Understanding Different Types of Tenancy Agreements in the UK

When renting a property in the United Kingdom, it's crucial to be aware of the various types of tenancy agreements. These agreements define the terms and conditions of your rental arrangement, so understanding them is essential. Below, we'll explore the most common types of tenancy agreements in the UK:

Assured Shorthold Tenancy (AST)

The Assured Shorthold Tenancy is the most common form of tenancy agreement in the UK. Key features include:

- Typically lasts for at least six months.
- The landlord can regain possession of the property after giving a two-month notice to the tenant.
- Tenants have certain rights and protections under this agreement.

Fixed-Term Tenancy

A Fixed-Term Tenancy is a specific type of AST with a predetermined duration, often lasting for six or 12 months. The advantage for tenants is that the rent remains fixed during the term, offering stability.

Periodic Tenancy

A Periodic Tenancy is an ongoing agreement with no fixed end date. It usually rolls on a monthly or weekly basis. Both tenants and landlords have the flexibility to end the tenancy with proper notice, usually one month.

Renting as a Student

Student tenancies are often structured differently to accommodate the academic calendar. These tenancies are typically fixed-term and align with the academic year.

Company Lets

Company lets involve renting a property through a limited company rather than an individual. These arrangements can be more complex and are often used for corporate housing.

Renting a Room

If you're renting a room within a shared house, you might have a "Room Only" agreement. This grants you a room but might not include access to the entire property. Housemates share common areas like the kitchen and bathroom.

Assured Tenancy

Assured Tenancies provide tenants with more security than ASTs. They are less common but still grant substantial tenant rights and protection. The landlord can only regain possession under specific circumstances.

Regulated Tenancy

Regulated Tenancies are rare, and many existing agreements have been in place for several decades. They provide significant security for tenants and can limit rent increases.

Non-Assured Tenancy

Non-assured tenancies are less common and offer more flexibility for landlords to set terms and conditions. These are not subject to the same protections as ASTs.

Licenses

Some rental arrangements are not covered by traditional tenancy agreements. A license may be used when the occupant does not have exclusive possession of the property, such as in lodger agreements or in cases where the property is not a typical residence.

It's important to understand the specific terms and conditions of your tenancy agreement. Be sure to read and seek advice if you have any questions. Additionally, any deposit you pay should be held in a government-approved deposit protection scheme.

Remember, the type of tenancy agreement you have can significantly impact your rights and responsibilities as a tenant. Always seek professional advice and read your agreement carefully before signing.

Renting property is both exciting and stressful so here at Elite, we have listed a few things that can make the process much smoother as currently, the demand for rental property is high. We recommend reading How To Rent guide published by HM Government 

Know what you require

• Location
• Property type
• Length of tenancy suitable
• Furnished/unfurnished
• Outdoor space
• Parking
• Most importantly your budget

Ultimately your budget is the deciding factor, so be realistic and factor in costs other than rent such as council tax, household bills, and general expenses. All our tenants are reference-checked to ensure rent payments can be consistently met. You will need to put aside a security deposit and one month’s rent in advance.

Fees

Since 1st June 2019, the only payments landlords or letting agents can charge are.

• Rent
• Refundable tenancy deposit that is no more than 5 weeks if the annual rent is less than £50,000 or 6 weeks where the annual rent is £50,000 and above
• Refundable holding deposit capped at 1 weeks rent
• Payments associated with early termination of tenancy requested by the tenant
• Variation, assignment, or novation of a tenancy capped at £50 (or reasonably incurred costs if higher)
• Payments in respect of utilities, communication services, TV license, and Council Tax
• Default fee for late payment of rent
• Lost key/security device

Rental Property Viewing

Property Viewing Check List from Propertymark

Living in your rented home

As a tenant, you must

• Pay the rent on time
• Pay bills you are responsible for
• Look after the property
• Be considerate to the neighbors
• Not take in a lodger or sub-let

As a tenant, you should

• Ensure you know how to operate the boiler, know where the stopcock, fuse box, and meters are located
• Test your smoke alarms and carbon monoxide detectors at least once a month
• Report any need for repairs, ideally in writing. Failure to report the need for repairs could be a breach of the tenancy agreement
• Consider obtaining insurance for your contents and belongings

How to handle issues during the tenancy

Most problems can be handled easily by speaking/writing to us.

If our service is in question and we have not resolved your complaint you can complain to the independent redress scheme. All letting agents are required to be a member of a government-approved redress scheme.

There are situations where you may wish to leave the property during the fixed term tenancy or quicker than the terms of the tenancy agreement it is always advisable to discuss this with us as the landlord could agree to end the tenancy early, we will also put this in writing and follow the procedure for check out.

We always recommend contacting us if you are having financial problems, we will be able to speak to the landlord regarding your difficulties and some landlords are helpful and sympathetic. You can also contact citizens' advice and other bodies for free and confidential advice.

At the end of your fixed period

• You can sign up for a new fixed-term if not you will be on a ‘rolling periodic tenancy’ (the tenancy agreement will state how much notice you must give the landlord if you want to leave the property)
• The landlord might want to increase the rent
• If the landlord wants to end the tenancy, they must give you notice in the prescribed format
• If you want to end the tenancy you must
  • Give notice as per tenancy agreement
    
  • Ensure rent payments are up to date
    
  • Ensure all bills are paid as failure to do so might impact your references and credit rating
    
  • Clear up, and ensure all your possessions and all rubbish is removed. Try to leave the property in the same condition that you first checked in; you should have a copy of your check-in inventory
    
  • Return all sets of keys that were provided, if you don’t landlord can charge you for changing locks
    
  • Try and be present at the checkout inspection to check if costs need to be deducted to cover the damage. If you do not agree to the proposed deductions, you can contact the relevant deposit protection scheme. 

 If you have any questions feel free to contact us using the form below.