long-term tenants

mandm65

I am currently renting my house as I am temporarily working away from home. The way things are at the moment it seems that I may not return back to my house and will probably consider purchasing house locally where I am currently working. Recently my tenants contacted me asking me if I have any immediate plans to return to the house. I was honest with them and told them that at this stage probably not but I could not be certain until I purchase locally. They told me the reason they are asking because they want to continue renting my house for the next five years and would be grateful if I could let them stay until then. They sighted various reason for stay like costs of moving and finding something suitable for them.
I must admit I was quite taken aback by this as I was not expecting that, their proposal naturally gives me little boost to forge ahead with my plan to buy something locally.
I just feel little nervous about this as I am unsure about the implication to having someone living in your house for 7+ years (they have been living for 2+ years) and I know that they have couple of teenagers who will be 18 soon.
I would be grateful to hear the implications, if any, of having the ‘long term’ tenants, specially having older kids living? The house is managed through a letting agent and I have the permission from my lender to rent the house, had to bear the loading on the mortgage.
Thanks guys

AFK_Matrix

I don't honestly see the problem? If they have been paying the rent on time for the past 2 years and kept the property tidy then what's your problem? Just get them to sign a 12 month contract with a 6 month break clause and rinse and repeat for 5 years! Or let them go for onto a periodic agreement, I was on one of these for 3 years.

ViolaLass

AFK_Matrix wrote: »

I don't honestly see the problem? If they have been paying the rent on time for the past 2 years and kept the property tidy then what's your problem? Just get them to sign a 12 month contract with a 6 month break clause and rinse and repeat for 5 years! Or let them go for onto a periodic agreement, I was on one of these for 3 years.

Presumably the tenants are looking for something more permanent, such as a five year contract.

OP, might they be interested in buying your house from you?

AFK_Matrix

Well you could do a 5 year contract but who knows what is going to happen in 5 years!! I would say to them that your more than happy to let them stay on yearly contracts but that's me. Are they demanding a 5 year contract?

What happens if they want to leave have they thought about that as they will be signed into the contract for 5 years and then 2 years down the road they have to move because of work? You are asking for trouble in doing a 5 year contract imo.

Werdnal

I would stick to the current tenancy agreement, and allow it to become a SPT, rather than tying you and tenants into a 5 year deal - anything longer than 3 years cannot be an AST anyway. Its all very well for both you and them to want this to continue, and thats fine, but formalising the duration may end on tears of you or they have a change of circumstances.

Your mortgage may also withdraw consent or request you convert to a BTL mortgage as CTL is normally only a temporary arrangement. They may not be happy with you giving a 5 years agreement to stay for this reason.

If they are happy to continue and you are OK with this, leave things as they are.

The teenagers are not a problem, even when they pass 18, as they are not on the tenancy agreement, so if you ever had to evict, they would have no rights to stay. You could of course, issue a new agreement to add them on once they become of age, but there is no need as this gives them more rights!

mandm65

[FONT=&quot]thanks guys to putting my mind to rest.
This year I made the contract SPT as they requested. Apparently the LA was charging them(and me i suppose) unreasonable amount for renewals.
The lender has not said a word since the consent was given but at the time loaded the mortgage.
Its a good point of not adding the additional member on the contract - thanks.
They are not asking for 5 year or long term contract, happy for it to be stay as SPT, their concern was do I want the property returned in the near future. No they have not mentioned that they want to purchase the property.
They have been good tenants thus far and never missed a payment since they moved in so i did not see any problem but just wanted to know the implication of tenants staying that long.
cheers[/FONT]

hellokitty08

Ive been in my current rental for 5 years, with the first 6 months fixed and then rolling after that. Its worked out ok for me.

Yorkie1

I was in my old rental for a total of 12 years without problems.

Eliza_2

I've been here for 12 years too, don't really understand the question - why would it be of concern?

dimbo61

If you do rent out the property for 2/3/5 or 7 years you should expect to replace carpets, beds ( if supplied) and refurbish the propert when empty.
You normally have a 10% wear and tear allowance each year.
Make sure you have all the landlord checks done ie gas check, electric check , insurance etc

mandm65

Yes i agree that i need to budget for the replacement and thnaks of highliting that.
Talking of costs, do i have a need to keep my letting agent? I know i have safe tenants who will be staying and paying rent on time and are happy to go through LL directly if any work required?
Appreciate your input.
Cheers