5 Yr Residential tenancy agreement

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    #16
    Originally posted by KTC View Post
    As above, rolling break clauses literally make no sense. ... Rolling ones you may as well have periodic tenancy.
    Works for me. Originally proposed as a solution to a T wanting to avoid unexpected rent surprises, so annual increases within the three year term are all automatic and pre-agreed and pegged to an index. This has been very valuable to me over the years and keeps my rents healthy with minimum fuss and upset - much better than I did before.

    T also cannot move out without notice at the end of the 6/12 month period, something which had cost me £££ a handful of times.

    T also needs to give two months notice rather than one, which has helped me to minimise voids.

    At the time when I introduced it, it also avoided having to re-serve deposit related info once it turned periodic, although that's not an issue anymore.

    It helps to communicate a long term view - which is genuine and which is appreciated by some during viewings - and allows me to be just a little more hands off during the tenancy.

    I did consider using an annual break clause instead - so that it was more like entering into a new 12 month tenancy each year - but felt it might put pressure on tenants to exercise the break rather than commit to a further year.

    I have not experienced a downside yet. But I tend to have cooperative professional tenants. I have only relied on the break clause once myself, when tenants were causing a nuisance to others in the building. I still occasionally use a standard 12 month - for instance when rents seem to be particularly depressed and I don't want this to carry through into future years.

    I can perfectly understand why others aren't interested in using it. But so far the objections are not particularly convincing.
    Assume I know nothing.

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      #17
      Originally posted by KTC View Post
      Three years and you need a deed..
      Make that: "Over three years and you need a deed."

      I am wondering here if it is actually a group of health workers wanting a tenancy for five years. It would be a bit unusual. Is it in fact the health authority who are going to be the tenant? If so, the tenancy will not be an AST. It may be worth considering if you want rent security for five years, but not if you want the flexibility to sell before the five years are up.

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