Changes to Tenancies to make them Longer
In most of Europe there are longer tenancies provided to residential tenants. The United Kingdom has always had shorter tenancy agreements, most often being less than one year. However, the United Kingdom asked for a round table discussion to decide if there is a need for a longer standard tenancy contract. In the last three years more and more residents of the United Kingdom have moved into rental accommodations.
This is a direct result of the subprime mortgage crisis that turned into a global credit crunch and recession. It has meant a great deal of foreclosures have occurred in the last few years, which is why there are more tenants paying rent than in previous years. Mike Fitzgerald is a marketing director for Emba. He stated younger people have a “rent mentality.” In other words they are not looking to buy a house, but to find a place they can affordably rent.
The younger generation is beginning to feel they do not need to buy a house. Instead they feel renting is good enough to fit their lifestyle. A mortgage director, Robert Sinclair stated the UK should become more like Europe with longer tenancy terms.
A longer tenancy would mean the tenants have more control over the property. For example, a year is not really a worthy time to make improvements to a property, whereas a tenure tenancy would mean there is a point to upgrading a few things. The upgrades would have to be approved by the landlord, but the point is if there was a tenure it would be more reasonable to convince landlords the upgrades are needed. Short term contracts also make it harder to get rid of bad tenants who have breached their contract. Most feel longer contracts are needed and that they will come about eventually.
A few recent questions have come up on the letting front. Some landlords want to know what will happen if they have a local housing allowance. The new rates are being discussed, so what happens if the housing benefit is not covering the tenants rent? This is just one of the questions about letting landlords have.
The answer is fairly simple. The new rates are not going to be used until April 2011. They will be announced when the Chancellor is done with the budget. However, there are some key elements known right now regarding the new local housing allowance rates. A maximum payment is going to be implemented for 2011. The rate will be 250 pounds a week for a one bedroom and up to 400 pounds for more than a one bedroom. There is no five bedroom rate, though.
Another change will affect the local housing allowances. It will be based on the 30th percentile instead of the 50 it is now. That means it is going to be averaged on the lowest third of rents. Since rents are likely to change during the next year for none housing allowance places it might be the state will have to change the rates again before they are actually implemented.
For the immediate future, any landlord who has a LHA will need to get tenants who can afford to pay the extra rent out of their own pockets. If they will not be able to cover the rent you require then these tenants will have to move on. It is possible to ask the tenants to move on based on insufficient funds. As the landlord you have the right under tenancy laws to be paid sufficient rent for the place you are letting. The housing allowance can help, but it should not be the only amount you earn from the tenant, especially dependent on the size of the place you have to let. Before April 2011 any tenant who cannot pay should be given notice of your intention to quit the tenancy. With a little less than a year left, you have plenty of time to find new tenants.
When you have come to the end of a tenancy there are a lot of things you must think about. Where will you move, will you stay in the same flat, are you buying a home? Chances are you have already made some decisions about your new tenancy arrangements. If you have elected to end the tenancy and are going to move, you want to ensure the return of your tenancy deposit.
The landlord must put your deposit in a tenancy scheme. They must also repay the tenancy deposit to you, unless there has been a breach of contract. With the many things you have to do before you move, you do not want to be concerned about getting your deposit back, especially if you have to use the deposit in your new living arrangements.
Luckily, there are certain things you can do in order to speed up the return of your deposit. The most important will be what you do during your tenancy. In other words, did you pay all the rent owed, did you keep your pets from damaging the property, and did you keep the house in good shape like it was when you first rented it? If you have been a model tenant there should be no reason for the deposit to be withheld.
You can further ensure your deposit’s return by cleaning the house. You may not have the time to do a thorough cleaning of windows and all, but hiring an end of tenancy cleaning company is an option. At the very least you should have the carpets professionally cleaned. Carpets tend to get dirty and wear down. However, you can keep them looking great by renting a carpet cleaning machine during your tenancy and then having a professional come in after all the furniture has been removed. Even if your tenancy contract doesn’t require this, it will put you in a favourable position with your landlord.
They will be more inclined to see your deposit is returned. They will also move a little quicker to get the money back to you in most instances.
If you are going to enter into a tenancy agreement with a landlord there are a few things you need to know before signing any agreement. The Housing Act of 1988 assures that both the landlord and tenant are protected. This act states that a landlord has the right to get his property back when the tenancy agreement comes to an end. However, in order to protect the tenant the landlord must file a Section 21 notice on his tenant. There are subsections of this act so that the rules apply to both fixed term tenancy agreements and statutory periodic tenancy.
The fixed term tenancy part of the Housing Act of 1988 states that the landlord must deliver the Assured Shorthold Tenancy (AST) with at least two months notice in writing. That means the tenant receives it in time to find another place to let. It is important to note that the two month period begins once the tenant has received the AST so if it is going through the post a few extra days should be given to the tenant.
There is a section in the AST that lets the tenant stay in the flat or home for two months after the expiration of the lease. This stipulation can be used if the tenancy agreement has expired. An example of when this can be used is if the AST is delivered on the day that the tenancy expires.
If a Section 21 notice was given during the lease agreement term but both parties agree to renew the lease agreement a new Section 21 notice would have to be given. If this is not done then the tenant does not have to leave the premises.
It is not necessary to deliver the notice by post. It can also be given directly to the tenant in person. When sending the notice by post it is a good idea to have it sent by registered or recorded delivery service. This will give you the time that the notice was received which makes counting the two month period accurate. If you are delivering the notice in person it is a good idea to take a witness with you so that the date is again accurate.
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