What exactly is meant by Assured Shorthold Tenancy?
This refers to a form of tenancy involving an arrangement between a private residential landowner and his tenant who rents his property.
It’s worth mentioning that all the tenancies created on January 15, 1989, are automatically considered Assured Shorthold Tenancies, provided no special notice is given to indicate otherwise. This means that even if there is no written agreement or oral contract between a tenant and landowner, the tenancy will be considered Assured Shorthold Tenancy. As a result, both tenants and landlords are entirely protected and secured by the Housing Act 1996 and the Housing Act 1988.
Requirements for obtaining an Assured Shorthold Tenancy
Many factors determine if a tenant or a landowner is eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria, it will act as an Assured Shorthold Tenancy.
- If the annual rent of a tenant is less than £25,000.
- Any tenant shifted to a new property on February 28, 1997, or after that.
- If a tenant uses the services of a private landlord to rent a property
- If a tenant has certain rights in the property for privacy, and the landlord cannot make an entry into the property without going through a mutual agreement
A tenancy will NOT be considered an Assured Shorthold Tenancy under the following conditions:
Several factors determine if a tenant or a landowner is NOT eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria, the tenancy will not be considered Assured Shorthold Tenancy.
- If the annual rent of a property is more than £50,000
- If the rent of a property is meagre, or the property receives no rent at all.
- If a property acts as a holiday home
- If a property is rented out to a private limited company
- If the government or crown owns the property
- If a property is rented out with more than 2 acres of agricultural land or comes under the agrarian tenancy.
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