How long should I grant an assured shorthold tenancy agreement for?
It’s possible to grant an assured shorthold tenancy (AST) to get a fixed period, say a few months. These tenancies are termed as Fixed Term Tenancy’s. At the end of the definition of if the tenancy will not be renewed, it then gets to be a Statutory Periodic AST. The terms on the original tenancy agreement still apply, nevertheless the tenancy continues on a period of time by period basis. For instance, should the agreement required rent to become paid monthly, after that monthly Statutory Periodic Tenancy would result. The other type is termed a Contractual Periodic Tenancy where no term for that end from the let is defined and the tenancy agreement simply continues until either party elect to bring it to a end.
Fixed term tenancy agreement vs periodic tenancy agreement
I had always assumed which a fixed tenancy agreement would have been better for just a landlord. However, having looked closer on the legislation, the simple truth is there is not much difference in merit involving the Fixed tenancy agreement plus the Periodic AST, Assured Shorthold Tenancy Agreement. The fixed term tenancy gets the advantage to the landlord plus the tenant of implying certainty with respect of occupation dates. However, in the two caser the landlord continues to have to give 2 months notice (s.21) to your tenant and cannot obtain possession (before half a year of the tenancy agreement has elapsed) in addition to by satisfying certain on the prescribed grounds. Many landlords believe that obtaining the tenancy agreement even slightly wrong or granting the tenancy incorrectly has potentially dire consequences for obtaining possession. Some of these concerns are fuelled by professionals for example lawyers and letting agents that have an interest in helping you get to use their services or their very cost-effective ‘tenancy agreements’.
Don’t be complacent!
This problem is no longer valid. A residential tenancy ever since the introduction with the 1996 Housing Act has become assumed to become an Assured Shorthold Tenancy Agreement (AST) therefore the worry you will end up with an Assured Tenant by chance has gone. The bottom line is that legally you may get your property back after few months by giving the tenant eight weeks notice (providing needless to say you hadn’t granted them a lengthier tenancy) Having said all that; avoid getting complacent. The law is about detail and procedures. Whilst as an alternative if you get these wrong it certainly won’t be catastrophic; any subsequent action it is more difficult and expensive. Therefore, i suggest you ensure that you understand the legislation and that you obtain it right.
How long should I grant a tenancy for?
Assuming you go for just a fixed term tenancy agreement. In my experience most landlords do; nearly all Assured Shorthold Tenancy Agreemnts (AST’s ) being for periods which can be between 6-1 year. I would recommend few months, particularly in the event the tenants are not used to you. This way it really is easier to ‘get them out’ if problems arise. There may be some advantages to a lengthier let, say yr where the property is being managed. This is because the agent could charge a fee a fee for renewing the tenancy agreement. It is also possible to draw in up a tenancy agreement longer or shorter periods; however you’ll find implications in the two caser.
If the tenancy agreement was for substantially more than a year along with the tenant remains to get a long period. Unless specific steps are taken up increase the rent, it’ll fall below the market industry level which generally increases due to inflation and rental growth. If you wish to let for just a shorter period, including three months, bear in mind; under an Assured Shorthold Tenancy (AST) the courts cannot order possession to adopt effect until after few months from the start from the tenancy. It could therefore be nearly a year after the end in the fixed term when you finally get possession. This however won’t preclude possession being sought about the following prescribed grounds – 2,8,10-15 or 17 – provided that the terms from the tenancy agreement makes provision for it being ended on some of these grounds.
Alternatively when you have no fixed time when you need possession, it is possible to let over a Periodic Tenancy Agreement. This can be either weekly or monthly and should be on from period to period, unless either the landlord or tenant serves notice to take it to an end.