When to use an AST

Assured Shorthold Tenancy provides the Landlord guaranteed possession of their property and is used when renting houses or apartments to families or sharers.

The most common Tenancy agreement that is used nowadays is an Assured Shorthold Tenancy (AST) which was introduced in the 1988 Housing Act.

An AST should be used when: see

Renting a residential property.
The Landlord does not reside in the premises and it is not their principle dwelling.
When it is being rented to sharers, individual room lets, or families.
The annual rent payable is less than £100,000 per annum.
It is not a Holiday Let.
The rental period of the tenancy agreement is less than three years.

When an AST should not be used for renting a property!:

When it is a Landlord's principle dwelling, however there are exceptions to the rule.
When let to a Company. Use the PIMS Company Let Agreeement.
When it is a shared house that is rented under a licence that is not a contrived tenancy.
If rented to lodgers sharing facilities with the Landlord. see Lodger
The annual rent payable is MORE than £100,000 per annum. see Licenses & Tenancies
If the original tenancy started between 14th Jan 1989 and 27th Feb 1997 and a Section 20 Notice was not issued.
The rental period of the tenancy agreement is more than three years - In this case it must be witnessed as a deed by a solicitor.

Although it can be safely said that most tenancies used nowadays are AST’s (Assured Shorthold Tenancies), it cannot be automatically taken for granted that any new tenancy agreement will be an AST. A Landlord for instance cannot renew a tenancy and supersede the rights previously enjoyed by a tenant, so an Assured Tenancy cannot be replaced by an AST as this affords the Landlord more favourable rights.

There are many differences between all types of tenancy which are extremely important and are often dismissed, or simply not considered. The different types of Tenancies have their own set of legal rules which must be followed and includes the termination of a Tenancy and the service of notices. Often the novice Landlord is caught out at Auctions because they fail to realise the security of tenancy that some agreements bestow upon the tenant