A potential tenant asked the possibility of renting for 3 months. I normally do one year but I got people left the country for a couple of occasions before 6 month. I wonder if there is any legal restriction or disadvantage of renting for 3 months only?
You can have an AST for 3 months if you wish. Its a bit one sided as you wouldnt be able to serve notice to expire before 6 months even then. Given the additional admin and potential for an additional void, I would ask for a higher rent to cover your costs.
1 Like
Many thanks David122. When you mentioned “you would not be able to serve notice to expire before 6 months”, what does this mean? It means i cannot evict him by giving 2 month notice? I’m also not sure how the breakout time works with 3 month let? It would be at the end of month 1?
If I suggest 6 month, does this also allow breakout time?
An AST guarantees the tenant a minimum of 6 months residence provided theyre not in arrears etc. Even for an AST of 1 day, the landlord could not serve a 2 month s21 notice before day 1 of month 5.
You wouldnt bother with a break clause for a 3 month tenancy. I dont use them at all but just give 6 month initial terms that then become periodic.
Thanks David. For this 6 month initial term, is it normal to give breakout period? My concern is that If I insist 6 month as initial period, but the tenant in the end wants to leave at month 3, is it still allowed? He mentioned that he wants short term first with the option to extend because of his visa issue.
As I said above, I dont use break clauses at all. They are a waste of time and sometimes counter-productive as many are poorly drafted and unenforceable.
If you really want this tenant then maybe just give him a 3 month fixed term AST. He can leave without penalty on the last day. If he stays on then it becomes periodic (rolling monthly) and he then has to serve notice to end it. The fact that you can’t serve notice until after the 4th month is largely irrelevant if you are happy for him to stay longer. A problem only arises if you must have the property back at the end of the 3 months because you cant enforce that.
I would suggest you pay the Council Tax and include it in the rent as you are legally liable for it if he defaults with tenancies of less than 6 months. I would also include the utility bills as there is little point changing accounts for such a short period. I would also uplift the rent by 20% to cover the extra costs of a short let.
You should also check that your insurance, mortgage or lease doesnt preclude such short lets.
1 Like
I’ve only offered such short lets twice and in very specific circumstances. I would be disinclined to offer again. David122 has hit many of the issues on the head and good advice. Lot of hassle. Rent uplift fully justified.