Despite a number of very public campaigns claiming that tenants want long term tenancies, recent data from The Deposit Protection Service (DPS) shows that the majority only want short term ones reports landlordzone.co.uk
The DPS surveyed 40,000 renters, of which over 39,855 responded. Their results showed that over 80 percent wanted a tenancy for no longer than 12 months and just over a third wanted agreements for a maximum of six months.
The DPS’ Managing Director Julian Foster said “This comprehensive survey suggests that the idea that tenants crave longer tenancies is a myth” adding that “tenancy agreements are a vital ingredient in establishing happy tenancies for both landlord and tenant, and it’s critical that they reflect the needs of both parties”
Many responders sited that lifestyle and work related circumstances made a short term tenancy essential for them. Julian Foster also said that “Like landlords, many tenants prefer the flexibility provided by shorter tenancy agreements rather than being locked into long commitments over where they live and who they rent from.”
The Housing Act 1988 created the Assured Shorthold Tenancy (AST) legislation which was designed to allow both landlords and tenants flexibility and security. At the end of these tenancy terms (6 or 12 months) many landlords are happy to allow the agreement to become a periodic one, a month to month contract with the tenant giving one month’s notice and the landlord giving two months. This type of flexible rolling contract, according to the survey, was favoured by 70 percent of those who responded.
Although the current Assured Shorthold Tenancy’s are just that – short – they can be for longer, for instance 2,3 or even 5 years and the Governments new agreement is designed to take into account when both parties want a longer term contract.
Regardless of the length of a tenancy agreement, landlords are advised to undertake thorough reference checks on all their tenants. For more information why not check our landlord Tips and Guides section. Click4quote.com is also able to include malicious and accidental damage by tenants to its landlord insurance, so if you would like a quotation simply visit our website or call us today.