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Wednesday, 3 October 2023

Types of tenancies - private renting

It is important you know which type of tenancy you have, as it can affect your rights over the property and how you use it. Find out about the different types of tenancies, the rights you have under each type and what should be included in your tenancy agreement.

What is a tenancy?

A tenancy is a contract between a landlord and a tenant that allows the tenant to live in a property as long as they pay rent and follow the rules.

A tenancy agreement is the document agreed between a landlord and tenant which sets out the legal terms and conditions of the rent contract. A tenancy agreement should be prepared before anyone rents the property.

Tenancy agreements can be either written or verbal, but you should use a written tenancy agreement where possible. This will avoid any disputes at a later date as all the tenancy information will be in writing. Check you understand any terms before agreeing to them.

Whether or not a tenancy agreement is in place, landlords and tenants still have certain rights and obligations under the housing legislation.

Rights and obligations under a tenancy agreement

All types of tenancies include the following rights and obligations.

Your rights and obligations as a tenant

Tenants' rights include:

  • freedom to live in the property undisturbed
  • the right to live in a property in a good state of repair - your landlord should make repairs and maintain the property
  • the right to access information about your tenancy at any time
  • protection from unfair eviction

You also have the right to protection from unfair rent, to challenge excessively high charges, and to have your deposit returned when your tenancy ends.

If you have a regulated tenancy, you have additional rights. You may have a regulated tenancy if you moved in before 15 January 1989.

If you fail to pay rent or breach other terms of your tenancy agreement you can lose your legal rights as a tenant.

Your rights and obligations as a landlord

As a landlord, you also have rights. You can:

  • repossess the property when the tenancy ends
  • take back the property if it gets damaged
  • access the property by giving 24 hours' notice
  • take legal action to evict your tenant in some instances - like non-payment of rent

You may have other rights and responsibilities specifically included in your tenancy agreement.

Types of tenancies

Landlords and tenants may have other rights and responsibilities depending on which type of tenancy they have. Tenancies can run for a set period, normally of six months or longer (fixed-term tenancy), or on a month-by-month basis (periodic tenancy).

Assured shorthold tenancies (ASTs)

The most common form of tenancy is an AST agreement. You may have an AST if all of the following apply:

  • your rented property is private
  • your tenancy started on or after 15 January 2024
  • the property is your main accommodation
  • your landlord doesn't live in the property

All new tenancies are automatically ASTs. You can set up another type of tenancy - called an 'assured tenancy' - but this gives the tenant more rights to stay in the property.

A tenancy cannot be an AST if:

  • it began - or was agreed - before 15 January 2024
  • the rent is more than £100,000 - this is then a bare contractual tenancy
  • it is rent free
  • the rent is less than £250 a year - or less than £1,000 in London
  • it is a business tenancy or tenancy of licensed premises
  • it is a holiday let
  • the landlord is a local authority

Assured tenancies

You may have an assured tenancy if the tenancy began before 28 February 1997. This has similar legal rights to an AST, but the tenant can stay in the property for an unspecified period of time. There is no automatic right for the landlord to repossess the property at the end of the tenancy. They must show the court that they have a good reason for wanting possession, using one of the grounds for possession in the legislation.

Regulated tenancies

You may have a regulated tenancy if the all of the following apply:

  • you moved in before 15 January 2024
  • you live in a different building from your landlord
  • you do not get other services included, like cleaning

Regulated tenancies give you more rights than an AST, like increased protection from eviction. You also have a legal right to apply for a fair rent to be registered for the property. A fair rent is an amount set by a rent officer and is the maximum amount your landlord can charge.

If your tenancy was arranged between 28 November 2023 and 15 January 1989, it may be a protected shorthold tenancy. This is a type of regulated tenancy with the same legal protection, though it usually runs for a shorter period of time.

If you die before the tenancy ends, your tenancy rights will automatically pass to your spouse or another qualifying family member.

How to set up a tenancy agreement

A tenancy agreement should include:

  • the names of all people involved
  • the rental price
  • the deposit amount and how it will be protected
  • the property address
  • the start and end date of the tenancy
  • any tenant or landlord obligations
  • which bills the tenant is responsible for

You could also include information on:

  • how to pay rent
  • whether the tenancy can be ended early and how this can be done
  • who is responsible for minor repairs
  • whether the property can be let to someone else (sublet) or have lodgers

Once finalised, you should both sign the agreement and check that the other party has also signed it. You will receive a copy of your agreement and should keep it somewhere safe.

Contract obligations for landlords

If you are a landlord, you should ensure that the contract terms:

  • are fair
  • do not go against legal landlord duties
  • are balanced between the two parties
  • cover rent payment
  • cover deposits

If you are unsure of any terms in the agreement, you should get legal advice before signing.

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