Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
A tenant on a six month Assured Shorthold Tenancy has No Rights other than the right to stay in the house for the Fixed Period. That is made Crystal Clear in the tenancy.
Generally, the Period is Six Months, but it does not have to be. After the fixed period the tenancy lapses into a Periodic Tenancy. Tenants with children usually wish to stay far longer than tenants without children. Younger tenant often do not wish to commit to a three year tenancy.
As to their rights the tenant is assured of being able to stay in the house for the fixed period. As a rule of thumb the landlord requires two things. Firstly, that the tenant pays the rent and secondly looks after the property.
I have had tenants in properties for up to 15 years and quite a number over 10 years. I assume they are happy with me otherwise they would vote with their feet! Look after your tenants and they will stay indefinitely!
However, do not die as your houses may need to be sold! The AST will come to an end! If you retire the same thing! On your gravestone will be the Epitaph. Here lies a Rogue Landlord who died and his tenants lost their homes!
In 2017 Shelter told me I was Fantastic! In 2019 I am Public Enemy Number One! Do not retire without the Permission of Shelter!
People forget just why the AST was introduced. It was to get Landlords to invest! Invest they did! It was a Gold Rush!
Now the Gold has dried up! If HMG want people to invest in houses to rent out then they must make it attractive to investors! HMG is failing! I append ab letter to my local MP.
10th July, 2018
Ms Helen Whately MP,
House of Commons,
Three Year Tenancies
I have read what you have had to say recently about three year tenancies. Of course the longer the security of tenure is the better for the majority of tenants.
However, Private Sector Landlords (PSL) will exit the sector in bulk I fear. On 15th January, 1989 the Assured Shorthold Tenancy (AST) of 6 months duration was introduced for precisely the reason of encouraging people to invest in Investment Properties.
Since HM Government (HMG) has introduced legislation making investment for Private Individuals less attractive and the take up of Buy to Let (BTL) mortgages has dropped by 80%.
The Government wishes to see investment via companies. A company has no age and no exit strategy. It goes on indefinitely renting out houses and flats. The company may be sold and of course end up in the hands of overseas investors.
The Government Strategy is to end up with all non-social rental properties in the ownership of companies. I do not expect HMG will receive much flak from the opposition.
I am 70 years old next month and am actively selling out my properties and paying my Capital Gains Tax (GGT) so it will not make much difference to myself!
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