The property world can be confusing, but once you get your head around the different policies and terms, it really doesn’t have to be. We’re always asked about the different tenancy agreements that are out there, so we’ve decided to explain a few points for you to make things slightly easier.

A tenancy agreement is a contract between a tenant and their landlord and can either be written or verbal. A tenancy agreement gives certain rights to both the tenant and landlord and is therefore crucial.

If you have a written tenancy agreement, it should highlight the type of tenancy that you have. Both parties must also sign this agreement, and everyone involved should receive a copy. Your tenancy agreement is also likely to include the tenancy start date, contact details, the duration of the tenancy, payment, notice period, obligations to repair the property and any other information that may affect the tenancy.

It is important to note that a tenancy agreement even exists if there has only been a verbal agreement between you and your tenant. Yet these can be difficult to enforce due to lack of evidence, particularly if problems arise. Implied terms of tenancy agreements form part of the contract even though they have not specifically been agreed between you and your tenant. Some of the most common implied terms are that you as a landlord have a duty to carry out repairs under section 11 of the landlord and tenant act 1985 and your tenant has the right to live peacefully (right to quiet enjoyment).

An Assured Shorthold Tenancy Agreement (AST) is the most commonly used type of a tenancy agreement and can be used for flats and houses (self-contained units) which form tenancies under the housing act 1988. It is also used where a property is rented as a whole to a group of people such as students or young professionals. Any deposit paid must be protected within one of the Government approved tenancy deposit protection schemes.

An Assured Shorthold Tenancy Agreement (Room Only) is used when a non-resident landlord rents out an individual room to a tenant – for example, a shared house or bedsit. The accommodation will be non-self-contained meaning that the tenant will share facilities with other tenants in the same house/building. Similar to the agreement above, any deposit paid must be protected within one of the Government approved tenancy deposit protection schemes.

An Excluded Tenancy Agreement (Lodgers Agreement) is used when you are a resident landlord, sharing the living accommodation with your tenant. This does not create an assured shorthold tenancy agreement as this particular tenancy falls outside of the housing act 1988 (non-housing act tenancy) and is outside the scope of the Protection from Eviction provisions. Unlike other agreements, any deposit paid does not have to be protected within one of the Government approved tenancy deposit protection schemes.

A Non-Assured Tenancy Agreement can be used in situations where the rent is not more than £250 per annum; the tenant has their main and principle home elsewhere (for example if the tenant lives with their family elsewhere at weekends and uses the property during the week). These are further examples of non-housing act tenancies. This type of agreement can also be used if you are a resident landlord but do not share accommodation with the tenant. However, this also means that you must not share facilities with the tenant, but your residence elsewhere in the same property must be your only home. In all of these cases, as the tenancy is not an assured tenancy, any deposit paid does not have to be protected within one of the Government approved tenancy deposit protection schemes.

Once you’ve read and begun to understand the different types of tenancy agreements, it is usually quite clear in knowing which one is best for you and your situation. A tenancy agreement can only be changed if both parties agree, so make sure you understand everything before signing. Also, any clause inserted into a tenancy agreement by the landlord must be deemed fair & reasonable otherwise if questioned, a judge will most likely not enforce that particular clause. If you have any questions or would like some more information, then please get in touch today.