When it comes to renting a property, the tenancy agreement is a critical document that protects both the tenant and the landlord. One type of tenancy agreement that has gained popularity in recent years is the contractual (non-AST) tenancy agreement.
So, what exactly is a contractual tenancy agreement?
A contractual tenancy agreement is a legally binding contract between the landlord and tenant that outlines the terms of the tenancy. Unlike an Assured Shorthold Tenancy (AST), which is a statutory agreement that offers certain protections to the tenant, a contractual tenancy agreement is a private agreement between the parties and can be tailored to their specific needs.
One of the significant advantages of a contractual tenancy agreement is flexibility. The landlord and tenant can agree to terms that may not be available under an AST agreement. For example, a tenant and landlord may agree to a longer fixed-term tenancy or include specific clauses such as pet ownership, smoking, or subletting.
However, with this flexibility comes added responsibility for the tenant. Unlike an AST, where the tenant has certain protections, such as the right to a minimum two-month notice period before eviction, a contractual tenancy agreement can include a shorter notice period. Additionally, if the tenant breaches the terms of the agreement, the landlord may be able to take legal action more quickly than under an AST.
When entering into a contractual tenancy agreement, both the landlord and tenant should ensure that the document accurately reflects their intentions. It is essential to read the agreement carefully and seek legal advice if unsure about any provisions. Additionally, the document should be signed by both parties, and a copy should be kept by each.
In summary, a contractual tenancy agreement offers flexibility when compared to an AST and can be tailored to the landlord and tenant`s specific needs. However, it comes with added responsibility for the tenant and fewer statutory protections than an AST agreement. As with any legal document, it is essential to read the agreement carefully and seek legal advice if necessary.
