Question re process for changing one of several tenants

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    Question re process for changing one of several tenants

    Hi - just entering the business of being a landlord and I am trying to understand the basic operating priciples around leases. Property will be a 2 bed flat with shared lounge & kitchen and will be let to sveral people. I think the advised way to proceed is to sign all tenants to an AST for 6 months, and that this would switch into statutory periodic tenancy at the end of six months.

    My question is what happens if one of the tenants moves out and another one arrives. A new lease would restart the 6 months which sounds clumsy. Yet this must be a common occurence - how does one handle this?

    Thanks in advance

    #2
    How many people do you consider 'several'.
    I offer no guarantee that anything I say is correct. wysiwyg

    Comment


      #3
      Originally posted by jta View Post
      How many people do you consider 'several'.
      Between 3 and 4

      Comment


        #4
        So let's say 3.65 people then.

        Since you are concerned that they may wish to leave at different times it would probably be best to rent the bedrooms separately to each tenant or couple. The rest of the flat to be common areas.

        Be aware this may put you into small 'hmo' territory.

        One advantage of doing it like this is that you could still be able to gain access to the common areas without having to ask the tenants. (not their bedrooms).

        A disadvantage is that you may not be able charge for damage in common areas.
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


          #5
          I agree with jta - with the one difference that you ARE going to be operating a "House in Multiple Occupation" (I know it's a flat - it's the legal term).

          You probably won't need a license at that size, but will need to conform with HMO safety requirements.

          To avoid HMO requirements you will either have to let it to a group of related people (family!) or two single unrelated sharers. More than 2 and you're in HMO territory.

          There are 2 bedrooms, do you intend the occupants of each room to be a 'couple' or will you be renting on a bed-by-bed basis? That won't change the HMO situation, but would affect the type of tenancy agreement that is appropriate.

          Do you have permission to let from your lender (if there is one)
          Do you have permission to let from your freeholder?

          Comment


            #6
            Originally posted by Snorkerz View Post
            I agree with jta - with the one difference that you ARE going to be operating a "House in Multiple Occupation" (I know it's a flat - it's the legal term).

            You probably won't need a license at that size, but will need to conform with HMO safety requirements.

            To avoid HMO requirements you will either have to let it to a group of related people (family!) or two single unrelated sharers. More than 2 and you're in HMO territory.

            There are 2 bedrooms, do you intend the occupants of each room to be a 'couple' or will you be renting on a bed-by-bed basis? That won't change the HMO situation, but would affect the type of tenancy agreement that is appropriate.

            Do you have permission to let from your lender (if there is one)
            Do you have permission to let from your freeholder?

            Just to answer those specifics from Snorkerz - may need borrowings but would be a BTL mortgage, and will have to ask permission from the freeholder (approx 4-500 flats and many are rented). Incidentally, freeholder specifies all lets to be ^ month AST's

            The reason for asking is that I'm not intending to have ongoing changes to the occupants, but more that I've been reading all this stuff about AST's and I thought, if you have (say) 3 people in an AST, what happens if one of them has to move on for whatever reason. Obviously either myself or the remaining tenants need to find someone to fil the gap, and if you do, is it a question of terminating the original AST and starting a new one with the new occupant, or is there a way that the exisiting agreement can be modified to change one of the tenants?

            Thanks

            Comment


              #7
              You would find it far simpler to let to a family, husband and wife with a sprog, both earning maybe?
              I offer no guarantee that anything I say is correct. wysiwyg

              Comment


                #8
                Well, point taken, but I guess I've maybe given the wrong sort of picture (I'm all for a simple life). In a nutshell, the initial let would be to my son & his partner, but they can't afford it on their own so would have to include 3rd or 4th person. Of course they may all stay for the duration, which I think will exceed the initial 6 months, but I anticipate some changes as they all find their respective feet.

                Comment


                  #9
                  Give your son an AST of his own, allow him to take a lodger. Your son will be the lodger's landlord and would be able to get rid of him with little trouble if needs be.
                  I offer no guarantee that anything I say is correct. wysiwyg

                  Comment


                    #10
                    The arrangement suggested by jta would also avoid the HMO specifications.

                    Comment

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