Renting.....

[Nat_H]

Background

So, I rent my 3 bedroom flat out to two couples, so 4 people in total.

They have been there for 6 months without issue.

One couple wants to leave, and the other wants to stay. The couple that are staying have found a replacement couple to move in.

Meanwhile, I would like to sell the flat, as I want to buy a house for me and my fiancé.

To allow flexibility, I would like to have a rolling month by month contract, and in return for the (slight) uncertainty, offer a lower rental rate to the tenants, as if I were to get an offer, I don't want to have to wait until the 6 month contract has finished.

I have mentioned this to my rental agency, and they have informed me that "by law" the minimum term for renting is 6 months.

Is this true, and is there anything I can do to get around this?

Thanks

[Plotloss]

New people mean a new tenancy with a new minimum term.

[Nat_H]

Plotloss said:

New people mean a new tenancy with a new minimum term.

Ahh, that’s what I was afraid of. Does the fact that 2 of the original tenants are staying make no difference?

[touching cloth]

Nat_H said:

... they have informed me that "by law" the minimum term for renting is 6 months.

Wow, ask them which particular bit of law this is?

[Plotloss]

If it's an AST (which it will be) even if the term is for one week, the tenant has the legal right to stay for 6 months.

Hence why six months is stipulated as the minimum term.

[Nat_H]

Plotloss said:

If it's an AST (which it will be) even if the term is for one week, the tenant has the legal right to stay for 6 months.

Hence why six months is stipulated as the minimum term.

This is exactly what they said to me.

I could stipulate the month by month contract, but they could refuse to leave until 6 months is up.

Its a shame, as the rental income is nice, but is it worth them refusing to leave. Not sure what to do now.

Edited to add; thanks for all the replies

Edited by Nat_H on Tuesday 20th July 11:36

[touching cloth]

Nat_H said:

Plotloss said:

If it's an AST (which it will be) even if the term is for one week, the tenant has the legal right to stay for 6 months.

Hence why six months is stipulated as the minimum term.

This is exactly what they said to me.

I could stipulate the month by month contract, but they could refuse to leave until 6 months is up.

Its a shame, as the rental income is nice, but is it worth them refusing to leave. Not sure what to do now.

They have that option to excersise if they wish, but that does not mean you/they need to sign a contract with a minimum term of 6 months, flexibility may suit them just as much as you - only beneficiary of the minmum term here would be the letting agent who will take their commission on that period.

[Gad-Westy]

Have you considered marketing it as tenanted? A professional landlord may see that as an advantage if they were to buy your property and effectively buy the tenant's contract from you as well. A friend has just had an offer on a flat on a similar basis, I don't think there were any significant legal issues.

One other thing that you may need to consider is how viewings are handled. Your tenants may not appreciate short notice viewings or constantly having to clean the place for pre-arranged viewings. I suppose the lower rent may be a sweetener in that regard.

[Nat_H]

I had hoped that the 20% discount in rent would go somewhere to making them feel better about having viewings and generally keeping the place tidy.