When it comes to renting, choosing the right tenancy agreement can make a real difference in your experience. Whether you’re after stability, flexibility, or a mix of both, understanding the most common types of tenancy agreements can help you make the best choice.
With help from SAM Conveyancing, here’s a rundown on the agreements you’re likely to encounter.
1. Assured Shorthold Tenancy (AST)
Assured Shorthold Tenancies, or ASTs, are the most common agreement for private rentals, typically lasting six to twelve months. With an AST, your landlord is required to protect your deposit in a government-approved scheme. This type provides both parties with flexibility: you get to enjoy certain protections against sudden rent increases, while the landlord has a clear path to repossess the property once the term expires.
2. Assured Tenancy
An assured tenancy provides greater stability than an AST, with added security against eviction as long as you follow the agreement. Rent increases under an assured tenancy tend to be more regulated, giving you a predictable framework for budgeting. Although these agreements are less common in today’s market, they are valuable for tenants seeking a longer-term home with more comprehensive protections.
3. Excluded Tenancy or Licence
The excluded tenancy, or licence, applies when you’re living with your landlord, such as in a lodger situation. This type has fewer legal protections and allows for shorter notice periods, making it highly flexible. Since the deposit doesn’t need to be protected, you’ll find that excluded tenancies are ideal for short-term or informal arrangements where both you and the landlord value flexibility.
4. Non-Assured Tenancy
Non-assured tenancies are specific to cases where the tenant’s main residence is elsewhere or if rent falls below a certain threshold. These agreements offer limited protections, allowing the landlord to take back possession with relative ease. Non-assured tenancies can work well for those who want a short-term rental without the extensive rights provided in other agreements.
5. Company Let Agreement
Company let agreements are designed for businesses rather than individuals. If you’re renting through your employer, this may be the agreement in place. Unlike other tenancy types, these are not regulated under standard housing laws, so it’s essential that terms are well-defined and fair to both parties. This option is most suitable for employees temporarily stationed in specific locations for work, giving companies a straightforward way to secure housing.
6. Regulated Tenancy
A regulated tenancy, established before 1989, provides the highest degree of security. These agreements often include strict rent controls and offer nearly indefinite tenancy rights, making them ideal for long-standing renters. If you find yourself in a regulated tenancy, you’ll enjoy predictable rent and robust protection from eviction, though new tenancies under this type are rare.
Choosing What Works for You
Each tenancy agreement comes with distinct benefits and obligations. By selecting one that matches your needs, you can secure a tenancy that aligns with your plans and lifestyle. From flexible short-term options to more secure, long-term tenancies, understanding these agreements will help you feel confident in your next rental decision.
