Fixed term short hold tenancy

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    Fixed term short hold tenancy

    Hi, my tenant has been renting a property from me since 1st June 2013, first on a six month fixed assured short hold agreement, she is now on a periodic basis (deposit and prescribed info all complied at the beginning of the fixed period. She has emailed me today saying she is very happy and would like the security of a longer fixed term. She is a good tenant and so staying is not a problem but I was hoping for some advice (and any potential pit falls) about this situation please.

    About how long would the maximum length of fixed period be advisable. (or permissible on a AST)

    What about break clauses.

    Would I need to re-protect her deposit and send prescribed info if so can it be done "in house" with the DPS without actually releasing the money to the tenant and then getting her to give me the deposit back to re protect.

    Should I put a yearly rent review clause in her agreement.

    Thank you in advance.

    #2
    Good reliable Ts are hard to find so one is worth holding on to. Ts & LLs cirumstances can change quickly. If she wants security and you are happy offer either a 12 / 18 month fixed term with break clause fixed for end of month 6, or a 2yr fixed term with break clause for end of month 12.
    A fixed term >3yr nneds to be in writing and signed as a Deed, I believe.
    You can set new rent for new AST, but stated periodic rent reviews are normally every 2 years

    Best to conduct damage inspection at start of new AST and make any deposit deductions. Then take new full deposit, protect, and issue new PI
    DPS custodial scheme does not charge.

    Comment


      #3
      I wouldn't bother to do a damage inspection and deductions now. It's very disruptive. Perhaps add a note on the AST stating that the condition report is continued over from that dated June 2013. Speak to the DPS to check whether they require the funds to physically be withdrawn and re-lodged. I use mydeposits so the issue doesn't come up.

      Personally I would be reluctant to sign up a tenant for more than a 12 month fixed term. You just don't know how your or their circumstances might change.

      Allowing it to become periodic next time is probably easier for both of you and more acceptable for her when more trust has built up. Remember though to reissue the prescribed information when it becomes periodic (and if using mydeposits inform them the tenancy continues) otherwise there is the potential for a future s21 to fail.

      It helps to mention rent increases in the AST, but not essential. I don't think you can only do them every 2 years. One year is acceptable surely? It is possibly too early to put the rent up now, but I would recommend doing so around June, or at the end of this next fixed term.

      Actually, can anyone recommend some good wording for the clause in an AST relating to the increase of rent?
      IANAL (I am not a lawyer). Anything I say here is just an opinion, so should not be relied upon! Always check your facts with a professional who really knows their onions.

      Comment


        #4
        Thank you both for some sound advice.

        Comment

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