If you’re a landlord in England or Wales, chances are you’ll use an Assured Shorthold Tenancy (AST) agreement at some point. It’s by far the most common form of residential tenancy, but many landlords don’t realise what makes it valid, when it should be used, and the pitfalls that can lead to disputes. This guide breaks down the essentials.

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WHAT IS AN AST?

An Assured Shorthold Tenancy is a type of rental agreement that:

- Grants the tenant the right to live in your property for an agreed period (fixed term) or on a rolling basis (periodic).

- Gives you, the landlord, the right to regain possession at the end of the tenancy if proper notice is served.

- Provides legal protection for both parties under the Housing Act 1988 (as amended).

- Most private rentals that started after 1997 are ASTs by default, unless they fall into certain exceptions.

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WHEN CAN YOU USE AN AST?

You can usually use an AST if:

- The property is in England or Wales.

- The tenant is over 18.

- The rent is less than £100,000 per year.

- The tenant is renting the property as their main home.

 

You cannot use an AST if:

- The tenant shares the property with you (the landlord).

- The arrangement is a holiday let.

- The tenant is a company rather than an individual.

 

KEY FEATURES OF ASTs EVERY LANDLORD SHOULD KNOW

1. Fixed Term vs. Periodic

Fixed term: Often six or twelve months. At the end, you can either renew, let it roll into a periodic tenancy, or regain possession.

Periodic: Rolls week to week or month to month without a fixed end date.

 

2. Rent and Deposit Rules

Rent amount and payment dates must be set out clearly.

If you take a deposit, it must be protected in a government-approved scheme (DPS, MyDeposits, or TDS) within 30 days. You must also serve the prescribed information to the tenant.

 

3. Section 21 and Section 8 Notices

Section 21: “No-fault” eviction after the fixed term ends (with at least two months’ notice).

Section 8: Used when the tenant has breached the agreement (e.g., rent arrears, antisocial behaviour).

 

4. Landlord Obligations

- Keep the property safe and in good repair.

- Provide up-to-date gas safety, electrical safety, and EPC certificates.

- Give tenants the government’s “How to Rent” guide at the start of the tenancy.

- Failing to meet these duties can make it impossible to evict a tenant legally.

 

COMMON MISTAKES LANDLORDS MAKE WITH ASTs

- Not putting the agreement in writing: Oral agreements are legal, but proving terms in court is a nightmare.

- Incorrectly protecting the deposit: Missing the 30-day deadline can cost you up to three times the deposit amount in penalties.

- Using outdated templates: Housing law changes regularly; using an old form can leave you exposed.

- Forgetting to serve prescribed documents: Without them, a Section 21 notice is invalid.

 

WHY A PROPER TEMPLATE MATTERS

AST agreements might seem straightforward, but small errors can cost landlords thousands in lost rent or legal fees. A professionally drafted template ensures:

- Up-to-date compliance with housing legislation.

- Clear wording that avoids misunderstandings.

- Flexibility to add custom clauses, such as pet rules or break clauses.

With Legal Forms Direct, you can download an editable AST template instantly, without subscriptions or hidden fees.

 

FREQUENTLY ASKED QUESTIONS 

Can I increase the rent during a fixed-term AST?
Yes, but only if the tenancy agreement includes a rent review clause. Otherwise, you need the tenant’s agreement.

 

Do I need to register as a landlord?
Some local councils require landlord licensing, especially for HMOs. Always check with your local authority.

 

What happens if my tenant refuses to leave?
If a Section 21 or Section 8 notice doesn’t work, you’ll need a court possession order. Using a valid AST is the first step in making this process straightforward.

 

FINAL THOUGHTS

An Assured Shorthold Tenancy is the backbone of most private rentals in England and Wales. Done properly, it protects you and your tenant, sets clear expectations, and avoids disputes. Done poorly, it can leave you out of pocket and tied up in court.

Start with the right paperwork: a clear, compliant AST template you can trust.

 

Download your Assured Shorthold Tenancy Agreement Template here
and put your rental on a secure footing today.