Fixed term AST or SPT?

by Readers Question

3 years ago

Fixed term AST or SPT?

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Fixed term AST or SPT?

I have had a tenant for 12 years and currently each 12 months issue a new AST contract raising the rent on average 4%. either or

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



Comments

Luke P

3 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.


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