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What is an AST (Assured Short-hold Tenancy)?

The assured shorthold tenancy (AST) is the most common form of agreement in the private rented sector (PRS).

It should be used wherever the following conditions are met –

  • The rent is between £250 and £100,000 per annum
  • The tenants are people rather than an organisation such as a company
  • The property will be the tenant’s main home
  • The landlord does not live in the same property as the tenant.

This page provides a number of our assured shorthold tenancies, as well as answering some frequently asked questions on what your obligations are when creating an AST.

Where you are letting your property jointly to three or more people who are not related then you will have a house in multiple occupation (HMO). These type of letting arrangements place additional requirements on you in relation to the management of the property. In addition you may also be required to have a licence for the property with specific conditions you need to follow.

This agreement has been designed with this in mind. If you are renting to more than three sharers who are not related to each other you should use this agreement if you want to issue a joint tenancy. If you have a larger HMO with more than four tenants we would recommend you use the room only tenancy agreement options instead. This will allow you access to the property so you can more easily comply with the requirements of managing a HMO.

ASTs for letting out properties by the room

If you are renting out a property to three or more people, where at least two of the tenants are unrelated, then you will need to comply with the HMO management regulations or risk significant penalties.

The best way of doing this is to have regular access to the property for inspections. Under a joint tenancy this may not be possible as the tenants have the right to refuse you access to the property. However with a room-only agreement, you retain control over the common parts of the property meaning the tenants can only refuse you access to their individual rooms. This makes it significantly easier to perform inspections within the common parts of the property.