10+ SAMPLE Shorthold Agreement

What Is a Shorthold Agreement?

A shorthold agreement, also known as an assured shorthold tenancy agreement, is a legal document that is used by landlords should they wish to lease residential buildings to private renters. These agreements are normally for a term of six months, although they can last for a longer amount of time. After the original agreed-upon time, the landlord has the right to evict the renter without a legal basis and whenever they offer a reasonable notice to the tenant, and they must follow the proper procedure in doing so. Furthermore, landlords in the United Kingdom are the primary users of these types of documents.

This sort of agreement should also be utilized anytime a landlord desires to lease a residential property to a tenant in order to minimize any potential issues that may occur throughout the term by giving clearly stated terms and conditions from the get-go. They can indicate the number of rental payments and how and when they should be made, the amount of deposit necessary, and the date the lease expires, as examples of these terms and conditions. Furthermore, they may impose special regulations about the tenancy, such as prohibiting smoking or pets on the property. Should the parties involved wish to extend the tenancy period, a new type of shorthold agreement must be drafted.

Shorthold Agreement: What’s Inside?

As previously stated, shorthold agreements are necessary between landlords and tenants (especially those who reside in the United Kingdom) to avoid any potential disputes that can arise throughout the term. With that said, in order for it to be effective, it should contain the following elements:

Introductory Notes. In any type of agreement, not just a shorthold agreement, a form of an introduction paragraph should be written or must be present. In the case of a shorthold agreement, this part exists to provide the reason as to why the shorthold agreement was created in the first place, when the agreement should and should not be used, and the things that should be noted or should be done prior to signing the agreement. Additionally, this part may also contain the landlord’s and tenant’s checklist, and the key dates that they need to remember in this agreement, such as the rent due date, the rent review date, the property inspection dates, and so on.Agreement Disclaimer. This section of the shorthold agreement simply indicates that the document is provided free of charge to anybody who wishes to use it, and it also specifies that only the court may rule on the legal impact and applicability of contractual terms, even if the agreement was created with the utmost care. It also states that the government of the area in which the agreement was drafted cannot ensure the legal effect of the model agreement and will not be held liable for the consequences of using or relying on the agreement, including any financial loss suffered by any landlord, tenant, or by third parties.Definition of Terms. This is another section that may be present in any other type of agreement and not just this one. This section of the agreement defines certain terms and sets out certain rules of interpretation that apply throughout the agreement. When a specific term is defined in this agreement, the initial letter of each word of the term will be capitalized followed by its corresponding definition. This section is fundamental to all agreements since it explains all of the words and ideas featured in the agreement and also ensures that the document’s readers comprehend the terms and concepts in the manner in which the author provides them.Parties Involved. As is the case with any type of agreement, the parties that are involved must also be defined. In the case of a shorthold agreement, the parties that are involved are the landlord and the tenant/s. When writing this section, their names and personal details must be fully written. In addition, this part may also state the parties who are not necessarily tenants but are allowed to live inside the property by the landlord, such as the tenant’s children and spouse.Property. This section of the shorthold agreement describes the property that is going to be occupied by the tenant. This section describes the condition of the said property, whether it is fully furnished, partially furnished, or completely unfurnished. This section may also describe what is on the property, whether it contains a garage for large or small vehicles, a private garden for the tenants to unwind, and any other recreational areas that may be present on the property. Additionally, if the property has any shared areas, such as a common room, it must also be stated here.Term. This is another clause that is present in most types of agreements. In the case of a shorthold agreement, the start and end dates of the tenancy must be present. This section specifies that the landlord may terminate the tenancy early if a specific basis for termination is fulfilled. It further states that in the event of a two-year or longer tenancy, break provisions exist that allow the tenant, and in some cases the landlord, to cancel the tenancy early. When landlords and tenants elect to end the tenancy early, the process is known as surrendering the tenancy.Expiration of the Fixed Term. This section of the shorthold agreement states that if the landlord and tenant do not engage in a new lease at the conclusion of the agreed period, a statutory periodic tenancy will be created. This merely depicts what occurs when the fixed term is up but the tenant does not sign a new lease agreement with the landlord. This sort of tenancy is often monthly or week after week. The majority of the provisions in this agreement will be the same as in the statutory periodic tenancy, but the landlord will be entitled to raise the rent and may be able to amend other elements in the agreement provided the proper procedure is followed.Termination at the end of the Fixed Term. This clause of the shorthold agreement describes what will happen whenever the parties involved in the agreement are unable to come into an agreement to enter a new one or let the current shorthold agreement continue as a statutory periodic tendency. When it happens, whenever the landlord wishes the tenant to leave, the landlord must provide a written notice to the tenant that the property needs to be repossessed by the landlord. Whenever the tenant does not decide to leave on the date that is provided in the written notice, the landlord will then apply a possession order to the court and then only the bailiff appointed by the court will be able to evict the tenant should the court decide to do so.Rent Amount. This part of the shorthold agreement states the guidelines that dictate the amount of rent that needs to be paid by the tenant throughout the tenancy. As an example, for tenancy terms that last for less than two years, the landlord may keep the rent at a fixed amount for the entire tenancy. For terms that last for more than two years, however, the landlord and the tenant should be able to have an agreement on whether the rent amount will be fixed or increased per year.Additional Terms. This part of the shorthold agreement is used to record any additional terms that are agreed between the parties involved prior to the execution of the agreement. Additional terms can include details that are specific to the tenancy, such as maintenance of the landscape around the property, allowance or prohibition of pets on the property, and so on. However, this section must not be used to contradict the main clauses that are present or to amend/limit responsibilities. Should any term be found unfair, they are deemed to be unenforceable.Signatures. Similar to any other agreements, this section serves as the last part of the document. This section contains the signatures, names, and details of the landlord, the tenant or tenants, and the witnesses. This also specifies the date on which the agreement was signed. It should be noted that witnesses are only required whenever the agreement is signed and executed as a deed (applies for tenancies that last for 3 years or more).

Steps in Creating a Shorthold Agreement

This part of the article will list the steps that need to be followed for the shorthold agreement to be created to be effective and free of any errors.

1. Identify the Parties Involved

The first step that is usually performed whenever agreement documents are to be created is to identify the parties that are involved. In the case of a shorthold agreement, also known as an assured shorthold tenancy agreement, the parties that are involved are the landlord and the tenant or tenants. The most basic responsibilities of the landlord include keeping the property safe, habitable, and clean so it is suitable for occupation by the tenant. Additionally, the landlord must also perform the necessary repairs, maintain the common areas (if there are any), and keep every vital service in good working order. The most basic responsibilities of the tenant, on the other hand, are paying the rent on time and paying the exact agreed amount, and keeping the property clean.

2. Write the Main Clauses

After identifying the parties involved in the shorthold agreement, the next step that needs to be performed when creating this document is to write down the main clauses. Some of the main clauses in this document are the introductory notes, the disclaimer, the description of the property, the length of the agreement, and the rent clause. The introductory notes in this document contain the reason as to why this document was created in the first place, when the agreement should and should not be used, and the things that should be noted or should be done prior to signing the agreement. The disclaimer section indicates that the document is provided free of charge to anybody who wishes to use it, and it also specifies that only the court may rule on the legal impact and applicability of contractual terms, even if the agreement was created with the utmost care. The property description indicates the condition of the property prior to occupancy and the areas that are present within it. The length of the agreement clause should specify the start and end dates of the tenancy, and the rent clause indicates the amount of rent that needs to be paid periodically, and whether it is fixed or subject to increase.

3. Write Any Additional Terms

After writing the main clauses of the shorthold agreement, proceed to this step. What needs to be done here is to write down any additional terms that may be needed and have been agreed upon by the parties involved. The additional terms are usually specific to the tenancy. This includes terms that dictate whether smoking is allowed within the premises or not, whether pets are allowed, whether visitors are allowed and allowed for an overnight stay, the terms regarding the upkeep of the property, and so on. It should be noted, however, that when writing this section, this should not be used to contradict the main clauses and/or modify the responsibilities of the parties involved.

4. Verify the Agreement

After writing the main clauses and additional terms of the agreement, proceed to this final step. What needs to be done here is to make sure that the agreement is free of any inconsistencies and errors, and that everything that needs to be included is written down in the document. Once the verification process is complete, the parties involved can then sign the document (with optional witnesses present) and put it into action.


FAQs

What is the difference between an assured shorthold tenancy and an assured tenancy?

The difference between the two is that in an assured shorthold tenancy, the landlord is able to evict the tenant without legal reason provided that the proper procedure is followed during the end of the term and reasonable notice is provided. In an assured tenancy, the tenant has much more long-term tenure security since he/she is allowed to stay in the property until they choose to leave or the property has been rightfully repossessed by the owner.

What is a tenant?

By definition, a tenant is usually a person who rents a unit from a property owner (usually known as a landlord) for a predetermined amount of time. In a property, there can be multiple tenants. Tenants usually differ from homeowners since even though both of them pay a predetermined amount every month, the homeowners will usually own the property outright after payment has been completed.

What is a landlord?

By definition, a landlord is referred to as a person who rents or leases a property to tenants in exchange for periodic rent payments. They can be individuals or corporations. They usually carry the responsibility of maintaining the good condition of the property being rented out and carrying out repairs to any faults that may be found. The types of property that they usually own include residential properties, commercial properties, or vacant lots.

Having this type of document allows the landlord to have certain stipulations such as carrying out a rent review or defining the terms that need to be met whenever the landlord needs to hold the tenant’s deposit. This document also enables the parties involved to have a reference to look at should any disputes arise throughout the tenancy, which is why it needs to be written properly. In this article, there are plenty of example templates that are present so you can have something to look at when you need to create this document.