Shorthold Tenancy Agreement

Shorthold tenancy agreements provide landlords and tenants with both the express rights and obligations spelled out in the agreement (always provided these are not at odds with the Housing Acts – so, for example, a landlord may not require tenants to give longer periods of notice than is laid down, or claim the right to give shorter notice than required by legislation) and with implied rights. The latter may or may not be referred to, but are included in statute or are common law rights.

So, for example, tenants are entitled to the “quiet enjoyment” of their home and landlords may not demand access without notice, or enter the premises when the tenants are not present. Landlords have a duty of care towards their tenants, and tenants have a duty of care towards the property they are renting. Tenants have a right to know the name and address of their landlord and to know how their deposit has been protected (if this information is not included in the shorthold tenancy agreement).

Assured Shorthold Tenancy Agreements (ASTs) are the default form of tenancy agreement where annual rent does not exceed £100,000. The basic elements of the agreement are:

As in any legal agreement, shorthold tenancy agreements should set out the parties to the agreement and the date on which the agreement is made.

ASTs should also include the start date and duration of the tenancy.

And, of course, the amount and frequency of rental payments.

If the shorthold tenancy is for more than six months, the AST can include break clauses and also agreed rental increases at specified future dates.

Responsibilities for general outgoings (rates, utility bills, repairs and maintenance) and other responsibilities of the two parties should be recited.

Landlords have an opportunity to include restrictions that they deem necessary – for example, a bar on redecoration without prior written consent from the landlord or restrictions on the number of people who may live or stay in the premises.

There may be peculiarities to the property, such as a right of way over part of the garden, which need to be specified.

It is also good practice to include clauses dealing with late payment of rent and also with the termination of the tenancy.

When it comes to late payment of rent, landlords can specify a (reasonable) rate of interest that may be charged on overdue amounts and also make tenants responsible for any debt collection costs should these arise because of late payment of rent.

Sometimes tenants leave possessions behind. Dealing with these can be a nuisance if nothing is said about them in advance. A reasonable condition would be to say that the landlord may remove and store any possessions left by a tenant for (say) 28 days after which he or she may, after giving the tenant due notice, dispose of them – the tenant remaining liable for reasonable removal, storage and disposal costs.

It is also reasonable to say that the premises must not be left unoccupied for more than, say, 21 days (or the maximum specified in the relevant insurance policy). The shorthold tenancy agreement can specify that if the property is left empty for any longer period the landlord will have reasonable cause to believe the tenant has abandoned the property when he or she may (even though the tenant has not given formal notice), treat the tenancy as ended and enter the premises.

Other possible restrictions include specifying that a particular room or area may not be used and is to be kept locked, requiring that tenants or their guests do not smoke indoors, or do not keep pets in the house. However, any clauses of this nature should not be so restrictive as to be unreasonable.

There are other additional clauses that, if appropriate, it benefits the landlord to include.  Below are some suggestions.

• Included, (re-phrased in suitable legal form) might be the requirements that the tenant or tenants shall:
• register for and pay the council tax
• put all utility supplies in his, her, or their own name or names and to pay all bills that result
• pay the television licence fee
• advise the landlord promptly of any defects and disrepair which are his or her duty to rectify
• keep the interior of the property clean and in good repair
• make good all damage and breakages to the property and landlord’s contents caused by the tenant or tenants (with the exception of fair wear and tear and accidental damage by fire)
• regularly clean all the windows both inside and out
• keep the property warm and sufficiently aired and take all precautions reasonably necessary to prevent water leaks
• use reasonable endeavours to keep the property free from pests and vermin, and to advise the landlord promptly of any infestation of insects or vermin
• keep the garden in good order
• not make any internal or external alterations or additions to the property
• not tamper or interfere with appliances, wiring, plumbing or meters
• not carry out any redecoration without the prior written consent of the landlord
• not erect any television aerial, satellite dish, or radio mast, or install cable television, without the prior written consent of the landlord
• not engage any contractor or incur any expenditure on behalf of the landlord (except in case of emergency) without prior written approval
• not use or keep in the property any type of stove, heater, or lamp or other equipment whose presence or use might endanger the property or those within
• not install or change any locks or security codes without the landlord’s prior written consent
• not leave the property unoccupied without locking and securing all windows and external doors and setting any security devices provided
• not leave the property unoccupied or vacant for any extended period of more than, say, 21 days without first giving written notice to the landlord of the intention to do so (it is also wise to include an abandonment clause to the effect that if it should come to the attention of the landlord that the property has not been occupied for more than 21 days, the tenant has not given the landlord notice of the absence, and landlord has reasonable cause to believe the tenant no longer lives there, then he or she may treat the let as having been abandoned. In such circumstances the landlord has the right to bring the agreement to an end and re-enter the property)
• not keep any pets without the previous written consent of the landlord
• use the property only for the purpose of a private residence and not use it for any profession, business, or trade, or for any illegal, immoral, or improper purpose
• not to obstruct any access to the premises
• not to keep, park, or store any boat, caravan, commercial or similar vehicle at or near the property
• not to do anything that may be or may become a nuisance or annoyance to neighbours
• not to do anything that may render the landlord’s insurance cover invalid (a copy of the insurance policy to be provided to the tenant)not to bring into or store in the property any items of furniture that do not comply with the Furniture and Furnishings (Fire) (Safety) Regulations (www.opsi.gov.uk), nor any unsafe or untested appliances
• not to sublet any part of the property or to take in a lodger
• not to assign the tenancy without the prior written consent of the landlord
• to forward without delay any correspondence addressed to the landlord and to inform him or her promptly of any notice affecting the property which may be served on the tenant
• subject to being giving not less than 24 hours prior notice, to allow the landlord and/or his or her agents or contractors to enter the property at reasonable times to inspect the property or to make necessary repairs, or to comply with a legal obligation
• subject to being giving not less than 24 hours’ prior notice, to allow the landlord and/or his or her agents to enter the property at reasonable hours in the day to conduct viewings for prospective new tenants or buyers.
• upon being giving notice in writing or necessary repairs or re-decoration, or other work which is the responsibility of the tenant to complete, and the tenant having failed to complete this work within a reasonable time, to permit the landlord or his or her agent to enter the property to carry out such repairs (the reasonable cost of which shall be payable by the tenant)
• to pay to the landlord all reasonable costs and expenses of legal action necessarily taken by the landlord in connection with any breach of tenant obligations
• at the end of tenancy, to return items listed in the inventory (or their replacements) and not to remove any
• at the end of tenancy, leave the property free from rubbish and in a condition consistent with the performance of the tenant’s obligations, and to remove all possessions, (the landlord will store any possessions that are left for a reasonable time – say 28 days – and if the items are not collected within this time, may dispose of them at the tenant’s expense
• at the end of tenancy, to return all keys and security devices or codes, and to pay all reasonable charges incurred by the landlord in securing the property against re-entry where the keys are not returned
• to pay interest at a specified rate above Bank base rate (also known as the Repro rate, this is rate set each month by the Bank of England’s Monetary Policy Committee as the as the benchmark for other interest rates, including personal loans and mortgages), or any other published official rate of interest, on any rent or any other money payable by the tenants to the landlord that is outstanding longer than 14 days of the due date
• reimburse the landlord, at the end of the tenancy, reasonable professional cleaning costs for carpets, curtains, linens, bedding, upholstery and similar articles.

This list is not exhaustive, and when drawing up, amending or instructing their solicitors to draw up shorthold tenancy agreements, landlords should consider what other reasonable constraints and obligations they need to write into the contract.