There are also periodic agreements. These do not have a fixed deadline and usually operate from week to week/fourteen days to fourteen days. Periodic agreements are useful for those who need a flexible agreement and can be useful in certain situations. Periodic agreements offer little or no security and are generally not as common as firm agreements. Recent data from Your Move has shown that the average duration of rents in the UK is now 20 months, up 18% from 2014. The usual duration of an AST is between 6 and 12 months, since the Housing Act 1988 provides for a minimum duration of 6 months for guaranteed short-term rents. However, in 1996 it was abolished, allowing lessors to grant periodic leases for ASTs (no minimum or maximum). As renting is becoming increasingly popular for a growing number of people in the UK, Your Move strives to ensure that rental contracts, including their length, offer more benefits to landlords and tenants. The February 2017 Government Housing White Paper highlighted the benefits of long-term leases for both tenants and landlords, and the latest results from LSL`s rent survey showed that more than a third of tenants would prefer a lease of at least three years. Given that more and more tenants are old enough to start a family and some who live in real estate until old age, it is clear that many would like the security of a lease of at least three years. In theory, you could establish a lease agreement for any period, as a lease is a contract between the lessor and the tenant.
Under current legislation, both parties must approve the terms of the agreement. The type of tenant your property is likely to attract should be taken into account when deciding on the duration of a rental agreement. If you have real estate that is likely aimed at a family, a six-month lease may be less attractive. Although it does not necessarily have to occur in this way, as it also depends on the circumstances of potential tenants. If the term is longer than three years, the lease must be prepared and signed in the form of a deed. «With this type of expanded contract, we hope there will be more collaboration between landlords and tenants, both of whom will benefit from the accessibility and stability that long-term rentals can offer.» When a tenant moves and the property must be put back ready for rent (the notion of branch is «turn»), rental income is disturbed and expenses are often significant to restore the property to a commercial state. One of the main goals of any investor or manager should be to reduce the frequency of rotations and how to do it by increasing your average rental duration. But you can`t measure progress in this area until you have a consistent and efficient calculation method….