Tenancy lengths pros/ cons

Legacy_user

Good evening Landlords and Tenants,

6 month AST coming to an end. I’m a Landlord. I have a good tenant who wants to stay.

From the perspective of Landlords and Tenants, what considerations could be made regarding possible next steps?

For example:

Lapse to periodical tenancy/ renew AST.

And, of course, length of AST.

What suits whom best?

Cheers Forumeers

Cakeguts

Lapse to periodic. Most of ours are like this. Some have been going for years and years like this.

G_M

Periodic Pros:
1) flexible for both sides. Both can end the tenancy (subject to notice)
Periodic Cons:
2) security. Tenant has little long term security. Landlord may face costs of void/new tenancy at any point

New fixed term pros
3) security. Each side is assured a home/income for the period of the term
New fixed term cons
4) no flexibility. If life changes, each side is locked in

Length of Term of new contract? Just exaggerates the pros and cons above.

But many periodic tenancies continue for years. Just because one side or the other presses for periodic does not mean they are going to end the tenancy in 3 months.

Don't forget the option of a Break Clause in a longer fixed term.

Oh! And cost! Agents still charge landlords, and often tenants, for renewingng contracts (subject to the Tenant Fees Act rules)

theartfullodger

Continue as periodic: (assuming all paperwork perfect)



- almost no paperwork to do
- more flexibility if landlord wishes to evict with s21...
- more incentive for tenant to comply with tenancy (rent in-full & on-time, place looked after, no valid complaints from neighbours.


If paperwork dodgy, offer a new AST at a reduced rent (bear with me.,) plus all the paperwork to get it right, 6 months. Being able to evict is worth way way more than the reduced rent, and you can increase it again in 12 months.