Assured Shorthold Leases

Like it or not, no landlord or agent can insert things into leases that conflict with the original or revised legislation (1988/1996). Sounds like gobbledygook? Well, let me give you an example. By law, landlords need to give their tenants two months’ written notice that they need to leave, to exercise their shorthold rights. That’s it, the housing legislation can’t be altered, no matter what’s been sneaked into the lease to shorten that notice period to one month – two months’ notice it is (unless your landlord is acting on a lease breach through court).

Pre-1997 Tenants

Tenants who have lived in their units since before 28 Feb 1997 must read this lesson thoroughly. Many tenancies were incorrectly created before this date and a large number of tenancies with unlimited security of tenure (unless lease terms are breached) were created. Many may still exist today.

Recognising what had happened the government changed the law in 1996 so this can no longer happen. Assured shorthold leases no longer require advance paperwork.

As for the rest of you in the here and now, these are the two most widely used types of assured shorthold leases you’re likely to be offered:

• fixed term
• periodic or contractual period

 

and are outlined below.

Fixed Term Tenancy

The most popular type by a mile is the fixed term tenancy. This means, in a nutshell, that a specific length of time will be offered for the lease to run initially. This is usually six months, but can be longer/ shorter. Six months is popular because it offers maximum mutual benefits, hence its huge popularity. Look on it as a trial run for both parties. Beyond that there are simple ways to stay put. Assured shortholds can and do run for years – even when they started out with an initial six-month fixed term.

During that fixed term, tenants enjoy a relative period of security. If the initial fixed term offered is, say, a year, then your period of security and rental liability becomes a whole year long. Assured shortholds restrict a landlord’s/agent’s options for obtaining a ‘no fault’ guaranteed possession order through the courts until the initial fixed term (or six months) expires, but remain hugely popular because they suit a wide range of circumstances. Also remember that, just as every tenant who hopes their new rental will be a fresh start, every successful landlord is an optimist. We’re not looking for reasons to kick you out from day one, but always hope this new tenancy will be trouble free, long term and, of course, profitable.

What you gain on the roundabouts you can lose on the swings with fixed terms.

Here’s a thought to consider. Signing up for anything beyond the normal six months ties both parties into longer obligations to each other. You may have just found a perfect agent, a perfect landlord ... but on the other hand... So six months is also a fairly decent length of time to test out your own side of the tenancy.

Many agents try to insist that their tenants sign up for an initial fixed term of a whole year from the outset. Again, these things remain in your hands. No one can force you to sign a lease that you don’t like the terms of. If you don’t want what’s being offered, then either negotiate or find an alternative unit with terms that you prefer. A modern landlord/agent with a mid-range property is no longer offering a rarity. Many areas have more property than tenants. So never let management bully you into accepting what’s best for them. Learn to look out for you.