Lease term

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    Lease term

    I'd like to ask what lease term people generally enter into as landlords.

    By way of background information, I let a family-sized house (4 bedrooms) in London. It is the type of property which is suited to families relocating for work. The last two times I've let it, the lettings agent has persuaded me to enter into a three year lease with a break clause exercisable after one year. The consequence of this is that the lettings agent takes a very sizeable lettings fee up front as it covers a three year period. In contrast an annual lease would only require a lettings fee for one year up front, with further fees payable if the lease were renewed.

    What lease terms do others enter into please? I feel that I may have been persuaded to do something which is beneficial to the lettings agent and not for me (from a cashflow perspective) when there would really be no problem entering into a one year lease term. The argument put forward by the lettings agent is that tenants want security and will not accept a one year lease term.

    Thanks in advance for your help!

    #2
    I don't let in London, but I only ever offer a 6 month initial term.

    I don't know the tenants and they don't know me or the house (viewings usually being a few minutes long).
    I would never evict a decent tenant, because this is how I make my living.

    Tenants who don't want that can look elsewhere.
    However, no one has ever queried it, as far as i know.

    I would consider a different agent, as they are working for you, not the tenant or themselves (if their interest and yours varies).
    Or see what happens if you suggest you're happy with the arrangement if they take their fees monthly as they collect the rent (which is commonplace outside the capital).
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      6 month then contractual periodic.

      Break clauses only benefit agents (they get fees for the full term even if break clause is used).

      Comment

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