Calls for long term contracts as rents at record high

JonnyBravo

http://www.bbc.co.uk/news/business-19664133

Landlords should offer five year tenancies.

I'm not against it. I love the security of a (good) tenant. Not too sure many tenants will be interested. Even the tenant I had for over 5 years only wanted a year at a time.

purch

Yes, that's my experience. Individual private tenants never seem to want a longer contract. That's why I lease much of mine to non individuals.

PasturesNew

Tenants want the right to stay as long as they want, without having to commit to it. After all, the house is likely to be standing there in 100 years' time.... but the individual's circumstances change and they need a 'get out' clause.

CLAPTON

just an observation
rents rose by 2.9% overall according to the article
inflation of CPI was 2.5%
inflation of RPI was 2.9% for year to August

JonnyBravo

purch wrote: »

Yes, that's my experience. Individual private tenants never seem to want a longer contract. That's why I lease much of mine to non individuals.

I'm sorry. I'm not with you. Commercial? HMO?

And location Sarf London? Thought you were Exmoor and Florida? Just a trip to see the sunny sights of Sarf London?

purch

Foreign Banks, Foreign Embassies and a couple of large multi-nationals. The person/people occupying the property may change, but the bill payer stays the same :beer:

P.S. Actually moved some time ago, forgot to update the thingie. Back in civilisation at last !!!

JonnyBravo

purch wrote: »

Foreign Banks, Foreign Embassies and a couple of large multi-nationals. The person/people occupying the property may change, but the bill payer stays the same :beer:

Ah I see. Fairly limited market for those, esp outside of London.

purch wrote: »

P.S. Actually moved some time ago, forgot to update the thingie. Back in civilisation at last !!!

Congrats. Then you need an update with your avatar LR thingy. Ideally with it in some London street next to a nice shiny Lambo with someone fretting over their paint job.

Loughton_Monkey

So if you're renting your main house out while you go abroad on a 2 year contract?

Or you have just rented out your BTL, and a year later you desperately need to sell and get the money?

Or your mortgage company will not allow 5 year tenancies?

Not really a good idea!

dsab

I don't think it requires necessary long tenancies, just security.

In some countries the amount of notice to be given by Tenant and Landlord depends on the amount of time the tenant has lived there, something along the lines of:

one year or less => one month notice required from either side
between 1 and 3 years => 3 months notice required from either side
between 4 and 10 years => 6 months notice required from either side
over 10 years => 9 or 12 months notice required from either side

That gives IMO security for both sides, and will entice people to rent more long term.

CLAPTON

dsab wrote: »

I don't think it requires necessary long tenancies, just security.

In some countries the amount of notice to be given by Tenant and Landlord depends on the amount of time the tenant has lived there, something along the lines of:

one year or less => one month notice required from either side
between 1 and 3 years => 3 months notice required from either side
between 4 and 10 years => 6 months notice required from either side
over 10 years => 9 or 12 months notice required from either side

That gives IMO security for both sides, and will entice people to rent more long term.

as stated, it will have the inevitable unintended consequences.

purch

Loughton_Monkey wrote: »

So if you're renting your main house out while you go abroad on a 2 year contract?

Or you have just rented out your BTL, and a year later you desperately need to sell and get the money?

Two totally different scenarios, which deserve to be looked at in different ways.

The biggest problem is with BTL Mortgages, and the restrictions they can place on "amateur" LL's.

Also in scenario #1 it would be ideal to negotiate a 2 year lease, but if you had a mortgage that could pose problems.

Scenario #2 is just the problem with amateur BTL, and those involved who see it as a way to make quick and easy ££, and not as a business.