Assured Shorthold Tenancy with break clause vs Two-year Fixed Tenancy?

Sorry, I should have said no AST’s and no Fixed terms. It’s a killer for me in student accommodation and I think it could be difficult in many other tenacies.

Foxtons – Clear and reasonable and commensurate with the work actually required.

Reply to the comment left by Puzzler at 06/08/2022 – 20:38
I would never use Foxton’s again!!

If your usual break clause can be exercised by either you or the tenant then you have to consider whether you would be ok with the tenant breaking the tenancy after a year. If the break clause is only exerciseable by you and the tenant accepts its inclusion (without wanting the rent discounted because of the clause) then i guess it doesnt hurt.

It does sound though as if you would only want rid of the tenant if they breached the tenancy. That being the case, i assume they are a good tenant and you want to keep them, so (if the break clause is mutual) you may be better off dropping the break clause so they are tied in for 2 years. Add in a rent review if you dont want a set rent for the whole 2 years.

Best, Charles

Just to avoid any confusion, your use of the term “break clause” is misleading.

You talk in your original post about “the usual break clause”, but there is no such thing. In fact in ASTs they are quite rare, usually being a tenant’s only break for specific circumstances (e.g. moving for work).

What I think you mean is you will grant a fixed term of 6 months; this gives you the flexibilty to end it at that point. Probably no need to be concerend about break clauses at all.

Nothing fundamentally wrong with granting a longer term, if you’re happy with the tenants.

Don’t do a 24 month fix. The agent gets paid the full 24 months even if the tenancy comes to an end. We had a similar arrangement and then the tenants split, one tenant left the flat and the remaining tenant had to go on benefits. We could only get rid of the tenant if they defaulted for a few months and then after going through court. You can lose money during this time, the tenant is seriously stressed because they can’t afford the penalty to break the fixed arrangement and the agents are smiling – still being paid whatever. Anyway, with mortgage rates and rents going up its probably not sensible anyway

Reply to the comment left by Tony West at 10/11/2022 – 10:59
If I signed a 24 Month agreement I always get in writing from the agent that they will refund me their fee’s on a pro rata basis if the tenants leave early.