For individuals looking to rent a property, there are various types of tenancy agreements that can be entered into. Assured shorthold tenancies (ASTs) and company let agreements are two such agreements that are commonly used in the United Kingdom. In this article, we will explore what an AST and a company let agreement are, how they differ, and which one might be best for you.
What is an Assured Shorthold Tenancy (AST)?
An AST is the most common type of tenancy agreement in the UK and is typically used for residential properties. It is a legally binding agreement between a landlord and a tenant, which outlines the terms and conditions of the tenancy. Some of the key features of an AST include:
– A fixed term, typically six or twelve months.
– A rental price that is agreed between the landlord and the tenant.
– A deposit that is paid by the tenant, which is usually equivalent to one month`s rent.
– The tenant`s right to live in the property for the duration of the agreed term.
– The landlord`s right to end the tenancy at the end of the fixed term.
What is a Company Let Agreement?
A company let agreement is a type of tenancy agreement that is used when a company, rather than an individual, is the tenant. This type of agreement is often used by businesses that need to provide accommodation for their employees or contractors. Some of the key features of a company let agreement include:
– The tenant is a company, not an individual.
– The rental payments are typically made by the company, rather than the individual.
– The agreement can be for a fixed term or open-ended.
– The company may be required to provide a guarantee or deposit.
How do ASTs and Company Let Agreements Differ?
There are several key differences between ASTs and company let agreements. The first and most obvious difference is that an AST is a tenancy agreement between a landlord and an individual tenant, whereas a company let agreement is between a landlord and a company. Other key differences include:
– The rental payments: With an AST, the individual tenant is responsible for making the rental payments. With a company let agreement, the company is responsible for making the payments.
– The deposit: With an AST, the tenant is usually required to pay a deposit, which is held by the landlord for the duration of the tenancy. With a company let agreement, the company may be required to provide a guarantee or deposit.
– The length of the tenancy: An AST is usually for a fixed term of six or twelve months. A company let agreement can be for a fixed term or open-ended.
Which one is best for you?
Whether an AST or a company let agreement is best for you depends on your specific circumstances. If you are an individual looking to rent a property for your own use, then an AST is likely to be the most appropriate option. However, if you are a company looking to provide accommodation for your employees or contractors, then a company let agreement may be more suitable.
In conclusion, assured shorthold tenancies and company let agreements are both commonly used tenancy agreements in the United Kingdom. While they share some similarities, they differ in several key areas, including the parties involved, rental payments, and deposit requirements. By understanding the differences between these two types of agreements, you can make an informed decision about which one is best for you.