Should we offer longer term tenancies?

Should we offer longer term tenancies?

11:56 AM, 22nd April 2015, About 8 years ago 21

Text Size

Hello everyone,

This is the second question I have asked here, thank you for all the fantastic responses last time. Should we offer longer term tenancies

Watching the recent national political debates and attending local political debates there has been mention a few times of forcing landlords to offer longer term tenancies, I have heard three, four and even five year agreements mentioned.

I will soon have another buy to let property going up for rent and this made me wonder if this could work for me. My strategy is very much long term as my properties are intended to fund early retirement. I am currently in my early 30s so with any luck I will not be selling up for 20 years plus!

With this is mind I would be only to happy to find a tenant who wishes to stay put for several years.

Do you think it is a good idea to offer a longer term tenancy, say for three years, and would tenants be interested in this?

My initial thought when I heard this was that surely it is the tenants who do not want to be committed for this kind of time frame not the landlords?!

Perhaps there may even be some tenants reading this forum who could comment?

I am not after a big political debate, just interested in members thoughts regarding the practicality of offering a three to five year lease.

Thanks,

Jonathan



Comments

Steve Masters View Profile

15:26 PM, 23rd April 2015, About 8 years ago

Landlords access rights would have to be addressed too.

I have a problem with a tenant who I know has trashed their room (don't ask!), but I can't issue a S8 because they have repeatedly refused me access, so I issued a S21 at the end of their 6m fixed term. What am I supposed to do if that fixed term was 3 years?

There needs to be a legal procedure that grants the landlord the guaranteed right of access at reasonable notice and does NOT allow the tenant to refuse access without following a legal procedure themselves.

Mark Alexander - Founder of Property118 View Profile

15:32 PM, 23rd April 2015, About 8 years ago

Reply to the comment left by "Steve Masters" at "23/04/2015 - 15:26":

Why does refusal of access prevent you from serving a section 8 notice?

What's to stop you applying to the Courts for an order for access?
.

Steve Masters View Profile

15:36 PM, 23rd April 2015, About 8 years ago

Reply to the comment left by "Mark Alexander" at "23/04/2015 - 15:32":

I don't want to high-jack the post but if I haven't seem the room trashed without opening myself up to invasion of privacy how can I site it as the reason on the S8?

Perhaps it is the procedure for obtaining a court order for access that needs to be speed-ed up then.

Alan Loughlin

17:15 PM, 23rd April 2015, About 8 years ago

just a word of caution, many leasehold properties have covenants either prohibiting any tenancy over 12 months or imposing hefty charges to the landlord who does, read the lease.

Joe Bloggs

19:17 PM, 23rd April 2015, About 8 years ago

http://www.legislation.gov.uk/ukpga/1985/70

In a lease in which the lessor’s repairing covenant is implied there is also implied a covenant by the lessee that the lessor, or any person authorised by him in writing, may at reasonable times of the day and on giving 24 hours’ notice in writing to the occupier, enter the premises comprised in the lease for the purpose of viewing their condition and state of repair.

Jireh Homes

11:16 AM, 24th April 2015, About 8 years ago

In Scotland the current proposals for a new Tenancy agreement (out for second public consultation till 10 May) are to have no set minimum term (thus allowing any period between say 3 months and 2 years as agreed between Landlord and Tenant) and once "expired" to continue indefinitely, with increasing periods of notice from Landlord to Tenant (current proposals are 16 weeks after 5 years). This in itself is not a major concern for good tenants and responsible landlords as long term tenancy is desired, but there still remains major concerns with process and speed of dealing with defaulting tenants.
Allan

Pete David

12:37 PM, 24th April 2015, About 8 years ago

I am concerned with what if the landlord needs to sell up with in a year or two ? Maybe the mortgage is maturing, and you plan to sell? Three years is a long time to be pinned down.

Jireh Homes

12:50 PM, 24th April 2015, About 8 years ago

The term of the lease under current AST or SAT is either 6 months or 12 months. With the changes proposed by the Scottish Government, the initial term is as agreed between the Landlord and Tenant. Thus we as Landlords can set the initial term and will then have to work within the notice periods to be set in the new legislation. Allan

Ian Narbeth View Profile

12:57 PM, 24th April 2015, About 8 years ago

Reply to the comment left by "Peter David" at "24/04/2015 - 12:37":

"Three years is a long time to be pinned down."
That is only so because of the current market. If more investors were willing to buy (and lenders to lend) with a tenant in situ, the issue would go away. There is nothing inherently wrong with having longer leases (after all the commercial property market insists on them) provided bad tenants can be got out quickly. Landlords, especially those in London, would have to forego 6-monthly increases, which are annoying to tenants whose pay does not rise as fast, but it might, paradoxically, be a more stable market for professional landlords.

J Clarkson

10:54 AM, 25th April 2015, About 8 years ago

Steve Master has it right.

If long tenancies become compulsory for the landlord, does it mean that landlords are not allowed to stop being landlords? Surely landlords, like anyone else, should be able to resign whenever they choose, for whatever reason.

Isn't being forced to continue in your job or running your business slavery?

A matter of months is not too long as a notice period. Years are.

Any legal opinion on this?

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now