Types of Private Tenancy Agreements

When it comes to renting a property, private tenancy agreements are one of the most common forms of renting. These agreements provide tenants with a secure place to live while ensuring that landlords have a stable income from their properties. But not all tenancy agreements are created equal. There are several types of private tenancy agreements available, each with their own pros and cons. In this article, we will explore the most common types of private tenancy agreements.

Assured Shorthold Tenancies (ASTs)

Assured Shorthold Tenancies (ASTs) are the most common type of private tenancy agreement in the UK. With an AST, landlords can rent out their property for a minimum of six months, with the option to renew the agreement once the initial term ends. ASTs usually have a fixed term, meaning that tenants are legally bound to stay in the property for a set period of time, usually six months or a year. After the fixed term ends, ASTs typically become rolling contracts, which means that they continue on a monthly basis until either the tenant or landlord terminates the agreement.

ASTs provide tenants with a lot of security, as they are protected by law from being evicted without notice. However, landlords also have some protection, as they have the right to regain possession of their property after the fixed term ends.

Assured Tenancies

Assured Tenancies are similar to ASTs, but they provide tenants with even more security. With an Assured Tenancy, tenants have the right to stay in their property for as long as they want, as long as they continue to pay rent and meet other terms of the agreement. This means that landlords have limited control over their property, as they cannot ask tenants to leave without a valid reason, such as non-payment of rent.

Assured Tenancies are uncommon in the UK, as they are less attractive to landlords due to the reduced level of control they have over their property. However, they can be a good option for tenants who want long-term security and stability.

Licence Agreements

Licence agreements are different from tenancy agreements, as they do not provide tenants with the same level of security. With a licence agreement, tenants are not granted exclusive possession of the property and can be asked to leave at any time. Licence agreements are most commonly used for renting rooms in shared accommodation, such as student houses.

Licence agreements can be more flexible than tenancy agreements, as they can be terminated at any time by either party. However, they are also less secure, as tenants do not have the same legal protections as they would with a tenancy agreement.

Conclusion

Private tenancy agreements provide a secure and flexible way for tenants to rent properties, and there are several types of agreements available to suit different needs. ASTs are the most common type of private tenancy agreement in the UK, providing tenants with security while also giving landlords some control over their property. Assured Tenancies provide even more security for tenants, but are less commonly used due to the reduced level of control they provide for landlords. Licence agreements are a more flexible option for short-term renting but are less secure than tenancy agreements. It is important to carefully consider the type of private tenancy agreement that will best suit your needs before entering into any rental agreement.