Assured Shorthold Tenancy

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Assured Shorthold Tenancy

Of all the agreements out there for professional landlords, Assured Shorthold Tenancy documents are probably the most common one you’ll use. And it is essentially the most important one of all.
You see an assured shorthold tenancy agreement is basically a contract between a landlord and tenant that protects the rights of them both whilst setting out their duties and responsibilities.
For example, once the agreement/contract is set up, you – as a landlord – will be given the right to repossess the rental property once your tenant reaches the specified ending date of their contract.

Whilst at the same time, your tenant will have the right to live in your rental property throughout that agreed rental period, unless they breach the contract.
For this reason it is essential that you acquire a firm grasp of what an Assured Shorthold Tenancy Agreement entails to ensure your properties long term.
An Assured Shorthold Tenancy Agreement refers to the type of tenancy agreement that a landlord of residential property must put in place when renting their property to a tenant.
It is not legally required to have a written tenancy agreement in place to start a tenancy. A tenancy agreement can be an oral contract between landlord and tenant. However, written tenancy agreements are highly recommended so important terms and conditions don’t get forgotten.
Additionally, if under any unfortunate circumstance, complications between landlord and tenant surfaces which require the aid of the court, the tenancy agreement can prove to be vital.
The Housing Act 1996 states that all tenancy agreements for residential property created after 1997 will automatically be deemed to be an Assured Shorthold Tenancy Agreement (AST) unless the parties agree in writing to the contrary. In such circumstances the tenancy must then either be agreed to be an Assured Tenancy or a Regulated Tenancy. Both of these other tenancy agreements give far greater rights of occupation to the tenant and are only generally used by Housing Authorities.

An Assured Shorthold Tenancy Agreement has certain clauses implied into it by the Housing Act 1996. These clauses relate to the rights of the parties to stipulate notice periods and the right of the tenant to require that their deposit (if one is taken) is held in accordance with the Tenancy Deposit Scheme rules. Our Assured Shorthold Tenancy Agreement template contains all of the required implied clauses as well as other clauses designed to make sure that the foundation for your rental relationship is as solid as it can possibly be.
In the event of death of tenant, your tenancy may be passed on to another member of your family, depending on which type of tenancy you have.
If the tenancy is a joint tenancy, the remaining joint tenant or tenants have an automatic right to stay in the property for the rest of the tenancy.
If you are the only tenant, rights to the tenancy depend on which tenancy type you have:

if it is a tenancy for a set period of six months or more (fixed-term) and is still valid, it will be passed on to the person named in your will
if the tenancy is rolling (periodic), it will automatically pass to your husband or wife.

If you die while in a rolling tenancy agreement and the people left in the property have no rights to your tenancy, your landlord can recover the house. The landlord must start possession proceedings within a year of your death in order to get the property back.
Your landlord has an automatic right to get the property back if the tenancy is a shorthold tenancy. They can only do this at the end of the tenancy and must give two months’ notice that they want the property back.
Regarding eviction, if your landlord tries to evict you without getting a court order it may be a criminal offence. Your local council should help if you have been illegally evicted or harassed by your landlord. You may also be able to get a court order to force your landlord to allow you back into the property. Get advice if you are in this situation.
To terminate, if both parties agree to terminate the agreement, they can legally do so. This is called ‘surrender’. There are two ways that surrender of a tenancy can occur: by “operation of the law” or by a “declaration of surrender”.
Surrender of operation by law – This is when the tenant gives up their occupation of the property to the landlord and the landlord accepting this. This could involve the tenant handing over the property’s keys to the landlord and the landlord accepting that the agreement is over and that they now have possession.
Declaration of operation by law – This is when the tenant signs a “Declaration of Surrender”. This written document then acts as proof that the tenant has given up possession of the property to the landlord.
For a surrender to be legal, both parties must agree. It’s advised for everything that has been agreed to be written down so everyone knows where they stand. If a joint tenancy is in place, all the joint tenants and the landlord must agree to the surrender.
When a tenant has legally surrendered the tenancy, then the landlord has the right of possession of the property under Section 5 of the Housing Act 1988. The landlord needs to end the agreement properly, before re-letting the property; otherwise the landlord could be accused of unlawful eviction.
The Landlord is obliged to serve 2 months’ notice (known as a section 21) if they wish to terminate an assured shorthold tenancy. The notice can be served at anytime during the fixed term but should not be dated to expire before the end of the fixed term. The tenant is not required to serve notice during the fixed term (apart from under the terms of a break clause)   as it is assumed that if they are given notice or do not choose to renew they will leave at the end of the tenancy.

Net Lawman’s Assured Shorthold Tenancy Agreement
Our outline agreements, which can be used both in respect of houses and flats, are suitable for residential tenancies agreement. Our Documents are drafted by expert Solicitors and Barristers and can be customize according to the wishes of Landlord. Our all templates are in plain English with explanatory notes, and are regularly updated to comply with domestic legislation.

By: Herry Taylor

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Avoid The Pitfalls Of Rent To Own Houses

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Rent to own houses have grown in popularity today. There’s a reason for this: Mortgage lenders have tightened their lending standards, and the average credit score of consumers’ has fallen. Rent to own houses, though, give credit-strapped buyers the opportunity to eventually purchase a home. They also give homeowners, who can’t nab high-enough prices by selling their homes in today’s down economy, the chance to earn at least some rental income from the houses that they can’t unload.

But rent to own houses do come with their own risks, and it’s up to the renters themselves to do the advance research that will help them avoid these risks.

Minnesota Public Radio recently ran a report on the booming rent to own market. The report said that while this market provides opportunities to both homeowners and hopeful homeowners, it also comes with potential pitfalls. The biggest problem, according to the story, is that rent to own arrangements are largely unregulated by government agencies.

Rent to Own Homes: An Unregulated Industry

State lawmakers in Minnesota are now working on legislation that would provide regulations for owners and renters entering into a rent to own agreement. But even if this legislation eventually passes, participants in rent to own agreements in most of the rest of the country will still have to navigate the process without the benefit of regulations.

Renters, then, who don’t want to fall into disputes with their new landlords, need to clarify the exact terms of any rent to own agreement in which they enter.

At their most basic, rent to own arrangements are relatively simple. Renters sign a lease, much like an apartment lease, to rent a house for a set period of time, usually a year. After a certain period, it could be as long as three to five years or as soon as the end of the first year-long lease, renters have the option to purchase the home that they had been renting.

Along the way, landlords reserve a portion of each month’s rent for a possible down payment should the renters decide to purchase the home.

The Benefits of Rent to Own Houses

The benefits of this arrangement are obvious: Homeowners earn rental income, and also secure a potential buyer for their residences. Renters learn what it’s like to live in a home and gain the time they need to improve their credit scores.

The potential pitfalls, though, are serious. The Minnesota Public Radio story, for instance, highlighted the case of a couple who were in a rent to own arrangement. When their house fell into foreclosure, the couple lost all the extra money they had set aside for a possible down payment. The couple also had disputes with their landlord over who was responsible for making major repairs with the house, the landlord or the renters.

The key to making a rent to own arrangement work is for both homeowners and renters to spell out exactly what is expected of everyone. Homeowners should explain exactly how much money they’ll be setting aside for a possible down payment from every rent check. They should also clarify what happens to this money if renters decide not to purchase the house or if the house falls into foreclosure. Both parties should also agree about who is responsible for repairs, lawn mowing, and other upkeep.

The Rent to Own Alternative

Rent to own houses can serve as a much-needed alternative for both homeowners and renters in today’s challenging real estate market. But unless both sides of the rent to own agreement are forthright with what is expected, the rent to own arrangement can lead to a long, and unpleasant, dispute. By doing their research before signing any papers, renters can take a huge step to avoiding such a negative situation.

By: Kyle Sugerak

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Using A Standard Rental Contract

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A standard rental contract can be useful to protect yourself and you clients or tenants’ rights. As for apartment renting and some equipment rentals the renter will be required to make a security deposit, or an amount of money kept by the renter as an insurance policy that will be returned at the end of the rental agreement, provided there are no costly damages to the apartment, housing or equipment. When renting a living space, an agreed upon duration of the rental contract is enough for a landlord to hold onto your security deposit. Some landlords have more detailed renal contracts than others but it is most definitely a binding contract that tenants must plan their life around. In turn the landlords must also maintain the building and grounds, fixing gas leeks and regular wear and tear damage. It is a liability for landlords to not immediately take action to repair living situations that violate health and safety regulations that could cause a building to be deemed uninhabitable. Lawsuits can arise if both parties are to blame for example if there is bug damage but the tenant in a diagnosed obsessive compulsive hoarder and has created the problem themselves.

Hopefully your standard rental contract has covered your specific situation, or the tenant is cooperative, if not it will be up to the courts and eviction laws as to what is to be done. In case of an immediate and unforeseen need to travel, tenants will often attempt to “sub lease” their living space while they do not need it in attempt to reclaim their security deposit when the standard rental contract matures.

In the standard rental contract landlords may specify if the renters can have pets, smoke, and can set a due date for each months rent with a late charge if the tenants pay the rent after a certain day of the month or week. The lease may end normally or with various types of eviction notices such as a Pay or Quit Notice from non payment, a Cure or Quit Notice if you do something you previously agreed not to when signing your rental contract or if other tenants complain about you, and finally a Non-Eviction Move Out Notice which is fairly open ended they could want to remodel your living space or to get a new tenant. It does require a seven, thirty or sixty day notice depending on if you are renting weekly or monthly and on the laws in your area. The eviction laws are detailed and many and tenants have rights to counter claim and fight back. Usually if the behavior in question is corrected or you pay rent in full, this will resolve the problem.

With cars, sound and video or computer equipment there is always the risk of damage to the rented product. Will the rocker smash the guitar into a speaker or blow it out or will the sixteen year old get in a fender bender? To cover these potential unfortunate occurrences which may produce financial loss for the company, renting companies are free to specify rental details in a standard rental contract. Maybe the car company will only rent to 18 year olds with a valid ID and clean driving records and strongly encourage adding a non refundable insurance fee to the bill. Maybe the band must have enough money for a security deposit that will be held on their credit card till the equipment is returned safe and sound. Often before doing business renters are required to sign these standard contracts after downloading them from company website or when picking up the equipment or having it delivered or before moving in. Standard rental contracts are set in place to protect both the renters and the rental companies’ rights.

By: Gloria Smith

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Tenant In Foreclosure? Keep Paying Rent Or Face Eviction

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Tenants living in homes or apartment buildings that are now in foreclosure are possibly the largest segment of Americans who have been forgotten during the foreclosure crisis. Many of them have leases in effect with landlords who have not paid the mortgage in months, and renters are also helping to finance the bailing out of the housing market, Wall Street, and possibly even the auto industry. It would seem logical for them to try and get something for nothing and stop paying rent, since everyone else seems to be doing it.

Unfortunately, renters living in homes that are going through the foreclosure process still have to pay rent as long as the landlord is the legal owner of the property and the tenants have a contract with him to lease his property for their own use. The contract will still remain in effect throughout the foreclosure, because foreclosure is a legal process that is dealt with over time in the court system.

Thus, just because a landlord has defaulted on his mortgage contract right now does not make the tenants’ lease contract with him void. However, if the mortgage does go all the way through foreclosure and he loses the home, then the renters will not have to pay him anymore. Since the foreclosure eliminates his ownership interest in the property and transfers it to the high bidder at the sheriff sale, the landlord has no more right to collect on the lease agreement.

In other words, landlords can not enforce the rental contract once the foreclosure is over and they are no longer the owner of the home. But until then, tenants have to keep paying if they wish to remain living in the property. And even after the house has been auctioned off, there will be a new owner who may decide to keep the lease agreement in place, so it would be a good idea for renters to continue saving money even after they no longer pay rent to the original landlord.

But if the landlord does manage to pull out some miracle and save the home before it is sold, tenants do want to be caught falling behind on rent payments. If this happened, the owner of the property could sue the renters to have them evicted or take their security deposit or any other damages he can obtain in court. This would be an especially bad situation for tenants to be in — refusing to pay rent because the house is in foreclosure, only to become the ones in default themselves if the owner fixes the situation.

Of course, this resolution of the foreclosure may seem pretty unlikely if the landlord is already numerous months months behind, but predicting the future is impossible. The owner could hire an attorney, or negotiate a mortgage modification, or have enough equity in the home to qualify for a foreclosure loan with a specialized equity lender. In any case, it is always better to be prepared for the best and the worst outcomes of a foreclosure.

By: Nick Adama

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What Does Renters Insurance Cover? Some Facts That Could Save You Grief

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Apartment renters may think they do not need a renter’s insurance policy; after all they may think they have relatively few possessions. However, this is only part of the coverage. So, what does renters insurance cover?

There are two basic types of coverage:
1. The first type is coverage of your personal possessions in your home against vandalism, theft or an insured damage, such as fire.
2. The second type is liability coverage, which protects you from the expenses associated with an accidental injury to a non-resident in your home.

Remember to ask your insurance agent about the precise coverages in any policy you may possibly consider so you know exactly what you are buying.

What The Landlord’s Insurance Covers

A lot of renters incorrectly believe a landlord’s building insurance will cover any small or large disaster or theft that takes place in their apartment building. Well, this is not true.

The landlord’s insurance is designed to protect the landlord against damage to the public areas of the building and for general liability coverage for these same areas. Your furniture and personal possessions are not covered under a landlord’s insurance policy, or damage you might do to the landlords building. Your possessions and the well-being of your apartment are your responsibility. By renting, you also assume responsible for liability within your rented home.

That is why renters insurance is important; you need to protect your possessions and protect your liability inside your home.

Some Points Of Coverage

What does renters insurance cover?

Coverage for theft and vandalism to your possessions
Coverage for damage to your possessions*
Coverage for relocation expenses while repairs are made to your apartment after damage from an insured risk
Coverage for theft and damage to your possessions away from your home, such as items in your car or taken with you while on vacation
Coverage for liability claims

* These are referred to as “insured risks” and are explicitly mentioned in your policy. These include fire and many other standard risks. Some risks are not standard and will require a separate policy, such as flood insurance, earthquake insurance, and electrical discharge damage.

Renters Insurance provides good coverage at low cost. You can locate a good basic renter’s insurance policy for about $20-a-month or less.

Final Thoughts

Many people manage to ignore getting renter’s insurance, even though it could prove to be one of the most crucial forms of insurance you carry. In a disaster, a renter’s policy can save your assets from huge expenses including future earning. Insuring your possessions is only part of it. Liability coverage is nothing short of a safety net, a godsend, when it is needed. Liability coverage alone is more than worth the fee of a standard policy.

By: Jennifer Edwards

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Tenant Foreclosures

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The threat of foreclosure is a very real concern not just for for homeowners, but tenants as well. With almost 450,000 foreclosure filings in Florida alone, a large percentage of these apply to rental homes. What happens if the house you’re renting goes into foreclosure?

Thanks to the recent passing of the “Protecting Tenants at Foreclosure Act,” renters have more rights now than in the past. Currently, existing tenants are allowed to stay until their lease runs out, plus an extra 90 days. If, however, the new owner decides to move into the house full time, the lease can be terminated, but occupants still have 90 days to find new accommodations. This rule also applies if they are on a month-to-month lease.

Exceptions to the above rules occur if tenants are behind on their rent. In such a case, they are given 3 days notice to pay what is owing, or face eviction within 24 hours. The tenants must also be considered bona fide, or they too are exempt from the protections of the Foreclosure Act.

As stated in TITLE VII, SEC. 702–PROTECTING TENANTS AT FORECLOSURE ACT, “a lease or tenancy shall be considered bona fide only if–
(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; and
(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State, or local subsidy.”

If a home goes into foreclosures, tenants must be notified and they must respond to it. They should immediately send a letter to the judge overseeing the case, along with name, address and foreclosure number, and copy of the lease if they have one.

The more responsibly the occupant behaves upon notice of foreclosure, the better their chances are of being allowed to stay on with the new owner. In addition, those who have maintained a good repore with the bank, may be offered the option to stay on as caretakers while the proceedings are being completed. Other lenders, for whatever reason, may want the premises emptied earlier than the law stipulates, and in this case may strike up a deal where tenants are offered a cash payout if they leave sooner than required.

There are those that feel this new act doesn’t give renters enough options. Often times when a home goes into foreclosure, the banks, not prepared for their new role as landlords, do a poor job of maintaining the home and dealing with the tenant’s concerns. In this case, the tenant may choose to move out before their lease is up, but that choice is not legally presented to them.

Although renters are protected in some ways when a landlord stops paying their mortgage, if the home is already in foreclosure before being rented, many of those protections do not apply. It is the renter’s responsibility to investigate the status of the house before signing the lease, as some landlords may not volunteer this information. A quick check can be made on RentalForeclosure.com, which tracks foreclosure notices to rental properties.

By: Vk Melhado

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What You To Do If The Home You Are Renting Is In Foreclosure

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Not everybody can afford to buy a home that’s why there are rental properties and renters or tenants. Rental homes benefit not only the owners or landlords but the renters as well. Apart from those who can’t afford to purchase a house, these rental homes are also serve as second homes to professionals temporarily assigned to a new place and to tourists on extended vacations.

However, there’s an unforeseen risk in rental homes that poses a big challenge to many renters. This pertains to the subject of foreclosure which scares a lot of tenants. Foreclosure indeed puts a renter in a difficult situation especially for one who has been living in the property for many years, pays his or her rent on time and keeps the rental home in good condition.

According to the county recorder’s office, renters are learning that the home they are living in went into foreclosure and sadly, renters only learn about this when they get a notice on their door informing them that they need to move out in just a few days. In worst cases, renters will not likely get back their first and last month’s rental payment and the security fee.

It’s a fact that some rental homes are maintained by the owners only on a temporary basis. This means that they are renting out their property in an effort to earn extra income while still paying off the mortgage. But should the owner default on his mortgage payments and this continues for several months, there’s a possibility that the property can go into foreclosure and the renters are become the innocent victims when this happens.

Know your rights

It’s important then that renters know their rights to protect themselves when bad situations occur. Renters rights vary from state to state so be sure to research on this. In some states, city laws prevent tenants from being evicted for the simple reason that the rental property’s ownership has changed hands.

Evicting tenants in short notice is also a violation of the renters’ rights. However, if they indeed pursue a no fault eviction, they are required to provide a relocation assistance to tenants that amount to several thousands of dollars.

Tenants should know that while the rental property is going through foreclosure, they should still follow the terms in their lease agreement with landlords. If they are asked to move out before the lease expiration, they may sue their landlords for breach of contract.

A good move then for renters is take immediate action upon learning of their landlord’s foreclosure. They may request to end their rent without penalty or set an agreeable date with the landlord or the lender or the new owner to move out. But until the foreclosure is final, tenants are required to continue paying their rent. Otherwise, they can face court action from the landlord.

Avoid scams

Be wary also of the so-called foreclosure rescue scammers. These are unscrupulous people and companies who pretend to be helping homeowners and renters facing disclosure but who are actually after the property, equity and money. These rescue scammers exist due to the increasing number of potential victims or people desperate to find solutions to their foreclosure woes, there are lots of money involved and notices of default can easily be tracked in public records.

If you’re in this situation, there are some things you can do to avoid being victimized by these rescue scammers. You can keep the communication lines with your mortgage lender open, get all the details concerning the foreclosure procedure, get the assistance of a legitimate foreclosure counseling agency, check your state laws governing foreclosure consultants, stay away from verbal agreements and always make it a point to carefully read and understand all that is written in any document before signing the paper.

It’s vital to be vigilant even when renting a home. Know your rights and exercise them when the need arises.

By: Gloria Smith

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