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Why ASTs Are on the Way Out - And Guaranteed Rent Agreements Are the Way Forward

  • Writer: Apex Housing Solutions
    Apex Housing Solutions
  • Sep 4
  • 3 min read
Guaranteed rent

For years, landlords have relied on the Assured Shorthold Tenancy (AST) as the default rental agreement. It was simple, familiar, and offered (on paper) some level of protection and structure.


But with the Renters Reform Bill set to abolish ASTs altogether, the game is changing. And for many landlords, Guaranteed Rent Agreements (GRAs) are quickly becoming the smarter, more stable alternative.


If you’re still relying on ASTs, or unsure how things will work once they’re gone, here’s what you need to know.


What is a Guaranteed Rent Agreement?

A Guaranteed Rent Agreement is not a letting agent arrangement. It’s a commercial tenancy where Apex becomes your tenant, not the person living in the property.


We sign a lease directly with you and pay you a fixed rent every single month regardless of whether the property is occupied, whether the occupant is paying rent, or whether there are issues inside the property.


We handle the occupants.

We handle the management.

We handle the day-to-day.


You get consistent income with no letting fees, no arrears, and no chasing.


AST vs Guaranteed Rent: What’s the Difference?

Feature

AST

Guaranteed Rent (Apex)

Who’s the tenant?

The occupant

Apex Housing Solutions

Void risk

Landlord carries it

Covered by Apex

Rent arrears risk

Landlord loses income

Apex pays in full, always

Legal disputes

Landlord pays legal fees & manages claim

Apex handles all legal proceedings

Possession process

9–12 months for eviction, no rent during that time

Apex handles process; rent continues

Deposits

Must use a deposit scheme, usually favours tenants

Apex Deposit Alternative is easier and more landlord-friendly (read more here)

Compliance (EPC, EICR, Gas Safety)

Landlord responsible

Landlord still responsible, Apex supports where needed (read our blog)

Occupant contact

Landlord/agent has to manage

Apex manages completely, zero landlord contact required

Contract type

Fixed term (currently) but will change under reform

Commercial agreement, unaffected by Renters Reform

Fees

Letting agent fees, renewal costs, admin fees

£0, no fees at all


Why ASTs Will Be Phased Out

The Renters Reform Bill will make significant changes to how tenancies work:


  • No more fixed-term contracts

  • Section 21 will be scrapped

  • Tenancies will become open-ended by default


This creates a risk of higher turnover, longer voids, and less control for landlords. Even if your tenant stops paying rent, you may still have to wait up to a year to regain possession with no rent coming in during that time.


Why Guaranteed Rent Agreements Are the Future

With a GRA in place:


  • You’ll never miss a rent payment, no matter what.

  • You’ll never be dragged into court to chase a non-paying tenant.

  • You’ll never need to manage occupants.

  • And perhaps most importantly: you’ll retain long-term control of your asset, without the day-to-day stress.


Apex typically signs 3-year+ agreements, giving you true stability. And when it’s time to get the keys back, we handle that too, at no cost, with the property returned in line with our agreed standards.


Are You Ready For Rent Reform?

The Renters Reform Bill is coming and ASTs will go with it. Landlords who wait for it to land may be left scrambling. Those who adapt early will be ahead of the curve.


Guaranteed Rent Agreements are simple, proven, and built for the long term.


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