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What
is Assured Tenancy Agreement?
UK Tenancy Agreement - Assured Tenants
If
you have a rental lease in the UK, choosing between an assured tenancy
agreement and a
shorthold
tenancy is a critical decision that you have to
make. Find out what is an assured lease and how to
manage tenants correctly with our uk tenancy agreement guide.
What
are the Important Features of an Assured Tenancy Agreement?
This
type of lease was introduced by the Housing Act in the 1988. An assured
lease tries to strike a balance by allowing landlords to set their own
rent while granting tenants the rights to stay on your rental property
as long as they don't break any rental regulations.
As the
landlord of an assured lease, you will be responsible for maintaining
your rental property in habitable condition according to the local
health
and safety standards. This means that you will be in charge of the fire
safety and gas safety of your rental property. However if your tenancy
has a fixed term of over 7 years, then you will not be responsible.
Your tenant is required to by law to pay for the water bills, sewerage
fees
and council tax. For other property expenses such as utility and phone
bills, you will have to discuss the issue
with your tenant and include the decision in your rental agreement.
When
it comes to security deposits, you are allowed to ask for any amount as
long as your tenant agrees to it. However if you ask for more than 2
month's rent as security deposit, your tenant will have the right to
sublet your rental property to another sub-tenant unless your written
rental agreement prevents him from doing so.
If your
tenancy is
a fixed term rental and your assured tenant passes away, his spouse or
joint
tenant who has been living with him will take over the assured lease
agreement with the
same terms and conditions.
How
do You Set up an Assured Tenancy Agreement for Your Property?
Most residential tenancies in the UK that begin after 28 February 1997
will
automatically become a shorthold tenancy unless you take steps to make
it
an assured lease.
It's important to note that you can
only have an assured lease only if you are a private landlord
and
your tenant is a private landlord. On top of that, you cannot live in
the same rental unit or building as your tenant (meaning that you
cannot be a resident landlord).
To
declare your lease as an assured tenancy agreement, you can simply
state it in
your written lease agreement or give your tenant a separate written
notice.
There is no formal form for this notice - You just to state clearly in
writing that your rental is an assured one and not a shorthold tenancy.
Which
UK Tenancy Agreement is Right for You? Shorthold or Assured?
To make
things very clear and simple, we will highly
recommend every landlord to go for a shorthold tenancy
unless
you have a very good reason not to do so. Click here to learn
more about the other UK tenancy agreement - shorthold tenancy
When
you compare both types of tenancy from the eyes of a landlord, a
shorthold tenancy offers you a lot more freedom to remove the tenant
from your rental property. It's crucial that you can have the power to
repossess your rental property quickly and easily in case anything goes
wrong with
your current lease.
In fact, some lenders are known to refuse
housing loans to landlords unless they have a shorthold tenancy.
Therefore choosing an assured lease can even negatively affect your
chances of obtaining a mortgage loan. Assured tenancies are
generally quite rare and are granted by housing associations to tenants
rather than landlords choosing to have one.
What
are the Effective Ways to End Your Assured Tenancy Agreement?
If
your tenant does not agree to end the tenancy, you cannot evict
him unless he breaks the terms of your lease agreement or he violates
your area's housing rules.
The following are the most common and valid reasons for evicting
assured tenants:
- Your
tenant has not be paying you rent for at least 2 months. If your rent
to be paid every quarter or year, he has to owe you 3 month's rent
- Your tenant
or his occupant damaged the furniture that you provided him due to
abuse or neglect
- Your tenant
gave you false information on purpose so that you will grant him the
tenancy in the first place
- Your tenant
breaks the terms stated in your written rental agreement or harasses
his neighbours
Before you
can file your lawsuit, you have to send
your tenant a written notice informing him that you wish to go
to court
to regain possession of your rental property. Your tenant does not have
to leave your property until you can obtain a court order to evict
them.
Want to learn MORE practical must-know facts on the
right tenancy type for you?
Return from
this Assured Tenancy Agreement / Assured Tenants page to our Types
of Tenancy Agreements guide
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