Assured Periodic Tenancy (APT): A Practical Guide for Landlords

Assured Periodic Tenancy

An assured periodic tenancy (APT) runs from one rent payment to the next, usually month to month, with no set end date. It carries on automatically until either you or your tenant decides to end it.

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The tenancy must be periodic from the very beginning. Attempting to offer a fixed term anyway can result in significant fines.

Tenants can end the tenancy by giving two months’ notice, although a shorter notice period can be agreed in writing. Landlords, on the other hand, must use specific grounds to evict tenants.

Requirements for Assured Periodic Tenancy

You’ll have an assured periodic tenancy where all of the following apply:

– You’re renting to private individuals, not a company
– Rent is more than £250 a year outside London, or £1,000 a year in London
– Annual rent is under £100,000
– The tenant has exclusive occupancy of the property
– The letting is for a term of 21 years or less
– You, the landlord, don’t live in the same building as your tenant

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Rules for Assured Periodic Tenancy

To stay compliant, here are some rules to keep in mind:

Provide a Written Agreement

It’s extremely important to give tenants key information in writing. The easiest way to do this is by including this in the tenancy agreement.

Clearly explain:

Details of the landlord, tenant, and property
The rent amount and when it is due
Any other payments the tenant must make (utilities, TV licence, broadband, phone line, etc.)
How either party can terminate the tenancy
The landlord’s obligations under government regulations (Landlord and Tenant Act, electrical safety, and gas safety)
The tenant’s rights, including requesting a pet or reasonable adaptations for disabled occupants

But what about tenancies that started before 1 May 2026?

You don’t need to create a new tenancy agreement. Existing assured shorthold tenancies automatically became assured periodic tenancies when the new law came into effect.

That said, it’s worth checking your agreement. If it’s missing any information that’s now required by law, you’ll need to give your tenant a written statement with those details.

Follow the New Rent Rules

Here are some rent changes under APTs:

Advance Payments

You can’t ask for rent before the tenancy agreement has been signed. Once it is signed, though, you can collect up to one month’s rent in advance before the tenant moves in.

After that, you can only collect rent for the current rental period. You can no longer ask tenants to pay several months’ rent upfront.

Rent Increases

If you want to increase the rent, you’ll need to serve a formal Section 13 notice. Rent can only be increased once every 12 months.

If your tenant believes the increase is too high, they can challenge it through a tribunal at no cost. To avoid disputes, it’s best to base any increase on local camparables.

Rental Periods

Rent can only be charged for periods of up to one month. You also can’t ask tenants to pay more than one month’s rent at a time.

There’s no benefit in trying to structure a longer period. The law is just going to void this, convert it to a monthly term, and adjust the rent accordingly.

Advertised Rent

Decide your asking rent before advertising the property, as that’s the maximum you can charge.

Once you’ve listed the rent, you can’t accept a higher offer, even if a prospective tenant offers to pay more to secure the property.

End a Tenancy Properly

This is where the rules have changed the most.

Section 21 “no-fault” evictions no longer exist. If you want to regain possession, you’ll need to serve a Section 8 notice and rely on a valid legal ground.

The grounds themselves have been updated too. For example, you can now evict tenants if you’re selling the property or if you or a close family member plan to move in.

The rules on rent arrears have changed as well. In most cases, tenants must now be at least three months behind on rent before the mandatory rent arrears ground can be used.

Most grounds also come with longer notice periods than you may be used to. Whatever your reason, make sure you use the correct legal ground and give the required notice.

Don’t Discriminate

Landlords can no longer refuse a tenant simply because they’re on benefits or have a family. You can still choose tenants based on factors like affordability, references, and their rental history, just not for those specific reasons.

Expect Stricter Reinforcement

Local councils now have stronger powers to enforce the new rules. You can be fined substantially for new offenses, including:

– Offering a fixed-term tenancy
– Misusing the grounds for possession
– Failing to provide the required written information
– Discriminating against applicants
– Taking rent before the tenancy is signed

– Tenants also have greater protection. In fact, they can now claim back up to two years’ rent through a rent repayment order.

Final Thoughts

Assured periodic tenancies bring some big changes, but being a good landlord stays the same. Follow the rules, keep your paperwork up to date, and stay on top of your legal responsibilities.

If you’re unsure about the new requirements, get professional advice before taking action. It can help you avoid costly mistakes and make managing your property much easier.