Fixed term AST or SPT?
9:22 AM, 18th November 2015, 10 years ago
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I have had a tenant for 12 years and currently each 12 months issue a new AST contract raising the rent on average 4%.
I am told that I should just let the contract continue without raising anew one each year.
Can you tell me the pros and cons of doing this please?
Trevor
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Member Since March 2015 - Comments: 1969 - Articles: 1
11:20 AM, 18th November 2015, About 10 years ago
You could allow the tenancy to become periodic, but personally I would renew (provided you are happy with the tenant.
You give ‘material interest’ of the property to the tenant, thus avoiding any Council tax liability during the fixed period. You have a tenant tied in for a set period, making it less of an option for them to ‘up and leave’ (although some may still flit). You can make alterations/additions to the tenancy as legislation changes.