A Tenancy Agreement is a Contract between a landlord and tenant and governs the relationship between the parties to provide clarity as to each party’s rights and responsibilities.
The Assured Shorthold Tenancy Agreement (“AST”) is the most commonly used form of tenancy agreement and is typically used for houses and flats, usually for a term of between six months to three years.
Landlords are legally entitled to request a deposit from a tenant before letting a property. The deposit provides security to the landlord in the event of a breach by the tenant, for example, where the property has been left in a state of disrepair. However, the deposit should be returned to the tenant at the end of the Tenancy Agreement, providing that the terms have been complied with.
If a property is let under an AST, landlords are legally required to place the deposit in one of the government-backed Tenancy Deposit Schemes.