Hi All,
As we all know, renting a home is becoming more and more expensive for those that rent.
From a landlords perspective, does this not increase the chances of tenants falling into arrears and the potential of loosing thousands of pounds as a landlord?
Instead of offering a tenant a 6 month or 12 month agreement, is it not beneficial (to me as a landlord) to offer a periodic (1 month rolling) tenancy instead?
Thoughts please.
Thanks
Apple
Thats what most tenancy agreement models are nowadays. Openrent and NRLA for example both use the contractual periodic tenancy model, which is periodic from the start, although with an option to specify a longer, (eg 6 month) initial term.
The Govt white paper proposes to scrap any initial or fixed term and make all tenancies monthly periodic from the start. It means that tenants could give notice to quit from day 2 of the tenancy. This will make it difficult for many landlords to plan and could in theory lead to more voids. Perhaps more significant is that it would likely kill off the private student rental market as landlords tend to grant 12 month tenancies to that sector. It may also be the gradual demise of all shared housing on joint tenancies as no-one would have any security of tenure. Any one of the joint tenants could end the tenancy for all by serving notice at any time.
With current rules you cant issue a section in first 4 months which with the 2 month notice means you cant end tenancy in first 6 months unless you have grounds with a section 8 notice so doing 1 month at start doesnt benefit you.
I didn’t realise this still applied to a 1 month from the beginning…interesting!
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