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

Oscar Lewis

10:51 AM, 19th September 2022, About 2 years ago

Reply to the comment left by Gromit at 19/09/2022 - 10:13
I’ve just read up on this. Front loading rent is prevented under the tenant fee act. I think the only solution is to set each periodic term to an annual term and collect rent up front for the full year just as many international students do already. Any other views on this?

student landlord

15:46 PM, 19th September 2022, About 2 years ago

Reply to the comment left by Oscar Lewis at 19/09/2022 - 10:51
But aren’t periodic terms going to be prohibited under the proposals?

student landlord

15:47 PM, 19th September 2022, About 2 years ago

Reply to the comment left by Simon Lever - Chartered Accountant helping clients get the best returns from their properties at 06/09/2022 - 13:09
Hi Simon is there any way of contacting you about your services?

Helen

16:09 PM, 19th September 2022, About 2 years ago

Reply to the comment left by York student landlord at 19/09/2022 - 15:46
My son just took up a tenancy in Aberdeen (he is a 4th year student) so I could see the tenancy agreement and it could be what is in store for us in England. There is no end date. The tenant can give one month's notice (there are two of them sharing, not a couple, and it isn't an HMO) The landlord can only evict using 18 grounds, some of which are discretionary. I can send details through if people want to inspect. Rental increases can only be once a year and deposits can be up to two month's rent.

Yvonne Francis

19:01 PM, 19th September 2022, About 2 years ago

Reply to the comment left by Simon Lever - Chartered Accountant helping clients get the best returns from their properties at 06/09/2022 - 13:09
I first rented to students about forty two years ago at a time of the Fair Rent Act. If you were fair rented then your rent could be cut to half as their assessment was not based on market rents. The 'fair rent' was on the house so if you wished to sell, the house was considerably devalued. So I let my house through an agent who let the whole house to the university, who did not come under this act. We did this for three years and suddenly the university no longer wished to take houses like mine. We often wondered if they had clicked on to the disadvantages they may have put their tenants. We had to continue letting open to the dangers, but fortunately only for one year as the Fair Rent Act was abolished.

Simon, surely this is the sort of thing you are suggesting. It was possible then so maybe possible again especially if universities are short of accommodation. Just wondering if universities as landlords subletting houses would qualify as a PBSA or university accommodation? However it's the best solution I've heard of so far which needs exploring.

Chris Bradley

19:36 PM, 19th September 2022, About 2 years ago

Reply to the comment left by Yvonne Francis at 19/09/2022 - 19:01
We were fair rented in the 1980's and our rent was put up by 25%, it was an interesting experience and our tenants were gutted as we returned from the fair rent tribunal and showed them the letter saying the rent was too low.

XPP

22:37 PM, 19th September 2022, About 2 years ago

Reply to the comment left by Helen at 19/09/2022 - 16:09
Hi - Appreciate if you could please share a copy of the agreement please.
Regards
Siva

Helen

22:47 PM, 19th September 2022, About 2 years ago

Reply to the comment left by XPP at 19/09/2022 - 22:37
Will do but have to scan out personal information first.

Helen

22:54 PM, 19th September 2022, About 2 years ago

It is 31 pages long and mostly the same as you will be familiar with. However, this is different.

24. ENDING THE TENANCY
This Tenancy may be ended by:-
The Tenant giving notice to the Landlord
The Tenant giving the Landlord at least 28 days' notice in writing to terminate the tenancy,
or an earlier date if the Landlord is content to waive the minimum 28 day notice period, or
any other minimum notice period as otherwise validly agreed between the Landlord and
Tenant. Where the Landlord agrees to waive the notice period, or the Landlord and Tenant
agree to a notice period other than 28 days' notice, such agreement must be in writing. The
tenancy will come to an end on the date specified in the notice or, where appropriate, the
earlier date agreed between the Tenant and Landlord. To end a joint tenancy, all the Joint
Tenants must agree to end the tenancy. One Joint Tenant cannot terminate the joint
tenancy on behalf of all JointTenants.
The Landlord giving notice to the Tenant, which is only possible using one of the 18
grounds for eviction set out in schedule 3 of the Act,.. This can happen either:-
By the Landlord giving the Tenant a Notice to Leave stating one or more of the eviction
grounds, and the Tenant choosing to leave. In this case, the tenancy will come to an end on
the day specified in the Notice to Leave, or the day on which the Tenant actually leaves the
Let Property, whichever is thelater.
or:-
By the Landlord giving the Tenant a Notice to Leave stating one or more of the eviction
grounds and then, if the Tenant chooses not to leave on the day after the notice period
expires, subsequently obtaining an eviction order from the Tribunal on the stated eviction
ground(s). In this case, the tenancy will come to an end on the date specified in the
evictionorder. The Landlord can bring the tenancy to an end only if one of the 18 grounds
for eviction apply. If the Landlord serves a Notice to Leave on the Tenant, he or she must
specify which eviction ground(s) is being used, and give the reasons why they believe this
eviction ground applies.
Page 14/31
If the Landlord applies to the Tribunal for an eviction order, the Tribunal will ask the
Landlord to provide supporting evidence for any eviction ground(s) being used.
The amount of notice a Landlord must give the Tenant will depend on which eviction ground
is being used by the Landlord and how long the Tenant has lived in the Let Property.
The Landlord must give the Tenant at least 28 days' notice if, on the day the Tenant
receives the Notice to Leave, the Tenant has been entitled to occupy the Let Property for
six months or less, or if the eviction ground (or grounds) that the Landlord is stating is one
or more of the following. The Tenant:
is not occupying the Let Property as his or her only or principalhome
has breached the tenancyagreement
is in rent arrears for three or more consecutivemonths
has a relevant criminalconviction
has engaged in relevant antisocial behaviour
has associated with a person who has a relevant conviction or has engaged in
antisocialbehaviour.
The Landlord must give the Tenant at least 84 days' notice if, on the date the Tenant
receives the Notice to Leave, the Tenant has been entitled to occupy the Let Property for
over six months and the Notice to Leave does not rely exclusively on one (or more) of the
eviction grounds already mentioned in this paragraph.
The Landlord must secure repossession only by lawful means and must comply with all
relevant legislation affecting private residential tenancies.
SCHEDULE 3 TO THE ACT - EVICTION GROUNDS
Schedule 3 sets out the 18 grounds under which a Landlord may seek eviction. Mandatory
Eviction Grounds
If the Tribunal is satisfied that any of the mandatory eviction grounds exists, it must issue an
eviction order. The eight mandatory grounds are:
The Landlord intends to sell the Let Property for market value within three months of the
Tenant ceasing to occupyit.
Let Property to be sold by the mortgagelender.
The Landlord intends to refurbish and this will entail significantly disruptive works to, or in
relation to, the LetProperty.
The Landlord intends to live in the Let Property as his or her only or principalhome.
The Landlord intends to use the Let Property for a purpose other than providing a person
Page 15/31
with ahome.
The Let Property is held for a person engaged in the work of a religious denomination as a
residence from which the duties of such a person are to be performed; the Let Property has
previously been used for that purpose; and the Let Property is required for thatpurpose.
The Tenant is not occupying the Let Property as his or her only or principal home or has
abandoned the LetProperty.
After the start date of the tenancy, the Tenant is convicted of using, or allowing the use of,
the Let Property for an immoral or illegal purpose, or is convicted of an imprisonable offence
committed in or in the locality of the Let Property. The application must usually be made
within 12 months of the Tenant's conviction.
Discretionary Eviction Grounds
Even if the Tribunal is satisfied that a discretionary ground exists, it will still have discretion
on whether to issue an eviction order. The eight discretionary grounds are:
A member of the Landlord's family intends to live in the Let Property as his or her only or
principalhome.
The tenancy was entered into on account of the Tenant having an assessed need for
community care and the Tenant has since been assessed as no longer having suchneed.
The Tenant has breached the tenancy agreement - this excludes the payment ofrent.
The Tenant has acted in an antisocial manner to another person and the Tribunal is
satisfied that it is reasonable to issue an eviction order given the nature of the behaviour
and who it wasin relation to or where it occurred. The application must usually be made
within 12 months of the antisocial behaviouroccurring.
The Tenant is associating in the Let Property with a person who has a relevant conviction or
who has engaged in relevant antisocial behaviour. A relevant conviction is a conviction
which, if it was the Tenant's, would entitle the Tribunal to issue an eviction order. Relevant
antisocial behaviour meansbehaviour
which, if engaged in by the Tenant, would entitle the Tribunal to issue an eviction order. The
application must usually be made within 12 months of the conviction or antisocial behaviour.
Landlord registration has been refused or revoked by a local authority.
Page 16/31
House in Multiple Occupation (HMO) license revoked by the local authority.
Overcrowding statutory notice in respect of the Let Property has been served on the
Landlord.
Eviction grounds with both a mandatory and a discretionary strand.
These two eviction grounds have both a mandatory and a discretionary strand, so the
Tribunal will have discretion over whether to issue an eviction order in some circumstances,
but not in others:
The Tenant is in rent arrears. (This ground is mandatory if, for three or more months, the
Tenant has been continuously in arrears of rent and on the day the Tribunal considers the
case,the arrears are at least one month's rent. The Tribunal must also be satisfied that the
arrears are not due to a delay or failure in the payment of a relevant benefit. This ground is
discretionary if the Tenant has been in arrears of rent for three or more months, and on the
first day the Tribunal considers the case, the arrearsare
less than one month's rent and the Tribunal is satisfied that it is reasonable on this basis to
issue an eviction order. In deciding whether it is reasonable to evict, the Tribunal will
consider whether the Tenant being in arrears is due to a delay or failure in the payment of a
relevant benefit.)
The tenancy was granted to an employee and the Tenant is no longer an employee. (This
ground is mandatory if the application for eviction was made within 12 months of the Tenant
ceasing to be - or failing to become - an employee and discretionary if the application is
made after the 12 month period haselapsed.)

TheMaluka

8:39 AM, 20th September 2022, About 2 years ago

Reply to the comment left by Helen at 19/09/2022 - 22:54
One needs half a lifetime to read and understand just that one section!

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