Any out of the box suggestions for the end of student fixed term tenancies?

Any out of the box suggestions for the end of student fixed term tenancies?

9:58 AM, 24th August 2022, About 2 years ago 41

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Hello everyone, All of us as landlords are affected in different ways by the raft of HMRC taxation and government regulation.

As a student landlord of 25 years I am struggling to understand how the end of fixed term tenancies will benefit student tenants despite listening to arguments from Shelter and NUS.

Their arguments made absolutely no sense and seem to be taking the same “holiday from reality” as our likely new prime minister.

If we assume, which we must, that the renters reform bill will be passed, does anybody have any suggestions of how to legally overcome issues of having to sign students on a permanent tenancy agreement, when we all know that they will likely want to move on in 12 months and a whole year of new students will need to find accommodation well in advance of that?

My student houses are usually signed up by November in the year before the tenancy starts, simply due to the huge demand from students which is only getting greater.

This week I am getting calls from first-year students just going through clearing who have been told that the University of York has no accommodation for them.

So if first years aren’t being accommodated, what chance do second and third years have when trying to find a home in a massively dwindling supply of houses in the PRS?

As landlords we all fully understand what has happened over the last few years and the causes of it, but try explaining this to students who are being told that all landlords are greedy and evil.

I’ve always had a fantastic relationship with my tenants and enjoy excellent reviews and recommendations, but I now feel like I am part of a broken system despite working really hard to build up a well run and well maintained portfolio of homes for hard-working students.

If anybody has any clever “out of the box” suggestions on how to overcome the end of the 12 month fixed tenancy, I’m sure others in my position would be really grateful to hear them!

Thank you.

Andy


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Comments

TheMaluka

12:29 PM, 24th August 2022, About 2 years ago

Reply to the comment left by Gromit at 24/08/2022 - 12:26
Has onyone asked the students what they want?

The Forever Tenant

13:47 PM, 24th August 2022, About 2 years ago

I've seen this issue being raised a few times and I wonder if you can help me understand the situation so that I can comprehend the issue.

Would I be right in thinking that a student tenancy is the same as any other AST, just that the tenants generally leave before the contracted period is up so that no notice would need to be given by either party?

Would it still be the case that if the students were in the property after the end of the fixed term, that it becomes a rolling tenancy from that point forward, the same as any other AST?

I am assuming that the issue here is that if tenancies have no fixed period and section 21 is removed, that the onus would be on the tenants to provide the required notice. Is that correct? And that if no notice is given, there is no legal situation that could compel them to leave the property?

student landlord

15:24 PM, 24th August 2022, About 2 years ago

Reply to the comment left by The Forever Tenant at 24/08/2022 - 13:47Not really. A student tenancy tends to be a 12 month fixed term tenancy agreement. This is what the government white paper wants to eradicate. However for the student market it suits tenants and landlords perfectly because each party knows exactly when the tenancy agreement ends. A landlord should continue to give 2 months notice as per the t's and c's of the AST, to cover themselves legally but realistically the students either find a new group of friends to move in with for their second year (out of their own choice) or they graduate. I give all my tenants the option of signing a new tenancy agreement for their final year at uni before commencing viewings with new groups. (Just to be clear a fixed term AST can be given to anyone, not just students. I am currently renting my own home temporarily and I have taken a 12 month tenancy which clearly stipulates how much notice can be given by either party). So there is clearly a lot of benefit to tenants and landlords to be able to provide a fixed term when needed. It suits some tenants and not others. All this will be very familiar to student landlords but as you wanted one more info to help you understand why fixed AST's are essential for student I hope this helps to clarify.

student landlord

17:22 PM, 24th August 2022, About 2 years ago

Reply to the comment left by TheMaluka at 24/08/2022 - 12:29
Nobody actually asks anyone what they want-it's all decided for us by a government that apparently represents us. Don't get me started on Brexit-oh wait they did ask us and that went well!!

student landlord

9:03 AM, 25th August 2022, About 2 years ago

Reply to the comment left by Mark Addison at 24/08/2022 - 12:03
This is very useful. Thank for the link

Young Man

11:53 AM, 30th August 2022, About 2 years ago

Reply to the comment left by York student landlord at 24/08/2022 - 10:32
I have a 6 bed HMO let to students and this does seem to be a possible solution for landlord and students. Everyone knows when the academic year is and if the tenants want to stay on for a further year, it would be simple to negotiate the new rent which won't be 3 times as much..

Annie Landlord

15:47 PM, 30th August 2022, About 2 years ago

It seems very likely that England will follow Scotland, so no S21 and no fixed term tenancies. All Scottish tenancies, including for students (but not purpose built student accommodation) are Private Residential Tenancies and are 'indefinite'. The period of notice the landlord has to give rises with the length of the tenancy but tenants only give 28 days. Edinburgh in particular (having a number of universities) is a complete dog's breakfast, with a huge shortage of accommodation. Student landlords used to house students until July then let their properties out for the Edinburgh Festival during August. Now they can't do that and many Festival Organisers have said the Festival is in jeopardy because performers and tourists can't find or afford accommodation.

TheMaluka

17:04 PM, 30th August 2022, About 2 years ago

Reply to the comment left by Annie Landlord at 30/08/2022 - 15:47
No situation is so bad that government intervention cannot make it worse
G. R. Steele
16 June 2011

Yvonne Francis

9:42 AM, 31st August 2022, About 2 years ago

Reply to the comment left by Annie Landlord at 30/08/2022 - 15:47
Hi Annie

As you seem to know a lot about Scotland could you enlighten me as to how exactly the periodic or 'infinite' tenancy works. If landlords no longer rent to students then what do they do with their properties? An answer would be greatly appreciated.

Claire Smith

11:16 AM, 31st August 2022, About 2 years ago

I imagine that lawyers could manage to make this work. Possible ideas include a weighting of earlier rents so that the landlord doesn't lose out if the students choose to leave in May after the exams and with double the standard rent if the stay on after the agreed period (allowing the landlord to compensate the poor tenants who were due to go in). I see the fact that exemptions are made for purpose built accommodation (university and large company owned) as further evidence that the government plan is to squeeze out small landlords in favour of banks and large corporations.

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