What Is A Short Term Tenancy Agreement

Insured short-term rental (AST) is the most common type of agreement used by landlords to rent residential properties to private tenants. ASTs are usually given for a period of six months, but may be longer. After the expiration of this initially agreed period, the landlord is able to evict the tenant without a legally valid reason. The landlord or tenant cannot terminate a fixed-term tenancy prematurely. However, there are some options if landlords or tenants want them. • Higher rates – Since short-term leases are typically offered at a daily rate, they can get away at 30% higher rates compared to long-term leases. You can also charge a premium for rental properties at high-demand events such as festivals. While this is financially advantageous, you should consider when your property is vacant and how it affects income. Managing a property on a short-term basis can also take a lot of time and effort – so is it worth it? For this reason, almost all residential leases are signed as AST. • Lack of flexibility – While long-term rentals ensure financial stability, there is also an element of rigidity that can prove difficult with fraudulent tenants. This rigidity also means that you won`t be able to take advantage of rising rental prices in your area. There are ways to work around this issue, such as .B including opt-out clauses in your contract. If you are considering this, a lawyer can recommend the best course of action.

A fixed-term lease lasts only the period specified in the lease. It can be extended or extended if the landlord and tenant agree. • Less time and effort – Long-term leases mean owners can make a deal, and as long as payments are met, you largely forget about them. Once a tenant is settled in your property, it`s really about raising funds when they`re due. Many tenants set up banking transactions to automatically leave their bank at a certain time of the month, making it easier than ever for landlords to track payments. A fixed-term lease has a certain period of time – e.B. one year. You must connect the duration of the lease. My preferred option would be to opt for a hybrid approach. Grant your tenant a 6-month rental. In addition to the rental agreement and the mandatory information required by the rental deposit system, I would recommend obtaining an opinion in accordance with § 21. If, after the first 6 months, the rental goes well, you should grant the tenant a longer rental if he wishes.

I can`t stress enough that, in my experience, long-term tenants are generally happy and satisfied landlords. Most landlords enter the minimum of six months and then let the tenancy continue until either party wants to end it. This is the central difference between the two rentals; under an AST, the landlord automatically has the right to repossess at any time after the expiry of the fixed term of the lease, provided that he provides a reasonable period of notice, whereas in the case of a secured tenancy, the landlord does not have this automatic right, which grants the tenant greater rental security. Deciding whether a short-term or long-term lease is the right option for you depends largely on your personal situation and preferences. If your property is located in the center of a city or close to a popular tourist attraction, offering your property for a short period of time may be the best option. If your property is located in a residential area, it may make more sense to research local rental markets and determine if a longer-term contract is more appropriate. However, the conditions that create a lease are set by Parliament and cannot be circumvented by what is in an agreement. In other words, the terms of your license agreement don`t matter if it`s a rental. .