As buyers find it more and more difficult to get a foot on the ladder of the property market, so the demand for rented property increases.

There are different types of tenancies which can be given by a landlord to a tenant, affording different types of protection and security, but the Assured Shorthold Tenancy is the most frequently used tenancy agreement in the letting of residential properties. This type of agreement is also referred to as an ‘AST’ or ‘Shorthold Tenancy’.

AST’s are normally arranged for a fixed period of six or possibly twelve months, and allow the tenant to remain in the property for the fixed period. The main requirement with this type of agreement is that the landlord and tenant agree on the minimum term and amount of rent. There is no specific requirement to renew them and frequently the tenant continues to ‘hold over’ at the end of the fixed period and becomes a ‘periodic’ tenant. Whether at the end the fixed term or during the periodic tenancy the AST can be determined provided that two months notice has been given in the correct form. If the tenant fails to move out at the expiry of the notice period, the courts have an ‘accelerated procedure’ to enable vacant possession to be obtained.

There are many pitfalls to be avoided so it is essential to get advice:

• Make sure that the AST is correctly drawn up and that you are fully aware of the landlord’s and the tenant’s obligations.
• If notice to determine the tenancy has to be served it has to be in the correct form and served in the correct manner or the process will fail
• Many applications for possession fail during the accelerated possession procedure. The courts insist that they are absolutely right

We shall return to each of these in later blogs!

(Written by Jim Schofield at our Heywood Office)