  • Who is responsible for repairs, maintenance and safety
  • Any additional clauses that have been agreed between the landlord and the tenant

What types of tenancy are there? 

There are 5 main types of tenancy:

  1. Assured Shorthold Tenancy Agreement (AST) 
  2. Room Only Assured Shorthold Tenancy Agreement (Room Only AST)
  3. Excluded Tenancy Agreement (Lodgers Agreement)
  4. Company Let Agreement
  5. Assured Tenancy Agreement

It is highly unlikely you will come across most of these and 9 times out of 10 the Assured Shorthold Tenancy Agreement (AST) or the Room Only Assured Shorthold Tenancy Agreement (Room Only AST) will be the one your landlord will use.

 

1. Assured Shorthold Tenancy (AST)

As stated this is the most commonly used agreement and will be used if

  • it is the letting of private residential property and not commercial premises.
  • the tenancy started after 1997
  • it is your main accommodation,
  • the landlord doesn't live there 

When can my landlord not use an AST?

  • if they're charging extremely high rent (over £100k per year)
  • low or no rent
  • if it’s a holiday rental
  • they live in the property

As stated an AST will indicate the length of tenancy, usually 6 or 12 months (this would be something that you have agreed with your landlord). The 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 you haven't agreed on a renewal, the tenancy agreement automatically becomes ‘periodic’, moving to a monthly rolling contract with the same rent.

 

2. The Assured Shorthold Tenancy Agreement (Room Only AST)

This will apply when you are renting a room in a property rather than the whole property.

The type of property would usually be a shared house or a bedsit and would apply to a property where you may share a bathroom or kitchen with other tenants in the same house/building.

 

3. Excluded tenancy (lodgers)

If the landlord lives in the property with you  and shares facilities then this may count as an excluded tenancy.

Be wary of these as you will not get the same rights. There is no need to register the deposit. If the landlord wants to end the tenancy there is no need for a court order. 

 

4. Company let

These are generally used when a company rents the property.

 

5. Assured tenancy

These are more likely to have been used by Housing Associations and were more commonly used in the past. Tenancies that began between 1989 and 1997 may be assured tenancies.

 

6. Addendum Agreement 

The landlord may use this in the instance where they want to add special clauses in relation to the property that are not part of the original agreement. As stated they should be in addition to the agreement and not instead of. 

You can find more information her in relation to the types of clauses the landlord may add. What is a "special clause"?