Properly drafted tenancy agreements are essential to protect both landlords and tenants.
Assured Shorthold Tenancies are one of the most common forms of letting arrangement for residential properties.
Assured Shorthold Tenancies have two advantages for a landlord:
- There is a fixed date on which your tenant must leave the property; and
- If any of the terms of the Assured Shorthold Tenancy Agreement are breached, you may be able to apply to the Court to end the tenancy
An Assured Shorthold Tenancy can be for any period of time. However, a Landlord cannot obtain possession via the Courts during the fixed term of the Agreement unless the Tenant has breached any of their obligations under the Tenancy Agreement. Well-drafted tenancy agreements are therefore essential for both landlords and tenants.
An Assured Shorthold Tenancy is generally only appropriate for short term lettings of between 6 and 12 months. At the end of an Assured Shorthold Tenancy, if no actions are taken by either party to renew the tenancy or by the landlord to seek repossession, then the tenancy continues and is terminable on two months’ written notice. If however you wish your tenant to leave at the end of the Assured Shorthold Tenancy Agreement term, you must give him/her two months prior notice in writing.
Things you should think about:
- Who is going to manage the property? Are you going to manage it yourself or are you going to instruct an agent?
- How are you going to protect the deposit? Failing to protect a deposit could lead to you facing a civil claim for compensation. It could also mean that you can can’t rely on two months’ written notice to repossess the property.
- If you have a mortgage, you may have an obligation to get your lender’s consent before granting a tenancy.
- Are you going to ask for a guarantor in case your tenant doesn’t meet their financial obligations?
The Property Team at David Gray Solicitors LLP is accredited by The Law Society’s Conveyancing Quality Scheme (CQS). This scheme provides a recognised quality standard for residential conveyancing practices. Achievement of membership establishes a level of credibility for member firms with stakeholders (regulators, lenders, insurers and consumers).