What is an Assured Shorthold Tenancy (AST)?

An Assured Shorthold Tenancy (AST) agreement is a type of residential tenancy agreement commonly used in England and Wales.

Introduced by the Housing Act 1988, the AST is a default rental agreement, which means that unless another form of tenancy is expressly agreed upon, private residential tenancies are automatically considered ASTs.

Benefits for Tenants (People):

1. Security of Tenure: Tenants have the right to stay in the property until the fixed term ends, as long as they comply with the terms of the agreement.
2. Protection from Excessive Rent: The rent agreed upon in the AST cannot be increased unless the tenant agrees or the tenancy agreement has a provision allowing for rent reviews. Additionally, if the tenant believes the rent is significantly higher than market value, they can appeal to a Rent Assessment Committee.
3. Deposit Protection: The landlord must put the tenant's deposit in a government-approved tenancy deposit protection scheme, ensuring it's returned at the end of the tenancy, provided the tenant has met the terms of the tenancy agreement.
4. Repossession Protections: The landlord can't just evict the tenant without valid grounds. They must follow proper legal procedures to regain possession of the property.
5. Maintenance and Repairs: Landlords are legally obligated to maintain the property's structure and exterior and to ensure that the plumbing, sanitation, heating, and electricity are working.

Benefits for Landlords:

1. Flexible Tenure: After the initial fixed term (which is often six months or a year), landlords can decide whether to offer a new tenancy or let the tenancy become periodic (rolling month by month). This offers flexibility in managing property and tenants.
2. Rent Collection: With an AST in place, landlords have the legal right to collect rent for the property. If tenants default on payments, landlords can pursue legal avenues for redress.
3. Right to Possession: After the fixed term or during a periodic tenancy, provided they follow the correct legal procedures, landlords have a guaranteed right to get their property back under specific grounds, such as rent arrears or property mistreatment.
4. Setting Terms: While there are mandatory terms (like maintenance responsibilities) in an AST, landlords can also set specific conditions, such as no pets or no smoking, tailored to their preferences and the property's best interests.
5. Protection against "Sitting Tenants": One of the reasons the AST was introduced was to avoid the situation of "sitting tenants" who had significant rights under older forms of tenancy and could stay indefinitely in a rented property. ASTs provide more balance between tenant rights and landlord rights.
6. Market Rent: Landlords can charge a market rent and as mentioned, adjust it under the terms specified in the agreement.

The AST offers a structured framework for landlords and tenants, providing rights and protections to both parties. It's essential that both parties understand their obligations under the agreement.